Tips to Increase Credit Score

Your credit score is calculated from information in your credit report and is a measure of how good of a risk you are to the creditor.  If you are thinking about buying a house or even trying to rent one, it is important that you are aware of how your credit score will affect your ability to buy or rent.

 

It's important to know that any lender to whom you apply will obtain your score and provide it to you. As noted below, however, inquiries by lenders may have a negative effect on your score, whereas inquiries by you do not. Hence, it is a good idea to find your score before you apply, so you can make an informed decision on whether you want to apply at that time. 

 

You can obtain your score from many firms in the business, including www.equifax.com, www.transunion.com, www.experian.com and www.myfico.com. 

 

Here are some general suggestions on how applicants can improve their credit score using data from their credit reports.

 

Pay on time: The core rule is to meet your debt obligations on-time, EVERY time. If you have had payment lapses in the past but your habits have improved, time is on your side. The credit scoring rules weight recent experience more heavily than older experience. 

 

Correct mistakes in your credit report: Your score should not be reduced by reporting mistakes, which are all too common. Detach yourself from the "wrong vendors": Because finance companies lend to relatively poor risks, the credit score of any borrower owing money to a finance company is lower than it would be if the creditor was a bank. By the same logic, borrowers who have credit cards or department stores are penalized, relative to what their score would be if they had cards issued by banks. 

 

Reduce balances on revolving credits to less than 50 percent of the maximums: A high utilization ratio is read as a sign of weakness and potential trouble, reducing your score. Credit cards are the most important type of revolving credits, but HELOCs belong in this category as well. A HELOC used to purchase a house or to refinance a mortgage, where the initial utilization ratio is 100 percent, will jolt your credit score.

 

Note that utilization ratios can be reduced by getting the maximums raised, as well as by paying down the balances. In many cases, credit card issuers are willing to raise the maximum at the borrower's request. 

 

Minimize the number of "hard inquiries": Hard inquiries are requests to a credit agency for your credit score from a credit grantor, insurance company or other entity to which you have applied and to which you have entrusted your Social Security number. "Soft inquiries" made by you or by firms looking to sell you something for which you have not applied don't require your permission and don't impact your credit score. The credit-scoring systems may or may not penalize borrowers who shop multiple credit grantors within a short period -- unfortunately, you can't be sure.

 

The credit agencies tell you that multiple inquiries within a 15-day period count only as a single inquiry, but in fact inquiries for mortgage, auto and student loans would probably count as three inquiries, and even three mortgage inquiries could count as three inquiries, depending on how the credit grantors are identified to the credit scorer. 

 

The bottom line is that in applying for credit, find your own score that you can deliver to the vendors you are shopping who need the score to set the price. The vendor you select will verify the score through his own inquiry, but it will be only a single inquiry. 

 

Pay off collection accounts: This may actually reduce your score in the short-run by converting the account from an older entry with a low weight to a new one with a higher weight. However, you can't get a loan with a collection account on your record, so you must pay it off -- the sooner the better. 

 

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!

 

 

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California Foreclosure Filings Have Been On A Steady Downtrend Since March 2009

California foreclosure filings have been on a steady downtrend since March 2009 as government agencies have rolled out more programs that have successfully lengthened the foreclosure process or provided alternatives such as short sales, principal balance reduction loan modifications, second-lien extinguishments and other forms of debt relief. 

 

California foreclosure filings — Notices of Default plus Notices of Trustee Sale — increased 4.0 percent this March, but were down 59.3 percent for the past 12 months. 

March Notices of Default (NOD), which is the first stage of the foreclosure process, rose 9.5 percent from February. More importantly, NODs are up 65 percent since January, suggesting that some of the regulation-driven decline in foreclosures toward the end of last year has reversed course. While the gain since the beginning of the year was large in percentage terms, the longer-term downtrend has held firm. The March 2013 NODs were at their third-lowest level since we began tracking the data in September 2006. Over the past 12 months, NODs were down 65.3 percent.  

 

It will be interesting to see where we are with these stats at the end of the year.  Inventory is tight causing home sales to rise. Some lenders are more willing these days to work with borrowers who are struggling with their mortgage.   We will keep watching and reporting to you as the year rolls out!

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!

 

 

 

 

The dream of homeownership is alive and well .  The real estate market buzzes constantly about when to buy, how to buy, when to sell and how to succeed  in the world of buying and selling real estate. 

 

Many believe that buying a home is a necessary component to success and happiness. This belief that owning a home is a necessary symbol of success and that NOT owning a home shows that one has somehow failed in life is simply not true.

 

Please don't take me the wrong way. I totally believe in the American dream of homeownership.  I feel that it is one of the best ways to build a secure future and I love helping people buy and sell homes.  If I didn't, I would be in trouble since this is how I make my living.  

 

For decades, though, the general attitude has been that if the banks approved the buyer's ability to pay the mortgage, the buyer will be able to afford the home. This formula has worked well for many buyers over the years but the question is....what about those who were approved by the bank and are now feeling trapped by their home, or worse, facing foreclosure?  

 

Should everyone buy a home if the bank approves the loan?  My answer is not necessarily.  While the benefits of homeownership are significant and certainly warrants a few sacrifices to initially obtain this goal, it doesn't mean that one should not take the time to look at the big picture.

 

Future buyers need to consider how long they will be able to make certain sacrifices in order to own a home. Will they be happy a few years from now when they still can't have a date night or take the family on a small vacation?  What about the maintenance costs that do not exist when renting because the landlord usually takes care of things like plumbing problems or roof repairs?

 

If the prospective buyer has factored in all the potential costs to their checkbook and lifestyle and still feels confident about moving forward with a home purchase, then I say yes..go ahead and jump into the world of homeownership!   Be cautious, though, if there is a little voice in the back of your head telling you that maybe you should wait a little longer. My advice is to take the time to write all of these concerns down and discuss with your financial advisor before taking the plunge.

 

It is possible that renting may make more sense right now. The market is always changing and contrary to what you may hear, owning a home is not about getting in "at the right time".  Wait until you know that you are ready and then go for it.  That will always be the "right time".

 

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 She always enjoys hearing from you!

Home Sells Fast!

 

 

 

Local sales reports on homes sold show that the market is experiencing a long awaited "comeback".  Agents say that the  biggest issue right now is that they do not have enough homes to sell!   With consumer confidence on the rise and forecasts of higher interest rates, buyers are swarming the real estate market.  

 

Last week I listed a property located in a popular neighborhood.  I was excited for the seller when the phone started ringing immediately.  Within 2 days, I had 8 offers, 7 of which were at asking price! Needless to say, we are in escrow and the seller is very happy.

 

Over half of the homes that are going up for sale right now, are selling immediately and either very close to or at full price.  Sometimes they are even selling for more than the seller was asking.  

 

Sellers should be aware, however, that their asking price needs to be well researched and set where the buyer still feels like there is a deal in the making.  There are some homes that are not selling quickly and sometimes the reason is that the seller has priced the home too high.  Of course, there are other factors that need to be in place also to make the home attractive to a buyer.  

 

For a FREE brochure on how to get the most for your property, email me at Nancy@NancyPuder.com.  I always enjoy hearing from you!

 

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. 

Tips on Passwords to Protect Your Identity

Fading rapidly is the option to avoid the internet altogether for ultimate protection of your identity. Of course, that is an option, however, most of us no longer have that option because of our rapidly changing world.

Here are some Do's & Don'ts on creating passwords that are not fool proof but will provide more protection!

 

DON’T

• Reuse passwords. If you do, a hacker who gets just one of your accounts will own them all.
  

• Use a dictionary word as your password. If you must, then string several together into a pass phrase.

• Use standard number substitutions. Think “P455w0rd” is a good password? N0p3! Cracking tools now have those built in.

• Use a short password—no matter how weird. Today’s processing speeds mean that even passwords like “h6!r$q” are quickly crackable. Your best defense is the longest possible password.

DO

• Enable two-factor authentication when offered. When you log in from a strange location, a system like this will send you a text message with a code to confirm. Yes, that can be cracked, but it’s better than nothing.

• Give bogus answers to security questions. Think of them as a secondary password. Just keep your answers memorable. My first car? Why, it was a “Camper Van Beethoven Freaking Rules.”

• Scrub your online presence. One of the easiest ways to hack into an account is through your email and billing address information. Sites like Spokeo and WhitePages.com offer opt-out mechanisms to get your information removed from their databases.

• Use a unique, secure email address for password recoveries. If a hacker knows where your password reset goes, that’s a line of attack. So create a special account you never use for communications. And make sure to choose a username that isn’t tied to your name—like m**n@wired.com so it can’t be easily guessed.

Nancy Puder is the Broker and Owner of Signature Properties, a Real Estate Sales and Property Management company in Arroyo Grande, CA.  www.Nancy@NancyPuder.com

 

 

 

Now is the Perfect Time to Buy a House...

With home prices rising for the third straight quarter, most would agree that the housing market recovery has picked up steam.  In fact, according to S&P Case-Shiller, home values increased 7.3% in the last quarter of 2012 alone. 

This means that we are seeing the bounce from the home value bottom. Combined with mortgage rates with an average in the 3% range, and you have the perfectstorm for the best time to buy a home.  

 

The only downside to this is that as the recovery continues, affordability will fall.  Home values will continue to stabilize and improve, and mortgage rates are going to rise.  Contrary to what many people now think, the government doesn't control mortgage interest rates.  While the Fed has been able to manipulate and affect mortgage rates with things like quantitative easing, it is not the same as control.  

 

 

The housing market is recovering as part of the US economy as a whole, and with that recovery is a natural increase in mortgage rates.  That means that even as house prices rise, so will mortgage interest rates, providing a double whammy to buying power.  Be sure to discuss with a professional how this changing market will affect you or you may call me anytime at (805)710-2415.  I always enjoy hearing from you!

 

 

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415.

 

 

 

 

 

Looking Out for Landlords

Q.  My tenant called the other day and said the toilet and sink had backed up.  It was a Sunday and since there is only one bathroom, I had to send a plumber out.  Needless to say, my bill was quite high.  In fact, when I received it, I almost fainted!  The bill mentioned the cause of the stoppage to be a toy car stuck in the toilet.  Do I have the right to make the tenant pay this bill?


A.  Absolutely!  I am assuming that the tenant has lived there for a while and probably has a small child.  Whenever we have this type of situation, we pay the bill first and then send a copy of the bill with a letter to the tenant requesting reimbursement.  Usually, the payment comes soon after that. Occasionally, a tenant may dispute the charge, in which case, you can perhaps split the bill if it makes sense to do that.  If you still feel that the tenant feels he owes the entire bill and he refuses to pay, you can issue a 3-day Pay or Quit, or simply deduct the charge from his security deposit when he moves.


**Tip:  If you discuss how plumbing and other repairs are to be handled at the time your tenant moves in, you can avoid many of these problems down the road.

 

If you have any questions concerning your rental property, please call my office anytime at (805) 474-0100 Extension 1 and ask for Rae.  We always enjoy hearing from you! Nancy Puder is Broker and owner of Signature Properties, 124 S. Halcyon Rd, Arroyo Grande, CA 93420.