What You Should Know Before Trying to Obtain Credit

good-credit-vs-bad-creditIn today’s world of credit there are primarily three 800 pound gorillas that lending institutions use to determine your creditworthiness, how much credit they will afford you, and how expensive that credit will be in the future. In addition to lending institutions, insurance companies also look at credit when assessing insurance risks and determining insurance rates for auto, home, health, and life insurance. It is therefore critical as a consumer; you monitor your credit regularly.

The three gorillas are Experian, TransUnion, and Equifax. In Colorado, and many other states, consumers are entitled to a free credit report annually (annual credit report.com). It is recommended that each consumer take advantage of these three free credit reports each year. My suggestion would be to check one agency approximately every four months so perhaps one in early January, one in early May and perhaps one in early September. This way, if there are any discrepancies, like identity theft, or a creditor has inappropriately reported a transaction, you are able to take action quickly. These discrepancies can adversely affect your credit causing your credit score to be calculated incorrectly. This may also increase your insurance, or if you are applying for a loan significantly affect the terms you would be offered in the loan.

The three credit reporting agencies each have different ways they score your credit. These measures are generally called a FICO score. Fico scores vary between credit agencies and are based upon a proprietary algorithm, which has been established by each of the credit reporting agencies. There is a wealth of information about FICO scores and a BLOG where you can ask questions on My Fico Beware that My FICO wants money. If you want to find out about your FICO score free use Credit Karma

These tips can help you find the home you are dreaming of by qualifying for your loan first. If you have, questions about how to shop for a good lender give us a call. At Terry Robinson— the Early Group, we pride ourselves on providing our clients with the very best in customer service. We can be reached, if you would like to buy or sell your dream home, at 303-748-3838 or info@early-group.com. Our web site is The Early-Group

Why Buying Real Estate Can Be A Smart Financial Move

Why Buying Real Estate Can Be A Smart Financial Move

Buying Conifer or Evergreen real estate doesn’t just give you a place to live; it can also be a very smart financial move.  This is because owning a home can be like having a forced savings account, which you are committed to for the long term.

Consistent Saving On Autopilot

Sometimes saving money on our own each month is difficult. It takes a lot of discipline to maintain a consistent savings plan.  However, paying your mortgage every month means that you are paying down the principal and working toward eventually owning the property outright.

In the early years of the mortgage, the payments will go primarily to the interest on the loan.  But over time, the portion of your payment dedicated to principle increases, which accelerates paying off the entire mortgage.

Make Yourself Wealthy Instead Of Your Landlord

In the long term, owning your own home may be a much better financial arrangement than renting a home. No matter how long you pay monthly rent, you will never own the real estate that you are living in.  When you are renting your home, it may also be possible for your landlord to increase your rent every year.

On the other hand, paying a mortgage on your real estate means that every month you get closer to owning the home.  In fact, most home mortgage lenders offer a fixed interest rate mortgage. This gives you a sense of control over how much you are paying every month, year to year.

In a fixed rate mortgage, every mortgage payment pays down a portion of the principle on your mortgage loan.  In many cases this builds equity in your property and increases your net worth.  It’s a good idea to check with a professional mortgage lender to get an idea of the most up-to-date programs available.

Real Estate May Increase In Value Over Time

Over the years, your home might appreciate in value. Many experts say that the average home value increase each year over longer stretches of time, although this will vary according to the area you live in, the current economy and other factors.  Your home’s value may very well fluctuate throughout the years, but history has shown that over the long term, buying a home can be a very beneficial financial decision.

Understanding the benefits of home ownership, including the potential financial upside of purchasing your own home, can be an excellent way to further your overall personal financial plan.

Clever Tips for Paying Off Your Home Mortgage Faster

Clever Tips for Paying Off Your Home Mortgage Faster

Paying off the mortgage on your Colorado home faster not only means that you’ll be able to enjoy the peace of mind that comes with completely owning your property sooner, but you may also save thousands of dollars in mortgage interest payments over time and enjoy the all that the Denver lifestyle has to offer .  Below are seven clever tips to help you get your mortgage payments on the fast track.

Save for a large down payment Make as large of a down payment as you can reasonably afford. The more cash you can put down, the less you’ll have to borrow from the bank. This will reduce your monthly mortgage obligation.

Read the fine print When you are choosing a mortgage, ask your lender if there are restrictions related to paying extra principal monthly. Some lenders will charge you for making extra or early payments.

Prepay early in the life of the mortgage The early years of a mortgage are interest-heavy. On a 30-year mortgage, throughout the first five to seven years, you payments are mostly interest. Request an amortization schedule of your mortgage to get a clear picture of how this works.

Be smart with unexpected fortune If you get an unexpected chunk of cash, such as a gift, prize, work bonus, inheritance, tax refund or other windfall, consider applying it directly toward paying down the principal on your mortgage.

Double-check your records When you make extra payments, ensure that they are processed correctly. Sometimes when the lender receives a payment that is outside of the monthly cycle, they may not know what to do with it. Make a special note and keep track of the payments yourself, so you can make sure they’ve been applied to your principal.

Increase your payment Even increasing your monthly mortgage payment by a small amount may take years off the length of your mortgage. Consider how much additional you can afford to pay every month rather than just the minimum required payment amount.

Think about a bi-weekly payment Many lenders offer accelerated, bi-weekly mortgage payment programs which can reduce your loan term by several years, saving mortgage interest over the life of the loan.

These are just a few techniques you can use to pay off your mortgage more quickly. Remember, the fewer years you pay on your home loan, the less mortgage interest you pay over time.


That Was Then, This is Now: How Much Things Have Changed in The Housing Market.

That Was Then, This is Now:  How Much Things Have Changed in The Housing Market.

As 2013 gets underway, Colorado’s housing market is poised to continue the steady recovery that began last year. Houses on sale and the median sale price rose in most of our markets last year, and industry economists expect more improvement this year. Foreclosures and short sales continue to decline.

The only problem seems to be that many potential sellers don’t realize that things have changed so dramatically since the downturn of the housing market, and they’re missing out on a tremendous opportunity.

There’s a severe shortage of homes for sale in many areas, which means that homeowners savvy enough to list their home right now are often getting multiple offers – and sometimes at prices we haven’t seen in several years!

Available inventory of homes for sale in much of our region is down 50 percent or more just in the past year. Right now, there are more eager buyers out there than homes on the market to meet their demand.

With an imbalance between supply and demand, homebuyers have been fiercely competing with each other, and that’s great news for sellers.

The Denver Metro Area is one of a growing number of metropolitan areas across the country now considered a seller’s market, according to Metrolist, the region’s multiple listing service. In both November and December, the number of homes sold, under contract or pending settlement outnumbered those available.

Approximately 3,400 homes sold in the region last month, an 8 percent jump from a year ago, and the average sale price climbed even faster, reaching $289,926, a 14 percent increase over the same month a year ago.

This representation is based in whole or in part on data gathered from the IRES MLS. Neither the member Boards of Realtors nor their MLS guarantees or is in any way responsible for its accuracy.


The inventory of single-family homes and condominiums has dropped by more than 50 percent from its high in July of 2010, Metrolist reported. Inventory at the end of December was the lowest it has been since 1998. And the average number of days it took to sell a home has fallen to just two and a half months.

The same trends that we are seeing here in Colorado are occurring in markets across the country, according to the National Association of Realtors.

Home sales nationwide rose to a seasonally adjusted annual rate of 5.04 million in November, the highest level since November 2009, when the annual pace spiked at 5.44 million, NAR reported.

“Momentum continues to build in the housing market from growing jobs and a bursting out of household formation,” said Lawrence Yun, NAR’s chief economist. “With lower rental vacancy rates and rising rents, combined with still historically favorable affordability conditions, more people are buying homes.”

Yun said healthy market demand and shortage of listings is driving up prices once again. “A diminishing share of foreclosed property sales is helping home values,” he noted. “Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions.”

Total housing inventory at the end of November nationwide fell 3.8 percent to 2.03 million existing homes available for sale, which represents a 4.8-month supply at the current sales pace. It was down from 5.3 months in October and is the lowest housing supply since September of 2005 when it was 4.6 months, NAR reported.

Listed inventory is 22.5 percent below a year ago when there was a 7.1-month supply. Raw unsold inventory is now at the lowest level since December 2001 when there were 1.89 million homes on the market, NAR said.

Compared with a year ago, home listings are down in every price category in each of the nation’s 30 largest housing markets, according to a study by real estate website Zillow.

The tight inventory conditions won’t last forever, of course. In an interview with USA Today, Zillow economist Stan Humphries said tight inventories will push up prices, encouraging more people to list homes.

So where does this all leave you? If you’ve been putting off selling your home, you may want to seriously consider getting back into the market right now. As the New Year gets under way, the pendulum has swung back into a seller’s market. But there’s no guarantee how long that will last.

Buyers are out there looking, prices are climbing once again and there just aren’t enough good home listings to go around. With such strong buyer demand and a shortage of listings, this may be the best time to sell your home. We’re ready to help you get started today! Give us a call 303.816.7516.







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