How to Build Credit

The whole point of credit is to show that you are a responsible adult who will be able to pay a lender back when applying for a loan. Applying for a loan is especially difficult if you do not have credit. It is a good idea to start building credit at a young age. The sooner, the better. It is something that is definitely not taught in school but it should be. This information would have been so much more helpful than geometry in my personal opinion. You will need a few nuggets of advice first before you start your financial journey.



Get a credit card. There is a lot of negativity associated with credit cards and I understand. They are a quick way to debt before you realize it. Despite this, they are also a good way to build credit. The trick is to start off buying small things like gas and then paying it off completely each month. It will show the lenders that you are great at paying back debts. It’s important that you use the credit card every month, not that you have it and it sits in a drawer otherwise it defeats the purpose of having it.



Once you have one credit card, then get another. One line of credit is okay but two are amazing. This can be something small like a clothing store credit card. Get your work clothes from the store and pay it off every month as well. Different lines of credit create variety in your hypothetical portfolio.



Get a small loan. This can be as simple as a student loan. Paying back a little loan will open the doors for you to qualify for large loans such as a loan for a car or house. It may even be beneficial to take out a menial loan just to pay it back almost immediately. This is a quick way to build credit fast if you’re in desperate need of good credit.



Get something in your name. Whether it is a gas bill or auto insurance, a bill with your name on it signifies you have been paying someone consistently. Rent, utilities, and phone bills are all included in helping your credit score grow.



Credit building can be intimidating. Don’t let the details bog you down. Start with these few simple tricks and you will have an amazing credit score in no time.



Interested in building your credit to buy or invest in a home?
Tom Davies with Fairway Independent Mortgage Corporation
can guide you to methods or resources that will work best for growing YOUR credit score.

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Homestead Exemption

Every tax season is a nightmare. This little tidbit of knowledge can help ease the burden of taxes this year. This tax season save money on your home with the Homestead Exemption. It is an exemption of the assessed valuation.


A homestead is any structure, condominium or home located on owned or leased land as long as the individual lives in it. It can include up to 20 acres as long as it is owned by the homeowner and used for a purpose related to residential use. The exemption removes part of your home’s value from taxation thus lowering your taxes. Not all homes qualify; only the principal residence of the homeowner.


To qualify you must be a resident of Oklahoma and the homeowner that resides on the property by January 1st with the deed executed before January 1st and filed with the County Clerks Office before February 1st. You may file it for two years up to the delinquency date. Once you have applied for and granted the Homestead Exemption then you do not have to continue applying as long as you continue to occupy the homestead home.

pexels-photo-296886.jpegYou may even be able to apply for an additional exemption if you qualify for the original homestead exemption and are head of the household. There are several options including county, school, disabled, optional percentage and senior tax exemptions. This is potentially another $1000 if your total annual income did not exceed $20,000 the previous year. Apply today from our Oklahoma County Assessor site.



New Year, New House

It’s already the New Year people and it’s time for big ideas and big changes. There is the one thing that has been on your mind for a while now but can’t seem to get started. Now is the time. Those homes you have been eyeballing secretly, following the buyer’s apps, and drooling over those historic district houses, well now is the time to act.

Make your New Year’s resolution to treat yourself
to a well deserved new home.
You’ve survived through 2017 so you’ve earned it.


Why is the New Year a good time to buy? Tax Deductions. Start this year off right with huge tax deductions that are ready to be taken advantage of. Next year you will thank yourself while filing in February. I know it seems like a long way off now but so did the end of 2017, am I right?


In addition to the usual perks of buying, the holidays and New Year make everyone a little more jolly. The freshness of the New Year may make people nicer as you start your journey into purchasing. Your real estate agent will be more attentive due to slow traffic; the seller may be easier to negotiate with in the spirit of the season. YOU will be less stressed and more easy-going in light of the exciting prospects of ownership.


Not many people shop for houses this season so many sit on the market for a long time. This will save you money by getting a great deal in a slow market. Sellers will be thrilled to negotiate and sell to you after waiting a spell on a bid.


It’s better than renting. On rentals you are essentially burning your money each month. Buying is an investment that will eventually make you money if you ever decide to sell your home.

Make your New Year work for you, make your new year’s resolution to own.




It’s the Most Wonderful Time to Buy

Winter gets a bad rap. It’s known for the cold, bad driving weather and terrible hair days from the elements. Despite the negative connotations, it does have some upsides and one of those include a great time to purchase a home. If you are toying with the idea of purchasing then consider these points.

First of all, someone moving in winter probably needs to leave his or her property quickly for job relocation. These owners are more willing to negotiate which benefits the buyer because the buyer can get a better deal. To say what everyone is thinking, they are desperate. Which is good news for you. On the flip side, do not list your house in the winter if you are trying to get the most out of the sell. Bargain hunters are on the prowl for a good fixer upper.

House prices are annually at an all time low in the winter season. The buyer will get more purchasing power and get more bang for your buck by purchasing at the end of the year. This is due to lower level of listings and preoccupation with more pressing motives such as holidays and family.

Touring homes in winter can be rewarding. Right away you can tell if the windows are drafty, if the central heating and AC are working, or if your feet are already freezing on the hardwood floors. This can save you costs in the future and make huge impacts on your future daily life.

Winter may just be your season this year.




Benefits of Buying

Renting is overrated. The money is being thrown into the wind while your landlord is rolling in your hard earned cash and paying off their mortgage while telling you they’ll get to that leak under the sink “soon.” I remember renting one year when I didn’t even see the landlord. I couldn’t tell you what they looked like. My dishwasher was broken and the maintenance man told us to not use our health hazard heater because it was outdated. Needless to say it was a cold winter and we moved out of there quickly as possible. Does this sound like a familiar situation? Then you may be ready to sail into the sea of ownership where you are the Captain and that ship is under your control.

Buying a home comes with certain freedoms. One of those freedoms is not having a landlord. You are able to paint, hang wall art, and landscape as you please without the risk of not getting a deposit back. There are no noise restrictions, pet deposits, or remodeling. Butters, the hound, can run and be free in his house without his human worrying about what the landlord will say about his accident on the carpet. Renting stifles this ability to truly make a space your own. A home is yours to customize into a beautiful space that mirrors your personality with no guilt.


Taxes are a big stressor. Who doesn’t want a little relief when April comes around? Homeowners are offered several tax breaks. Some of those include Mortgage Interest, Tax and Penalty Free IRA, Home Improvements, Energy Credits, Home Equity Loans, and Real Estate Taxes. There is even a Home Office credit if you work from home. So many deductions, so little stress.

A homeowner’s net worth is 45 times that of an average renter. While rent is never recovered, mortgage payments build equity. It is an investment in the future by increasing an individual’s net worth. Not to mention it is cheaper to buy than rent. The average mortgage is lower than a rental payment and over time the interest portion of the mortgage payment decreases therefore the interest that you pay will be lower than a rental cost.


Having a home in a neighborhood provides a sense of community. You know your neighbors. You know where your children will grow up and go to school. You know that you can walk your dog every night with a peace of mind. One doesn’t always get that when renting because you never know when the rent may be raised depending on your lease. You may not even be able to renew your lease when the time comes. Community is a sense of stability and security.

Free yourself of the waves of rent, buy your dream boat.


Come to our First Time Home Buyers Workshop if you would like to learn more on August 26th:

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The Home Loans: Which ones work for whom, and why?

Fixed-rate loan

The most common type of loan, a fixed-rate loan prescribes a single interest rate—and monthly payment—for the life of the loan, which is typically 15 or 30 years.

Right for: Homeowners who crave predictability and aren’t going anywhere soon. You pay X amount for Y years—and that’s the end. The rise and fall of interest rates (like the nationwide increase that followed the Fed’s action in December) won’t change the terms of your loan, so you’ll always know what to expect. That said, they’re best for people who plan to stay in their home for at least a good chunk of the life of their loan; if you think you’ll move fairly soon, you may want to consider the next option.

Adjustable-rate mortgage

ARM loans offer interest rates typically lower than you’d get with a fixed-rate loan for a period of time—such as five or 10 years. But after that, your interest rates (and payments) will adjust, typically once a year, roughly corresponding to current interest rates. So if interest rates shoot up, so do your monthly payments; if they plummet, you’ll pay less.

Right for: Home buyers with lower credit scores. Since people with poor credit typically can’t get good rates on fixed-rate loans, an ARM can nudge those interest rates down enough to put homeownership within easier reach. These loans are also great for people who plan to move and sell their home before their fixed-rate period is up and their rates start vacillating.

FHA loan

While typical loans require a down payment of 20% of the purchase price of your home, with a Federal Housing Administration loan, you can put down as little as 3.5%.

Right for: Home buyers with meager savings for a down payment. These loans come with several caveats. First, most loans are limited to $417,000 and don’t provide much flexibility: Rates are typically fixed, with either 15- or 30-year terms. Buyers are also required to pay mortgage insurance—either upfront or over the life of the loan—which hovers around 1% of the cost of your loan.

VA loan

If you’ve served in the United States military, a Veterans Affairs loan can be an excellent alternative to a traditional mortgage. If you qualify, you can score a sweet home with no money down and no mortgage insurance requirements.

Right for: Veterans who’ve served 90 days consecutively during wartime, 180 during peacetime, or six years in the reserves. That said, the VA has strict requirements on the type of home you can purchase: It must be your primary residence, and it must meet “minimum property requirements” (that is, no fixer-uppers allowed).

USDA loan

USDA Rural Development loans are designed for families in rural areas. The government finances 100% of the home price—in other words, no down payment necessary—and offers discounted interest rates to boot.

Right for: Families in rural areas who are struggling financially. These loans are designed to put home ownership in their grasp. The catch? Your debt load cannot exceed your income by more than 41%, and, like the FHA loan, you will be required to purchase mortgage insurance.

Bridge loan

Also known as a gap loan or “repeat financing,” a bridge loan is an excellent option if you’re purchasing a home before selling your previous residence. Lenders will wrap your current and new mortgage into one payment; once your home is sold, you pay off that mortgage and refinance.

Right for: Homeowners with excellent credit and a low debt-to-income ratio, and who don’t need to finance more than 80% of the two homes’ combined value. Meet those requirements, and this can be a simple way of transitioning between two houses without having a meltdown—financially or emotionally—in the process.