It is wise for a potential buyer in Auburn, WA to check his/her own credit reports regularly before applying for new credit, to be sure the credit reports are accurate and up-to-date.  As long as you order your credit reports through an organization authorized to provide credit reports to consumers, such as www.myFICO.com, your own inquiries will not affect your FICO score.  You can also get 1 credit report from each of the three major credit bureaus (TransUnion, Equifax, and Experian) once every 12 months from www.annualcreditreport.com.  However, this site does not provide credit scores.

Also, another one that is advertised is freecreditreport.com. It is free for a limited time (7 day trial period), and then they charge a monthly fee. Obviously they are marketing towards people who have a high chance of forgetting to cancel.  Another one with a free credit report is www.creditkarma.com. It has a great blog site with a lot of subjects about credit and personal finances.  A savvy Auburn home buyer will get a lot of information from this site.

The one that I have been using for many years is www.creditnotify.com.  I pay a small monthly fee for this (currently $12.95 a month).  It provides me with my credit score, and another HUGE plus is that it immediately alerts me to any inquires or changes from the 3 leading credit bureaus. This prevents identity theft and other unauthorized use of my personal credit. This beats just getting my credit report for free, this service is worth a lot of money for me to have peace of mind and not have to worry about what is happening on my credit reports.

What about companies that claim they can improve my credit report for a fee?   The Federal Trade Commission (FTC) cautions consumers to be wary of companies that make claims regarding credit repair. The FTC and state attorneys general have filed actions against those who pursue these fraudulent practices. These companies do not do anything for consumers that consumers and Auburn home buyers cannot do for themselves.

Also, beware of proxy websites, which are sites that mimic popular websites to lure consumers into disclosing confidential information.  In order to protect yourself against proxy activity, access the above recommended websites or any websites directly by typing its address (URL) into your browser and then bookmark it.

If you would like more tips on improving your credit, please let me know.  I can put you in touch with a reputable consultant in the Auburn area who can work with you to help improve your credit score.

INTEREST RATES: The current historically LOW interest rates are an aspect of buying a house in Auburn, Washington that should not easily be passed by. Interest rates are volatile and can go up again, and one never knows when that will happen. With interest rates hovering around 5% for a 30 year fixed, why wait to buy a house in Auburn, Washington? One most certainly will be regretful by waiting too long, and then possibly and probably having to pay a higher interest rate when planning on buying a house. Younger folks, much younger than I am, do not know that at one time (when I started into the business), interest rates were around 14%++. When the interest rates eventually and gradually dropped to 11%, it was hard to imagine that interest rates could possibly go any lower. At 11%, everyone thought they had died and went to heaven. (….In the late 1980′s, so I guess you can see that I have been around a while.) Granted, home prices were lower at that time, but most wages were also lower at that time.

HOME PRICES: For those who are thinking of buying a house, home prices have dropped in Auburn (and nationwide) and are stabilizing, the areas that went through a building frenzy and experienced the largest price increases are suffering a devaluation in home prices. Depending on the price of the home, there are 6 to12+ months of inventory, meaning that the homes can take that long to sell. There is a great amount of inventory from which to choose, and some homes are priced better than others, which gives prospective home buyers an advantage. This creates a tendency for sellers to compromise more than they would have compromised in the past, and start at a lower asking price from the beginning to shorten the time on market. There are some very good deals out there right now for those looking to buy a house, but don’t expect to make extremely ridiculous offers, especially in the Puget Sound and Auburn areas. Most sellers and lenders know what is really acceptable, and it is still a negotiation process.

TAX ADVANTAGES: Everyone has to live somewhere, and everyone will either pay rent or buy a house. Renters have very few tax deductions, whereas those who buy a house benefit greatly by being able to itemize and deduct the interest and local property taxes that the owner pays on the home each year. Also, it is very important to mention that the homeowner will gain equity over the years, and any improvements that the owner makes is benefiting himself by having a nicer place in which to live.

EASIER NEGOTIATIONS: Since home sales have slowed, home buyers do not have to worry about competing offers (with very few exceptions). Those buying a house can often ask for some closing costs if they need closing costs to enable them to buy the home. Move-up buyers can sell their present homes for a lower sales price than before, since they are able to turn around and invest in another home of their choosing for a fantastic sales price as well. Also, it is still important for the buyer’s protection to obtain a home inspection. Some potential issues that come up in the inspection may be able to be negotiated more easily now than in the past.

REAL ESTATE IS LOCALIZED: Real estate valuation, appreciation, and market activity have been and always will be localized. Each region of the U.S. has it’s own housing market dynamics, employment opportunities, economic situations, and potential for business growth. Here in Auburn and the Pacific Northwest, the local economy is still faring well compared with most other parts of the country.

In closing, having worked through all types of markets in my real estate career, I am seeing quite a few of really good home buying opportunities right now. The above are very good and advantageous conditions. Even then, it can be hard to know if you are getting the best deal. Having a trustworthy real estate agent and a trustworthy mortgage lender to discuss any concerns you may have is imperative. Give me a call, for the best help, honest advice, and negotiations for buying a home or for selling your current home.