Kathryn Maguire (The Real Estate Group)

One of the most critical factors that will determine if you qualify for a mortgage or whether you will receive a favorable rate on your mortgage is your credit score. For some people, how a credit score is determined or what they can do to improve their credit score is a complete mystery. However, you CAN take matters into your own hands and control your own destiny when it comes to credit scores.

Factor 1 - Bill Payment History (35%): In order to improve this part of your score, pay your bills in full and on time....every time.

Factor 2 - Amounts Owed vs. Total Credit Limit (30%): In order to improve this part of your score, make sure that you are not charging above 1/3 of your credit limit for each card you possess. For example, if you have a $10,000 credit limit on one card and $20,000 on another, the goal is not to charge more than $3,333 on the first card and $6,666 on the second. This may take a little more attention on your part but the impact is worth it.

Factor 3 - Length of Credit History (15%): In order to maintain this part of the score, don't close out old accounts, even if you don't use them. As a matter of fact, use your cards twice a year to make sure that the card issuer does not cancel the card....they have been doing that lately. By using your card twice a year, you will not have an inactive card that is subject to being closed by the issuer.

Factor 4 - New Accounts (10%): If you have a lot of new accounts, you are perceived to be a greater credit risk. So don't accept those department store credit cards, even if it means saving an extra 15% at the register!

Factor 5 - Diversification of Debt (10%): It looks better if you have a variety of debt types (i.e., credit cards, student loans, car loans, mortgages, etc. I cannot in good conscience recommend you go into more debt solely for the purpose of diversifying your debt. Therefore, I would not recommend you focusing on this aspect of your score. If you already have a variety of debt types, this part of your score will be stronger.

Why is a credit score important??? Because the amount you can save in interest if your score is higher is substantial. So work on your credit score now and enjoy the savings later!

I was recently informed by an interested party that the developer for the apartment complex that is targetted to be constructed in the area between the Cahoon Plantation golf course and Shillelagh Road has requested a postponement of the review and decision by the Chesapeake City Council. The proposed name for this complex is Plantation Greens. The new date for the review and decision by Chesapeake City Council is June 15, 2010.

Here is an excerpt the meeting minutes from the April meeting when the project was first introduced:

C. R(C)-07-23 Plantation Greens APPLICANT: Arlington Dominion, LLC AGENCY: Hassell & Folkes, PC PROPOSAL: A conditional zoning reclassification of 1.2 acres zoned R-15, Residential District and 42.5 acres zoned A-1, Agricultural District to 28.4 acres R-MF-1, Residential Multi-Family District, 9.6 acres M-1, Light Industrial District and 5.7 acres B-2, General Business District. PROPOSED COMP LAND USE & DENSITY: Mixed use development EXISTING COMP LAND USE & DENSITY: Regional mixed use LOCATION: East of Shillelagh Road, south of Dominion Commons Shopping Center, and west of Cahoon Plantation Golf Course TAX MAP SECTION/PARCELS: Parcel 0460000000510 and portions of parcels 0460000000520, 0460000000530, and 0460000000531 BOROUGH: Deep Creek The Planning Commission recommends denial.

CONTINUED to June 15, 2010 (de Triquet/Collins) (9-0)

My understanding of the project is that these apartments would range from 1 to 3 bedroom apartments with the lowest priced unit being rented out at around $800 per month. If you have strong feelings one way or another about this proposed development, you might want to consider showing up at the City Council meeting so that you can express your arguments for or against the proposal. Let you voice be heard!

I frequently get calls from prospective buyers who are thinking about dipping their toes into the housing market. They want to start looking at houses right away so that they can get a "feel" for what is available to them. To these people, I always ask this first question (after I confirm that they are not currently working with another Realtor): "Have you spoken to a lender to find out the price range you should be considering?"

Most people have no idea that this is critical when starting to shop for homes. Talking with a lender first will tell a prospective buyer if they can even be considered for a mortgage. If a buyer is not aware of their current credit score, they may not even qualify for a mortgage. For these people, they need to clean up their credit before they can start the house hunting process. Once they know that their credit score is mortgage-worthy, the prospective buyer will then know what price range is reasonable for their search. If they start looking at homes that are above their qualifications, they may be dissatisfied once they look at homes within their means. There is a significant difference between a $350,000 house and a $250,000 house! Finally, the prospective buyers will know how much cash they may have to bring to the closing and can start saving for their down payment and closing costs. So when thinking about buying a house, call a lender first.....Then call a seasoned Realtor!