New Hampshire Real Estate Market Coming to Life!!!

By Monika McGillicuddy

It’s been a LONG dark winter in real estate but it seems as if the market is finally picking up!!! Unfortunately, many buyers start the home buying process before they’ve been pre-approved for a mortgage or before they have any idea what is on their credit report. This is a HUGE mistake.

Knowing what your credit and credit scores are and how they can make a big difference in your rates from everything from insurance to mortgage rates is crucial. Curious about “where Credit Scores come from, what they are, and why we have them” this article will answer those questions. Remember even in a Buyers Market you still need to show that you are pre-approved for a mortgage for the seller to entertain your offer.

My cyber friend George Souto from McCue Mortgage Co. wrote this article and he graciously allowed us to reprint it.

Credit Scores Where Did They Come From & What Are They???

By George Souto

All of the Post that I have read or written provided good information on how to improve your Credit, or on what effects your Credit Scores. But I have not seen any Posts on ‘where Credit Scores came from, what they are, and why we have them’. So I will attempt in this Post to begin to do that.

Before Credit Scores were established, a person was given credit solely based on another human being’s judgment and opinion. Each lender based their decision on what they knew about a particular person from their personal experience, or by information that someone else provided them with. This was not a very good or accurate way of making such an important decision.

So over a period of time lenders started to establish a system that would assign points to different components of a person’s Credit History. By doing this, a lot of the personal opinion was removed from deciding who a lender would give credit to, and who they would not. But this still did not completely remove a lender’s personal bias from the decision, and it was still a very slow process. Lenders continued to refine this point system, and by the 1980’s they began to develop the different Credit Models that are in place today. Since then much of the human influence was eliminated from the Credit Scoring Process. Score began to be generated by computers that were able to compute information accurately, and very quickly. Because of this lenders are now able to make credit decision solely on facts, without human prejudice involved in their decision.

First lets start with what are Credit Scores? Credit scores are numbers that lenders use to help them decide if they should lend a person money or make credit available to them, and how likely is it that they will pay it back. Credit scores are sometimes also referred to as “Risk Scores” because they represent the level of risk that a borrower will repay the money borrowed in the manor and time that it was agreed upon. Credit Scores are generated through statistical models which use information that has been collected on a person’s credit report. These scores are produced when a lender pulls credit on a borrower, and they are included with the borrowers credit history. However, the scores are not made a part of the borrowers credit history, because they only represent a snap shot of that moment in time.

As a borrowers credit information changes (payments, new accounts, etc.), so does their Credit Score, how and how much a Credit Score changes depends on the “Scoring Model that is used. There are many different models Consumer Models also know as Educational Models, Collection Models, Bankruptcy Models, Auto Models, and the one that the Real Estate industry is most familiar with Mortgage Models. Credit Scores vary based on what model is used, and even sometimes within these models. For example most Mortgage Companies and Banks will use a borrowers middle score to determining their credit worthiness and level of risk. However, some have modified the Mortgage Model to fit certain criteria that is more important to them then to another Mortgage Lender. For example this is the case with our Alt “A” products, they use a modified model which is stricter than the one we use for conventional loans. So in there case we use the lowest Credit Score to determine whether or not a borrower qualifies for one of those Loan Programs.

These Credit Score Models are developed by looking at the credit history of hundreds of thousands of borrowers to determine common traits and patterns. With this information Credit Score Models are then created by using this information to try to predict how a group of people with similar traits and behaviors will behave in the future. By doing this they can develop models that will place different weights and values on certain criteria which has more or less impact on that particular industry.

Credit Scores are not effected by a person’s race, religion, sex (or preference), marital status, or even if the person is on some type of government assistance. These things can not be considered in the information that makes up a person’s Credit Score. However, lenders can take into consideration age, salary, occupation, employment history and other similar information.

Next week I will try to further explain what happens once information is collected and applied to these different Credit Models, as well as why Credit Scores vary among the three major Credit Reporting Agencies in the US, Equifax, Experian, and TransUnion. Stay tuned for more.

Jay and Monika McGillicuddy

Prudential Verani Realty

Hampstead NH
603-548-7728

Biker Chick…A Polished Professional

I pulled up to the house I was showing about 10 minutes early. It was a pretty mild day here in NH and I noticed a big shiny Harley boldly parked in the middle of the drive. I got out of the car to stretch and enjoy a rare warm 55 degree January day…unusual temps for us! As I did so a woman came out of the garage and approached me. I asked her if I was blocking her in…since I wasn’t expecting a co-broker to show up I assumed she was the seller and would be leaving.
“Nope” she said.

She was dressed in jeans, big heavy work type boots, tank top and denim jacket..she had on lots of big silver jewelry and a big heavy looking chain link type belt around her waist. She held a key ring in her hand full of keys…so many keys it makes my hubby Jay’s key ring look petite and he easily has 10 keys or more on his…anyway she clipped the keys to her waist and came to stand near me.
I introduced myself and told her I was here to show the house.
She said she knew that and mumbled her name…which I couldn’t hear. I felt stupid for having said something as lame as I’m here to show the house…which is just as bad as saying “This is the kitchen…the bathroom” blah…blah as if you can’t tell it’s a kitchen…a bathroom. Talk about a dumb thing to say.

Me…”I’m a few minutes early”
She..”Yeah…I figured” now I really felt stupid!
Me…”Buyer should be here any minute”
She..”Okay” and light’s up a Marlboro and I admire her nose piercing….little cute tiny diamond (looked real) as the smoke comes out her nostrils.
Me…”Sure is a Nice day for a ride“…I’m trying to make small talk.
She..”Yup…sure don’t get many like this… this time of year” I watch as she expertly handles the butt between her fore finger and her thumb….she smokes like my son does. As a former smoker…I notice those things. I also notice to my dismay that close up she doesn’t really look any younger than me. Certainly more comfortable but no younger.

Her cell phone rings and she crushes the butt out and excuses herself to take the call….mumbling it was her husband calling and that he was out on his bike and she was joining him.

While she’s jabbering away on her cell my buyers drive up. Now I didn’t catch her name so I figured I’d just quickly wave to her and take the buyers and go inside…

She..”Hey wait up will ya” she hollers.
Me…”Oh okay.. we were just going to go ahead inside”
She..”Naw I’m done…lets go” and she extends her hand to the buyers and introduces herself as the listing agent of the house. Me…I had all I could do to not crack up laughing.

It was a pretty hilarious showing and I never ever would of pegged her as an agent…afterwards my buyer asks me if she was new or something..or maybe this was a part time job as she just didn’t look or act like a real estate agent. I didn’t know how to respond. But Yikes..I thought to myself…how true! I wanted to ask the buyers just how did they expect a real estate agent to look and act…but I didn’t.

So it got me thinking about NAR’s Field Guide to The Polished Professional …because when I first read it I laughed and thought how backwards of NAR to publish something like this…In fact I thought maybe it was a throw back from the 50’s or something. I’m still not sure if its not a joke….Did NAR really need to make suggestions on how REALTORS should dress??

Have you seen the Field Guide to The Polished Professional??

National Association of REALTOR®S field guide…Pointers for Becoming a Polished Professional.

(the bold is my added commentary)

Keep your wardrobe up to date with age-appropriate and stylish clothes in your correct size.Choose colors that flatter your skin tone and hair color….Good Grief..age appropriate…do I have to dress like my mother did?? Jeez I should even strive to make sure my clothes fit…and are stylish what a novelty! Flatter my skin tone and hair color…yikes I just wear what ever colors I like…plus my hair color changes often…I can’t afford to buy new clothes just to match it.

Enlist the help of a salesperson or personal shopper at your favorite department store.Or, if your budget allows, hire an image consultant…Are they serious …a personal shopper??? I know the code of ethics says that if I’m not competent I should engage the assistance of someone who is and who can help me but jiminy christmas… I’m a real estate agent…not a millionaire!

Shoes should always be polished and the heels in good shape; no sneakers or flip-flops while on the job. No Flip Flops…I have pretty feet even when I don’t have a pedicure, I just can’t get rid of my flip flops and sandals! They make gorgeous sandals nowadays ..I’m just not getting rid of them even if that means I ‘m a not professional!!!

Makeup and perfume should enhance, not mask. Get a professional makeover at your local cosmetic counter to find out what best suits you. Is this a joke…I wear make up to hide my imperfections…not enhance them LOL!

Get regular haircuts and keep facial hair well-groomed. Well okay I agree with that…my hubby has a beard and I like him hairy but trimmed.

Make sure that your nails are clean and manicured. Ummm….I don’t need NAR to tell me to do that…do you?

Jewelry and accessories should be modest, not flashy or distracting. I love my Jewelry and my motto has always been the more the better…what fun is it if I have to keep it hidden???

Keep your smile nice and white – don’t let it betray your age or your habits. Hmmm…promoting teeth whitening…I think! Does NAR hold stock in teeth whitening companies too??

Always use proper grammar. Use of slang, profanity or improper grammar shows your breeding and education, or lack thereof. Breeding and Education..oh my…really breeding? I jus dunno!

No gum chewing or smoking when you’re with a client – it’s just rude. I agree 100%…hey how about No answering your cell phone when you talking with a client…”oh excuse me Mr. client while I take this call cuz he’s more important than you are”

Mind your manners – open doors, extend small courtesies, and say “please” and “thank you”. Okay I like it very much when my husband does that…his mom taught him well.

Get some exercise. You’ll stand taller, and exude confidence. Gimme a break…get some exercise??? Stand Tall..that’s my mom talking..not NAR…is it? She used to tell me stand tall or you’ll get grandmas hump….

Express your personality in how you dress, but do it subtly. There’s no need to be a carbon copy of everyone else, but leave the exotic animal prints and the loud plaids at home. Express my personality…I wish I had taken a photo of that agent…she was definitely expressing herself. Does that mean I don’t have to dress appropriately and wear stylish clothes???Sounds a bit contradictory…no?

I guess I just had one of those days…

Monika McGillicuddy

Serving Southern New Hampshire and Rockingham County

Monika McGillicuddy Real Estate Training Website

NH Real Estate Blogs

Prudential Verani Realty

Hampstead NH Real Estate

603-548-7728