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Mortgage Market Update

click for larger imageThe rate markets are under pressure again this morning. The recent spike in interest rates adds more confirmation to our forecasts that the lows in the interest rates markets are now in place and rates are unlikely to fall to new lows. The recent stampede to the safety of US treasuries became excessive; the run down in rates was mostly in treasuries but mortgage rates benefited as the outlook for the US economy hit new lows in July and August. A lot of concern the US economy would double dip and fall back into text book recession sent investors, both domestic and foreign, to the safety of bonds.  There just isn't much room left for improvement, but a lot of room for rate to go up.  I would Strongly advise capitalzing while you can.

Want to know more on how the Mortgage Market directly effects mortgage rates or need an explanation of the candlestick chart above? Send us an email and we'll gladly provide an in depth article.  Realtors, ask about a detailed presentation on the Mortgage Market at your next office meeting.

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Monday
Jan032011

Buying a Home in 2011 ~ What You Need to Know

DateMonday, January 3, 2011 at 11:57AM

If buying a home is on your goals list for 2011, there are a few things you need to know.

1.       This is an exciting time, so get excited, dream big and imagine the possibilities!

2.      Credit requirements are stricter than ever before for financing a home.

3.      Now is the time to build your credit!

And this post is here to help you with #3 – building your credit.

If you have experienced a bit of financial difficulty in the past (well let’s be real, who hasn’t?) the key to increasing your credit scores is to USE your credit now and build positive accounts.  It’s not always easy to get approved for new credit, so here are my best tips on where to begin:

Obtain a Secured Credit Card
A credit union is a great place to look for a secured credit card. With this type of card, your past credit is less important as you will be opening a savings account to secure the credit line on the card. You can get this card even if you still have some bad credit on your credit file. By putting $500 into a savings account, you will be allowed to charge up to $500 on the card.  Pay it on time every month and vavoom, you just created yourself a great credit tradeline to increase your scores!

Get a Store Card
Many stores extend credit without tremendous regard for the credit standing of the applicant. These stores usually can be found in industries with small products or traditionally high mark-ups. Here are a list of creditors who will often extend credit to those without much credit history:

  • Fingerhut
  • Radio Shack
  • Jewelry stores
  • Furniture stores
  • Tire stores
  • Appliance stores
  • Gas companies

Keep the Accounts Active
Once you've successfully received new lines of credit, it is important to have some activity going on each month. I don't suggest you pile up large debt-- maybe $50 dollars or so in a balance. Pay the minimum when the bill arrives even though it will cost you a little in interest charges. And pay it on time. This is what lenders want to see!  (Inactive accounts with a zero balance aren't displaying a tendency to handle existing debts.)

Start now or you will always be a year or two from a good credit standing.  Here’s to happy new homeowner’s in 2011!  I hope you’re one of them and I would be honored to help!



AuthorPamela Crim | Comments Off |

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