When you apply for a mortgage, your credit score will play a large part in the rate you get—or even whether you are approved for the loan at all! If your credit score is not optimal, there are some methods you can employ to try and help improve it…but you’ll need to be very careful and conscientious to make these strategies work.

Use New Credit – If you’re in a lot of debt already, this might seem on the surface like a strange way to help your credit score. However, using new lines of credit is a great way to bring your rating back up to a higher standing. Your previous credit has already been assessed, and is the cause of your current poorer rating. By taking on more debt, you can improve the overall average score, as long as you…

Pay Your Bills Promptly – The credit score is based less on how much debt you’ve accumulated and more on how responsible you are with repaying the debt. Credit scores go down when payments are late or missing. With the new credit you’re using, you now have an opportunity to show that you’re a reliable borrower, and that will reflect in the score.

Redistribute Your Debt – Review all of your current debt instruments, such as credit cards and loans. Having greater amounts of debt attached to one of these instruments means you’re paying higher interest rates as well; see if you can find some way to pay down your higher debts or at least move them to the instruments with lower debt. If your credit card company is able to raise your card limit, this can also give you some room to help your score.

Because a more favorable credit score can save you hundreds or even thousands of dollars on your mortgage in the long run, businesses have cropped up offering to provide credit repair services. Approach these businesses with caution…avoid any that charge a fee up-front or that tell you they have a sure-fire method. Check with your realtor or mortgage broker for help instead…since their goal is to help you get the mortgage you want, they’ll give you the information you need to improve your score.

Market Comment
Mortgage bond prices fell last week, which pushed mortgage interest rates higher. Rates were positive the beginning of the week following reports that European leaders must do more to stabilize their economies. Concerns emerged that the UK has “run out of money” according to Chancellor George Osborne. Higher-than-expected Q4 gross domestic product data, lower-than-expected weekly jobless claims, and strong stocks pressured rates considerably higher Wednesday afternoon and Thursday morning. Weaker-than-expected personal income and outlays data helped stem some of the losses but not enough.

Gas Prices
The fear of continued energy price increases is ever present with gasoline prices pushing towards the $4/gallon mark and oil prices in the $100/barrel range. Some areas of the US have seen gas prices rise to levels not seen since 2008. This comes amid a difficult time for many people as good jobs remain scarce, the housing market struggles, and the economy remains fragile.

Oil prices remain high despite weaker demand across the globe. Most analysts point to tensions in the Middle East for the price increases. Iran recently cut supplies to many countries. Many foreign nations blame the rising prices on a weaker US dollar. Higher energy costs are generally viewed as evidence of inflation. Inflation erodes the value of fixed income investments such as mortgage bonds causing prices to fall and rates to rise.

OPEC increased output to 2008 levels but prices continue to rise. The world economies are still struggling and a spike in energy prices could lead to severe economic turmoil. However, predictions are tenuous at best, the future is uncertain, and market sentiment changes daily.

The important thing to remember is that mortgage interest rates remain historically favorable. Now is a great time to avoid the uncertainty surrounding continued market volatility and the possibility of higher mortgage interest rates.

Copyright 2012. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

The diverse and famously friendly Ukrainian Village neighborhood, situated just northwest of Chicago’s Loop, is something of a collection of time capsules showcasing both Chicago’s history and its modern generation of city-dwellers. The area houses families, small businesses, and young clubgoers, and includes architecture both new and old amid lush green trees and yards. True to its origins, much of the neighborhood bears resemblance to a town in Europe.

The Ukrainian Village owes its rise to the Great Chicago Fire—after the flames were extinguished and the damage assessed, waves of working-class Germans, Russians, and Ukrainians settled in this area. The Villagers molded the area to suit their strong sense of faith, most notably by erecting the Holy Trinity Cathedral in 1903, which quickly became a draw for tourists as well as worshipers. The civic presence of the Catholic Church is given much credit for maintaining the neighborhood’s safe and communal feel, which has in turn attracted a variety of people from different backgrounds. Although it retains the title of “Ukrainian” Village, there is a mixture of heritage to be found, and these various peoples have bonded into a tight-knit community, who have a lot of pride in the many resident businesses and the well-kept aesthetics.

Besides the aforementioned Holy Trinity Cathedral, other points of interest include an array of dining options and concert venues, such as The Rainbo Club and Empty Bottle. The area’s real estate includes both condos and single-family homes, as well as Victorian-style homes that date back to the late 1800s…although few of these homes tend to find their way to market. Many of the homes retain a design influenced by the others in the neighborhood, including bricks and yards, and even newer models try to emulate the feel of the properties that were already there.

Market Comment

Mortgage bond prices were near unchanged for the week, which kept mortgage interest rates relatively in check. Rates were negative at the beginning of the week following the extended holiday weekend. The announcement of a Greek rescue package was the driving force that pressured rates Tuesday. Escalating oil prices also added some pressure to rates early in the week. Consumer sentiment and new home sales data came in higher than expected. Fortunately, there was strong foreign demand for US debt instruments following the well-bid 7Y Treasury note auction, and we recovered some of the earlier losses Thursday afternoon.

Fed “Beige Book”

The Fed “Beige Book” is a summary of economic conditions from each of the 12 Federal Reserve regional districts. The release takes place eight times a year, approximately two weeks ahead of each of the Federal Open Market Committee meetings. The report is used at the FOMC meeting, which tends to be one of the most influential events in the market.

Market participants are continually attempting to determine what FOMC interest rate policy will be ahead of the next meeting. Any deviation from expectations usually results in extreme short-term market volatility. The timing of the “Beige Book” provides analysts a valuable look at one of the many factors the FOMC considers in setting interest rate policy. If the “Beige Book” shows signs of inflationary pressures, the Fed’s ability to keep rates lower may be somewhat restricted. However, if the report shows signs of difficulties, the Fed may keep rates low to stimulate the economy. Be cautious heading into this release.

Copyright 2012. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com.  The information contained herein is believed to be accurate, however no representation or warranties are written or implied.

Spring is right around the corner, which means you should soon be feeling an itch to get your house in order and prepare for the warmer days ahead. Here are a few tips to help you strategize your plan of attack.

Recharge! – If you haven’t done so recently, replace batteries in anything that might need it, with a special focus on the hazard detectors (smoke and carbon monoxide).

Empty The Storage Areas – If you’ve had any chemicals sitting in your garage over the winter, find out the safest method of disposal. Your city or region may have a public program to help. Donate, sell, or simply toss any items in your garage or attic you no longer want or need.

Inspect Your Basement – Spring is a rainy season, and if you live in an area prone to flooding you’ll want to make sure your sump pump is operating up to standards. Add water to the silo, which raises the float. Also, depending on how much rainfall you expect and how long the walls of your basement have endured, this might be the year to invest in a dehumidifier or even professional waterproofing.

Get Brighter Light – After the shorter days of the past few months, you’ll be overjoyed at how much more light you can bring to your household. Help the sunlight look its best by cleaning windows, curtains, and blinds…and take the time to dust the light bulbs as well, so even your evenings seem brighter!

Spring cleaning is hard work, but the rewards for a job well done can last for weeks or even months. Take the time to do it right!