Sherry Spengel | Wheaton IL

In today’s real estate market, the mortgage rules seem to be in constant flux. Here are some common credit questions that will help you make sure you are positioned well to get that home loan (or any other loan for that matter).

Will ordering my credit report negatively affect my credit score?
No, it will not have a negative impact on your score. The most important factor to your credit score is your credit history. Do you pay your bills on time? Are you maxed out on all your credit cards? Do you have a long credit history?

I just found an error on my report, can that be changed?
Yes, it can. You can try to write the company yourself with proof of the error. You can request your mortgage broker to write a letter on your behalf. The Department of Housing and Urban Development also has credit counselors available to answer your questions. www.hud.gov/counseling.

Where can I see my credit report?
Every year you can get a free credit report from the three major credit bureaus. They are Experian, TransUnion, and Equifax. According to the FTC website, www.annualcreditreport.com is the only authorized online source for a free credit report under federal law.

I have a blemish on my credit report; can I get it removed fast?
Unfortunately, no. Time is the only thing that will remove bad credit from your report. The FTC requires the bureaus to keep your credit information current for the last 7 years. After 7 years the bad credit blemish will “fall off” your report (10 years for a bankruptcy).

How to I get a better credit score?
Well, it’s easier said than done these days. You can reduce your debt and pay your bills on time. When a lender looks at your debt to income ratio, they like to see it below 36%.

I know it’s a self centered headline, but that doesn’t happen very often, so what the heck.

After I published a blog post on Glen Ellyn and Wheaton 2008 sales, market times and total number of homes sold, Brian Hudson, reporter for the Glen Ellyn News and Wheaton Leader called me about my statistics. We had a wonderful talk and he asked if I would mind being quoted in his article. Well, no; please go ahead and quote me!

He later called me back and asked if I would be willing to find a buyer and do a photo shoot for the article. I called Kathy Quaid, another fabulous agent in my office. I told her I have a house if she could bring the buyer. We met the photographer at 120 Tennyson, Wheaton. Kathy did an amazing job showing her client all the features of this wonderful home.

Not only does the article cover home sales in Wheaton and Glen Ellyn, but talks about the decrease of tax revenues and an interview with Kathy Doremus of the DuPage Homeownership Center, a nonprofit affordable housing agency.

Don’t get too down about the headline. I just ran numbers for Wheaton townhouses and the prices actually went up in 2008. There is hope!

There are some quick, easy and inexpensive ways to make your home more attractive to potential buyers. Most of these ideas take more time than money.

Clean goes a long, long way, even in an outdated home. Buyers like to know that a home has been loved and well maintained. I once had a seller who keep her files in the dishwasher. According to her, the dishwasher just didn’t get the dishes clean enough. I’m not saying you need to go that far, but scrub every corner of your home, it will pay off.

Furniture placement – rearranging furniture can give your rooms the energy and space they need. Remove any extra furniture, tables, knick-knacks and books. Make sure there is enough space to walk around the whole room.

Paint – this has to be one of the most inexpensive ways to freshen up a room. Feel free to do the work yourself, but if you need help picking paint colors, definitely pay a professional for their advice. The wrong paint color and a lot of wallpaper can turn off buyers.

Clutter – admit it, we all have it. You can organize it and put it in pretty containers, or better yet, pack it up and move it to a storage unit or neatly stack it in the garage. Your goal is to move, get a head start and pack it away now.

Green it up – add some green household plants for warmth and texture. Set some fresh cut flowers on the dinning room table or in the bathroom. Just make sure to keep them watered and looking good. And never use artificial plants.

Update – updating doesn’t mean spending a ton of money. You can replace switch plates, cabinet handles, light bulbs, sinks, door knobs, bath towels, welcome mats and toilet seats. None of those things will break the bank, and they will go a long way to freshen up your home.

Lighting – make sure you have enough lights in the home. Even during the day, turn on lights for a showing.

Our government is making an effort to entice first time homebuyers to purchase houses. On July 20, 2008, then President Bush signed into law, as part of the Housing and Economic Recovery Act of 2008, a $7,500 tax credit for first time homebuyers. This tax credit is available from April 9, 2008 to July 1, 2009.

Here are some details you need to know:

• The tax credit if for 10% of the cost of the home, not to exceed $7,500.
• The tax credit must be paid back over a 15 year period. It is however, an interest-free loan.
• The property purchased must be used as a primary residence.
• A single borrower must have an adjusted gross income of $75,000 or less. That goes up to $150,000 if you file a joint return.
• You must be a first time homebuyer.

If you choose to sell your home before the 15 years are up, you owe the IRS. Say you still owe $3000 and you make a $20,000 profit from your home when you sell. You would pay the IRS that $3000 at closing and walk away with $17,000.

Stay tuned, you never know when our government will change the rules and hopefully make this a gift, instead of a interest-free loan!

Both the Wall Street Journal and Bloomberg.com are reporting today that homes sales in December had their biggest monthly increase in nearly seven years. Homes sales were up 6.5% nationally in December 2008.

Most likely this is due to buyers taking advantage of home price cuts and homes in foreclosure.