Population Still Favors Sunny Localities

The U.S. Census Bureau has released 2007 population updates identifying fastest growing areas.

Here are the 10 cities with the largest numerical increase from July 2006 to July 2007:

Houston: 38,932
Phoenix: 34,941
San Antonio: 32,680
Fort Worth: 29,453
New Orleans: 28,926
New York: 23,960
Atlanta: 20,623
Austin, Texas: 17,648
Charlotte, N.C.: 17,471
Raleigh, N.C.: 15,148

Here are the 10 largest U.S. cities as of July 2007:

New York: 8,274,527
Los Angeles: 3,843,340
Chicago: 2,836,658
Houston: 2,208,180
Phoenix: 1,552,259
Philadelphia: 1,449,634
San Antonio: 1,328,984
San Diego: 1,266,731
Dallas: 1,240,499
San Jose: 939,899

Source: U.S. Census Bureau (07/10/2008)

Housing Inventories Fall in Major Cities

The supply of homes dipped 2.4 percent in a year-over-year change in 12 of 18 cities where ZipRealty Inc. does business, the brokerage says.

The data covers listings of single-family homes, condos, and town houses for sale on local multiple-listing services. This is the first decline since the firm began keeping tabs in mid-2006.

The data doesn’t include New York City, but Miller Samuel Inc., an appraisal firm, says the city’s inventory was up 31 percent compared to June of 2007 because Wall Street firms have cut jobs.

The following is a list of cities and their percentage of inventory decline:

• Boston: -10%
• Dallas: -10.6%
• Houston: -2.4%
• Las Vegas: -18.5%
• Los Angeles: -7.4%
• Minneapolis: -4.8%
• Orange County, Calif.: -15%
• Orlando: -3.1%
• Phoenix: -2.6%
• Sacramento: -22.4%
• San Diego: -6.7%
• Tampa, Fla.: -7%

Source: The Wall Street Journal, James R. Hagerty (07/10/08)

Decoding Your Credit Report

Decoding Your Credit Report
Gain a better understanding of the factors that determine your eligibility for a loan.

The importance of financial responsibility is oftentimes overlooked in a materialistic nation comprised of excessive credit card offers, stretched lines of credit and the weakening dollar. In order to boost financial responsibility and provide more accurate information to credit bureaus, the company that calculates FICO scores has introduced a revamped credit scoring system. Many consumers will benefit, but others may face higher interest rates which may affect their monthly mortgage payments. Become one step closer to financial confidence by gaining a true understanding of the factors that influence your credit score.

Determining Your Credit Score
The restructured FICO credit scoring system, created by the Fair Isaac Corporation, is reported to go a bit easier on consumers who make an occasional mistake, yet really crack down on those who have multiple late payments and delinquencies. The weight put on certain factors, like late payments, have changed, while the benefit of authorized-user status has been dropped from the scoring system altogether. These changes may strengthen or slump your score by 20 or more points. Get to know the other factors that impact your credit score by reviewing the details below.

Length of Credit History
The longer your credit history, the better. Lenders like to see that you can manage your credit accounts responsibly over time. Now that credit scoring model ignores authorized-user accounts, it is important for those “piggybacking” to establish their own credit on a new and separate account. The omission of authorized-user accounts from future FICO credit reports will enable credit bureaus to protect lenders from those trying to misrepresent their credit risk.

Payment History
Payment history is one of the most influential factors in determining your credit score. As mentioned earlier, future FICO credit reports will forgive a few late payments, but if your account shows multiple late mortgage payments and delinquencies you may see your FICO score drop.

Contact Ruidoso Mortgage Co at 575-258-1316 to discuss affordable mortgage products that will enable you to maintain excellent credit and payment histories.

Amount Owed
Another significant factor that is reviewed by the credit bureau is the amount owed on your credit accounts. Having a mortgage and several credit cards will not classify you as a high risk borrower, but owing a lot of money on several accounts will. Make an effort to keep all credit balances low so credit bureaus and lenders do not assume you've overextended your financial capacity.

New Credit
Opening several credit accounts over a short period of time may present you as a risk to lenders. This is especially so for those who do not have a long, established credit history. Try to keep new credit accounts to a minimum.

Credit in Use
Be aware of the types of credit accounts you use. This includes credit cards, financial accounts, retail credit accounts, installment loans and mortgage loans. The FICO scoring program analyzes all active credit profiles when determining your financial responsibility.

Remember, higher credit scores are the most desirable to lenders; but if yours takes a dip, no need to fret, you may still qualify for certain loans and mortgage products. Review your finances and work with Ruidoso Mortgage Co so that you may better understand the role your credit score plays in your pursuit of an affordable mortgage product.

Courtesy: Nathan Thomas, Ruidoso Mortgage