Preparing to buy

If you're thinking of buying home soon, you should make sure that your credit looks good. Right now credit companies are reducing credit limits on some customers, and that could have an affect on your credit score. That's because when your total available credit shrinks, the percentage of of credit being used goes up, and that can affect your credit score in a negative way. And having a good credit score is essential to getting a good loan.

So here are a few things you can do right now to clean up your credit, so that you can be confident when it's time to buy your home.

• check your credit report. It's essential to know what on your credit report, so that you can clean up any negatives. you are entitles to one free credit report per year. take advantage of that and see what's on your report.
• don't get close to maxing out your cards, because 30% of your FICO score (your credit score) is based on the ratio on the mount owed to your available credit.
• Keep accounts active. don't close them out. it looks good when you have a lot of available credit.
• this is the biggest one: pay your bills on time. this makes a huge difference to a bank looking to give you a loan for a home.
• Don't apply for new cards. especially at retail stores. keep the balance on the ones you have low, and you should be fine.

So there you have some tips on cleaning up your credit. That way you can go into buying a home with confidence.

Putting things in perspective

A headline in the Seattle PI today reads "State's home sales drop biggest in U.S" this headline might scare the crap out of some people, especially Realtors, and it might give more confidence to the " I told you this market is gonna keep crashing" folks. Come on, you know who I'm talking about. Kind of like my grandpa, whose every story ends with "then he told me, You were right, and I should have listened to you all along."

Anyway, this drop was expected, as it takes our region some time to catch up to the rest of the country. which brings me to the good news. Home sales in Nevada and Phoenix (two of the hardest hit areas) have seen their existing home sales double in the month of September from last year.

There are also lots of measures being proposed and taken through Fannie Mae and Freddie Mac, FDIC, Citigroup, and Congress to provide relief to distressed home owners, and provide incentives for buyers.

Look, I'm not saying that all is honky-dory (you like that expression?) This is a difficult time, and it will take patience and perseverance to get through this. but the bottom line is, we will. And if you are able to buy at this time, do it. what better time to buy when rates are low, and prices are down. Stop earning equity for your landlord, and start earning it for your self.

Until next time,

Honky-dory

Where do we stand?

In these crazy and uncertain times in our country, it is normal to be weary and cautious about jumping in a real estate deal. After all, it is a very important decision, and should not be entered into lightly, or without the help of a real estate professional. but how do we separate the facts from the myths? What kind of a market are we in? when will market conditions get better? How do we know that prices won't get even lower than they are right now?

All of these are good questions to ask. But rather than asking your self these questions, ask a real estate pro. Ask me. it doesn't cost you a thing, you'll get better answers, and then you can repeat what I said to your friends as if you came up with it, and feel better about yourself.

I can talk about this for a long time, but I can sum it up in a few words: It's a buyers market. Here's why:

Inventory is high, prices are lower than they used to be, and interest rates are incredibly low right now. But we started noticing that inventory has been shrinking in the last two months. which means your options are starting to decrease. and when that happens, prices start to go up.

www.righttimetobuy.org says"Sellers are eager to deal and experts predict that buyers who wait, hoping for even lower prices, could end up paying more as interest rates rise. This is already starting to happen. If the house you purchase costs less but your interest rate is higher, the interest rate you pay could wipe out any potential savings from that lower sales price."

Compared to the rest of the country, our market is one of the healthiest in the nation. Forbes magazine lists Seattle as one of the top 10 recession proof cities, and a recent article in the Seattle Times lists Seattle as the number one city most likely to rebound from the housing slump. So the question remains: when prices start to go up, where will you be living?

So, if you have questions, ask me. or if you have questions about loans and their availability, I know one of the best mortgage professionals in town. I'd be happy to introduce you. the bottom line is, get the conversation going. My wife and I did, and we ended up buying a great condo in north Seattle that we love.

Until next time,