Eric Murrietta

Before the Holiday Season is in full swing and the urge to run a lot of charges on your credit card takes over, it makes sense to see what credit means toward buying a home. Now, more than ever does credit matter when it comes to buying a home. We all know that the "best" credit risks get the "best" deals when it comes to financing, but that is true more than ever in this market. So here are some tips to help keep your credit in line.

• Remember to get a copy of your free credit report once a year. (You can request a copy here.)

More Tips...

1. Make your payment on time. (It seems like a no-brainer, but every time you are 30 days late, the credit bureaus will ding your credit report every time.)
2. Balance on Credit Cards should not exceed 30-35%. (i.e. If you have a $1000 max credit limit on your card you should keep the statement balance between $300-$350)
3. Pay-Off Debt - Don't move it around. (Those tricky credit card companies will send you those enticing offers to "transfer a balance for the low fee of 3% and a 0% APR for the first year", however this won't improve your credit. The bureau's system will see that you have simply moved the credit. Instead, start with the smallest credit card balance and work your way up to the largest.)
4. Don't close unused cards or open new cards not needed. (Some say to keep a small balance on your cards, however, if you have the card for a significant length of time, there is no need to use the card. Simply keep track of the cards so that you don't become a victim of fraudulent activity. Also, all new credit shows that you may be ready to make a new purchase and this will impact your score.)
5. # of Inquiries. (Those pesky credit card companies will "view" your credit so they can send you those wonderful offers. Though these "views" don't impact your credit, remember that consumer requested credit pulls can have a negative impact. Likewise when you don't pay a bill on time, the company you owe that holds the outstanding liability may check your credit and this can have an impact.)

Your credit is important and it is up to you to keep it healthy. A score of 718 vs. 741 can mean the difference in rate of up to .125 if not .250. Hopefully these tips will help you stay on track or get on track so that you can keep in mind the ultimate goal of owning your own home.

Rates crept up slightly from the mid-week rates. Rates, though, are still slightly better on the 30 YR fixed than last week. Keep your eye out as the outlook shows that rates may be even better in the next few weeks. Typically the trend is for rates to improve in early December, this has happened for the past four years.

Thanksgiving is upon us and yet another Holiday to share with friends and family. This may be the best one as no presents are exchanged, just the fortune of each other's company and the opportunity to be thankful for the blessings we have received this year. So, enjoy this weekend before Thanksgiving dinner and enjoy the time you have with family. Here are some highlights for this past week...

•1) Nick Bastian Annual Turkey Drive - As I was reading blogs through Active Rain this week, I came across Nick Bastian. He is a local realtor that has been doing a lot with blogs this past year. I had met him on a couple of occasions through different blogging events but was unaware of his Turkey Drive that he does before Thanksgiving. Now there are a ton of Turkey Drives that one can participate in, but the opportunity to help someone that does the shopping themselves and drops the Turkey's off to their locations was something that made me smile. Anyway, I was able to meet up with Nick this week and he is still in need of donations so that he can beat his total from last year. Here is the link to his blog... http://activerain.com/blogsview/793068/Time-for-Nicks-annual-Turkey-Drive

•2) REAL Training Seminar a Success - The training seminar on Wednesday the 19^th of November was awesome. It was a great opportunity to meet some new Realtors and at the same time teach them about the loan process. I enjoyed the time we had and hope that there are more successful seminars/classes in the future. I will keep you posted as new classes are planned so that you can plan on attending.

•3) Suns gave lackluster performance against dominate Lakers squad - If you caught any of the game last night you could see flashes of the Suns potential domination but mostly it seemed as though L.A. was just waiting for the right time to pounce. Which they did of course in the second half of last night's game. It's early in the season but it appears we may be chasing them most of the year.

Don't forget to take a minute to reflect on those people in your life you are thankful for and make sure to let them know as much.

NO CHANGE IN RATES THIS WEEK. THINK OF IT AS AN EARLY THANKSGIVING PRESENT.

For example, if at the dinner table on Thanksgiving Day and a tradition is to say something you are thankful for, you can think back on today, the 14^th of November, and say, "I am thankful that mortgage rates stayed the same from November 7^th until November 14^th." Sure your family may look at you with bewilderment and they may claim that you have truly lost your mind, but remember: they may not be experiencing this housing downturn quite like you have...

•1) FHA CHANGES LOAN LIMITS: I sent an email regarding this yesterday. So, just as a reminder the new limit for Maricopa County is $271,050.00.

•2) UPCOMING R.E.A.L (Real Estate Agent Loan) TRAINING CLASS: On Wednesday, November 19, 2008, I will be presenting a seminar regarding the loan process, current information about underwriting standards, and potential loan products and programs. It should be a fun seminar so if you are in the area of Scottsdale and Shea on Wednesday morning the 19^th of November at 9:30 AM. Give me a call and stop by.

•3) PERSEVERANCE: The greater the obstacle, the more glory in overcoming it. (Moliere)

Just a Reminder: Perhaps you were on vacation and missed the news about the new FHA loan limits for 2009. For Maricopa County the new maximum loan limit will be $271,050.

To read more about it, check out this blog.

What does this change mean for borrowers? Less buying power.

Will it affect those purchasing homes?

Will it hurt those who could have initially done refinances up to 95% at the 2008 limit of $346,250?

If you or anyone you know are can afford and are interested in buying a home in the $300K range but want to take advanatage of putting less than 10% down...NOW is the time to contact your financing parter to discuss the steps necessary to get you into that new home.

The Federal Housing Finance Agency (FHFA) announced late Friday that the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.

Following the provisions of HERA, FHFA has set loan limits for "high-cost" areas in 2009. These limits are set equal to 115 percent of local median house prices and cannot exceed 150 percent of the standard limit, which is $625,500 for one-unit homes in the continental U.S. The new limits affect loans purchased by an Enterprise in 2009, unless the loans were made permanently eligible for purchase under the Economic Stimulus Act enacted earlier in 2008 and has generally higher limits.

In addition to a table containing a list of all conforming loan limits for all U.S. counties and statistically equivalent areas, also attached is a list showing only those areas where 2009 loan limits are set by the high-cost area provisions in HERA. These areas have loan limits above $417,000 for one-unit properties in the continental U.S. and above $625,500 for properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands.

2009 High Cost Area States