Tricks to create a better FICO Score.

July 18, 2009

Most people don’t do the simplest actions that can boost their scores monthly. Even people I have spoken to with great credit believe it is because they have never been late on a payment, or think that because they have financed a car, or two, or own their own home and only have 1 or 2 credit cards is why their credit score stays high. Well, that is only part of the reason. As a nation we have learned the hard way traveling through this devastating economic period that good credit awarness is life changing. Hopefully we are nearer to its end. One of the most important statements about you in 2009/20010 is your FICO score. Did you know your employer looks at your score? Well, if you work for a corporation, private big business, or for our government part of the eligibility process is that darn number. Now if you have explained a low number in your cover letter and it is believable, then you may skip through to the last group of interviews. However, if you need that job you had better learn a few tricks.

First, if you pay your credit card twice in a period of their month (30 days usually), you will get one point for each payment. In 12 months that is 24 points per card and payment.

Second, you need 3 major credit cards to increase your scores average. Visa, MasterCard or Discover. You DON’T have to use all of them. But buy opening new cards (after the initial drop in number) by 30 days later you will see a significant increase in FICO score, up to 20 points per card. What the bureaus are determining in their formula is if you can handle credit or not. Buy having 3 or more cards puts you in the range of their credit worthy formula. If you have too many revolving accounts open which, includes major department stores that can significantly reduce your average. Closing your accounts can negatively affect your number therefore, what you can do is stop using the department store cards. Cut them up and throw them away! Believe me that 10 ro 15% discount is going to be gobbled up rather quickly in the monthly interest payment.

Another fact if that you can not rent a decent apartment or home if you don’t have a good FICO score.

Be credit wise!

If you would like more information please contact ReneeBaccaro@gmail.com I will be happy to assist you in learning ways to increase that ever important number.

Renee Baccaro Realtor & Notary

Buyers: FREE MONEY…tic-toc-tic-toc

$8,0000 Federal tax Credit to first time home buyers

If this doesn’t get people off the fence then I just don’t know what will. I believe perhaps it takes time for folks to absorb the actuality of it. If it seems too good to be true…? Well, this is not… one of those times. This is one of those times when if you don’t take advantage of the window of opportunity YOU ARE GOING TO MISS THE BOAT. The American Recovery and Reinvestment Act of 2009 authorizes:

•· Anyone who has NOT owned a principal residence in the past three-years.

•· Not a vacation home, but primary residence. New or resale.

•· Title must close before December 01, 2009.

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. For more information go to the link below. #8 on Federal Q & A site.

It is that simple.

What to consider:

If you’re adjusted gross income is more than $75,000 or up to $150,000 (filing jointly), then your $8,000 tax credit will be reduced accordingly. Secondly, the tax credit is for $8,000, or 10% of the sales price. That means if you buy a house worth less than &80,000, you’ll get 10% of the price.

Time Period:

January 01, 2009 to November 30th, 2009. Your loan on that purchase must close during that time period. We are at the middle of July 2009 which means because escrows are now taking up to 75 days, it would be best if you got into escrow by August 01, 2009 in my humble opinion. Depending on several factors. If you are buying all cash it will be a faster transaction. But with current appraisal issues causing time delays on lenders part, I suggest you start ASAP. You must allow for the unknown in a real estate transaction. Especially if you are buying a REO or Short Sale. If you are involved in a short sale ask your Realtor about the time lines, where is the process at? You must have approval on price from the lender, a contract signed by the selling side to know you can make that dead line.

You can NOT:

•· Not – Use the money toward you down payment.

•· Not – use the money for your closing costs.

When will you received your credit:

File an amended tax return – to receive $8,000 — right away. You do not have to wait until next year.

This program is available anywhere you live in the US.

Why? The administration did this because history repeats its self and it worked in the past. So here we are again, and so far it is working. Remember your home is the biggest investment of your life for most folks. They opportunities only come around once in a great while. We really don’t want to be in this situation again anytime soon. So seize the opportunity today.

Link to most ask questions: http://www.federalhousingtaxcredit.com/2009/faq.php#1

Disclaimer: nformation here is deemed correct buy not guaranteed

Renee Baccaro Realtor®

Is the California Housing Market on it’s way back?

Even though we are currently experiencing economic challenges, there are proven strategies to help you sell your home. In addition a recent 2009 pulse survey sponsored by the National Association of Realtors show that 83% of Americans believe that buying a home today is a good financial decision and a sound long-term investment. More than 75% of Americans believe that now is a good time to get in to the housing market. Three-fourths of those surveyed also believe now is a good time to buy a home. In fact, one-third of renters are thinking more about buying a home than they were a year ago. Low prices, good housing selection, an $8000 tax credit, and historically low interest rates make buying more desirable then in the recent past. One major concern for most Americans is the money for the down-payment and closing costs. However many folks who were not able to buy a home in the past are able to buy a home in today’s market.

For seller’s planning to list their home knows that more then 5 million homes sold last year in the United States. However, remember buyers are looking for a bargain. This is no time to reach for the sky when selling your home. The majority of homes selling are distressed properties. Ask your Realtor about the comparable sales in your neighborhood for the past six months or less. Pricing is the number one reason buyers are buying right now. For the past year there has been a considerable inventory available to buyers. Sellers, if your home is listed substantially higher then the bulk of homes in your neighborhood…it is possible that is why your home is not getting any offers. Remember you may have to sell your home lower then you may like, but if you are planning on buying elsewhere, you will also buy for a lower price. That means property taxes will be lower as well. If you buy your next home for a lower price you will carry those benefits forward well in to the future. Look at the homes that are selling in your neighborhood and homes that are not selling. Ask your Realtor why? It may be price it may be other factors. If a buyer offers a higher amount for your home still it may not appraise at that price which means the buyer can’t secure a loan and the deal will fall apart.

Not everything comes up Roses…two-thirds Americans are concerned about losing their jobs which keeps some from entering the market. California was hit hard by the economic down turn. Prices fell about 40% and was devastating for many. However, right now buying activity is going through the roof.

In January buyer activity in California was up 100% from a year ago, in February it was up 83%, in March 57% from a year ago. Up to 70% of homes sales in California are distressed properties. The reality is millions of people who were not able to buy in the past are buying now. Buyers are back; inventory is dropping fast which, is good news. February last year California home inventory was 15.3 months on the market. February this year inventory was 6.5 months on the market. How does this relate to the rest of the country? Because California was hit hard and fast, its’ coming back shows what is going to happen to the rest of the country. Buyers coming back and inventory is shrinking show the market will eventually normalize. Values will stabilize and the market will again show increased quarterly measurements. 54% of California’s who took the poll believe that California housing market will recover by the end of this year. Bringing buyers back in to the market is the first step. Low prices, low interest rates and the $8,000 tax credit has begun the healing process. Part two is getting rid of the excess inventory. That is happening. Step three price stabilization and eventually appreciation.

California I’m coming home!

What is up with this CAL Moratorium?

July 15, 2009

The numbers are in: Data Quick numbers show 833 houses and condos were foreclosed on in June ‘09 in OC. Up 41% from May and 31% from the year before.

4,052 properties were seized in Orange County down 26% from the first half of 2008.

Not that we didn’t know they’d be high.

Loan modifications are only working out about 50% of the time. The California Foreclosure Prevention Act had only stalled the inevitable with this 90 day moratorium. The Assembly Bill X2 7 the Terminator signed in February was duped by banks who filed for exemptions giving them a loop-hole buy showing they have already had a modification program in place. The law impacts loans made from 2003 to 2007. One of the methods for loan modification is lowering the interest rate or to extend its term to 40 years. If the servicing contract says foreclosure is preferable to a loan modification, nothing in the law stops foreclosure. Was it a sham? Did “We the People”, get the wool pulled over our eyes again? Will we ever learn?

Let us switch to some positive news in the real estate market. We are at a 9 month high with a 6.4% price increase showing in May from the last two years. California with one of the highest unemployment rates in the nations needs confidence that the housing market has hit bottom and is on its way back to some sort of normal arena. Any big surge in mortgage foreclosures could hurt a greatly desired recovery. We are in a delicate balance. I urge anyone who has considered buying a home to get out there now and start the hunt. You couldn’t ask for a better time to buy a home with interest rates down. They are not going to stay that low forever. I just browsed a dozen homes ranging from 125k to 199k. They were all 3 bedroom homes 1100 sqft or more. P E O P L E! What is it going to take to make you get out there and create the lift that this state needs? We Realtors are willing to work with those short sales now! Well I am willing!

Stats: Medium home $250k – June homes above 500k rose 20% – Typical monthly mortgage payment in So-Cal for buyers was $1,193 last month – 23,262 new & resale homes closed in June. Call me if you live anywhere near: La Habra, La Habra Heights, Fullerton, Brea, Whittier, La Mirada, Buena Park, Hacienda Heights, Friendly Hills, Mar Vista Heights, Orange, Anaheim, Santa Ana, Pico Rivera, Azusa, Covina, etc.

Renee Baccaro Realtor®

New Front for FHA Loans – 203k streamline up to $35,000 financed

get off your thumbs.

 There are lots of reasons to ask your lender for an FHA loan instead of taking a conventional or an expensive and risky sub-prime mortgage loan. Why not take advantage of the many benefits and protections that only come with FHA:

Easier to Qualify – Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so its easier for you to qualify.

Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, its easier for you to qualify for an FHA loan than a conventional loan.

Low Down-payment - We have a low 3% downpayment, and that money can come from a family member, employer or charitable organization. Other loans don’t allow this.

Costs Less – Many times, FHA loans have competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.

Help You Keep Your Home – The FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure.

There is more to buying your home then the monthly house payment. Why not ask for an FHA loan that will help you buy your house and keep it too? Tell your AGENT you want an FHA loan for all the reasons above- FHA is a wise choice.

FHA STREAMLINE 203k Loan.

Streamlined 203(k) Limited Repair Program

Information by State  Esta página en español  Print version   HUD Resources SUBSCRIBE to the Single Family Housing email list. You will get frequent updates to the HOC Reference Guide, training and event announcements, mortgagee letters and notices about your Single Family business. FHA’s Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. Any FHA-approved lender may originate a Streamlined 203(k) mortgage. Find out more about the Streamlined 203(k) program by reading HUD Mortgagee Letter 2005-50, enhancements to “Streamlined (K)” Limited Repair Program. More Information   Rehab a Home with HUD’s 203(k) Rehab Program   Approved 203(k) Consultants Search   Funds for Handyman-Specials and Fixer-Uppers   Internet Links about 203(k)   203(k) Mortgagee Letters   203(k) FAQs   S/F Lenders Homepage   HUD Form 92700 203(k) Maximum Mortgage Worksheet (2/06)

                   http://www.hud.gov/offices/hsg/sfh/203k/203kslrp.cfm                                             

  

For more information please contact:

Renee Baccaro Realtor® Century 21 Jervis & Associates

800 N. Harbor Blvd. La Habra, CA 90631

(562) 972-9886