Vanna Siackhasone Anchorage Real Estate 907-720-4663

Repair Your Credit Score

Anchorage Real Estate Blog

Things happen, life happens, mistakes happen and your credit score is usually affected. A credit score is very important when trying to get financing for a home loan. Think of your credit rating as your financial report card or GPA. The higher your score the more credit worthy you are. Many, many things can affect your credit score negatively, such as late payments, overusage of credit line, and bankruptcy.

If you are in the market for a home in the near future or even next year, keep in mind that most lending institutions require a minimum score of 620 right now. However, if your credit scoresis below 620, don't despair, there are ways to repair a damaged credit score.

Before I list the different ways to repair your credit score, I want to warn you of scammers that may promise you that they can raise your credit score overnight or in two short weeks. You can fix your credit score yourself through these methods:

1. Print a free credit report from Annualcreditreport.com so you can find out exactly what is going on with your credit. It's important to know if there is something fraudulent going on or if there is a mistake on your credit report. If you discover incorrect information on your credit report, contact the three credit burueas immediately to resolve the issues. This alone can raise your credit score quite a bit. Some things you might want to look for are: accounts that you didn't open, a balance showing on a debt that you've already paid off, etc...

2. Get your accounts current- If you have any past due accounts that are legitimately yours, it's important to bring these up to date. Your payment history accounts for a big chunk of your credit rating. If you are having trouble making payments, call the debtor to set up a payment plan.

3. Get your credit usage ratio in check- Your credit usage based upon your available credit accounts for about 30% of your credit score. Try to keep your ratios at 50% or less, 30% is ideal. Pay down maxed out credit lines and work on getting the debt below 50% of the available credit. With the economy and credit card companies changing rules so rapidly nowadays, this is more important than ever. Many credit card users are seeing their credit lines slashed in half so this bit of advice can be hard to accomplish right away, but it can be done!

4. Don't close out your credit lines- After paying down your credit cards, it's important that you don't close them out. The open credit lines can help with your ratios, especially if you have a long credit history with that card. The longer you have a credit line open, the more valuable it is to your credit rating.

5. If you do not qualify for a loan or credit card, open a secured credit line- A secured line of credit is usually a credit card that can be issued by your local bank with a credit line that equals the amount of money you have set in an account at that bank. This protects the bank, if you happen to not make your payments. Your deposit will secure the loan for you. Why is this important? You need some type of good credit to raise your score. Think of a see-saw, you have negative credit on the one side weighing that side down, you will need about that much good credit in order to bring the see-saw into equilibrium.

If you have bad credit right now, utilizing these 5 steps will take your credit score to the next level. I've seen people implement these steps and purchase a house, all within 6 months. Don't let a damaged credit score stop you from ever owning a home. Call Vanna for more information about the Anchorage Real Estate Market 907-720-4663

Thank you for taking the time to read my Blog.. Visit my at HomesByVanna.com for more real estate information or to search the Alaska MLS...

Fire in a Mountain View Apartment Complex has damaged six of the thirty units. Damage is estimated at around $30,000. According to ADN.com, the fire started in a bottom bathroom exhaust fan and made its way up three stories. At least 31 people were displaced, some of which will be housed by Red Cross of Alaska. Of the 31 displaced residents, many were children. Fortunately, no one was seriously injured.

Hats off to the Anchorage firefighters. They prevented the fire from going up to the roof, which could have caused major structural damage.

Anchorage will have a the chance to welcome President Barack Obama today as he stops in to talk to Alaska Troops. The Anchorage School District will be starting their rounds of H1N1 Vaccinations to students in schools today also.

President Obama will be giving a speech at the Elmendorf Air Force Base today some time between 12:20 and 3:25 today. During those times the FAA will restrict flights near the Elmendorf Air Force Base. President Obama will be taking off to Tokyo after his Alaskan visit. For a line by line of President Obama's speech, visit ADN.com.

The Anchorage School District will be vaccinating students today with the H1N1 flu shots. Students are required to have a signed permission slip from a parent so that the Anchorage School District's nurses can administer the vaccinations. The vaccinations come in two different froms- the nasal spray and the shot. According to a recorded message I got on my phone yesterday, the schools will have more of the nasal spray available than the shots. However, if students have an allergy to the spray and have to get the shot, that can be indicated on the Influenza permission slips that were sent home with children about 2 weeks ago.

For more information about Anchorage Real Estate or The Going Ons in Anchorage, visit The Anchorage Real Estate Web Site

Short Sale Approval can take a long time. There are certain situations that a home seller has to be in, in order to even qualify for a short sale. And it's been said that Banks Do Not Want to Foreclose because the process is timely and Expensive. So Short Sales are a viable option for anyone seeking a solution other than foreclosure.

Short sales are usually priced below market value because the properties need to sell, FAST. Short sales are usually in better condition than foreclosed properties since they are usually still occupied at the time of sale so the appliances and utilities are still in use.

I have a short sale listing that instantly had multiple interested parties. After going through the offers, the seller chose the highest and best offer, which was way above list price. Sounds great so far, yes?

Up to that point, short sales are easy. It's the part in dealing with the banks and mitigators that can be tough. The bank mitigators duties are totally out of Real Estate Agents' hands. Sometimes they say it'll take two weeks for a reply and they do not get back for 4 weeks. When buyers are dealing with short sales, it's crucial that they are prepared for this type of wait. If they are prepped for this, the wait won't seem so bad. Short sales are not your typical real estate transaction, that's for sure!

The lesson here is for short sale buyers to be prepared to wait because most times, the wait is worth it!

If you are having a tough time paying your mortgage, it's important to seek help right away, whether it be through a loan modification or short sale, don't hesitate to call Vanna with your questions.... 907-720-4663

Obama signed the Home Buyer Tax Credit Extension and Expansion on November 6, 2009. The original First Time Home Buyer Tax Credit that was introduced in February was a $8000 tax credit for any one who had not owned a home in the past three years. The $8000 was based on the sale amount of a property. The refund is 10% of the purchase price, up to $8000. Any first time home buyer qualified for this if they found, bought, and closed on a home by November 30, 2009.

Now that Obama has signed the new and revised version of the Home Buyer Tax Credit, consumers are given an additional five months to complete their home purchase. Home buyers now have until April 30, 2010 to close and record on a home to qualify for the tax credit.

In addition to the extension, congress has also moved to expand the tax credit so that move-up buyers or second home buyers would qualify for a tax credit up to $6500, as long as they owned their previous residence for at least 5 years.

For more information regarding the tax credit, refer to the IRS website

For more Anchorage Real Estate, call Vanna 907-720-4663