Missing the tax credit deadline might have seemed like a big mistake to some home buyers, but waiting could have been the smartest thing to do.  Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.

At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.  The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.  That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit. -Source: Informa Research Services (05/26/2010) 

Home prices live on a roller coaster.  Right now the coaster is screaming down that hill so fast and furious that the people on board are scared!  Why?  It's the adventure they were seeking, right?  Buyers naturally pull back in a Buyer's market for a few different reasons.  Mostly, buyers think next Fall prices could be even lower.  They may be right, and they may be wrong.  The fact is nobody knows for sure.  But right now, TODAY, prices are low (Yay for buyers), the interest rates are ridiculously low (Yay for buyers) and there is a large amount of homes to choose from because people are scared to pounce on these great buys (Yay for buyers!) 

I've worked with clients all across the board.  Some who had "perfect" credit, and some who upon seeing their credit report, found themselves a second job (fixing their credit).  I'll help you understand what makes up a great credit score.

Three bureaus evaluate your credit scores

1. Equifax
2. Trans Union
3. Experian

Credit scores will be different among the three bureaus because not all creditors report your data to all three bureaus.  Even if your data was reported exactly the same to each, the three credit bureaus don't use the same model to evaluate your score.  Typically your three scores range within 50-60 points from high to low.  On some occasions you will see a score drastically higher or lower than the other two.  For this reason, many creditors will pull all three scores and use your middle score for qualifying purposes. The middle score is assumed throughout these articles when we talk about one's credit score

Credit scores range from 350 - 850.  The higher the score the better.  What is a great credit score?  In today's market you want to have a 720 or better.  Even higher is better for qualifying purposes, although it probably won't get you a better rate.

"Good" Credit Scores.  You can still finance a home with a lower score, but it becomes more expensive either by way of a higher interest rate, or by way of higher fees (usually points).  Stepping down from that 720 score, you will experience what is call Risked Base Pricing.  Each 20 points lower could cost you in rate or fees. Today Fannie Mae, Freddie Mac, and FHA all have some form of risked base pricing.  So literally one point in your credit score could be a huge savings to you.

"Poor" or Low Credit Scores.  Your options shrink real fast as you dip below 580.  Although many mortgage guidelines allow for scores below 580, many lenders/investors incorporate their own guidelines on top of these main guidelines. So in some instances, going to another lender that offers the same type of loan, for instance an FHA loan, may allow you to finance your purchase or refinance instead of being denied.

Your home is probably your single largest investment. It's true that the value of your home is largely determined by such things as location, size, condition and amenities, there are still steps you can take to maximize its worth.  If you're thinking of listing your house, you must take the time to prepare your home before it hits the MLS!  Take a step back in time and remember the last time you walked into a strangers home and tried to decide if you wanted to make it your own.  Look at your home from a buyers perspective.  It's also helpful to have an experienced Realtor or a professional Home Stager visit your home to give you some valuable tips.  Sometimes, simply removing or moving items in your home can really crank up its selling potential. 

You should evaluate your plans carefully. Cutting corners could hurt rather than help your prospects, but you don't want to go overboard either. Your home's value should be no more than 20% above the average. That means a $10,000 kitchen improvement project might be a better idea than a $10,000 hot tub, especially if no other homes in your area have hot tubs.

In other words, it's best to keep changes simple. 

Here's a list of remodeled projects that buyers are likely to find valuable:

Change your fixtures: Get a faucet that adds a decorative element to the bathroom.

Re-grout the tile: If the tiles are in good shape a new grouting does wonders.

Spruce up the kitchen cabinets: Even just a paint job and some new handles will give your cabinets a fresh look.   

Improve functionality: If you've got the space, an island is the way to go. New appliances make a difference too.

Expose the floors: Remove old carpet and show off the original floor. If you don't have hardwood floors, consider new carpeting.  Remove all the little rugs throughout your home.

Install new doors: Doors set off a room and make a great difference. Or paint your doors and replace the hardware (hinges and door knobs), to give an updated look.

Paint the interior: A new paint job speaks volumes. Good colors to use are white, off-white, and a light yellow.  It may seem boring to you, but it helps buyers see themselves living there, unlike your current red, blue, purple walls would. 

Add new light fixtures: Replace any that are damaged or out-of-style.

Landscape: A few strategically located plants and a neat-looking yard will impress.

Dress up your porch and entrance: A freshly painted door with a new door handle can make a great first impression.  Shine and polish the outdoor light fixtures, address numbers, glass and windows.

Replace the windows: New windows not only give your home a new look, they can also lower your energy bill.

Remember, when it comes to your home, it's important to keep pace with your neighbors. Don't let your home become the most expensive on the block - but don't fall behind either. This is a case where it's best to be right in the middle!

Quick Home Improvements:

Outside:

• Sweep all walkways and sidewalks.
• Clean vinyl siding and pressure wash cement.
• Remove newspapers, bikes and toys.
• Park extra cars away from the property.
• Trim back the shrubs.
• Clean windows and window coverings.
• Keep pet areas clean.
• Make sure roof and gutters are in good condition.
• Mow the lawn more frequently and plant flowers.

 Inside:

• Kitchen and bathroom should shine.
• Put dishes away.
• Clean and/or vacuum carpets and rugs.
• Place fresh flowers in the main rooms.
• Make beds and put all clothes away.
• Open drapes and turn on lights for a brighter feel.
• Straighten closets.