Joel Dameral's South Lake Tahoe Real Estate Blog (530-545-8827)

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Here are some tips to help improve your credit score. 

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

You may also consider talking to your lender also for other options when your credit score is not were you would like it to be.

Stocks Swell on Monetary Promises
Last weekend, the G20 stated that they would continue to support global economies which caused stocks to jump earlier in the week.  The G20 finance ministers said they would maintain their current plan to stimulate their respective economies with emergency support initiatives although many nations are already recovering.  The plan to keep pumping money into the global system in order to spark growth is seen as a positive sign for businesses by most equity markets, and shows the commitment of the world’s largest economies to the current monetary policy strategy.
The Dow Jones Industrial Average was up roughly 1% in early afternoon trading on Friday, reaching its highest levels since October 2008.  Positive earnings reports and lower crude oil prices helped to offset weaker economic data on Friday. The Crude December contract was down about 0.4% at $76.67/barrel in the early afternoon.  Some cause for caution still remains, with the University of Michigan/Reuters consumer sentiment index declining from last month, which raises concern about the consumer side of the economic recovery and the prospects for retailers in the upcoming holiday shopping season.
Investors continue to hedge against inflation and devaluation of the U.S. Dollar by driving up the price of precious metals.  The price of gold is up over 25% while the price of silver has jumped nearly 60% since the beginning of the year.  Gold prices traded slightly higher on Friday afternoon to $1,116/ounce.
While precious metals are a traditional place to park capital to offset expected inflation by institutional investors, the current sustained plateau of demand seems broader based of late, with a larger amount of physical metal purchases by new investors both in the U.S. and abroad.  Additionally, the recent purchase of 200 metric tons of gold by India’s central bank from the IMF, along with the large Canadian miner Barrick Gold painfully unwinding its massive book of hedges, both suggest that the price of gold will likely continue to rise in the near term.

The Economy
The University of Michigan/Reuters consumer sentiment index fell to a reading of 66.0 from 70.6 in October.  This is the second straight month that the reading has declined which sparks concern as to whether U.S. consumers are onboard with the supposedly ongoing recovery.  Rising unemployment and weak wage growth has crimped the U.S. consumer which may hurt holiday shopping this year.
Initial unemployment claims continued to decline this week which gives optimism that things are stabilizing on the labor front.  The Labor Department reported on Thursday that initial claims for unemployment insurance fell by 12,000 to 502,000 in the week ending November 7 which is the lowest since January.

Housing Market
National average mortgage rates declined from the previous week to 4.91% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on November 12th.  This is the second straight week that mortgage rates have declined and the lowest they have been in a month.  Fixed mortgage rates continue to sit at historically low levels.  In the week ending November 6th, the MBA’s seasonally-adjusted purchase index dropped 11.3% from the previous week and was down 22.4% compared to the same time last year.  This is the fifth straight week that purchase applications have declined and the lowest the purchase index has been since late December 2000.

Image by Casey Hamilton via Flickr

I started making a list of things to do before the snow flies and I thought I would share it with you…  Please feel free to add anything you wish in the comments.

1. Tune the furnace and replace filters.
2. Clean fireplace and chimney.
3. Roof repairs that you have been putting off (like me).
4. Clean all the pine needles and leaves out of the gutters
5. Check heat tape.
6. Turn off sprinkler system.
7. Put hoses away (the snowblower loves to eat them).
8. Close the underhouse vents (after I get the squirrel out).
9. Winterize the lawn and garden.
10. Prepare for snow removal.  Ideally hire someone for this but at the very least have fresh gas for the snowblower and shovels handy.
11. Plan for the holiday light decorations (I try to put them up before it snows).

Hope this list helps you get thinking about all you need to do before we strap on the skis and boards (or chains).

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Once again we have a lot going on this week in South Tahoe.  Here are a few ideas if you are looking for something to do.

• Nov 11  Veterans Day ceremony 11-11:30am at the American Legion Post #795 located at 2748 Lake Tahoe Blvd.  Rain or Shine
• Nov 12-14 “The Importance of Being Earnest” playing at the Lake Tahoe Community College Duke Theater at 8pm.  For more information please call the Duke Theatre Box Office at 530-541-4660 x207.
• Nov 12 Mt. Tallac Leadership fundraising event at Chevys Fresh Mex.  25% fo the total will be donated to this local school.  4-9pm located at 3678 Lake Tahoe Blvd.  This is a super fun way to enjoy a great dinner and support our local youth.
• Nov 13 Tahoe Senior Plaza yearly Craft, Bake and Rummage Sale.  Stars at 9am. For more info call 530-542-7048.
• Nov 13 The 39th annual “An Evening of Food and Wine Tasting” presented by Soroptimist International of South Lake Tahoe.  Food, wine, silent auction and more.  Tickets at 866-801-8652.
• Nov 14th  Friends of the Library Book Sale at the El Dorado County Branch Library.  Located at 3300 Lake Tahoe Blvd from 10-3.  For more info call 530-542-2857.

These are just some ideas.  Hope you have a great week.  Possible snow tomorrow!!!! Wax the boards and skis.

Buying a home can be a dauniting task that has both risks and rewards.  The following is a shortened version of an article that first appeared in October on RISMedia.  I think that is offers some usefull information for those people who have their sights set on the “foreclosure”.

Buying a foreclosure often is appealing to buyers trying to stretch their dollars. It’s finding a good one can that can be a challenge.  Finding the bad one is easy.

The vast majority of the banks don’t want us to advertise them as ‘bank-owned’ because it comes with a negative connotation.   This means no sign on the front lawn indicating the home is anything other than a traditional sale. A buyer probably won’t find a property advertised as a foreclosure on marketing materials.

Plus, in some markets, including Las Vegas, foreclosure inventory is actually down compared with last year as government programs attempt to keep owners in their homes and banks aren’t putting as many homes on the market.   This is making it harder for buyers to purchace a foreclosure, and those paying with cash often win a bid over someone who needs financing.

If you’re considering the purchase of a home that is now owned by a bank, it’s also important to know at the outset just how much work you’re in for — and how much it is going to cost you. Many foreclosures are in various states of disrepair; some of the fixes are cosmetic, but some can be extensive.

Those looking for the best deal probably shouldn’t rule out non-foreclosure properties.

On Wednesday the Senate voted, 98-0, to extend and expand the current first time home-buyer tax credit that is scheduled to expire at the end of November.  The house voted today 403-12 in favor. 

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6500.  Anyone who has not owned a home in the last 3 years (including first time home-buyers) would still get up to $8000.   This tax credit is only good for primary residences costing less than $800,000.  There is a phase out for individuals with incomes of greater than $125,000 and $225,000 for joint filers. 

To qualify one must sign a purchase agreement by April 20, 2010 and close by June 30, 2010.  As always, consult your tax professional before making any tax related decisions.

I ran 3 miles this morning, and boy could I feel all the sweets that I have eaten in the last few day.  Now all we need to do is figure out how to get all that candy from the kids- good luck to us.

Speaking of kids…. We went to some friends house yesterday for trick-or-treating.  We picked up some chicken wings at Hunan and spent the evening with about 15 other families.  The food and drink spread was outrageous, but the trick-or-treating was the main event.  Our friend hooked up a hay wagon (huge trailer) to his tractor and we took the kids around the neighborhood.  We hit about 15 houses- and the kids had a bag full of candy and huge smiles on their faces.

Its nice being in a community where one can go to one of the organized events for the kids, or go out for a more traditional evening.  I love this town.