Real Estate Information

Make A Resolution To Redeem Your  Home-Buying Potential

If you’re looking to buy a house within the next 12 months, why not make one of your resolutions one that will improve your financial situation and position you as an ideal home buyer? That’s right – we’re talking about your credit score.

The lending world has changed considerably since the boom days and so has the credit score required to qualify for a loan, not to mention a low interest rate. "About two years ago, you could have had a score of about 620 or so to get a lender's best rate on something. Now, lenders are really looking at a rate of 760 at the least,” said Kelli Grant with SmartMoney.com. First-time homebuyers fare much better, needing a credit score of at least 660 unless they try for an FHA loan. The truth is, to be a “good” buyer in the eyes of lenders you need to keep a close watch on the state of your credit score. Here are several tips to maintain and improve upon your current number.

Get copies of your credit report--then make sure the information is correct.  Go to www.annualcreditreport.com.  This is the only authorized online source for a free credit report.  Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months.

How many and what types of credit accounts do you have?  Many credit-scoring models consider the number and type of credit accounts you have.  A mix of installment loans and credit cards may impove your score.  However, too many finance company accounts or credit cards might hurt your score.  To learn more about credit scoring, see the Federal Trade Commission's website, Facts for Consumers.

Beware of credit-repair scams.  Sometimes doing it yourself is the best way to repair your credit. The Federal Trade “Credit Repair: How to Help Yourself” explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.

Source: http://www.federalreserve.gov/pubs/creditscore/default.htm

Brought to you by Randy Charlton of Century 21 Home Realtors.

Current Mortgage Rates As Of Today: 30 Year Fixed Rate Is 4.61%.

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Top 5 Steps Toward Improving Your Credit Score

Home prices and interest rates are down, and your desire to buy a home is high. But many of my clients worry that their credit score just isn’t good enough for lenders to see them as a worthy credit risk, especially in light of today’s tougher credit and lending standards.

I am often asked if there is anything that can be done to improve your credit score. There are, in fact, several steps you can take. Here are five great suggestions from Bankrate.com:

1.Order your credit reports. You can do it for free once a year at annualcreditreport.com. If you've been denied credit, you are entitled to a copy of your report from the reporting agency. The company you applied to must supply the contact information and you have 60 days after denial to request a copy.

2.Examine your credit reports. Creditors do not necessarily report to each agency, so you may find differences in reports—and credit bureaus do not verify the information they get from creditors. Note any errors, such as incomplete or outdated information or inaccurate account histories. If you find errors, such as a paid-up account that was not reported or a difference in the amount owed, proceed to step number three.

3.Dispute and document. Complete the dispute form that came with the credit report or write a letter identifying each mistake and stating why it is wrong. Include a copy of the report with errors circled and copies of any supporting documents. Keep copies of everything you send. The credit bureau must investigate disputes within 30 days of receiving your letter. Items not verified as accurate by a creditor are removed and you will be sent a free, updated report.

4.Fix negatives. Call your creditors and ask for reduced monthly payments to help you keep current. See if the repayment schedule for fixed-rate loans can be extended. This may end up costing you more, but may keep you from being reported as delinquent. Arrange to pay off accounts in collection. Slowly close out unused credit accounts. Don’t cancel them all at once, as this may negatively affect your score. Remember, cutting up a card is not the same as closing the account.

5.Add positives. If you have a good credit history from a company that does not report to a credit bureau, ask them to do so. Apply for a secured credit card and build a solid payment history. Open a savings account to show creditors you are working to save and have reserves to help pay down debt.

Remember that your credit score is not always set in stone. There are actions you can take immediately to raise your score both in the short term and long term.

Brought To You By Randy Charlton with Century 21 Home Realtors

I've been getting a ton of questions lately regarding Foreclosure or Bank-Owned properties.

The biggest question: where did all the bank owned/reo inventory go?

Over the past few months the number of "new" bank owned properties to hit the market has decreased significantly here in our area.

Speculation is that the banks are holding on to this inventory and just releasing a small number of properties in order to drive up resale values.

Is this actually the case? Could be, but I also believe there are a number of successful "Loan Modifications" taking place. The banks aren't in the business to "take back" a large number of homes and then turn around and sell them. If they can process a successful loan modification it benefits them and more importantly the current homeowner.

I also believe that investment groups are buying the foreclosed homes at auctions prior to the bank taking them back as foreclosed inventory. You can read more about that and get an update on Foreclosure here in California by clicking here!

So what does the future hold for the reo inventory ... I don't think anyone has a solid answer and only time will tell. Are more foreclosed homes going to be released for sale? Yes. How many and when? Not sure.

Make it a great week!

Brought To You By Randy Charlton of Century 21 Home Realtors

Current Mortgage Rates As Of Today: 30 Year Fixed Rate Is 4.74%.

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Current Mortgage Rates As Of Today: 30 Year Fixed Rate Is 4.73%. 

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Current Mortgage Rates As Of Today: 30 Year Fixed Rate Is 4.84%. 

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Senators have agreed to extend the $8,000 first-time homebuyer tax credit originally set to expire on November 30. Once the Senate officially votes on the bill it will move to the House of Representatives, which strongly supports the extension. The Obama administration has also signaled its strong support for an extension of the tax credit.

Aside from the first-time homebuyer credit, the new plan would offer a $6,500 credit for repeat or move-up homebuyers who have lived in their primary residence for five years or more. The tax credits would be available to buyers who sign purchase agreements on a new or existing primary residence between December 1, 2009 and April 30, 2010. Buyers would have until June 30 to close on their new homes.

There is an $800,000 price limit on all homes eligible for the credit. The income limits for all buyers would rise to $125,000 per year for individuals and $225,000 for married couples. Under the current program, the limits are $75,000 and $150,000 respectively. The first-time homebuyer credit is also available to those who have not owned a home in the previous three years.

The credit does not have to be repaid unless the home is sold or ceases to be the primary residence within three years.

According to the Treasury Department, more than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the first-time homebuyer tax credit.

Please be advised that this legislation has not yet passed, but I will be sure to keep you informed as it moves through Congress toward approval. I’m committed to meeting your real estate needs. Call me if you have any questions!

Brought To You By Randy Charlton Of Century 21 Home Realtors.

The Current Market Is Fragile

I just read an article that talked about the current state of the real estate market.  It appears the experts believe we have hit the bottom of the market crash and home prices have shown to be increasing.  The mortgage rates are still at historic lows and the tax credit for first time home buyers appears to be doing it’s job. 

There are still many waiting and hoping that the tax credit will be extended and maybe even increased.  Others are hoping that the tax credit will be offered to all home buyers and not just ‘first time’ home buyers.  The wait to see which bills pass congress will be filled with anxiety. 

There is also the matter of the ARMS loans coming due and the foreclosures that may follow.  The increase in foreclosures could potentially cause home prices to fall again. 

Become informed of the current market and contact a professional before making any real estate decisions.  With the fragility of the market...timing is everything.

Brought To You By Randy Charlton Of Century 21 Home Realtors.

Current Mortgage Rates As Of Today: 30 Year Fixed Rate Is 5.00%. 

Brought To You By Randy Charlton Of Century 21 Home Realtors