Newsletter July 2013

14-Year-Old Willow Tufano Buys Distressed Home in Port Charlotte, Florida Home For $12,000

I just thought this was an interesting article — worth sharing.

The Time Is Right – Right Now

Now could be the best time for you to make your real estate moves. The real estate market’s vital signs — fewer properties for sale, fewer new foreclosures, a steadily improving economy, and interest rates still near historic lows — underpin why our local real estate market is inviting and affordable both to home buyers and sellers.

Interest Rates

Mortgage interest rates have been very low for quite some time. If you’ve been sitting on the fence, unsure if it’s the right time to buy — or sell — waiting may cost you money. What does this mean for you? It means you can buy the most home for your dollar today. If you’re selling, it means more buyers may be able to afford your home today compared with the future, once interest rates go up.

The week ending June 27th, average 30-year fixed mortgage jumped from just below 4% to nearly 4.5%, the biggest one-week jump since 1987. Then the average dipped back to 4.3%.

Properties For Sale

According to the National Association of REALTORS, the number of homes for sale nationwide in the past half year has been at the lowest supply level of homes for sale dating back to the boom times of 2005.

According to Trulia (, the median sales price of a home in the Denver area has increased 19.5% from last year.

What does this mean for you? If you have a home to sell, and it’s priced right and in a good location, it will sell quickly. If you’re looking to buy a home, prices could rise if the number of available homes stays relatively low. Contact me to find out what the current inventory of homes for sale looks like in our area — or what your home might sell for today. With inventory so low, if you choose to put your move-in-ready home on the market, it could have a sold sign on it within days, especially with my aggressive marketing!

If you are buying a property, it means that you will be competing against other buyers for the property, which is causing a bidding war in many cases. (

To see if you are ready to buy a property, please read through the attached article: “Are You Ready For Home Ownership?

Interest Rates?

Interest Rates went up last week, and with real estate sales strengthening, I expect them to raise some more. Also, as real estate continues to strengthen, the prices will continue to go up. I still think that this is a great time to buy a new home or an investment property. Don’t miss out or get stuck behind raising prices and raising interest rates.

Credit Repair

Why Is It Important?

Many people have asked me about how to repair their credit. There are many good reasons to be concerned about having good credit. Not only is good credit important for buying a house or anything else on credit, but it is also important in many other areas. Many employers will check an applicant’s credit before hiring. If you have bad credit, you will probably be passed over in favor of someone else with good credit. Some employers have the right to fire you if you credit drops below a certain number and you can’t get a government security clearance unless you have a good credit score.

Who Does The Scoring and How?

There are three credit reporting agencies: Equifax, Experian, and TransUnion. You should request a copy of your credit report from each of them. It is likely that all three will have a different score because all three use a different way to calculate it and all three will have different data. Some loans that you have will report to one or two, but may not report to all three.

How To Make Repairs

There are many companies out there that target consumers who have poor credit and promises to clean up there credit. The fact is that no one can remove accurate negative information from your credit report, and anyone promising to is a scam. There are some companies that can help you, but all that they do is what you can do for yourself; for free.

There are 5 steps to take to repair your credit.

  1. You need to get a copy of a credit report. You can get a free copy once a year or anytime you are rejected for a loan or credit card. Once you have a copy of your credit report from one of the agencies, you need to look it over thoroughly to make sure that there are no errors in the report. Are there any closed accounts still being reported after seven years? Any other information being reported after 10 years? Any judgments or loans that have been paid off, but still showing as being owed? Any thing else that is being reported inaccurately? If so, and most likely there will be, then you need to send the company a “Dispute Letter”I have a sample dispute letter that I can share with you if you would like. You need to dispute each inaccurate item and explain why it is inaccurate and ask that it be removed. Consumer reporting companies must investigate the items you question within 30 days. After that time, they must either take the item off or send you a letter explaining who they verified the information with. I have seen people’s credit score jump over 100 points just by doing this one step alone.
  2. You need to make your payments on time and for the full payment amount. 35% of your credit score or FICO score is made up from your payment history. A current missed payment is worse then an old missed payment and after a few years, an old missed payment will disappear. So if you have some missed payments in your credit history, several months of good payment history will do a lot to repair your credit.
  3. You need to pay down your balances. 30% of your credit score involves the amount that you owe. Credit companies like to see you borrow money, but any loan over 35% of your limit will negatively affect your credit score. Any loan at or over 90% of your limit will greatly affect your credit score. I disagree with this part of the formula for calculating credit scores because I think being debt free should give you the highest score, but in their formula keeping a small balance on your credit cards gives you the best score. They are supported by credit card companies, so go figure.
  4. You need to keep accounts open for a long time. If you are just starting out with credit or starting over, that can’t be helped. But just remember that 15% of your credit score involves the length of your payment history, which includes the length of each account history. So if you keep closing one account and opening another, it is not going to help your credit score. This leads me to the last step.
  5. New credit can negatively affect your credit score, just because it is new and doesn’t have any “paid as agreed” payments in its history. This makes up about 10% of your credit score. So don’t go out and apply for a bunch of new credit just before applying for a home loan.

A Good Credit Score Will Mean A Lower Payment

Lenders are finally starting to loosen up a little bit. I know of some loan programs that will loan to people with a 580 credit score, but you’ll need more down-payment. Another program will loan with a 600 credit score with only 3%, but the interest rate is higher. With a 620 credit score, I can get you a great loan and with a 700 score I can get you an even better loan.

Referrals Welcome

As always, I hope that you have learned something new today. If so, please share this newsletter with a friend. If there is anything that I can do to help you or a friend, please let me know.


Richard Davis, managing broker
RD Realty, LLC


Updated: March 19, 2014 — 5:58 pm
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