How to get a good FICO score

Sage advice from John Ulzheimer at Smart Credit on keeping your credit score high. He says he's a broken record on the subject, but I would contend that it is counsel that we need to revisit often...

You know who you are – you want to get the maximum FICO score of 850. You can’t be satisfied with an 849 or even 800. I hate to burst your bubble, but don’t waste your time on trying to reach the maximum score. You can get the lowest interest rates with a score of 760 and above. You don’t have to have the perfect score.

In your attempt to increase your score, you may actually decrease it instead so BE CAREFUL. Some actions you think may work can actually lower your scores, such as closing open accounts with no balance, paying off old charged off accounts, and applying for more credit card accounts.

Your score can change constantly because of the updates to your credit reports by the credit grantors. Even if you pay your bills in full each month, a balance will be reported to your credit reports unless you stop using them altogether.

Profile of consumer with 850 score:
A credit reporting agency and analytics company for communication industry, SubscriberWise, conducted research on their database of one million consumers to analyze those with a FICO score of 850. Of those that received a score, .002% had a score of 850. The average age was 61 years (ages ranged from 44 to 89); and average age of credit file was 30 years (ranged from 1958 to 1994). Keep in mind this was a small population and for a particular industry. That doesn’t mean that those younger can’t achieve the maximum score.

The ideal range is 760 to 810; you still get the best interest rates. Don’t try to game the system. You may lower your score instead. I am a broken record on the best way to keep your credit score high – pay your bills on time, don’t use more than 20% of your available credit, pay down your debt and don’t apply for new credit.

Another spectacular 4th of July in Woodbridge!

Plans are underway for another spectacular 4th of July in Woodbridge!

Join your friends and neighbors for a day filled with activities, laughter, and excitement.

Wristbands are required for the many activities offered at the South Lake Beach Club on the 4th (volleyball tournament, carnival, bingo, swimming at the South Lake Beach Club, and boat races), but are not required for the Ralph J. Redington 5k/10k and Kids Run, and Wheels on Parade.

The run forms and wristbands are now on sale and available for purchase through the Association Office at 31 Creek Road.

There will be 3,000 wristbands available for purchase at $8.00 each and are sold on a first-come, first-serve basis to adult WVA members with proper Facility Identification.
Residents may purchase as many wristbands as they wish!

For more information regarding the 4th of July activities you can visit the Association website at http://www.wva.org/, and if you have any questions, please contact me at (949) 232-5634 or through my website here.

Why They Are Saying to Buy A Home Now?

The Price of a home versus the Cost of the home is often a calculation over looked. Our friends at Keeping Current Matters touch on this and bring 4 articles that all talk to the point that this is the time to buy. Why They Are Saying to Buy A Home Now?...

Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home!

Here are the four articles and a breakdown as to why the advice makes sense.

The Wall Street Journal:
Why It’s time to Buy

CBS Money Watch:
Why the Time to Buy is Now

Forbes Magazine:
9 Reasons to Buy a House Now

National Public Radio:
For Many, It’s Still a Good Time to Buy a Home

With prices continuing to depreciate in most regions of the country, some may wonder why these four entities are suggesting to their readership that now is the time to buy.

Each organization realizes that PRICE is not as important as COST. The cost of a home can go up even if prices continue to fall. Unless you are an all cash buyer, you must take into consideration the expense of mortgaging when calculating the full cost of a home.

Here is some information to consider.

Interest Rates
Currently, interest rates sit at historic lows. However, Fannie Mae, Freddie Mac, PMI and the National Association of Realtors are all projecting approximately a 1% increase in mortgage rates over the next year. A one percent increase in rate negates a ten percent fall in prices.

Lending Standards
The government has proposed a tightening of lending standards called Quality Residential Mortgage (QRM). If accepted as proposed two things will happen:

The qualification process for loans will become more difficult.

The cost of a loan will increase.

Bottom Line
There is a reason more and more financial organizations are suggesting to their followers that now is the time to buy a home: because the cost of purchasing a home is about to increase (even if prices continue to fall).

Should You Rent or Buy in this Market?

More good info on the rent vs. buying a home front from my friends at Keeping Current Matters. Get the facts and make a decision. Remember, loan limits look to be changing this fall.

Families are trying to determine whether or not now is the time to buy a home.

Some are advising these families to sit out the current real estate market and instead rent for the next year or two. I don't agree with this advice.

Homeownership means a lot to a family. I also realize that the financial aspects of purchasing a home today can be a concern. The challenge is any advice given by someone in the real estate community is immediately dismissed as self-serving.

For this reason, I want to give you the advice of three entities not involved in real estate sales:


Citigroup

“When we examine the relationships between mortgage payments and income and mortgage payments and rent, we see that these relationships have also reverted back to or below equilibrium points. In some cases, particularly when mortgage payments are compared to the cost of renting, home prices actually appear cheap.”

JP Morgan

“JPMorgan analysts said ‘the continuation of falling rental vacancies and rising rental demand will make home buying increasingly attractive’, especially as rental prices increase.”

Business School professors Eli Beracha and Ken H. Johnson

“Fundamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting…

Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Is it better to rent or buy? According to those quoted above, it seems it may be becoming a no-brainer. Let's talk.

17th annual Studio Arts Festival

The Irvine Fine Arts Center will host the 17th annual Studio Arts Festival on Saturday, June 4 from 9 a.m.-5 p.m.

The Festival will showcase more than 100 local artists and more than 1,000 original works of art spanning across a variety of mediums including ceramics, sculpture, jewelry, painting, photography, textiles and glass. The Festival will also feature live music, food, art demonstrations, and the "crowd favorite" - ice cream sundaes sold in handmade ceramic collector bowls.

Admission and parking are free. Event proceeds benefit special projects and programs sponsored by the Irvine Fine Arts Center. The Irvine Fine Arts Center is located at 14321 Yale Avenue, Irvine. For more information, visit irvinefinearts.org or call 949-724-6880.

For other Irvine information, see http://tiny.ly/vCzJ

Appraisals: Why You Must Now Sell Your House Twice.

In today’s market the appraisal is more important than ever and in many cases it can be a deal breaker. It’s critically important that there is a plan in place to justify your selling price so that you can close your transaction smoothly. Our friends at Keeping Current Matters talk about the situation and how now with Appraisals: Why You Must Now Sell Your House Twice.

Banks have become very conservative when lending mortgage money today. With the current foreclosure challenges in the country, we can’t really blame them. The requirements now necessary to qualify for mortgages have gotten much more stringent and it seems will get even more stringent as we move forward. The banks want to make sure the prospective buyer has the ability to repay the loan.

However, this does not just involve the borrower buying the property.

The second way a bank can protect their investment in the mortgage is to make sure that the collateral backing that mortgage is secure. That is where the appraisal comes in. The bank wants to make sure that, should the buyer not be able to make their payments, the house they will be forced to take back will sell for an amount at least equal to the balance left on the mortgage. For that reason, the banks seem to be getting more conservative with appraisals also.

This past week, the National Association of Realtors (NAR) released their
Existing Homes Sales Report. In that report, they said:

“11 percent of Realtors® report a contract was cancelled in April from an appraisal coming in below the price negotiated between a buyer and seller, 10 percent had a contract delayed, and 14 percent said a contract was renegotiated to a lower sales price as a result of a low appraisal.”

One out of four real estate transactions was either cancelled (11%) or renegotiated to a lower sales price (14%) because of a low appraisal!!

Bottom Line

Every house now has to be sold twice: first, to a potential purchaser and then to the bank appraiser. And, it seems that the second sale may be the more difficult of the two. Sit with a local real estate professional and make sure you put together a plan for both sales.

He didn't look like an agent so I called the police!

OK, there I was at my Broker Preview, wiping down the granite countertop where someone had dropped a piece of California Roll, and he walked in.

As usual, I said "Welcome", and "Come on back for refreshments", but this was before I had turned around and had a look at my latest visitor.

The first thing I noticed, was that his fly was undone. If this was the only odd thing about him, I wouldn't have been at all concerned, but he was wearing a faded pair of denim jeans, and a worn canvas jacket - not the kind of attire that an agent previewing a home usually wears.

On the other hand, I thought to myself, this is Southern California, and it's not like he has a client with him. Perhaps he was working from home
today, and just wanted to preview the home, (and sample some of the seared tuna sashimi or crab roll I had carefully laid out).

Things got a little, weirder. He didn't say a word, as he strode into the kitchen. I handed him the Agent MLS printout of the home, and asked him to drop a business card in the bowl. Still... not a word.... and no card either.

I had sent Mike, (my hubby), for more ice, and by this time, I wished I hadn't.

Irvine is a diverse community, so I rationalized again. Perhaps he doesn't speak English.
(I know, I know. Even if you don't speak English, you know how to say "hi", right!)

So unless he had speech issues, he wasn't an agent - the California Real Estate exam has to be taken in English.

Then he faced the living room & stretched his arms out, as if mentally measuring the room, before heading towards the staircase leading to the upstairs.

"OK", I said to myself, "Enough with giving this guy the benefit of all my doubts!". I headed him off at the bottom of the stairs and said "Sorry, the sellers asked that no-one go upstairs." Well, don't laugh - I was getting concerned by then. If I had a little more time I would thought of something else to say. Also, I wasn't about to let My Weird go upstairs on his own, and I didn't want to be upstairs alone with him either.

I was hoping like H E double-toothpicks that another agent would come in, and then he turned around and headed out the door.

Whew!

I followed him out to the street and saw that he had got on his BICYCLE and had ridden to the house next door. I watched as he opened the gate next door, and walked right into their back yard.



And THAT'S when I called the Irvine Police Department. "Was this an emergency?"
the operator asked. I told her that I didn't THINK so, but thought what if he surprised the neighbor's daughter sunbathing on their PRIVATE lawn, or what if a hundred other scenarios took place? I asked that she send a car over as soon as possible, and then described the man as best I could.

THEN my husband arrived with the extra ice I needed!

We watched the man cycle slowly away.

Two Irvine 5-0 officers arrived within minutes and started looking around. I don't think they ever found him.

I know some of you are thinking I was making a fuss about nothing, but we are talking about Irvine
here - voted by the FBI as the SAFEST CITY IN AMERICA. And not just Irvine. This happened in WOODBRIDGE. This kind of thing just does not happen in Woodbridge, (until now).

My advice to (especially female), agents, is NOT to be alone if possible. Yes, we all know that for Open Houses, that's old advice, but I was at a Broker Preview. I went online and ordered some Pepper Spray for NEXT TIME!