The Fair Isaac Corp., the creator of the FICO credit score - recently unveiled a new scoring model for determining credit scores. It is being called FICO 08. The Better Business Bureau of Mississippi offers the following information about FICO 08 and changes it contains can affect consumers.

FICO scores range from 300 to 850, with higher scores being better. They are based on consumer credit history and reveal the risk level on loan defaults. A good credit score is anything higher than 700.

"A low FICO score keep consumers from getting loans to buy a house or car," said Bill Moak of Madison, MS president/CEO of the BBB of Mississippi. "Today, many landlords, utility services and employers are now relying on these scores as well. This means that a bad score can keep someone from getting a good insurance rate, an apartment, or even a job."

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No Major Purchase of Any Kind

This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings...and automobiles, of course.When you get a raise or accumulate some savings, you may find yourself confronted by an innate instinct of modern civilized men and women.... the desire to spend money.  It begins simply, by going out to restaurants, and then accelerates to purchasing clothing, electronic gadgets, and since North Americans have a special fondness for the automobile, you may even buy a "brand new car."

If you're married or ambitious, a few months later your thoughts eventually turn toward buying your own home. Or a move-up home, if you are already a homeowner. Next, you contact a loan officer to get pre-qualified for a mortgage loan. You state your desired price and how much you can put down. You provide your income and may even supply pay stubs and W2 forms. The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet). "If only you didn't have this car payment..."

Don't Move Money Around

When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.  If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.

The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer.

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Negotiating is the most challenging aspect of the home buying/selling process. The buyers are trying to negotiate the best deal for them. You are trying to negotiate the best deal for you.   Each offer should be taken seriously and every effort should be made to successfully negotiate it into a contract.

There are three essential parts to a valid contract; Offer, Consideration and Acceptance. The OFFER is  what the seller wants to receive for his CONSIDERATION.  ACCEPTANCE is when both parties are in agreement to the terms, and consideration; in other words acceptance is what the seller is willing to give you in exchange for what you are willing to give him.

Once your offer is made, you and your Realtor may need to enter some negotiation in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process -- that is, if you have adequate information and you use it in an appropriate manner. Your agent will have the market knowledge and negotiating expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.

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The first thing you should do when considering building your home is to come up with a budget and STICK to it.  Your budget should be in place even before you decide on a builder.  When you plan your budget first you know upfront what you can afford to pay a builder.

When it comes to building your own home here are several things that you will need to take into consideration.  You should take into consideration the cost of the house, the land and any extras you may want to add to the house.  Be sure to take into consideration the landscaping you may want to do in order to get the best curb appeal.

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STEPS TO BUYING YOUR MADISON MS REAL ESTATE HOME

Purchasing real estate is one of the biggest investments you will ever make. It is a decision that will have lifelong implications, therefore it is very important to understand the key factors to consider before purchasing real estate. Here are 10-steps to give you some insight about the home buying process.

Step #1 - What Can You Afford?

To find out how much you can afford, it is best to speak with a Mortgage Professional. To find a good mortgage broker consider consulting with you friends and/or family members who currently own a home. After talking to a Mortgage Professional you will know weather or not you need a down payment, how much of a down payment you will need, your potential interest rate and all of the necessary criteria required to qualify for a loan. Once you choose your lender and provide them with the necessary documentation, you will be given a Pre-Approval Letter that states how much you can afford, your interest rate and the terms of the loan. Key Points: 1. Not all Lenders are created equal so it is a good idea to shop around. 2. Make sure you are given a Pre-Approval letter not a Pre-Qualification letter. 3. Beware of the bait and switch technique. This is when lenders get your attention by advertising an attractive interest rate only to increase it after you are locked in.

Step#2 - Choosing the Right Property For You

The decision of what type of real estate you purchase will consist primarily of, how much you can afford and your reasons for buying. After consulting with a lender, you will know what you can afford in terms of a Condo, Single Family Home, or a Multi-Family property.  The questions you should ask yourself is "What are my goals for my real estate purchase?"  This will help you better define what type of property suits your needs. The financial commitment is significant, and not every property fits the needs of its potential suitor, so it is important that you consider the goals for your real estate purchase, both short term and long term. For example if it is going to be your primary residence, you want to make sure it can comfortably accommodate your current and future family i.e. children or in-laws. If the market takes an unfavorable turn and it become difficult to sell then you can still live comfortably in your home until the market recovers. Key Points: Always consider the short term and long term goals of your real estate purchase. It all starts with your reasons for purchasing real estate.

Step#3 - Finding a Home

Now that you understand the lending process and have narrowed down the type of property you are looking for, its time to start looking. So where do you start? I would recommend finding a local real estate professional. You will have professional representation at no cost to you, and it will surely make the process a lot smoother.  Buyers Agents are paid at closing by the seller. The total commission is split between the buyer's agent and the listing agent

Step#4 - Attorney or No Attorney?

Real estate brokers and agents are professionals at finding an ideal home and negotiating the terms, but attorneys are experts at reviewing and explaining contracts. As a result, it is best to have an attorney review all contracts before entering into any agreements with the seller. The best way to find a good attorney is to ask your real estate agent. Real estate agents regularly work with a number of attorneys in many different capacities and know which attorneys will be best based on your specific needs.  It is in the agent's best interest to recommend an attorney that they know is competent, trust worthy and focused on protecting their client's interest.

Step#5 - Making an Offer

Before placing an offer on a home you should know how much it is worth to ensure the listing price is in line with the actual value. Ask your agent to provide you with a CMA (Comparative Market Analysis). A CMA compares homes based on size, location, condition and several other factors to estimate the value real estate in a given area. As a result you will see what similar homes have recently sold for. This will give you a better understanding of the market and help you to better gauge your offer. It is also important to understand that everything is negotiable. For example if you see any furniture, appliances, a chandelier or anything that you like, include it in the offer. This strategy can sometimes give buyers more leverage when negotiating. Even if the seller does not want to sell their personal property, it gives you the buyer an additional negotiating point. It also is important to include contingencies in the offer as well. The most common types of contingencies are a mortgage contingency and an inspection contingency.

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