Archive for May, 2007

El Dorado County Real Estate Market Forecast - It is All Doom and Gloom!!

May 27th, 2007 categories: El Dorado County Real Estate, Mortgage & Finance

El_Dorado_County_Real_Estate_Market

Or is it?

We have gone through quite a lot of up and down forecasts of the El Dorado County and Amador County real estate markets over the past few years. For several years, forecasters were predicting the burst of the real estate market “bubble”, as it continued to grow by leaps and bounds.

They said it would burst and insinuated that every real estate investor, as well as buyers and sellers of homes for sale would lose their shirts. While prices have deflated in most areas in the past year, there was never the doom and gloom “burst”.

Investors Will Lose Their Shirts

There are many investors of residential homes for sale, who now find themselves in foreclosure, will probably lose a lot of money, and will suffer a less-than-favorable credit rating because of it. Quote

Many of these investors used the “no money down” and/or “get rich quick” financing schemes. For these unfortunate investors, that is the risk they took by investing in residential real estate under those financing terms. They may be forced to take a lot less money for their homes than they originally planned. They are the real victims of the market bubble, not the average homeowner. However, the market is getting better much sooner than anyone expected.

What has occurred is nothing more than the natural cycle of the real estate market. Currently it is transitioning from a “seller’s market” to a “buyer’s market”. Not the bursting bubble that many headlines claim today. Current fixed-rate, 30-year mortgages have interest rates no higher than in June 2004. They averaged 6.2 percent during the last quarter of 2006, which is well below the average ten years ago.

Homes for sale in most areas remain affordable, according to the National Association of Realtors. They report that income growth has kept up with rising prices, allowing a median income family to be able to afford median-priced homes for sale.

These facts are like rays of sunchine on a cloudy day. Hence, it is not ALL doom and gloom. In fact, it’s great news for qualified buyers! With the recent forecast of the sub-prime mortgage meltdown and the tightening up on lending practices, you may be asking, “Well then, what exactly qualifies a buyer as a ‘qualified buyer’?”

Simple. There is one rule of thumb that has stood the test of time in mortgage lending regardless of the market. Credit score, credit score, credit score.

If you have a good credit score you will be viewed by lenders as being a responsible borrower. Which in turn, will qualify you for a loan based upon your annual income.

Buyer’s… now is your time! If you are unsure of where your credit score falls, call me for a free credit report and analysis. I will be pleased to evaluate your report and counsel you in repairing your damaged credit if needed. It is my personal goal to put you and your family into the best mortgage possible.

For what it’s worth, this Mortgage Broker is predicting brighter days ahead.

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Authored by Edde Anderson | Discussion: No Comments »

Create a Debt Snowball - On Purpose!!!

May 20th, 2007 categories: El Dorado County Real Estate, Mortgage & Finance

Create_a_debt_snowballWhen it comes to constructing a successful plan for paying off your debts, Dave Ramsey, author of “Total Money Makeover”, charts an entirely different course than most financial pundits and counselors. Ramsey calls his method of the “Debt Snowball.”

It is an integral part of his “Baby Steps” routine for complete financial fitness. “This is the toughest of all the Baby Steps,” he writes. “It is so hard, but it is so worth it.” Rather than attack debts in order of interest rate - say, from highest rate to lowest - Ramsey suggests that his clients pay off their debs in order of smallest balance to largest balance.

This excludes your home mortgage, as well as any similar real-estate or business loans which total more than 50 percent of your annual income. If more than one loan or debt have similar balances, list the highest-rate debt first. At that point,then, you round up your money and start with the first debt on your list. Pay the minimums on all debts except the first, and keep them current. Throw every cent of money you can at your smallest-balance debt. When that is gone, you then “snowball” (add) that debt’s payment into your monthly payment for the next debt on your list. Quote2

“The Debt Snowball is designed the way it is,” Ramsey writes in “Total Money Makeover”, “because we are more concerned with modifying behavior than correct mathematics. Sometimes motivation is more mportant than math. This is one of those times.” The bright idea here is to get some “quick wins.”

The payoff is twofold. For one thing, human nature is such that we tend to bog down on tasks, or quit them all together, if we cannot see ourselves making progress toward the goal. That isn’t the problem here: You write down all your debts, and you see yourself making quick progress - swatting away your smallest debts like the nuisances they are. Many people magnet their Debt Snowball charts to their refrigerators so they can continually see how far they’ve come.

“I don’t care if you have a master’s degree in psychology,” Ramsey says. “you need quick wins to get fired up. And getting fired up is super-important.” Additionally, the quicker you pay off a debt - any debt - the quicker you can snowball (add) its payment to the next debt on your list. Your debt payments therefore “compound” upon themselves as you slice through your debts, one by one. ” All the money from old debts and all the money you can find anywhere goes on the smallest debt until it is gone,” advices Ramsey.

“Every time the Snowball rolls over, it picks up more snow and gets larger, until by the time you get to the bottom, you have an avalanche.” And in this case, an avalanche is exactly what you want to see coming your way.

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Authored by Sean Carter | Discussion: 1 Comment »

Get Rid of the Monkey on Your… Oops, I Mean Your Bad Credit Score

May 15th, 2007 categories: El Dorado County Real Estate, Mortgage & Finance

Your_Credit _ScoreOne of the most frequent questions I’m asked as a loan officer is:

“Whats the best way to boost my credit score?”

Knowing that everyone’s situation and circumstances are unique, there is one thing that will shoot your credit score up every time. - PAYING DOWN DEBT.

And more specifically, paying off debts that carry balances closest to the limit. I have personally witnessed credit scores jump by 100 points by simply paying off credit cards that were almost maxed out. Those individuals with the highest credit scores are the ones with the least debt and with a habit of never missing payments.

So are you curious where your scores stand? Check out www.annualcreditreport.com to receive your free credit report. Scores will cost you between $5 and $6 for each bureau, but may be worth it in the long run.

If you have any other credit report questions, feel free to call me. Sean Carter 530-647-2036

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Authored by Sean Carter | Discussion: No Comments »