Real Estate Matters
www.reporterherald.com • Saturday, December 24, 2011 • Reporter-Herald
Online credit score may not be correct
Sale
your home
in 2012
ILYCE GLINK TRIBUNE MEDIA SERVICES
Q
uestion: I am an avid reader of your column and have been a mortgage loan officer since 1995. Many times, you have given incomplete or inaccurate information, but there was an article recently that struck a chord, and I felt the need to respond. I am concerned with your advice to consumers to pull their own credit scores from annualcreditreport.com and to use that score to ask a variety of lenders to quote rates. You need to do some research to understand that the scores received from that site do not use the mortgage scoring model that lenders use. It is not uncommon when we go to pull a tri-merged credit report to have scores that are 60 to 100 points lower than what the consumer has received from annualcreditreport.com. Answer: Thanks for your comment. You are correct that lenders use a different scoring mechanism for mortgage loan applications than the credit score obtained through annualcreditreport.com. However, we don’t tell borrowers to rely on that score as a final guide to their credit score, but rather as a way to introduce themselves to a mortgage broker like yourself, who can give them much more information about loans and the process of getting one. Getting their score on■ See GLINK/Page D2
ILYCE GLINK AND SAMUEL J. TAMKIN TRIBUNE MEDIA SERVICES
I
know someone who sold a house this year. It took them seven months, and they had to cut their price a lot lower than they wanted, but they finally got a good offer and the property is scheduled to close by the end of the year. It isn’t easy being a home seller these days. Home values are off 33 to 60 percent from their high in 2006. Roughly 25 percent of homeowners are underwater with their mortgage according to third quarter 2011 data from CoreLogic, a data aggregator. And a million homeowners lost their home to foreclosure, putting downward price pressure on neighborhoods across America. Despite record-low interest rates, which touched 3.7 percent for a 30-year fixed rate mortgage and 3.25 percent for a 15-year loan, buyers have been reluctant to jump into a market where it’s uncertain whether home prices are appreciating, holding steady or declining further. If you’re hoping to sell in 2012, you’ll be facing all these challenges and more. The real estate industry isn’t expected to improve much over the next couple of years. Certainly, until the unemployment picture improves substantially, it will be difficult for the real estate industry to gain any positive momentum. That’s why North Dakota (with a 3 percent unemployment rate) also ranks as one of the stronger housing markets. So what can you do if you want or need to sell in 2012? Consider my classic New Year’s resolutions for home sellers:
OVERCOME ANY POSSIBLE OBJECTIONS A BUYER WOULD HAVE Sellers often don’t understand that their primary job is not only to eliminate any potential objec-
tions that keep a buyer from making an offer, but also to exceed their expectations. If your home is competitively priced, and your home’s condition exceeds a buyer’s expectations, you’ll get an offer.
may have to meet that price point in order to sell. Is it worth it? Probably not, but you’ll have to really evaluate price and timing in order to get the most for your property.
GET YOUR HOME INTO SELLING SHAPE
BE REALISTIC ABOUT THE MARKET
Cleaning your home is a must. After that, you should consider hiring a stager to give your home the television-worthy polish that many buyers expect today. Assess what other sort of work needs to be done, such as fixing things that don’t work, touching up paint, or cleaning or replacing your carpets.
INVITE AT LEAST THREE AGENTS TO CREATE A COMPARATIVE ANALYSIS
Find out what types of properties are selling in your area and how many days they’re sitting on the market. Accept the reality of your local market and make sure you price your home realistically.
DON’T BE DRIVEN BY GREED Remember, a successful sale means everyone walks away feeling happy. If you get so greedy that the buyer walks away, you’ve let the deal get the best of you.
Often, sellers simply call the agent who sold them their home to list it. While you may wind up hiring that person, you’ll be doing yourself a favor if you invite a couple of other agents in from different firms. That’s because each will bring different ideas to the table about how much your house is worth AND and what kind of marketing plan will work.
UNDERSTAND WHAT IT WILL TAKE If you live in an area with foreclosures, you
NEW NORTHERN COLORADO HOMES
Buying a home that needs work? Call the experts in FHA 203(k) renovation financing. An FHA 203(k) mortgage allows you to finance both your home purchase and renovation with a single loan. Call now to learn more. Vivian DeVoe, VP Mortgage Banker, NMLS#269876, 970-227-4702 Loans and rates subject to credit approval. Owner-occupied residences only. FHA conditions and restrictions apply.
For more information, call Glink’s radio show at 800-972-8255 on Sundays from 9 to 10 a.m., write to Real Estate Matters Syndicate, P.O. Box 366, Glencoe, IL 60022 or visit www.thinkglink.com.
Real Estate Matters
may
Loveland, Colorado $3,000 BUYER CREDIT NEW HOMES MONTHLY PAYMENTS FROM STARTING AT $999 $159,900 - $229,900 OVER MODELS CONNECTED TO CITY TRAIL
GREAT VALUE GREAT COMMUNITY GREAT LOCATION
Sales Office Open 10-6 Daily
1899 East 11th Street, Loveland, CO 80537 Phone: (970) 456-4600 info@newmidtownhomes.com www.newmidtownhomes.com 17-326536
FHA Approved Community
www.HomeStateBank.com
970-203-6100 Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm Think big
Bank small
D2
Saturday Reporter-Herald December 24, 2011
GLINK
From Page D1
line also helps borrowers self-select; if their score is in the low 600s, they might decide to wait, spending six months to a year improving their credit history and score. While it isn’t exactly the same score that a mortgage broker uses, a credit score from an-
nualcreditreport.com helps lenders gauge whether a borrower’s credit score is high, merely decent, mediocre or poor. On the basis of the score they bring to your office, you might be able to tell them that they would or wouldn’t qualify for the best mortgage rates available, and you could qualify your rate quote with the assertion that you’d need to pull your own credit score to give the borrower a final determination as to what they might be able to get. Using the annualcreditreport.com score
makes sense for borrowers who are starting a home buying process that may take weeks or months. They don’t need to have a credit report pulled on them early in the process, only to have that pull counted against them if they don’t make an application for a loan at that time. Borrowers are hungry for credit information. It would seem that you would or should welcome them to your office, examine their financial information, and offer to help them through the mortgage process once they find a
home. We don’t tell home buyers that the credit score at annualcreditreport.com is a definitive measure for them, and we always recommend that they find a good mortgage lender or mortgage broker to get more information. At that point, you should give them more information about the lending process, educate them about the mortgage products you have, review their specific finances, and, yes, take a look at their credit score.
H&RE Transactions
Real Estate Transactions are supplied by Prospects Unlimited Inc., 1151 Eagle Drive No. 467, Loveland, CO 80537, 667-1537.
Loveland
• Cathy & Glen Robertson from 16th Street Rentals, 1826 E 16th St, Loveland, $323,500, home • Zodiac LLC from Alberta Bay, 301 W 9th St, Loveland, $95,000, home • Aspen Inc from Buck 2nd Llp, 4454 Stump Ave, Loveland, $80,000, home • Michael Bentzinger from Custom Onsite Inc, 4698 Dillon Ave, Loveland, $215,000, home • Thomas Baker from Davis Kimberlee S, 2063 Calhoun Ct, Loveland, $216,000, home • Aimee Merritt from Federal Home Ln Mortgage Corp, 3428 Hotchkiss Ct, Loveland, $229,900, home • Travis Duffey from Laura Fichna, 227 Johnson Dr, Loveland, $226,000, home • Simon & Alison Phillip from Peggy Isakson, 5072 Saint Andrews Dr, Loveland, $365,000, home • Paulanna LLC from Jacobson Industries Lllp, 844 Mountain Ranch Dr, Loveland, $220,000, home • Jacobus & Kimberly Demooy from Loveland Midtown Development I, 1903 E 11th St, Loveland, $182,700, home • Pjbigus LLC from Milestone 73 LLC, 5270 Apricot Ct, Loveland, $60,000, home • Pansy & Matthew Malmin from Waylon Nauman, 3708 Cheetah Dr, Loveland, $270,000, home • Gretchen & Darrick Hildman from Jody Nye, 1009 Shortleaf Ct, Loveland, $150,000, home • Luetje & Bi Seeth from Clark Paterson, 2980 Westminster Ct, Loveland, $311,000, home • Jacobson Lllp from Paulanna Property Holdings LLC, 874 Gardenia Dr, Loveland, $220,000, home • Diane & Diane Mills from John Porfilio, 3935 Valley Oak Dr, Loveland, $761,000, home • John & Cynthia Walker from Adam Wolkow, 5612 Thomas Ct, Loveland, $165,000, home • Jerry & Margaret Carson from Zodiac Construction LLC, 2445 Oleander Ct, Loveland, $169,300, home • Vera Murphy from Aurora Loan Services LLC, 843 Cleveland Ave, Loveland, $161,000, home
• Ronald & Molly Wirth from Jerry Carson, 1351 E 19th St, Loveland, $354,000, home • Kelli & Joshua Colburn from Jack Colburn, 908 E Kelly Dr, Loveland, $171,000, home • Rebecca & Adolph Coors from Gordon Gilstrap, 3401 E County Road 16, Loveland, $950,000, home • Denise & Bruce Hemmer from Lonnie Grace, 2731 5th St Sw, Loveland, $220,000, home • Melvin & Roberta Saltz from Scott Hartley, 1313 E 16th St, Loveland, $205,000, home • Jesse & Kristi Luns from Jeff James, 5050 Coral Burst Cir, Loveland, $300,000, home • Michael & Muriel Elijah from Paul Johnson, 986 Wheatridge Ct, Loveland, $485,000, home • Kristina Erickson from Donald Keirns, 1529 Dryland St, Loveland, $265,000, home • Charles & Rosemarie Stumpf from Lakes Point Construction Ii Ll, 438 Prairie Fire Dr, Loveland, $278,300, home • Diane & Robert Dickerson from Loveland Midtown Development I, 1839 E 11th St, Loveland, $172,700, home • Jodi Showman from Karen Paul, 707 Knobcone Pl, Loveland, $150,000, home • Lonnie Grace from Robert A Peterson Living Trust, 2836 Crestview Ct, Loveland, $277,500, home • Wendy Nashelsky from Michael Sauget, 719 19th St Sw, Loveland, $138,500, home • Patrick & Marrianne Gneiser from Nathan Schilaty, 2082 Blue Duck Dr, Loveland, $241,200, home • Patrick & Jennifer Rosen from Michael Sims, 1732 Twin Lakes Cir, Loveland, $205,000, home • Hawkeye LLC from Timberpark Associates LLC, 471 Denver Ave, Loveland, $197,500, home • William & Susan Busacker from Troendly Construction Co, 920 Norway Maple Dr, Loveland, $336,300, home
Berthoud
• Thomas & Jennifer Higgins from Gary Jacobs, 2711 Lake Hollow Rd, Berthoud, $675,000, home
Estes Park
• David & Rebecca Barnes from Greg Arganbright, 1555 Raven Cir Unit 20 B, Estes Park, $245,000, condo
750 W. Eisenhower Blvd., Loveland
669-1234
Each office independently owned & operated
view more properties at:
www.HomesInColorado.com
JUST LISTED 1669 Tracy Drive, Loveland
Many upgrades & improvements in this 3 BR/2 BA incl carpet, kitchen counters, w/ porcelain tile floors in bathroom & accent tile, cabinets added in master bath, paint throughout and LARGE stamped concrete back patio. $175,000 | MLS #669903
1110 Red Oak Court, Loveland
New flooring throughout, fresh paint, large private backyard. All appliances stay including new lighting fixtures, HUGE Master Bedroom, covered back yard patio, work shop area in garage. 3BR/3BA + study. $295,000 | MLS #665350
Call Jeannine “j9” Gibson 970-689-4824
Call Jeannine “j9” Gibson 689-4824
2951 Culebra Peak Dr, Loveland
535 Marcellina Drive, Loveland
J9SoldMine@gmail.com
(Seven Lakes North) The perfect house for the perfectionist! 5 bdrms, 2 family rooms, 3 car garage with lots of shelving, nearly 1/2 acre corner lot. Great walking community! $525,000 | MLS #663378
Call Don A. Riedel
970-679-8265
www.RiedelGroup.com
JUST LISTED 4220 Julesberg Dr., Loveland
1450 square foot ranch with basement, 3 bedrooms, 2 baths, 5 piece, walk-in closet in master, hardwood floors, vaulted ceilings, fenced yard, a/c, sprinklers, move in condition. $220,000 | MLS #670118
Call Kathy Beadell
970-290-1798
beadell@rmfa.com
J9SoldMine@gmail.com
(Mariana Glen) Beautiful 2 story with finished bsmt, 2 fireplaces, 2 family rooms, main lvl lndry, sumptuous master suite w/ 5 piece bath, oversize 3 car, backs to minifarm area, Pergola too!
www.RiedelGroup.com
$419,900 | MLS #663870
Call Julie Riedel
970-679-8365
jriedel@remax.net
www.1015W32nd.com
Workshop with bath, in house & access through garage. Space in basement has other uses. Don’t track up the 3 bedroom home. Main floor laundry. Living room fireplace. Large backyard, cedar storage. $210,000| MLS #660546
Call Nanci Garnand
622-1846 or 227-1327
www.LivingInLoveland.com
2026 Dove Creek Ct, Loveland
COMPLETELY different than any other townhome in this neighborhood - ALL should have been built this way! Come see and appreciate the difference! 2 BR/2 BA. Many many upgrades!! $135,000 | MLS #664273
Call Jeannine “j9” Gibson 689-4824
J9SoldMine@gmail.com
PRICE REDUCED 4297 Golf Vista Dr, Loveland
Amazing Setting! On POND & GOLF COURSE. Dramatic home has all the right elements: GREAT KITCHEN (stunning granite, dbl ovens, views) GORGEOUS MASTER (large soaking tub & HIS/HERS WALK-IN CLOSETS). $439,000| MLS #667770
Call Gene Vaughan
970-227-5968
genev@remax.net
2999 County Road L, Kirk
3 bed/2 bath, 2 sided fireplace between family/living room. Large kitchen with all appliances. AC, patio, dog run and plenty of room for horses. NO HOA and plenty of RV parking. $115,000 | MLS #662062
Call Debb Manderschied 970-215-8564
debbs241@rmfa.com