Avery Financial Group #1 first time home buyer provider.

Idaho Housing and Finance Association (IHFA) announced that for the first quarter of 2008, Avery Financial Group was the number one provider of their loans in Eastern Idaho for first time homebuyers in the first quarter of 2008. 

IHFA has long been the #1 choice for first time homebuyers.  They offer low, fixed interest rates and down payment assistance programs to help people purchase their first home.  IHFA does not offer a “retail” outlet for their loans.  So to get an IHFA loan you must go to a bank or mortgage broker. 

Congratulations Avery Financial Group!  And thank you for providing financing for our first time homebuyers in all of Eastern Idaho.

Real Estate Market not as bad as once thought?

For the past 12 months, it has been non-stop doom and gloom reporting on the real estate and mortgage markets.  Every time I turned on the TV, listened to the radio, opened a newspaper or started surfing online, it was another “the sky is falling” report on our national housing and mortgage markets.  While I agree we are in the middle of a market correction, it has been frustrating to watch the media moguls trying to out do each other in dramatizing the circumstances. 

Lately we have seen some reversals in both real estate and mortgage lending.  Markets that once were depreciating are leveling off and mortgage rates are still very low by historical standards.  People are buying homes and refinances are still happening.  Here in Eastern Idaho, including Pocatello, Blackfoot and Idaho Falls, we actually haven’t seen any depreciation.  It is true there are more houses on the market now than there have been in “the boom years”.  But this is now more of just a normal real estate market rather than a hot market.

I was watching a report on money.cnn.com that actually reported “housing’s rosy outlook”.  It talked about how real estate is local; meaning that, yes, there are some bad markets in the nations, such as Phoenix, AZ or Miami, FL.  However, there are many markets that are doing great.  Don’t trust everything you read or hear in the media.  Click here to watch the full report.  http://money.cnn.com/video/#/video/news/2008/05/19/news.harlow.coldwell.ceo.intv.cnnmoney

It was refreshing to see a national media report that was positive on our markets.  Since markets in general, including real estate markets, are driven by perception and feeling, perhaps we could see some of the markets that are depressed rebound quicker if more of our media friends would be just as enthusiasic reporting the positive rather than the negative.

 

Credit Scores are more important than ever!

At least they are if you want a home loan.  With the recent tightening of the credit markets, your credit score can not only determine if you get a loan, it can determine the rate, terms and fees of the loan you get.  Not long ago if you had a 620 credit score, you could get the best rate available for a mortgage.  Now, that score has raised 100 points to a 720. 

 

So what is considered “good” credit?  Credit scores generally range from 350 to 850, depending on the credit bureau.  On a grading scale, 720 to 850 is A plus credit.  680 to 720 is A credit.  620 to 680 is B credit.  580 to 620 is C credit.  520 to 580 is D credit and 520 and below gets you an F.  So, from the example above, a person with a 620 credit score, considered C plus to B minus credit, could get the best rate available.  Now a person has to have A plus credit to get that premium rate.

 

Why is this?  Simply speaking, lenders are scared.  Due to some irresponsible lending decisions in the past, many lenders are taking some serious losses on some loans they have made.  When lenders take big losses, they aren’t as willing to make new loans.  And the new loans they are willing to make will be to borrowers they are 100% sure will pay them back.

 

So it is more important than ever to pay attention to your credit score.  Having that A plus score instead of a B or C score might make the difference of getting a loan or getting denied.  And it will definitely make a difference on the interest rate and terms you get.  Higher credit scores can save you a lot of money in interest. 

 

So how do you improve your credit scores?  How credit scores are calculated is kind of tricky.  Someone with perfect pay history might still only be in the B or A credit category instead of A plus due to some other factors.  It is a good idea to review your credit with a mortgage professional 4 to 6 months before you are going to apply for a home loan.  Many times there are some suggestions we can make to take your credit score from a 680 to a 720 in only 30 to 60 days.  And if you have credit scores in C, D or F range, there are still things you can do to improve.  It might take longer but scores can come up.

 

So call me at the Avery Financial Group to schedule your free credit counseling appointment.  You will be glad you did.