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Category Archive : Area Agents

Some Answers to Credit Score Mysteries

One of the most common things said when I am talking to a potential client on the phone is “I don’t want you to run my credit because it will drop my score”.

This is one of the most annoying statements made when you are trying to qualify a client for a mortgage. You simply can’t give them proper information without reviewing their credit report. So, I decided since how credit scores are calculated are somewhat of a mystery to everyone that I would elaborate some on this topic.

Each time a consumer applies for a loan, credit card or auto loan, they are having their credit checked. These credit checks are used by lenders to determine if the consumer is able to obtain financing. Every time a lender checks a consumers credit history, it shows up on the consumers credit bureau (Experian, Trans Union and Equifax) as an inquiry. These inquires can drop the consumers credit scores if too many inquiries are made in a certain period of time.

Many lenders rely on the FICO scores they pull when running a consumers credit history. These scores are tabulated by software from Fair, Isaac and Company Inc, along with what information is on the consumers history. Due to increasing pressure on Fair, Issac and Company to release how their software works, they have released information on how their scoring model calculates a FICO score for the consumer.

Inquires on a credit report are an indicator of risk and according to Fair Isaac and Company, the more inquires made means the more likely the consumer will not be able to pay his bills. When consumers want to buy or refinance a home, they usually contact more then one mortgage company for information. In order for the consumer to get accurate information from several mortgages companies, they need to have their credit checked by each mortgage company which in turn leads to many inquiries (especially if using an online site which shops various lenders). Since too many inquiries lead to lower scores, eventually the consumer could lose out on decent financing because their scores are too low.

Now for some good news and a way to combat that dreaded statement in the beginning of the article.

There is a new policy at Fair Isaac and Company, the software will ignore all auto and mortgage related inquiries that occur in the previous 30 day period from the time the credit is checked by the lender.

These inquiries will not be used to tabulate the credit score for the consumer. For each 14 day period prior to the 30 day period, only 1 inquiry will be counted no matter how many inquires where made during a particular 2 week period.

Inquiries on a credit report carry the lowest impact on scores. Things like high balances in relation to credit limit, recent late payments, judgments, and bankruptcy carry much more weight in tabulating a score. This information should be very usual to combat the consumers resistance to pulling credit because it will effect their scores.

Real-estate agents and mortgage professionals need to remind their clients that it is critical to sit down and review credit in order to provide options on the mortgages that they qualify for. This is the only way to provide the client with accurate information.

Las Vegas Discount Realtor?

Is there still a need for Las Vegas Discount Realtors in this real estate market?  The premise for discount Realtors was to discount their “commissions” to make it more affordable for those sellers that only wanted to pay for certain services.  So instead of providing a full service, discount Realtors only provided the services the seller was willing to pay.

Back in 2004 and 2005 when homes were flying off the market as soon as they were placed for sale, sellers were looking for discount Realtors as they knew their home would sell as soon as they entered it into the Multiple Listing Service.  Even full service real estate brokerages were lowering their commissions in order to satisfy their sellers as they knew the real estate market wasn’t bearing a 6% or 7% commission.  But that is just not the case in this real estate market.  There is way too much inventory and in order to sell a home, it is imperative that a home gets as much exposure as possible to get potential buyers to walk through the door.  Which means, Las Vegas Real Estate Agents need to market their listings, which costs money!

Many Las Vegas Discount Realtors, not all of them, just place their listings in Multiple Listing Service and wait for another Las Vegas Real Estate Agent to bring them a buyer.  Unfortunately, that is not going to sell a home in this market!  There are way too many homes for sale and now that homeowners have to compete with bank owned and short sale properties, it is imperative that they price their home accordingly and their real estate agent needs to get as much exposure as possible!  So I just don’t see where a discount Realtor can compete with a full service Realtor and provide the same marketing and exposure the home needs to sale.

Where Are All The Las Vegas Real Estate Agents?

I have been following the news and reading the newspaper about so many Las Vegas real estate agents having to get part time jobs just so they can survive. Many Las Vegas agents have given up on a career in real estate all together.

 So what’s my point? 

Well, I have been trying to hire new agents for the last 2 months and it’s like trying to find a needle in a haystack. I am very active online and participate in many real estate forums and it appears that many real estate agents all over the country are looking for leads.

But if that’s the case, why I am having such a hard time finding agents to give business? I have personally emailed them, posted on craigslist, posted in real estate forums and sent out bulletins on Myspace.  Can you believe I have had only 1 Vegas agent contact me?

I guess maybe the agents that are still working are doing very well and don’t need any extra business or maybe the just don’t want to work with me?  Nah, that can’t be it?