Dear Friends: Unlike the month of December where we reflect on the past, January is about the future and the opportunity to start a new year with a fresh slate. As we make our plans for the months ahead, there’s an optimism in the air--as people set goals to do better, be better, or simply try to make the world a better place. So as 2016 unfolds, here’s wishing you a wonderful journey ahead, filled with the attainment of your goals, whatever they may be.
Joey Cranford Broker Associate Direct: 303-268-0631 www.JoeyCranford.com Team@CranfordTeam.com
If one of your goals for the New Year involves real estate, I would be honored to assist you in any way that I can. Please don’t hesitate to give me a call. Best wishes for a wonderful year ahead!
The Front Range Realty Report Presented by The Cranford Team at RE/MAX PROFESSIONALS If your home is currently listed for sale, this is not intended as a solicitation.
JANUARY 2016
New Year and Old Debts: Tips to help manage your credit Most of us don’t give much thought to our personal credit scores until it’s time to apply for a loan. Unfortunately, by then it will be too late to make a difference in your score-and that can cost you a higher interest rate, or at worst, rejection of the loan. As we begin a new year (and before you need to apply for anything requiring a loan), here are some simple steps to help you manage your credit by managing your credit cards: One strategy many people take when attempting to improve their credit rating is to close out old credit cards. However, this is generally a big mistake, and can have the exact opposite effect on a credit score from what you were striving to achieve. To help figure things out, financial experts suggest you NOT close out the following credit cards: The card with the best terms: If you must close some accounts, consider closing those that are charging you more. If a credit card is providing you lots of attractive perks with no annual fee, no hidden charges, and at a very low interest rate, closing it will actually hurt your credit. The oldest account: Your credit score is also bolstered by demonstrating a long credit his-
tory. Therefore, it is not at all a good strategy to close your old credit card accounts in an attempt to repair your credit. The only card you have: Your credit score depends very much on how many different types of credit you are using. This way, having at least one credit card will actually help you improve your credit situation. An account where you still have a balance: When you close these cards, your total available credit becomes zero, but you still have a balance on it, which gives the impression that you have maxed out. Having a credit card that appears to be maxed out will adversely affect your credit score. Having said all this, taking a temporary hit to your score may be worth the satisfaction of canceling a credit card you don’t need or want anymore. Of course, since timing is everything, don’t do it just before a lender plans to check your credit history (such as when applying for a mortgage). For resources to help you with anything relating to credit card debt, here’s an excellent website: http://www.nerdwallet.com/blog/ credit-card-debt/
u The Denver metro area has been deemed “high cost” by the FHA. As a result, the Denver metro area loan limit on mortgages acquired by Fannie Mae and Freddie Mac will increase by $34,500 this year: with loan limits rising from $424,350 to $458,850. The FHA says most other cities nationwide will not see an increase in their loan limits because the agency determined that the average U.S. home value in the third quarter of 2015 remained below its level in the third quarter of 2007. u Good schools = higher priced homes, according to RealtyTrac. A recent study evaluated school test scores for nearly 27,000 elementary schools in more than 7,200 U.S. city codes. The study showed that of 1,823 ZIP codes with at least one good school, 65% of homes in the best districts were unaffordable for average wage earners, who would need to spend more than one-third of their income in order to purchase a median-priced home there. u According to the National Association of Realtors, for the 88-million-strong millennial generation, the oldest of which is 34 years old, the combination of high appreciation, low inventories and continuing tight credit conditions is making home ownership a stretch few can afford. As a result, first-timers made up only 32 percent of buyers last year, down from 50 percent in 2010. Do you have a specific real estate question about our market? Call me.