If you are considering purchasing Denver real estate, your lender or mortgage broker will pull your credit report as part of the loan application process. Most lenders use the FICO score (which ranges between 300 to 850 points) to establish your credit worthiness, evaluate your credit risk, and then determine the rate for your loan (assuming you are indeed worthy.)

While FICO calculations remain closely guarded, the recently released list of common credit mistakes will provide some insight as to what will adversely impact your credit score. FICO’s, “Damage Points”, assigns an estimated point drop based on common credit mishaps.

As you can see from the FICO chart, the higher your original score the harder you fall with a credit mistake. If your score was a 780 and you max out a credit card, your score can drop by 25 to 45 points. On the other hand, if you started with a 680 FICO score and max out a credit card, you are looking at a drop of 10 to 30 points. No idea here on the higher you start the bigger you fall rationale, yet it is consistent throughout the model.

Lesson learned – if you are thinking about buying Denver real estate, it is best to know what common mistakes can negatively affect your credit report and ultimately the rate of your loan.

Michelle A. Potter
Denver Realtor
RE/MAX Professionals

Although the terms real estate agent and Realtor are synonymous and often used interchangeably, there is one critical difference between the two.

A Realtor is a part of the National Association of REALTORS®, which has been around for over a century. Being a member in this association means adhering to their extensive code of ethics. This code of ethics contains 17 articles that can be read here: Realtor code of ethics.

Essentially this code ensures that your experience with a Realtor will be a worry free one, assuming they honor the principals. So next time you seek the services of someone in the real estate profession, remember that a Realtor is a safer bet.

Michelle A. Potter
Denver Realtor
RE/MAX Professionals
303-489-4035

Michelle A. Potter
RE/MAX Professionals
Denver Realtor
303-489-4035

The homebuyer tax credit is one signature away from becoming law.  As soon as President Obama signs the bill – column 3 of this chart labeled – “December 1- April 30 2010 Rules as enacted November 2009” will take effect.

From the National Association of Realtors:

It comes pretty close to my previous post - home buyer tax credit update #2 -minus the credit decreasing for first time home buyers.

Michelle A. Potter

RE/MAX Professionals

303-489-4035

Front Seat, the trailblazers who brought us Walk Score, just improved on an already fabulous service for Denver home buyers.  Walk Score currently calculates the “walkability” of a neighborhood based on the proximity to shops, restaurants, retail and more.

Starting today, home buyers can also search for Denver Metro homes based on the proximity to public transit centers on Denver Relocation Broker and Moved Denver.

According to Mike Mathieu, Founder of Front Seat:

“A recent study in Denver showed homes within a half-mile of light rail appreciated more than 17% while the overall Denver housing market fell more than 7%.”

Front Seat, a civic software company, received a grant funded by the Rockefeller Foundation to incorporate this new search homes by transit feature into Walk Score.

Go to: search Denver homes using Walk Score to see how you can check out a home’s proximity to restaurants, shops, theater and now public transportation centers.

Michelle A. Potter

Denver Realtor

RE/MAX Professionals

303-489-4035

Denver home buyers frequently begin their search by neighborhood, zip code or by school.  When buyers are coming in from out of state, I arm them with the following Denver maps and resources to acclimate them to the lay of the land:

PDF printable version: Denver Neighborhood Boundary Map

Denver Metropolitan Map by Zip Code:

PDF printable version: Denver Metro Map by Zip Code

Go to the:  Denver Public School map to see school boundaries in Denver County.  This site provides a clever tool that allows you to enter a home address and grade level to determine which Denver School your child would attend.

With the exception of the Denver Metro Map by zip code, this information pertains only to Denver County.  Watch for Arapahoe and Douglas County maps coming soon.  Oh, and if you are wondering how the Denver streets are laid out, you might enjoy: Denver Street Grid Explained.

Michelle A. Potter

Denver Realtor

Re/Max Professionals

The bots speak the truth:

So looking forward to part two…

The Senate is hammering out details to extend and expand the homebuyer tax credit.  Once the Senate votes, it will move to the House of Representatives.

At present, the Senate’s version also seeks to eliminate fraud associated with the current home buyer tax credit.  See more here: homebuyer credit fraud.  Apparently, the IRS will be given additional authority to put a check on sham claims.  New measures to curb fraud when claiming the tax credit include:

Taxpayers must be 18 or older

A HUD-1 Settlement Statement must be included with tax-returns

Additional details on the block include:

Increase in the home purchase price to a max of $800,000.

Increase in income limits to $125,000.for those filing single returns and $250,000.for those filing joint returns.

Existing homeowners who have lived in their current home for at least 5 years will be eligible for up to $6,500. tax credit.

First time buyers are still eligible for a tax credit – It may be reduced to up to $6,500 from $8,000.

First-time or repeat buyers must sign a purchase contract on a new or existing home between 12-1-09 and 4-30-2010.  Closings must be completed no later than 6-30-2010.

The tax credit does not have to be repaid as long as eligible buyers live in the home as their principal residence for a minimum of 36 months.

To read more on the homebuyer credit set to expire on 11-30-09 visit: first time buyer tax credit.  In the meantime it will be interesting to see if the Senate version clears the House and becomes law.  Visit www.Bloomberg.com to monitor the progress.

Michelle A. Potter

Denver Realtor

RE/MAX Professionals

(303) 489-4035

Disclaimer: This is not intended to be tax or legal advice. Call your real estate attorney or tax representative with clarification and questions.

Forbes Magazine just released a list of 10 Safest Places to Live in the U.S. Considerations for the rankings were based on: workplace accidents, crime rates, traffic accidents and weather catastrophes.  Denver was ranked #10 as one of the safest places to live, tying with Cleveland.

Of the four factors studied, crime seems to be the top concern for Denver home buyer’s – whether moving locally or from outside of Colorado.  Almost universally, buyers ask “Is this Denver neighborhood safe?”

Real estate agents are prohibited from speaking to safety or the crime rate in a neighborhood.  Here are a few useful on-line resources for buyers to explore Denver or central/southern suburban crime rates by county:

Denver neighborhood crime stats for 2009 – provides a convenient list of crime statistics by individual Denver neighborhoods.

Search Araphoe County Sherriff’s Department crime mapping to get details on everything from robbery to theft in a particular area.  This one does require you to click on a disclaimer agreement prior to searching for crime statistics.

Search Douglas County crime statistics reports -who now uses a fabulous tool I previously discussed: Denver Crime: Does Your Police Department Subscribe to This Service? It allows you to type in property address and pulls up local crime data on a map.

When in doubt visit the local police or sheriff’s department to determine the neighborhoods crime rates before your real estate agent submits an offer.

See Denver and the remaining top 10 Safest Places to Live in the US here: Forbes Magazine.

Michelle A. Potter

Denver Realtor

RE/MAX Professionals

303-489-4035

I have encountered harrowing experiences with home buyers while in the “under-contract” phase of Denver real estate deals.  From seasoned home buying veterans to first time buyers – it easy to get caught up in the excitement of purchasing that new home and forget some key factors that might adversely affect your credit score.

This list is by no means meant to be condescending and it probably not exhaustive – just a refresher course on important reminders while you are under contract on your new home.  Your credit will be under scrutiny until you turn over that cashier’s check and sign your final documents at the closing table…

Purchase nothing – no furniture, vehicles, barbeque grills….

Stay at your current job (no sudden quitting or deciding to become self-employed or even switching to another company)

Keep your financial accounts in order (don’t make large deposits, open new accounts, transfer funds between accounts, withdraw large deposits) or anything else that might trigger alarm bells

Don’t apply for new credit

Don’t spend the money you have saved for the home purchase

Don’t co-sign on a loan for anyoneWhen in doubt –

Call your lender to confirm that your financial decisions will not negatively impact your credit and ultimately the financing of your new home.  For additional tips about closing a home in Denver, read the closing costs page on my site – Denver Relocation Broker.

Michelle A. Potter

RE/MAX Professionals