1. Remember: If you’re vacationing this summer, make sure to set your bills to auto-pay so that you don’t get hit with any lates!

2. Reshape: Doing some shopping? Try to spread purchases across various cards to show you’ve maintained good credit health across several lines.

3. Resist: Don’t apply for a store credit card unless it’s really *worth it*.

4. Recap: Make a list of all the credit cards you’ve opened. Should anything ever go missing or mysteriously show-up on your card, it’s helpful to have a go-to place for all your info. If you keep the file on your computer, make sure it’s locked and password protected.

5. Re-evaluate: If some of your cards carry balances, call the creditor to find lower interest rate options. If unsuccessful, consider transferring your balance to a different card with a better repayment plan.

Say goodbye to winter with food, drinks and laughter!

1st Mondays is a new monthly co-branded networking event sponsored by PERL Mortgage and hosted at Jameson Real Estate. The next event is this Monday, May 4th from 5-7 at Jameson (425 West North Avenue). This “Cuatro de Mayo” celebration of sorts features salsa, chips, guac, quesadillas and margaritas — and an evening of improv starring Chicago’s best comedy veterans. The event is free, and we hope to see you there!

A short sale is a sale of real property for an amount less than the unpaid balance of its first mortgage. Once costs such as real estate commissions, escrow, and title are passed along to the lender (who agrees to accept the proceeds as payment in full, despite the shortfall), the sale progresses.

Such a sale requires the consent of the lender and may create taxable gain for the seller — to the extent of the debt forgiven by the lender. Short sales have become a popular alternative to foreclosure, and are a more credit-friendly option.

Sellers who are considering a short sale should negotiate a payoff with their lender first before listing the property. This will help to determine the sales price. In addition, this will streamline the process, as it will make it faster and easier to close once a buyer has been found.

For buyers, short sales can involve a little more paperwork but overall, they are a great way to obtain a good price on a property.

When considering a short sale, make sure to involve a mortgage advisor, realtor, and attorney early in the process. They will  provide guidance lead buyers through the appropriate steps to make the transaction as simple as possible.

Click Here to download a printable pdf of our Spring 2009 Newsletter.

What can we expect to see in the new year? Will home values rise? Will foreclosure rates drop? Will the cloud over the declining market finally lift?

Looking into the future is complicated, and even the best predictions can be flawed. But by analyzing the past and identifying future challenges, we can take a stab at forecasting what 2009 may bring.

Home Prices
Analysts don’t expect a rise in home prices until the later part of 2009, when buyers will benefit from rock bottom pricing and low interest rates.

Lending Guidelines
Banks will maintain strict lending practices. While putting 20% down for a home purchase used to be the gold standard, it’s now moving to the silver or bronze category. Lenders will continue to offer better rates for loans carrying less than 60% of the value of the property. Good credit used to be definied as “620 and above.” Now it’s closer to 720, with incentives beginning above 740.

Advice for Sellers
Wait it out. The 2010 real estate market should be stronger, with fewer homes clogging the market.

Highlight your home. Sellers face tough competition from fellow homeowners, but even more from banks and builders, who are slashing prices to sell new and foreclosed homes. Make sure your home is move-in ready by showcasing unique features, especially those uncommon in new constructions.

Price below market. Talk to your realtor about the value of your home and recent sales in your area, and then price your house 5% below that amount. In a study completed by a New Jersey appraiser (c/o Money Magazine), lower-priced homes had greater exposure and sold for more than those priced above market.

Advice for Buyers
Look for homes that have been sitting around. Beautiful homes linger in the market for over six months, especially in areas with an abundance of new developments. Check-out properties that have been on the market for over 90 days. Chances are, sellers are willing to negotiate.

Bargain. Offer less money right out of the gate. Offering 13% below the seller’s price may be good place to start.

Improve your credit. Lenders charge fees for clients outside of the 720+ credit tier. A boost of 40 points on your FICO score can reduce your mortgage interest rate by as much as a quarter of a point.

The best way to forecast your own financial future is with the help of your mortgage expert. I can review your individual scenario and help you plan for the new year and I look forward to helping you exceed your 2009 goals!

Click here for a printable version of the Winter 2009 Newsletter.

© Copyright 2008 PERL Mortgage, Inc.

As buyers, sellers and developers negotiate extra add-ons and amenities prior to signing a purchase agreement, many forget the basics of prepping a home before it goes on the market. Consider a few tips:

Buy new furniture. It will look great in your current setting, and even better in your new home.

Place ice cubes on top of carpet indentations. The ice helps lift the fibers back to life.

When repainting the walls, choose light, bright colors with neutral tones.

Store personal photos. Though your buyers would surely love to see the photo of your first skydiving experience, you can always recount the story at the closing.

Update child bedroom décor to match the theme of the entire home.

Set a date with your realtor to give you ideas on final touches. He/she will be your best test audience with a motivational deadline.

© Copyright 2008 PERL Mortgage, Inc.