The Steamboat Springs Board of Realtors holds a unique meeting every Tuesday morning. It is usually attended by 100 + Realtors who use the morning to present new properties that have hit the market or properties that have seen a price drop or any other relevant fact. After the meeting we go on tour to see various properties that are on the market. This allows us to see a wide variety of products as well as become familiar with other Steamboat Real Estate Agents. The following was taken from a hand out from Yampa Valley Bank and I thought it was quite interesting. Hope you do also:

A funny thing happened on the way to the depression. A recovery occurred. Over the past two weeks, the major stock market barometers-the Dow Jones Industrial Average and the S&P 500 index- have surged nearly 20%. The good news embedded in the surge is that the stock market is one of the more reliable indicators on the likely direction of the economy.There are a number of reasons investors are feeling more upbeat these days, none more important than the improving housing market. Last week, the National Association of Realtors reported that sales unexpectedly increased 5.1% to an annual rate of 4.72 million in February, as foreclosures pushed down prices and lured first-time buyers into the market.Lower prices are also driving new-home sales, which rose 4.7% last month to a 337,000 annual rate. Homebuilders have been aggressively discounting, with the median sales price for a new home falling to $200,900 from $251,000 in February 2008. But it is worth noting that the median price for a new home is still high compared with the median sales price of $165,400 for an existing home.Lower mortgage rates are an important factor in the recent housing-market recovery.  In fact, rates aren’t just lower they are the lowest they’ve been since Dwight D. Eisenhower was president. According to the National Bureau of Economics Research, the average rate on a 30-year fixed-rate FHA-insured mortgage was 5.15 % in December 1956. That’s about where we are today, and depending on credit scores, income levels, and debt ratios, many borrowers are getting mortgage rates below 5%.The return of the mortgage-asset market is another sign sunny days might be just over the horizon. It didn’t receive much press coverage last week, but both Citigroup and Bank of America have been aggressively buying AAA-rated mortgage backed securities,  including some that use alt-A and option adjustable-rate mortgages as collateral. Citigroup and Bank of America obviously believe these assets are a good investment, which means many other investors are likely thinking the same thing, and that could be very good news for the credit markets. Rising mortgage asset prices will further bolster bank’s balance sheets, enabling them to turn up the lending spigot.

By Susana Field

Today President Obama is just on the other side of the snow-covered Continental Divide, getting ready to sign the Stimulus Bill in Denver.  We on this side of the divide (as well as elsewhere in the world, I’m sure), are waiting to see what the Stimulus package will do for the economy, and  specifically what it will do for the Steamboat Springs, Colorado Real Estate market. We know it is going to rebound at some point, but what will the graph look like when it does? Will the curve on the graph showing the price of properties and the volume of transactions sky rocket upwards in a V shape? Will it be slow to take off and be shaped more like a U? Or, worse case scenario, will it be a flat L?

Here at Buyer’s Recourse we have a number of clients that seem  ready to buy once they feel we have hit bottom.  I know that my husband and I will be ready to act again when/if stated-income loans come back on the market with reasonable rates. (Some stated-income loans are available now, but the rates and terms are unattractive.)

So what are we doing to prepare for a favorable turn of events?  We’re making sure our credit score is stellar, for one. And we’re advising all of our clients to be doing the same. To help with this, Holly Rogers, a local Mortgage lender with Yampa Valley Bank, has given us the following eight tips, which we’d like to share with you here:

                               Eight Tips to Stellar Credit

These days, credit and credit scores are an important part of our lives. From loans for your car, home, college, or even quotes for insurance, good credit is the key to getting the best possible rates.  Here are eight tips on keeping your credit stellar.

1.            Check your credit at least annually.

Call the lender you are working with and they can pull and review your credit together in a meeting or you can pull a free report at www.annualcreditreport.com. You will have to pay to see your credit scores. When you check your credit, look for the following: inquiries to your credit that you do not recognize; any recently opened accounts that you do not recognize; and any late payment or collection errors. Please feel free to call me if you have any questions.

2.            Make all of your payments on time.

Please pay any mortgage, credit card, and installment loan on time or at least within 30 days of the due date. Late payments affect your credit for years.

3.            Keep your credit card balances below half of your limit.

This shows restraint and will help your score.

4.            Watch out for credit cards that do not report the credit limit.

If the credit card company does not report your limit, than the scoring systems use your high balance as your limit and this can negatively impact your credit score. You can find out if your card reports your limit by checking your credit report.

5.            Keep your oldest credit cards active.

Average age of credit is very important to the score so if you frequently change credit cards this reduces your average age. It is best to have three to five credit cards that you have had open for a long period of time.

6.            Buy and use a shred machine.

Shred any documents showing your name, address and any important information. This includes credit card statements, mortgage statements, and credit card applications. I can promise that once you start using a shredder, you will find lots of things to shred!

7.            Block solicitors from pulling your credit information for marketing purposes.

Do you ever wonder where all of the credit card offers in the mail come from? The solicitor pulls a quick score and address on you and sends out the offer. If someone else gets that piece of mail and applies for you, it could spell disaster. You can block the marketing pulls by calling 1-888-5-OPT-OUT.

8.            Have a good mix of credit.

This means that it is good to have an installment loan, a mortgage and between three and five credit cards. This shows that you are responsible with credit and can pay all different types of credit on time.

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If you have questions about your credit or other mortgage concerns please give a local lender a call. (If you’d like to consult with Holly Rogers, she personally can be reached at 970-875-1636.)

Meanwhile I too will be getting my ducks in a row, as well as scouring the MLS for a great deal. Getting your credit “stellar� is your business. Finding you great deals is ours.  Just give us a call at 970-870-8885 and we’ll keep our eyes peeled for deals for you too.           –Susana Field