Last time I wrote about getting better credit scores by keeping your revoloving debt low.  This blog deals with “length of credit history.”  Length of history accounts for 15% of your FICO score.  This part of the score looks at the age of your oldest account, the average of all accounts and the length of time certain accounts have not been used.  Your score gets better the longer the history. 

So how exactly would you maximize score?  First, don’t go crazy opening credit accounts.  New credit will negatively affect your score.  So if you don’t need the new account, then don’t open it!  Do not close older accounts, unless the accounts are not being used.  Closing accounts will reduce the average age of your accounts.  Lastly, use the accounts you have.  Even if you don’t use the account often, use it once in a while just to keep some activity going.  That does NOT mean that you need to carry balances.  I am a firm believer in paying off your accounts every month so you don’t have to pay interest.

My rule of thumb is never have less than 3 accounts and probably not more than 6 or 7 accounts.  Those three minimum accounts could include a mortgage, car, credit card(s), student loan(s), etc.  Also, all three accounts would need to be rated for at least 12 months and preferably 24 months or longer.  Keeping the number of accounts open to a low roar is important. 

So now you know to keep them paid on time, keep the balances low, and keep the number of accounts between three and six.  I feel your scores skyrocketing already!

Let me be frank…no one wants a junker. You need to think about the “average Joe” and what Joe wants his future home to look like. Just because you live in chaos, doesn’t mean that will be good enough for potential buyers.

Nice homes sell the quickest!! That doesn’t mean that your home has to be the biggest one on the block. It means that your home has to look good and smell good. Take the time to de-clutter. Clean it like you have never cleaned before. Clean the carpet.  Put out some nice scents…apple pie or fresh baked cookies works well.

Get a home stager if necessary. Pretend your home is a model home. Why do you think builders have fully furnished model homes? Because that is what sells the home.

So roll up your sleeves and get to work! Sit down, if need be, and watch a lot of HGTV to get some great ideas. Unless getting your house sold quickly and for top dollar is not important to you!

Don’t forget that fall will be here before you know it.  With the ever so slight chill in the air that Denver Metro has felt the last couple of days, it reminded me that fall is just around the corner.  That made me think of all the “honey do’s” that need to be done around the house.

One very important chore is getting your furnace cleaned and serviced.  I would most likely never remember to do this except that I attend a lot of home inspections.  In just about every inspection, the inspector recommends that the furnace gets cleaned and serviced.  It is very important to the long term health of your furnace and the cost usually runs around $100 to $150; a small price to pay for something that is so important.

You may also think about fixing any draft problems.  I recently replaced the door that goes out to the garage.  After 21 years of use, it wasn’t straight and was letting in a lot of cold air.  Safety doors are not cheap, but well worth it to help keep heating costs down.  Now, no more freezing air blowing into my house!

Let’s not forget about the exterior.  You may want to start the yearly investment in winterizer for your lawn.  The exterior curb appeal of your home is just as important.  After all, it is the first impression of you!

Your home is your castle (and typically one of your primary investments).  The nicer you keep it, the better it will sell when the time comes to move on.

You have made the decision to purchase a home, now it is time to get pre-qualified before you shop.  Aside from the obvious affordability concern, the biggest factor to getting approved for a mortgage loan is your credit score.  These days, it is almost impossible to get a loan with anything less than a 620 FICO score. 

But how do you get and keep a good score.  Again, the obvious answer is to pay your bills on time.  But it is not enough to simply pay your bills on time.  In order to truly optimize your score you must keep your revolving debt balances to thirty percent (30%) or less of your high credit limit. 

I recently witnessed a credit score jump from below 620 to a 660, in less than one month.  The only thing that changed about this person’s credit was paying down balances to thirty percent or less on three revolving debts.  Simple! 

Good scores are more important now than ever before to get a mortgage.  Even a 620 score is barely good enough these days.  Many lenders are starting to “ding” folks for scores less than 660.  You only hurt yourself by paying a higher interest rate if your score is not at least 660 or above.  Don’t wait!  Start paying down your balances, pay them on time, and watch your score keep going up!

Denver home sales are still doing great and the competition for lower priced homes is unbelievable.  I am still finding some nicely priced homes in the Denver Metro / Aurora areas, but everyone out there looking is submitting top dollar bids.  So don’t wait!

203K loans ROCK! If Fannie Mae and Freddie Mac could do what FHA is doing, and has been doing for many years, then maybe they wouldn’t be in so much trouble! So many of the homes on the market right now that are foreclosed or a short-sale need lots of fixing up. Okay, well maybe not a LOT, but they at least need some new carpet, a fresh coat of paint, and some appliances in the kitchen! Welcome the 203K Home Improvement Loan from FHA.

Some may think this is a new program, but in fact it has been around for many years. It lost it’s popularity for some time, especially during the housing boom. Many lenders are finally bringing it back…even though it never went away.

There are two kinds of 203K loans: the regular and the streamline. The streamline is the most common right now. It allows up to $35 thousand in extra funds after closing to fix up the home that you are buying. There are only a few conditions: The home must appraise in the “after improved value” and the funds cannot be used to make structural fixes or changes. The funds can be used for items like new carpet, new paint, new appliances, new windows, fix/install HVAC, fix/install lighting, and so much more!

So now when you are looking at a house that has “good bones,” picture it with all the fixings. The loan only takes a few extra steps, but well worth the extra effort to be able to make your new house your new home!

For more info on this, contact Adam at www.5280homemarket.com.

Welcome to my new blog. You will start seeing some great articles on first time home buyer programs, Denver Metro market information and how to get help with down payment assistance. I have extensive experience in helping first time home buyers! Follow my Twitter update also @Itchkawich. Please feel free to browse the website and call me if you have any questions.  I look forward to interacting with you!www.5280homemarket.com