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	Friend Bear You are everyone's ideal friend because you are sincere and genuinely kind. Sometimes you worry about your friends' problems so much, you forget about your own responsibilities, which can get you into trouble. For you, it's the little things that really count. You also happen to be the main driver of the Cloud Car. No speeding!
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Credit Score Primer: What Buyers Need to Know to Get a Loan!

In the wake of the credit crisis, lenders have become much pickier about whom they lend to. Here are some basic facts that will help potential borrowers understand what they face.

The measurement that most lenders use to assess applicants' credit risk is the FICO score developed by Fair Isaac Corp. The score ranges from 300 to 850.

There's not one FICO score. Buyers have three: one for each of the three credit bureaus, Experian, TransUnion, and Equifax.

Each credit score is based on information the credit bureau keeps on file. Since credit bureaus don't share their data with one another, the three FICO scores may differ, sometimes by as much as 100 points.

The components of a FICO score are:

Payment history: 35 percent
Amounts owed: 30 percent
Length of credit history: 15 percent
New credit: 10 percent
Types of credit used: 10 percent

A consumer with a 580 credit score might qualify under FHA requirements, but, generally, in order to qualify for a prime loan, a borrower must have a credit score above 620 for a conventional loan at all and above 720 for a loan at terms and rates most borrowers would consider desirable.

Source: The Dallas Morning News, Pamela Yip (12/03/07)

Advice to Buyers: Spend Cautiously Before Closing

Home buyers should take care not to run up a lot of debt between the time they are approved for a mortgage and the day they go to the closing table.

Many lenders are pulling credit history and credit scores within a week of a buyer’s scheduled closing date just to make sure nothing major has changed. What the lender doesn’t want to see is a huge run-up of credit-card debt or other loans.

The lender also may require the borrower to sign a statement at closing affirming that there has been no change in the borrower's financial ability to repay the loan and that the borrower's employment status remains the same.

Home buyers should be particularly cautious not to throw their debt ratio out of whack by buying things for the new home before they own it because the added debt might change their credit score and the lender may no longer be willing to lend them money at the rate promised, or maybe not at all.

The best advice, experts say, is to wait to do that shopping until after closing.

Source: Ilyce Glink, Real Estate Matters Syndicate (11/09/2007)

Christmas Events in Richmond

• Richmond, Virginia Christmas Events Christmas Parade - Richmond VA Saturday December 1, 2006, 10:00 AM


• Mechanicsville Christmas Parade. Sunday, December 2, 2007 at 3:00pm.


• Prince George Christmas Parade - December 1, 2007 Line up 2pm - Parade 3pm


• Colonial Heights Christmas Parade - December 4, 2007 Line up at 6pm rolls at 7pm


• Dinwiddie Christmas Parade - December 8, 2007 at 2pm


• Chester Christmas Parade - December 9, 2007 Lineup at 1pm rolls at 2pm


• Charles City Christmas Parade - December 15, 2007 at 10am


• Powhatan Christmas Parade - December 15, 2007 at 3pm

Richmond Real Estate - Condo Buyers Should Do Their Research!

Condominium buyers who fail to take a close look at the condo association's rules and finances can be in for some unhappy surprises.

These documents can contain everything from the operating hours of the laundry room to plans for major construction or pending lawsuits. If the potential condo buyer reads the document and doesn’t like what’s there, the law generally says he or she can walk away from the deal.

"These statutes are built to give purchasers the information they need to make an educated decision," said Pia Trigiani, a lawyer at Mercer Trigiani, a firm that specializes in real estate transactions.

Here are the some key questions a condo buyer should try to answer when reading through the association's documents:

• Is the association charging residents enough to pay expenses without going into debt?
• Is there a pattern of special assessments that may indicate poor financial management?
• Is there sufficient money or a plan to get more money to pay for the projects specified in the reserve study? Buyers should compare the budget provided in the resale package against the expenses predicted in the reserve study and see if there appears to be enough money.
• What do other residents and the management company think? Read the board minutes, which are maintained by the management company. Some companies charge a small fee for this service.

Source: The Washington Post, Renae Merle (11/17/2007)

10 Tips for First-Time Home buyers

1. Be picky, but don’t be unrealistic. There is no perfect home.

2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs

4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.

8. Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

10 Things to Take the Trauma Out of Homebuying!

1. Find a real estate agent that’s simpatico. Homebuying is not only a big financial commitment, but also an emotional one. It’s critical that the agent you chose is both skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, any more than there’s a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.

7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is as a comfortable, safe place to live.

Housing in Richmond is a Good Long-Term Investment

Click here to read a new report prepared for the Richmond Association of REALTORS® by the Office of Housing Policy Research at George Mason University. This report provides data and graphs that illustrate the increasing value of homes in the Richmond metro region, the return on investment in a home vs. investing in the stock market, and the difference in wealth accumulation between renters and homeowners.

Please note that because this report studies the "typical" homeownership period, which is nine years in the Richmond area, the data stops with homes bought in 1998 (and thus finishing the nine year period in 2007).

Source: Richmond Association of REALTORS®(11/09/07)

Tips for Investors!

Here’s some advice for potential investors:

* Buy in a familiar neighborhood, near where you live, work or go to college.

* Research the area thoroughly, identifying potential properties and other business opportunities.

* Observe trends, costs, vacancies, and potential appreciation.

* Assess your own skills. If you have to hire out maintenance, costs will hit the bottom line.

* Start small. A single-family home or a duplex is a good beginning. Plan to hold it for at least three years.

* Avoid foreclosed properties. They are complicated to buy and they aren’t a guaranteed deal.

* Be pre-approved for financing. Most investment property loans require at least 10 percent down.

* Remember, dealing with people is key, so hold onto your sense of humor.

Source: Star-Tribune, Lynn Underwood (10/20/07)


CONTACT ME for assistance with RICHMOND REAL ESTATE

Mohamed Mekhimar
Realtor®, Accredited Buyers Representative
RE/MAX Commonwealth
mekhimar@remax.net
(804) 243-0605 Cell
(804) 288-5000 Office
(804) 288-8989 Fax
http://www.richmondvahomes4sale.com
Licensed in the Commonwealth of Virginia

By the way...if you know someone who is interested in buying or selling real estate in the Richmond Virginia area and surrounding counties, please call me with their name and phone number. Thank you!

Mortgage Tips for a Tight Lending Market!

Even home buyers with good credit may have trouble getting a mortgage these days.

Here are three tips for home buyers in search of the best deal.

* Conforming loans win. Keeping the loan below $417,000, the most that Freddie Mac and Fannie May will buy, saves big money since the rate on nonconforming loans is now a full point higher than for lesser loans. If getting the cash together is a challenge, Greg McBride, senior financial analyst with Bankrate.com, suggests taking out a small second mortgage or tapping an existing line of credit.

* Don’t rock the boat. "Anything that might disrupt your credit history will be seen with a more jaundiced eye," says Keith Gumbinger, a vice president with mortgage research firm HSH Associates. He says avoid big credit card purchases or, if possible, major life changes.

* Get multiple approvals. McBride urges borrowers to get advance approval from more than one lender, just in case the lender – not the borrower – goes under.

Source: Smart Money, Brad Reagan (11/1/07)