Why Get More Credit?

Credit, Bad – Debt-Free, Good

Credit Cards

If you’ve read any of my previous blog posts about credit, you know that I’m not a fan of people getting all kinds of different credit. I am a firm believer that being debt-free is an amazing way to live. You never have to worry about where your money needs to go, how much you need to make to pay all those various bills, or worry about what will happen if something happens like a job loss or a medical diagnosis.

You may also know that I am now a REALTOR®. I want to help people learn about that process so they can get into a home that they can afford without stressing about the increasing costs of ownership.

My Friend Paul

Paul Nolte

As a REALTOR®, a trusting and honest relationship is established. If you are a seller, I represent you in any negotiations once a Listing Agreement is signed. If you are a buyer, I represent you in any negotiations once a Buyer’s Representation Agreement is signed. Without an agreement, you are on your own when it comes to navigating the contract paperwork and any negotiations.

Paul Nolte is one of the partners and a preferred Mortgage Loan Originator from Home Team Mortgage at our Ebby Halliday, REALTORS® office in the Plano/Willow Bend area.

We’ve had several conversations about clients who need help getting a loan. One reason a contract will fall through is an issue with credit. That’s why it is so important to start working on your credit immediately, preferably six months before you want to purchase a home.

Paul has provided an article on how to improve your credit when preparing to purchase a home.

My Take


Although I can appreciate having a variety of credit avenues open to show credit worthiness, sometimes, that is not a good thing for people.

If you have a habit of keeping a balance on your credit cards, then maybe a better way would be to keep one credit card and maintain control of your spending.

I was divorced in 2002 after an almost 15-year marriage. After six years, I managed to pay off my debts and only kept one credit card. Over time, I had several car loans for various lengths of time and maintained a zero balance on my credit card. With a credit score over 800, I had no problems qualifying for a loan for a house.

Everyone needs to decide their own path when it comes to finding a great home. If you choose wisely, your credit can help you achieve the goals you want. However, if you neglect what is happening with your credit, it may prevent you from getting that house.


Here’s a brief list of things that can trip you up when trying to purchase a home.

  1. Missed payments on loans.
  2. Late payments on credit cards
  3. Late utility payments
  4. Eviction
  5. Bankruptcy
  6. Foreclosure
  7. Too much debt-to-income ratio. If you owe more than about 36% of your income towards bills, you may not qualify for a loan.

There are also ways people can sabotage the loan process.

During the contract period, you start to purchase items for your home:

  1. Riding mower
  2. Refrigerator
  3. Washer and dryer
  4. Vacations

Once you are under a contract, do not make any changes that could affect your credit or your debt-to-income ratio. You’ll have time to purchase those items after you move into your new home.

Reach out to me so we can work together to make sure any credit issues are addressed before trying to purchase a home. Visit my business website for contact information.

Get the Pre-Underwritten Brochure!



3 Ways To Immediately Start Improving Your Credit

Credit Catch 22

Catch 22 Loan

Your credit score is a double-edged sword. On the one hand, you need it in order to get loans for things like cars and houses. You will also need it to qualify for a lease. On the other hand, if you aren’t careful with your credit choices, you can end up in a credit crunch. This can make it very difficult to qualify for loans and leases.

I’ve been on all sides of the credit issue and have even written a book related to that experience. When it comes to buying a home, your credit is the first thing that gets looked at when you need to take out a loan for a home. Lenders will look at every aspect of your credit to determine if they will back a loan for you to purchase. In today’s market, it is so important to get pre-approved or even pre-underwritten for a loan so that when the house you want comes on the market, you are ready to go.

Here are three things you can start doing today that will begin to improve your credit score without resorting to debt-consolidation plans or filing bankruptcy.

Pay Every Bill On-Time

Fix My Credit

Nothing screams at your credit louder than missing payments on credit cards and utility bills. They are red flags to lenders. If you fall into this category, start paying your bills on-time. It may take six months to fix your credit this way but it’s an easy fix if you want to change your situation.

Don’t Use Credit

Don't Use Credit Cards

It’s ok to have credit. It’s not ok to have so much debt related to credit that your debt-to-income ratio gets so high that no one will loan money to you for a purchase. Typically, if you have 35% or more of your income dedicated to debts – and that includes your rent, then it will be more difficult to get that loan. The best option is to simply stop using your credit cards and don’t open any new accounts. Lenders will also tell you not to close any accounts. If you are paying all your bills on-time and no longer using your credit cards, then it just goes to say that your debt-to-income ratio will start to go down the longer you pay.

Start Saving

Piggy Bank

You’re going to need a down payment for that house you want to buy unless you are using a VA loan. Do you need 3.5%, 5%, or even 20% down when you purchase? Your decision will determine if you need to secure mortgage insurance on your loan. VA loans are for military – active duty and veterans – as a way to say thank you for your service. Other programs are available such as the Military On The Move program.


Take care of your credit and it will take care of you when it comes to larger purchases. Reach out to me if you are ready to search for a home or if you need more information about fixing credit issues so you can purchase.

Request a free brochure on steps you can take to get ready for pre-approval of your loan.


Can’t Afford To Buy?

The Issues

Buy A Home

So you want to buy a home?

The only problem is that your credit isn’t where it should be, or you don’t have enough for a down payment, or you filed bankruptcy, or you’ve been late on some bills.

But the cost of renting is so high right now!

Rent is as much as a mortgage.

A Way Forward

Home Partners Of America

Let me tell you a little about Home Partners of America.

Home Partners of America works with you to get you where you want to be.

Here’s how it works:

  • Search for your dream home
  • Home Partners of America will purchase it for the fair market value
  • They own the home now so they lease it to you
  • You work out any financial issues while leasing the property for up to three years (renewable on an annual basis)
  • You get the Right to Purchase that home at any time during the lease period

If you decide after moving in, that it isn’t the dream home you had hoped for, simply finish out your lease for that year and move out. Simple.

What’s the catch?

There isn’t much of a catch. Up front, you already know all the numbers. Your rent will be slightly higher than what you can rent a comparable home in the area for but don’t forget you have the right to buy the home.

Each year for the three years, the rent goes up a little as well as the price of the house. However, if the market causes the surrounding homes to go up quicker than your schedule, then you get the home at a discount. And – if the market starts to drop, again, you can simply finish out your lease and move on. That seems like a pretty good win-win situation.

You have one shot at it so make it count. This isn’t a program you can repeat. For one time, you get to find your dream home, lease it for a while and then have the right to purchase it. If you choose not to purchase, you can’t do it again.

How does Home Partners make money?

They are purchasing the home when you are ready and approved to lease it. That’s a fixed price for them. They charge you rent which cannot be used towards a down payment so they get that income. When you purchase the home, the price is appreciated at about 5% per year. Finally, if you back out of the lease, they turn around and lease the property to someone else as a regular lease property. It becomes part of their leasing inventory.

Next Steps

Simple. Send me an email requesting information about Home Partners of America. I’ll send you a link to register with them and then we can get together and find that perfect home for you.

Just The Facts – Light Farms

Last Tuesday, I went with several Realtors® on a tour of homes being built in the Light Farms community located in Celina, TX. It was a quick drive from the Ebby Halliday Plano/Willow Bend office, North on the North Dallas Tollway, past 380 to get to the location. The Light Farms community was established in 2012.

They are finishing phase one of the development now and have already started on phase two.

Here’s what I found out.

The Builders

Light Farms Builders

Light Farms Homes

The lot sizes vary depending on the size of the homes. Lot widths available include 50, 60, 70, and 80 foot, with plans to add additional housing with a 40-foot width lot.

The Development

Light Farms Pool

  • 1070 acres
  • Prosper ISD schools
  • Five pools
  • Tennis
  • Pickleball
  • Basketball
  • Bocce
  • Volleyball
  • Workout Facility
  • 150+ acres of green space
  • Stocked lakes
  • Swimming
  • Community Agriculture Program and Farmer’s Market
  • Beehive colony – Natural Honey available at Amenity Center
  • Retail center coming soon

Light Farms Farmers Market

Light Farms Amenity Center

The Pricing

  • $300K – $1M
  • HOA – $130-144 per month
    • Event Planning
    • Front Yard Maintenance
    • On-Site Security monitoring
    • Common Area Maintenance
    • Access to all amenities
    • Gym Membership


Construction is in full force right now with 60+ homes ready to move-in. There are various lots available also.

Things to consider

  • Easy access to the North Dallas Tollway and 380.
  • Train track that runs through the neighborhoods – one train daily.
    • Trains run in silent mode to reduce noise.

 For More Information

Interested in one of these properties?

Contact me and we can set up a showing.

Ebby Halliday Logo

Patrick O’Connor – REALTOR®

Ebby Halliday, REALTORS®

6400 W. Plano Parkway

Plano, TX 75093

o: 972.608.0300x8669

c: 972-839-0541



IABS Forms

The Texas Real Estate Commission (TREC) statutes now require all real estate license holders to give a completed IABS form to prospective buyers, tenants, sellers, and landlords.

IABS – Information About Brokerage Services

The form describes the various relationships you can have with a broker.

The Texas Real Estate Commission Consumer Protection Notice is also provided.


Real Estate

Career Update!

Just a quick post announcing my affiliation with Ebby Halliday, REALTORS®.

I am an agent at the Plano/Willow Bend office.

Here’s where you can find my personal business page.

I’ve added a link to the sidebar to help you if you want to find out what your home in North Texas is worth.

I promise that real estate will not be the only thing you see here. I am starting this blog up again covering a wide variety of topics.

Thanks for your support.