Credit Scores and Home Buying

With Mortgage Rates near 50 year lows, in order to take full advantage of this excellent buying opportunity, making certain that your credit scores are the very best they can be is an absolute necessity. Here are some tips to help you take advantage of these extra-ordinary low rates.

What You Can Do to Improve Your Credit
Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.

Feng Shui Concepts to Help a Home Sell

5 Feng Shui Concepts to Help a Home Sell

To put the best face on a listing and appeal to buyers who follow feng shui principles, keep these tips in mind.

1. Pay special attention to the front door, which is considered the “mouth of chi” (chi is the “life force” of all things) and one of the most powerful aspects of the entire property. Abundance, blessings, opportunities, and good fortune enter through the front door. It’s also the first impression buyers have of how well the sellers have taken care of the rest of the property. Make sure the area around the front door is swept clean, free of cobwebs and clutter. Make sure all lighting is straight and properly hung. Better yet, light the path leading up to the front door to create an inviting atmosphere.

2. Chi energy can be flushed away wherever there are drains in the home. To keep the good forces of a home in, always keep the toilet seats down and close the doors to bathrooms.

3. The master bed should be in a place of honor, power, and protection, which is farthest from and facing toward the entryway of the room. It’s even better if you can place the bed diagonally in the farthest corner. Paint the room in colors that promote serenity, relaxation, and romance, such as soft tones of green, blue, and lavender.

4. The dining room symbolizes the energy and power of family togetherness. Make sure the table is clear and uncluttered during showings. Use an attractive tablecloth to enhance the look of the table while also softening sharp corners.

5. The windows are considered to be the eyes of the home. Getting the windows professionally cleaned will make the home sparkle and ensure that the view will be optimally displayed.

Source: Sell Your Home Faster With Feng Shui by Holly Ziegler (Dragon Chi Publications, 2001)

UPDATE ON FREDDIE MAC & FANNIE MAY BAILOUT

Fannie Mae and Freddie Mac Bailout

Mortgage Bonds are soaring higher on last Sunday’s announcement that Fannie Mae and Freddie Mac will come under control of the government. This announcement came as the government felt both these institutions will no longer be able to meet their mission statement which is to provide liquidity, stability and affordability in the housing markets.
Fannie Mae and Freddie Mac both have issued many Bonds which over time mature, and Fannie and Freddie need to pay back the principal on the maturing Bonds. The way they raise capital to pay these maturing Bonds is to issue new Bonds. This happens every month. And as long as Fannie and Freddie can sell new Bonds this system works well. But the problems in the mortgage industry have reduced investor appetite to purchase these Bonds...and that's where the trouble begins. Without the ability to sell new Bonds, Fannie and Freddie are less able to meet the capital requirements to pay off the maturing Bonds. And that's the big fear. If Fannie and Freddie were to default and become insolvent, it would throw the beleaguered mortgage and housing markets even deeper into the abyss.
Additionally, the recent lack of appetite for Fannie Mae and Freddie Mac Bonds caused the two mortgage giants to have to do something to make their Bonds more attractive...so they offered their Bonds at higher yields to gain more investor interest. However, since they couldn't go back and raise rates on loans that had already been closed, it sucked even more profits out of Fannie and Freddie, reducing capital even further, and exacerbating the problem.
That's why the Treasury has stepped in and said that they will back the payments on these Bonds. This action has given investors a lot of confidence to step in and now buy Mortgage Bonds. Think about it. For a higher rate of return, investors can now buy Mortgage Bonds with the same guarantee as lower yielding Treasury Bonds. This is causing a nice rally in pricing yesterday – which combined with the break above the 200-day Moving Average – leads to attractive rates and what could be a refinance season ahead.

MAGNIFICENT 5 bedroom, 5 bath home in Montgomery

Click on the picture for more details, pictures and to arrange for a private showing.

Pre-qualification is required.

Location: A few minutes from Princeton

Schools: Award winning

In-Ground Pool: yes and LARGE

Bedrooms: 5 with a private baths

Baths: 5 full and 3 half baths

Fireplaces: 5

CHECK OUT THIS MAGNIFICENT "HAMPTON-LIKE" CUSTOM FRENCH COLONIAL !!!

OFFERED AT $1,699,000

Magnificent Hampton-like Colonial in the prestigious Bedens Brook section of Montgomery awaits your discriminating taste. Montgomery is just a few short miles Princeton, NJ and affords its residents with one of the premier public school districts in the State and is just a short drive to a number of prominent, private schools that surround Princeton.

This exquisite home was designed and appointed for both the grand and elegant entertainer and those that enjoy the warmth & comfort of home. Four interior fireplaces plus a wisteria covered Pergola with a fireplace for the evening gatherings and pool parties add to the warmth and comfort mentioned. Upon entering the grand foyer, to the right you will be impressed by the large and bright elevated formal Living Room with marble surround fireplace, conservatory and a large private office with a wall of built in bookshelves. To the center is the view of the pergola through two large French Doors, a sweeping stairway to the upper level bedrooms and an Ingelnook with a fireplace. Further to left enjoy the large formal Dining Room with a butler’s pantry, Family Room with a marble surround fireplace and a large kitchen area with a breakfast room for more casual dining. The kitchen comes complete with a large gas, professional range with grill, griddle and dual ovens mounted in the granite center island with an over sized exhaust hood. Additionally, there are double wall ovens and a beautiful view of the in-ground pool and woods beyond. A bedroom with a private bath and laundry room complete the 1st floor. Surround yourself in luxury in the Rosa marble master bath with steam shower and master bedroom with fireplace, sitting area, double walk-in closets and balcony. The three remaining bedrooms all have private baths. The full basement has been finished with numerous storage areas as well as a game room.

The over sized 3 car garage is attached to the home via an enclosed breezeway with access to the front gardens as well as the paver driveway large enough to handle 6-8 cars.

The home has recently had a completely new cedar shake roof, landscaping, paver/stone driveway as well as being recently painted.
The exterior gardens, patio, large pool and 11 acre conservation area that abut the property at the rear and side, afford privacy and solitude.

Federal Tax credits for Homebuyers + NJ Grants and Mortgage incentives

The recently signed Economic Stimulus Package has a provision that allows for a $7,500 tax credit for first time home buyers! If you purchased your 1st home after April of 2008 you may very well be entitle to this tax credit. Make sure you check into this come "tax time"!

Are you a Policeman/woman or Firefighter......The Mortgage programs for you have been funded again! This program ran out of funding in a few short weeks earlier this year. GREAT INTEREST RATES !! ! ! !

NJ still has the NJ Smart Start Grant program. Here's the link...check it out....up to 4% in State grants if you and the property qualify!
http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/smart.html

SO, ONCE AGAIN I SAY....NOW IS THE BEST TIME TO BUY YOUR 1st HOME???

The Good New Bad News Scenario

Hi all!
GOOD NEWS
Inventory levels Statewide have started to DROP!
Remember when you first heard of "supply and demand". When supply drops and demand stays constant, prices tend to rise. The activity levels in Somerset, Morris and Mercer Counties have improved. Recently Mercer County was removed from a "declining market" designation list used by many mortgage underwriters. This is ALL GOOD! Especially so for Sellers!

BAD NEWS
Mortgage rates are inching UPWARD!
This increase in rates will reduce a buyers..."buying power". With home prices relatively low after 3 years of correction a buyer can get more house for their dollar. This will change as mortgage rates increase. BAD NEWS for Buyers!

SUMMARY
With inventory levels declining and mortgage rates increasing THIS IS A BUYERS BEST TIME! I've been mentioning this for a few months now and am absolutely convinced that IF your looking for the BOTTOM in this immediate area......you've found it!

Hunterdon County NJ Ranks #7 in Nationwide "BEST COUNTIES TO LIVE"

WOW ! ! !

According to the recently released "Best Counties to Live in the Nation" by Forbes Hunterdon County Ranks #7 and it is noted that it is the "safest" within the entire list. It ranked JUST behind Morris County (#6) and ahead of Somerset County (one of the wealthiest) at #16.
http://www.forbes.com/2008/06/27/schools-places-family-forbeslife-cz_zg_0630realestate.html

As a Real Estate professional who focuses on these Counties, I would be honored to assist you find your next perfect home in these "BEST COUNTIES" in the ENTIRE NATION !!! Go to http://www.waynefsmith.com/ to search all available properties

Congratulations, Morris, Hunterdon and Somerset Counties.....well done!