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Thanks to Claudette for writing this informative post.

SCORE! Are you thinking about buying a home? Or know someone who is? Compared with a few years ago, today's lenders are looking for higher credit scores to approve mortgages and to offer the best rates. Getting the best interest rate on a mortgage means qualifying for a larger loan amount or a smaller monthly payment.

Many of our clients today are looking to move -- or are helping a family member buy a home in today's market. No matter if you are the buyer -- or you're helping an adult child or grandchild or niece, nephew, in-law or other relative -- knowing the new rules of credit is critical. That's why it's more important than ever for you or any borrower to keep a close eye on credit reports and do everything to improve one's credit score.

What's The Score?
Your credit score is an objective measure lenders use to assess your creditworthiness. It summarizes a number of different types of financial behaviors that can help predict whether you are likely to meet your repayment obligations. Information about you comes from the "Big Three" credit reporting agencies -- Equifax, Experian and TransUnion -- which receive reports from creditors (usually monthly) about how you pay your bills, what type of accounts you have, etc. That information is compiled and updated in your credit report.

Your credit score is developed using a mathematical formula that "weighs" various types of information in your credit report, depending on how well each type of information tends to predict credit behavior. For example, defaulting on a loan will affect your credit score a lot more than, say, two 30-day-late payments.

The scoring model most commonly used by lenders comes from FICO (formerly known as Fair Isaac & Co.). There are other scoring models, however.

What's Possible?
FICO scores can range from a low of 300 to a perfect score of 850, but some other models have slightly different ranges. Because not all lenders and credit agencies use exactly the same scoring model, your score can be different from one to another. In addition, credit reporting agencies may not all have exactly the same information about you, so that even if they use the same scoring model, the differing sets of input data will produce somewhat different scores. It's not uncommon for lenders to pull scores for you from all three reporting agencies to compare.

What's Good?
It's up to individual lenders to define what they consider to be a good credit score. As of mid-July this year, FICO reported that, on a national average, FICO scores of 760 and higher earned the lowest interest rates for a 30-year mortgage. Scores of 700 to 759 earned the next lowest rate. If you score below the mid-600s, you can expect to pay significantly higher interest rates and have greater difficulty getting credit.

Can It Change?
Credit scores change all the time, reflecting your changing balances, payments, etc. What's better: You can improve your score by understanding how the scoring models work. Although more than 100 variables are used in calculating your credit score, there are five major categories of important credit information reflected in a FICO score, as ranked below in order of importance:

1. Late payments, delinquencies, bankruptcies -- about 35% of your score. Failing to pay creditors as scheduled is a red flag to lenders. What guarantee do they have that you won't do so again? The more recent a late or missed payment is, the more it will affect your score, since it implies a current trend that could affect the new lender.
   
   Tip: If you can't make a payment, or if you've missed one by accident, notify the creditor immediately to see if something can be worked out to keep the incident off your credit report.
   
   
2. Outstanding debt -- about 30%. People who are heavily extended with too much outstanding credit tend to be higher risks than those who use credit conservatively. For example, someone using 75% of his or her available credit represents a greater risk than someone who is using only 20%.
   
   Tip: Pay down balances to keep credit use below 20% of your credit limits. Limit the number of open credit accounts to less than five or six.
   
   
3. Length of credit history -- about 15%. The longer your credit history, the better. Still, having a relatively brief record of credit doesn't automatically mean higher risk. What carries the most weight is how you pay bills and how extended you are on your available credit.
   
   Tip: If you're thinking of closing some credit accounts, keep the oldest ones open to show a long (and good) track record. Note, however, that closing an account will not remove it from your credit report, at least for several years.
   
   
4. New applications for credit (inquiries) -- about 10%. When you are shopping for credit -- mortgage, car, credit card, etc. -- lenders will inquire about your credit history (only with your permission, of course). While a single lender inquiry could lower your score slightly, say by 5 points, a number of inquiries for different types of credit could lower your score much more. The reason: Lenders may suspect other credit obligations exist that have yet to appear on your credit report, or that you've been rejected by other lenders.
   
   Tip: Don't apply for credit accounts while you are trying to secure mortgage financing or before your mortgage is closed/settled. Also, to minimize the impact on the credit score, FICO recommends that consumers shopping for a particular type of credit should concentrate their efforts so all credit inquiries show up in a fairly compressed time frame -- not longer than 45 days -- and can be related to a single reason, such as a home purchase or refinancing.
   
   
5. Other factors -- about 10%. Some minor factors can also influence your score. For example, the FICO model adds points for having a mix of credit types, such as installment loans, credit cards and lines of credit (provided, of course, they've all been handled responsibly).

Is It All About The Score?
Actually, lenders look at more than just your credit score when evaluating your loan application. Once your application is complete, it is usually examined by an automated underwriting system and by actual human beings! Both Freddie Mac and Fannie Mae (the nation's two largest mortgage funding entities) advise lenders that applications should not be approved or declined based only on credit scores.

Just as you regularly take care of your health, your home and your car, make sure your credit stays in good repair by checking it periodically and attending to any problems or inaccuracies right away. Doing so could make all the difference when it comes time for you to buy a home.

Check Your Credit Reports
You are entitled to one free credit report annually from each of the major credit reporting companies -- Equifax, Experian, TransUnion. To request your reports, go to www.AnnualCreditReport.com or call (877) 322-8228.

If you are considering buying or selling a home in the Bucks-Montgomery County area, call Linda Tremblay and Marcie Purcell.  We are looking forward to helping you with all your real estate needs.

Cabin Run Estates is a residential development located off Stump Rd in Plumstead Township.  It was built in the mid 90s and consists of townhouse and singles. The development offers public water and sewer, sidewalks, streetlights and a bike path. Residents from the neighborhood are part of the desirable Central Bucks School District.

TOWNHOMES:  The townhouses  in the development were built by Sal Lapio and are not part of any home owners association.  They range in size from 1500 to 2000 sq ft of  living space.  Most are 3 or 4 bedroom models with 2 1/2 baths.  There is one home available as of today, October 30, 2009. It is listed for $272,900.  Recent sales have ranged between $225,000 to $265,000, depending on size and condition.

SINGLES:  The single homes were built by C&M Home Builders.  There are 3 or 4 bedroom homes ranging between 1900 and 2600 sq feet and situated on .20 to .40 acres. Currently, there are 3 homes available for sale ranging between $364,900 and $379,900.  The recent sales have ranged anywhere $315,000 (three bedroom with a one car garage) and $373,000 (four bedroom with a two car garage)

If you are interested in looking for a home in Plumstead Township or neighboring areas, please call Linda Tremblay and Marcie Purcell. We are kiikuilooking forward to assisting you with all your real estate needs, 

This is just plain cute

Listed below are the third quarter of 2009  market statistics for the Quakertown School District, including Quakertown Borough, Trumbauersville Borough, Richlandtown Borough, Richland Township, Haycock Township and Milford Township. These statistics are for residential properties priced up to one million dollars and do not include commercial sales or sales of multi-units. 

During the same time period of 2008, there were 70 houses sold with an average sold price of $257,964.  It took approximately 104 days to sell a home.

Prices are still low and there are some great deals out there.  Interest rates are still at a historic low.  It really is a GREAT time to buy a home.  If you decide that now is the time for you to buy, call Linda Tremblay and Marcie Purcell. We are looking forward to working with you and helping you to purchase your new home.

Listed below are the market statiestics for residential resales in the Central Bucks School District during the third quarter of 2009.  This includes Doylestown Borough, Doylestown Township, New Britain Borough, New Britain Township, Chalfont Borough, Buckingham Township, Plumstead Township, Warrington Township and Warwick Township.  The statistics are for residential resales up to One Million dollars and do not include commercial or multiple unit homes.

Pricing Details of Sold Units for the Date Range Selected

 During the same timeframe in the year 2008, there were 337 homes sold for an average sale price of $410,683 and it took approximately 71 day on the market to sell.

Prices are still low although they are easing up.  There are some very good deals out there and the interest rate is historically low.  It is a GREAT time to buy a home.  If you are ready, call Linda Tremblay and Marcie Purcell. We are looking forward to working with you.

Price reduction.  This is  great home.

The annual Halloween parade that was scheduled for today, October 18 at 2PM has been postponed until next Sunday, October 25 at 2PM.  This is always a fun time.  There are usually entries from the local fire departments, Miss Cindy's School of dance, local bands, local businesses and even politicians.  The parade participants throw lots of candy to the children lining the roads to watch the parade, while businesses give out coupons or information from their business.  Marci and I will be handing out some trick or treat bags and hope to see you there.  

If you are planning on attending the parade and want to help the community, you can drop off some can goods or other shelf staple foods at the Long & Foster Real Estate, located at 523 W. Broad St.   It is the drop off spot selected by the Bucks County Association of Realtors.  The donations will be given to the local food banks and shelters.

If you are thinking about moving to, from or within the Quakertown real estate market, call or email Linda Tremblay and Marcie Purcell.  We can help with all your real estate needs.

If you are looking for a good deal in Haycock Township, we have two nice listings for you to consider.