Get Real Tacoma

Last week credit companies made some changes to how your FICO score is calculated.  

If you are buying a house, refinancing a house, or renting an apartment- you are being judged based on your credit score. I am not one of those people who advocates being obsessed with your score. I spent two years of my life obsessively reading and worrying about how every minor financial event in my life impacted my score, which is silly.  Obsessing about credit is unhealthy, but understand the scoring process staying on top of how to put your best foot forward to creditors is a good thing! 

Credit scores range from 300-850. The lowest I have ever encountered was a 463, the highest I’ve seen was 840. Both of those people made about the same income, it was all about how they managed their money. The average credit score in america is about 678.  If your score is 700 or above, your interest rates should be low and credit should be readily available to you.

Here is a breakdown of how scores are determined, from Suze Orman: Read the rest of this entry »

The New Tribune is reporting that the City of Tacoma has the opportunity to claim 2.9 Million of the 3.9 Billion Dollar Housing Bill congress passed in July.

“Pierce County is eligible for about $4.4 million, and the City of Tacoma is eligible for about $2.9 million. Both amounts are the highest in the state, because both areas have the highest foreclosure rates.

Local officials acknowledge the program’s limitations.

“Three million dollars in the housing market is a grain of sand,” said Rick Teasley, housing division manager for the City of Tacoma. “At the very best, we can hope to help maybe 100 to 200 home buyers get into houses.”

Everyone is going to have lots of opinions about how this money can best be used, the problem is (Like Rick Teasley says above) 2.9 million is not a ton of money.  To put that in perspective that is 12.6 houses at our County’s median home price of $230,000.   

I believe that adding cash to the coffers of the City of Tacoma Downpayment Assistance Program would do the most good.  That helps buyers, which helps sellers.  

It will be interesting to see what happens next and how this money is used.

Here is a great post on the blog QVisory about the difference between a fixed and adjustable rate mortgage.  

It’s mortgage rates 101: the difference between a fixed and adjustable rate home loan. Just like it sounds, a fixed rate mortgage stays at the same interest rate for as long as you are paying down the loan, regardless of whether interest rates, in general, go up or down.

Conversely, an adjustable rate mortgage can go up (and sometimes down) based upon the overall interest rate market. Sometimes it is possible to get an adjustable rate mortgage at a much lower interest rate than a fixed rate mortgage, but the rate could skyrocket in a matter of a few years.

Also, there is an explaination of what “Points” on a mortgage are.  Useful information for first time homebuyers and homeowners alike!

Thanks to my #1 Client Mary for sharing this with me on Google Reader!

Prices are dropping... Inventory is high...

I get this question all the time.  I’m sure every Realtor does.  These days every accountant, grocery checker, and therapist probably does too.  Sometimes I get it from first time homebuyers, sometimes from people who’ve bought and sold several houses.  My answer varies.  Sure, housing inventories are high and buyers are calling the shots on price and terms- but for a person who is serious about making wise decisions, the answer to your question depends on more than just the climate in the housing market.  It depends on where you are financially, if you plan to move out of the area in the the next 3-5 years, or if you’re going to have 3 babies in rapid succession…

Other people just like to hear everyone else say it’s a good time to buy.  If you are one of those people, here is an interesting article from the New York Times.

Thanks to my #1 Client Matt for sending that over.

Foreclosure is not pretty.

I do not exaggerate when I say that at LEAST once a day, someone will ask me a question about foreclosures.  Foreclosure terminology can be a bit intimidating, but it’s easy to learn.  Here are some common terms and what they mean:

Read the rest of this entry »