I™ve just sold a Resale – single family property at 1725 S Longmont Ave in Boise. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Resale – single family property at 1725 S Longmont Ave in Boise. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Resale – single family property at 1725 S Longmont Ave in Boise. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Resale – single family property at 1725 S Longmont Ave in Boise. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a New – single family property at 1432 W Heartland in Kuna. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a New – single family property at 1432 W Heartland in Kuna. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Resale – single family property at 4672 S Whitmore in Boise. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I™ve just sold a Resale – single family property at 9735 W Bridgegate St in Boise. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I hear this question all the time, “How do I know if I qualify for a home loan?”   My answer, “Do you know your FICO score?”    After a lot of blank stares, I realized that most people don’t know what a FICO score  is or even why it’s important to know what it is.   Let’s take a few minutes to go over the basics.

A FICO score is a number that indicates how likely a borrower is to repay a loan as agreed     Valid scores range from 300 to 870, with 300 representing the highest credit risk and 870 representing the lowest credit risk.

To get a FICO score, you must have a credit account on file with each reporting agency for at least six months.   You must also have an account that has been updated, or reported on, in the past six months.   The following are  examples of information that is used to determine the credit score:  

• Payment history, including bankruptcy, judgements, collections, tax liens and wage attachments.    
• Amounts currently outstanding, including balance to limits.
• Length of credit history

A FICO score is actually three scores.   These scores are created by the three major credit bureaus:   Experian, TransUnion and Equifax.   Each credit bureau may have a different credit score for the borrower.   Lenders will select the credit score to use in following manner:

• If there are three valid credit scores for a borrower, the middle score (numberical middle of the three scores) is used.
• If there are three valid scores for a borrower but two of the scores are the same, one of the two identical scores is used as the borrower score.
• If there are two valid scores for a borrower, the lower of the two scores is used.
• If there is one valid score for a borrower, that score is used.

There are ways to improve your score.   Stay current on bills and pay them on time.   Maintain low balances on revolving credit.   If you have a high balance, pay it off; don’t move it to another card.   Don’t close credit accounts, since length of credit history is a part of your FICO score.   Don’t open a lot of new accounts, either.   Your FICO score is updated on a monthly basis, and by being current on your debt payments and managing your credit judiciously, you can raise your credit score quickly.

The first step is finding out what your FICO score is.   You are entitled to receive a free credit report every 12 months.   Several websites now offer instant credit report services.   annualcreditreport.com, freecreditreport.com, etc.  

If you are considering purchasing a home in the near future (or even if you’re not!) now is the time to find out what your credit score is.   Need help?   Just send me a quick email.

Rising Mortgage Rates – Housing Rush?

Mortgage rates have been rising ever since November 2010, when lows of 4.42 percent were reported. Bankrate.com recently reported a rise to 5.02 percent in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5 percent mark – many experts say signaling the end to the 4 percent mortgage rate era.

Forecasters predict mortgage rates to hover in the 5-6 percent range in 2011.

Yet, some industry experts say the rise in mortgage rates may stimulate a sluggish housing market.

After all, higher interest rates means buyers will pay more for their mortgages. Greg McBride, chief economist at Bankrate.com, told CNNMoney.com that when rates rise 4.25 percent to 5 percent, it takes away 9 percent of the purchasing power of buyers.

Source:   “Kiss 4% Mortgage Rates Goodbye,”   CNNMoney.com (Dec. 30, 2010)