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Real Estate & Finance News That Affects Your Home                                                         Page  1 2 3 4

May 2009 - Page 3

CREDIT CHECK Check Your Credit Score If you are planning on buying or refinancing a home, be aware that new credit-report inquiries from lenders and credit providers (other than on your existing accounts) can lower your credit score. By checking your credit score before applying for a mortgage, you can find out whether you are close to the cut-off point for a better rate. If so, be particularly careful to minimize the number of new inquiries. Inquiries from lenders/creditors make up 10% of your total score, and while one new inquiry from a lender is not likely to make a big difference, it could lower your score by up to five points and will affect your credit score for a full year. Since multiple inquiries will further lower your score, be sure to avoid applying for credit cards, auto loans or other credit while you're getting ready to purchase or refinance a home. MOVIN' ON DOWN From McMansion To McCottage With recent upheavals in financial markets, energy costs and a desire to be part of a tight-knit community, some high-end home buyers in 2009 are eschewing McMansions for smaller, more environmentally friendly homes. As real estate professionals we call these "pocket neighborhoods" -- clusters of communities on smaller parcels of land. The trend has yet to "significantly put a dent into the inventory glut of McMansions on the market," reports Forbes.com. Yet nationwide, the average size of a new American home is actually shrinking, after having increased almost 50% over the past 30 years, according to the American Institute of Architects (AIA). In the case of compact neighborhoods, the size of the lot is shrinking as well, as builders pack as many homes on as small a lot as local rules allow. Some Americans are choosing McCottages over McMansions for more than economic and environmental reasons. Aging baby boomers are increasingly becoming empty-nesters who need less space for children. These buyers also want to stay in their homes as long as possible, so a smaller one-level home with aging-in-place features may be more appealing than a larger, harder-to-maintain home. If you're interested in downsizing, upsizing or cross-sizing to a new community in 2009, give us a call. We have all the information you need to make a smart choice.   Page: 1 2 3 4 Back to Scottsdale Real Estate Web Site