Maintaining a good credit score can help you in a number of financial situations. For example, most lenders use your FICO score to judge credit worthiness. FICO stands for Fair Isaac Corp. which analyzes credit information to come up with a score.
A good score can mean a lot when it comes to your interest rate for car loans and home loans.
One key to keeping a good credit score is a combination of continuing to use your credit responsibly and paying down balances as soon as you can. I think it’s better to pay your credit cards off each month to avoid paying the high interest. So don’t buy more than you can afford to pay off.
To make sure you don’t have any credit errors, check your own credit at least once a year. You can get a free report from each of the three credit reporting agencies.
For a free copy of your credit report from all three agencies, you can visit: www.annualcreditreport.com They will ask several questions to insure security and also ask you to pay for an upgraded report, but a free report is available.
I hope you find this information helpful. I feel we all need to be more careful about using credit. But credit can be a useful tool when we need it.
~ Barry
Some homeowners wonder what would happen if they were to stop paying their mortgages.
When lenders do not receive payments, the first action taken by the lender is to report the missed payment to the credit bureaus by the first day of the next month. Sometimes this can happen in as little as two weeks from the due date, depending on when the payment is due. Generally, this action will leave a negative mark on a credit report and decrease the homeowner’s credit score by as much as 200 points.
Because of the negative mark on the homeowner’s credit report, within the next 30 days, homeowners can expect their other creditors to take note of the late payment and to take action. Credit card issuers may raise interest rates, lower credit limits, or close credit card accounts. The borrower’s auto insurance, student loans, and other forms of credit also may change, as these are tied to the borrower’s credit score as well.
If the homeowner does not pay for 90 days, the lender likely will start calling, trying to persuade the homeowner to enter into a loan modification. If a loan modification cannot be agreed upon between the homeowner and the lender, and the homeowner continue missing payments, the homeowner likely will be served with a foreclosure notice.
Homeowners at risk of defaulting on their mortgages, or those who already are behind, should contact their lender immediately to work out a repayment plan and/or loan modification.
Information obtained by Calif Asso of Realtors and the Modesto Bee.
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Great news coming regarding the home buyer tax credit. The Senate has now agreed to extend the tax credit. The bill must be voted on and then go through the House of Representatives next. But most of us are certain it will pass before the current deadline.
As you can imagine, many buyers are looking forward to that tax credit, and many are rushing to make their home purchase before the current deadline. It has definitely helped our real estate market. But I truly feel we are at the bottom of this real estate cycle right now. Home prices should stay flat for a while, 18 months to 2 years, before we see significant increases.
For more information, or your comments, please respond.
~ Barry Ripp
Selling real estate since 1985
Concerned that your 2009 property tax bill is too high? Many homeowners who lost value in their homes have filed a “decline in value” form to lower the tax base. Therefore, reducing what they pay to the county in property taxes. But homeowners still received tax bills with a high property value.
Well, I called the Alameda County assessor’s office, and they told me that those “decline in value” forms have not been reviewed yet. It will take a few months for them to go through all of them.
So don’t worry right now. Even though we’ll have to pay this property tax bill, we will all have to wait for a refund if the county agrees to lower the value of our homes.
~ Barry
LOW INTEREST RATES:
Falling interest rates are fueling a rise in home mortgage applications and refinancings in the Inland region, though experts aren’t yet ready to declare the beleaguered local housing market on the road to full recovery.
PENDING SALES:
According to the National Association of Realtors’ housing affordability index, seven of the top eight most affordable months occurred during this year. Pending sales of existing homes rose for the sixth straight month in July, the association reported.
NEW HOME SALES:
Sales of new, single-family houses rose 9.6 percent in July compared with June, to a seasonally adjusted annual rate of 433,000 units, according to estimates released jointly by the U.S. Census Bureau and the Dept. of Housing and Urban Development.
HOUSING MARKET LOOKS GREAT FOR BUYERS:
The combination of affordable home prices, historically low mortgage rates, and a first-time home buyer tax credit that’s set to expire soon, has created the perfect storm of sorts for buyers who’ve been sitting on the fence, waiting for the market to recover.
Real estate prices nationally have declined approximately 30 percent from their 2006 peak and are beginning to show signs of increases—an indicator that prices aren’t likely to go much lower, according to some housing analysts.
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I will be happy to help you with any of your real estate needs. I look forward to working for you.
~ Barry Ripp
The National Association of Realtors said its Pending Home Sales Index rose 3.6% during the month. That was 6.7% higher than June 2008. It was the fifth straight month of increases, the first time that has happened since July 2003..
The report followed several other recent pieces of good news for the housing industry, including a substantial rise in new home sales, a jump in existing home sales and the first home price increase in nearly three years.
“Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines,” said NAR chief economist Lawrence Yun.
Low-end sales have been the strongest segment of the market, an indication that the first-time homebuyers tax credit, worth up to $8,000, is contributing to the rise. The clock, however, is quickly running out on this offer and may have buyers stepping up their shopping to get their purchases in under the wire.
“Because it may take as long as two months to close on a home after signing a contract,” Yun said, “first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by Nov. 30.”
If you’re looking to increase the resale value of your home, a bathroom upgrade can give big rewards. You don’t need to spend a lot of money to improve the look of your old bathroom. Try these quick and inexpensive tips:
A fresh coat of paint can be an instant improvement. Dark colors create a dramatic look. But neutrals may be best if you’re thinking of putting your house on the market.
Updating your accessories can give a whole new look. New faucets, drawer handles, towel racks, etc. in modern finishes will keep your bath in fashion.
Coordinating accessories add style to your bathroom’s new look.
Finally, make sure your bathroom has plenty of light. Replace old dim bulbs, or update your old light fixture with a new one.
If you would like to learn more about increasing your home’s resale value, please contact me. As your real estate professional, I will help make the home buying and selling process a smooth one.
