Real Estate in Phoenix, Arizona

The 2007-2008 concert season is underway at Glendale Public Library.  Enjoy live performances on Thursday evenings at 7:00 at 5959 W. Brown Street.

In December, celebrate the season with handbells ( Dec. 6), or harp duets (Dec. 20). Hank Cramer, folksinger, will entertain with ballads on Dec. 13.  Don't miss a live annual 'jam session' as the final concert of 2007 on Dec. 27.

January brings a flute and guitar duo (Jan. 3), Cello & double-necked guitjo (Jan 10), Blues and Jazz (Jan. 17), and west African cultural dance & drums on Jan. 24.

The series continues through February, March and April.  Go to www.glendalelibrary.org/ for details.

For all your property needs in Glendale, go to www.homekey.org.  We'll assist you finding a home in the wonderful community of Glendale.

The Arizona Science Museum is hosting artifacts from the 1901 Titanic disaster from Nov. 10, 2007 to May 4, 2008.  In addition to  the objects and stories of suvivors, an IMAX film, Titanica, takes visitors through the chain of events that resulted in the disastrous voyage. 

For more information about the exhibit, go to http://www.azscience.org/titanic.php.

For real estate in Phoenix, visit www.homekey.org or contact Marsha at (623) 337-8990.

See a juried exhibition of the valley's fine artists during your Super Bowl visit.  The show will be held Jan. 23 to Feb. 17, 2008 at Historic Sahuaro Ranch Park, 9802 N. 59th Ave, Glendale. Tom Herbert will juror the exhibit.

For more on current Glendale arts events, check out http://www.glendaleaz.com/arts/communityartsevents.cfm.

For beautiful real estate in Glendale, go to www.homekey.org.

Glendale's treasured collection of public art can be viewed via a driving tour for Glendale's visitors and residents.  Maps can be found at www.glendaleaz.com/arts/PublicArtDrivingTour.cfm.  Public art on display includes a mural by Robert McCall entitled "Icarus Triumphant: The Legend Retold" as well as sculpture "Meeting on the Trail" by Allen Houser and "The Irrigators" by Debbie Gessner at the Main Public Library. "The Sun and The Moon" chandilier by Dale Chihuly graces the lobby of the Foothills Branch Library, and "A Tribute to Firefighters" relief by Jay Tschetter fronts the 59th Avenue Fire Station. See photos at VisitGlendale.com.

Arizona Art Alliance is sponsoring an exhibit at the Glendale Visitors Center entitled "Enriching Life Through Art."  The exhibit runs Nov. 30 to Dec. 2, 2007.   For more information on current AAA sponsored events, go to www.azartalliance.com.

Glendale has art, drama and culture.  For properties available in Glendale, contact Marsha at (623) 337-8990 or visit our website at www.HomeKey.org. 

Peoria has culture -- demonstrated by the Peoria Center for the Performing Arts at 8355 W. Peoria Avenue.  The facility is home to two auditoriums and a visual arts gallery.  Community plays and dramatic opportunities for youth bring excitement to the facility. 

For information about upcoming performances, or to rent the facility for your event, go to www.theaterworks.org.

For properties in Peoria, go to www.homekey.org.

Peoria's Challenger Space Center has activities, displays and events for visitors to learn and explore.  Not only are there flight simulators and information about space exploration; visitors will also see space-inspired artwork of Robert McCall.  The Challenger Center has the distinction of being affiliated with the Smithsonian Institution. 

Visit the Challenger Space Center website at www.azchallenger.org for information about all the programs and events.

To view properties available in Peoria, go to www.homekey.org.

My Financial Life from Three Altitudes

Sea level:  How much money is in my purse and bank account right now? 

                What's my debt load?   Don't let borrowing be your default plan for 2008

                What's my credit score? Get a free credit REPORT (score costs $) at www.annualcreditreport.com

                             Credit Score:  a number between 350 and 850 which grades your financial reliability.

                             Credit Reporting Agencies: 

                          Experian   http://www.experian.com/

                          TransUnion  http://www.transunion.com/

                           Equifax    http://www.equifax.com/          

Arial view:  What are my plans for a financially healthy future? What action must I take?

                          saving for retirement

                          buying a home

                          paying off all debt

                          college savings plan for kids

                          saving for a daughter's wedding

                          emergency funds for car repair, appliances, etc.

                          medical insurance and deductible

Celestial view:  Where's my heart on financial matters?

                                    Thankful for what I have - relationships and material wealth

                                    Ready to share

                                    Committed to principles that create value

 Marsha Cleaveland, Keller Williams Realty.  Search for a home online at www.HomeKey.org.

Top Three Reasons to Buy a Home Right Now

Lush inventory to select your home from.  More than 50,000 homes are on the market right now in the greater Phoenix area, for example.  New homes, nearly new homes and older homes -- you will see an abundance of inspiring homes in your price range and in the neighborhood of your choice.  With selection at an all-time high, why not buy right now?

Prices have moderated from the highs of 2005.  If your favorite area was priced too high a year or two ago, check again this year; you will be pleased to find many reductions.  New home builders are also offering price reductions and incentives, letting you put the finishing touches on your home.  Sellers and builders want you to buy right now. 

Mortgage rates are still close to the lowest in history.  Get your credit in order by reviewing your credit report and eliminating debt to take advantage of low interest rates (see Decoding Your Credit Report for more information on how to get and understand your credit report).  Work your way through your debt; this is vital to your financial health whether you are buying a home or not.  Ideas for eliminating debt can be found in Eliminating Debt for Homebuyers. You'll also need to save up a few thousand toward the earnest money deposit and down payment.  With these preparations, you'll likely qualify for special treatment with your mortgage lender when you buy right now.

Don't miss out on the chance to own a choice home now when these vital factors are in your favor. 

Contact Marsha at (623) 337-8990 for information on homes in your area.  Search for homes at HomeKey.org. Keller Williams Realty Professional Partners.

Eliminate Debt before Buying Your Home

When buying a home, you want to have your finances in a strong position.  This means demonstrating a capacity to save and to pay off debt.  Your credit report shows both your current standing on the indebtedness scale, as well as your past history of debt repayment.  Lenders consider the credit report their most important tool for evaluating your financial reliability.  To unlock the secrets about you found in your credit report, see Decoding your Credit Report.   

Eliminating debt will increase your credit score and qualify you for better interest rates when buying a home.  Your debt will be eliminated when you:  Focus your spending, assign a time frame, and envision the payback.

Focus your spending.  We all have money; we are just too relaxed and unfocused about the way we spend it.  Being decisive and even extreme in this area gets results fast.  First, calculate your monthly income.  Now list your required expenses:           

REQUIRED EXPENSES:  taxes, rent or house payment, food, gasoline, medical insurance, house insurance &  taxes, phone, debt (minimum payments or typical payments), retirement savings, emergency savings. 

You noticed some things are missing from the list, right?  Now list your non-required expenses:

            NON-REQUIRED EXPENSES:  cable, internet, spa/gym membership, personal allowances, purchases other than food or gasoline, activities, restaurants; all those extras we once considered special that have now become a habit. 

The area of non-required expenses is the leading edge of possibility when it comes to debt elimination. These are the things we can live without in the short term in order to reach our goal in the long term of being debt-free in order to buy a home, or to move up to a larger home.

Focus all spending on debt reduction, channeling all resources (other than required expenses) into paying off the smallest debt.  When that is eliminated, eradicate the next smallest, then the next.  With crystal-clear focus, you can tell your money where to go, rather than wondering where it went.

Assign a timeframe:  To do an extreme financial makeover, eliminate all spending from the areas of non-required expenses for six months.  The money made available will be used to reduce the credit card debt, pay off the cars, pay off all financing, and then, when all is paid down, get aggressive about saving for the down payment on your home.  Don't use credit at all during this time; just focus on eliminating what you have already borrowed.

            A serious six-month commitment to reducing debt as outlined above will take most prospective homebuyers to a qualifying level for a mortgage.  For those who want Olympic Gold clout with the lender, plan a longer timeframe of one to two years.  Longer lead time enables greater down payments and more sophisticated knowledge of the mortgage industry to avoid undesirable mortgages.  Reserving the funds for a 20% or larger down payment will enable you to avoid mortgage insurance, a required add-on expense of about $100 per month for every $100,000 of mortgage loan. 

Envision the results:  Your focused spending toward debt reduction may cause short-term pain.  Reducing our lifestyle for the life-altering purpose of home ownership is always a good thing; we just need ways to make it feel good in the short term. 

            Visit a few open house events held by Realtors in the area you want to live in as you begin your debt elimination focus.  Get photos of the homes available, and place a few of these photos in strategic areas around the home; i.e. on the refrigerator, the TV, the bathroom mirror, the desk where you pay your bills.  Store all credit cards in an envelope with one of these photos attached to remind you why you are focusing all spending toward debt elimination (and to avoid using the cards when you are out and about). Attach a favorite home photo to the file folder where you keep your bills, to inspire you as you pay those buggers off. 

            Speak with a lender about your income amount and your current credit score to get an indication of what size loan and interest rate you may qualify for.  Then ask, "If I had no debt and my credit score was 100 points higher, what rate would I qualify for?"  Use a mortgage calculation feature (MS Excel has one, or you can find one at http://www.homekey.org/ under Buyer Resources) to see the total amount of interest you will pay at the two interest rates.  The difference will be in the tens of thousands. 

            Think twice, no, ten times about a no down payment loan.  By putting 20% down you have a smaller loan to begin with, and you escape the Mortgage Insurance Premium, which can be several hundreds each month, depending on the size of the loan.  Take a look at these figures on a 30 year fixed-rate mortgage at 6.50% interest for a $300,000 home:

            NO Down payment                                       20% Down Payment

            $300,000   home price                                     $300,000   home price

                        0   down                                                 60,000   down payment 20%

            $300,000   loan                                               $240,000   loan

                  1,896   monthly payment                                1,516   monthly payment

                     300   mortgage insurance premium                    0    no mortgage insurance

               $ 2,196   monthly payment                             $ 1,516   monthly payment

            Short-term ease = long-term struggle              short-term struggle = long-term ease

            That's a $680 per month difference! Just because of a 20% down payment.

Interest paid:  $76,527 more is paid in the "no down payment" scenario compared to the "20% down" scenario over the 30 year life of the fixed-rate loan.

            Taking six months to get in top financial condition for home buying will not only enable you to get a better mortgage rate due to debt elimination, you will also have time to become more financially savvy and run the numbers on a few mortgage possibilities before being asked to sign the stack of papers with mystifying mortgage terms.

            Resolve to experience all benefits of knowledge plus action.  Be a person of character who does what it takes in the short term to reach long-term success.  Focus your spending, assign a timeframe, and envision the results.  Bookmark this and email me to tell me about your success six months from now.

            Call Marsha when you are ready to buy a home at (623) 337-8990.  Search for available homes at http://www.homekey.org/.  Choose your favorite and focus for success.

Decoding Your Credit Report

Find out what Lenders know about you

Leap over an initial hurdle that faces all borrowers by examining and polishing your credit report.  For yourself and your spouse, go to www.AnnualCreditReport.com to order your free once-a-year report from each of the three credit reporting agencies.  Get all three if you have not looked over your credit report before; after updating all, plan to get one report every four months to watch over your credit through the year.  You must pay for your credit SCORE, about $15.00.  Do this about once a year, from Fair Isaac or Experian.  When you check your own credit, it does not ding your score; when a lender or credit card company or finance company or auto dealer checks it, it will affect (reduce) your score for the next two years.

GOAL:  Credit Score of 680 up; 750 is even better; 800 up is excellent.

Once you have your credit report in hand, the following will help you interpret it.

Check for errors:  PERSONAL INFORMATION:  Start with the basics:  Is it your correct name, address, and social security number?  Your address information may be found at the end of the report as well, showing a history of the addresses you gave in the past.

                           NEGATIVE ITEMS:  The report will show these first.  Late payments, charge-offs, repossessions, and items sent to collection will be shown here.  If they are more than seven years old, you can ask they be removed.  If the items are incorrect, file a dispute with the credit reporting agency and/or contact the original creditor to prove the item is wrong.  You may also place a statement beside the item to explain the extenuating circumstances that caused the late payment, etc.

                            ACCOUNTS IN GOOD STANDING: This list shows all accounts for the past 10 years, noting when the account was opened, credit limit (or highest amount ever spent), Duration (such as a 60 month car loan), Frequency (monthly/weekly, etc), Activity (should read paid and closed for a paid-off auto loan), Date reported (shows the most recent date that account reported in to the credit bureau), Balance Amount (as of the previous date; this may be different from your current balance as several months may have passed).

Other categories that may not be filled in include: Amount past due, Date of last payment, Actual payment amount, Scheduled payment amount, Date of last activity, Date major delinquency 1^st reported, Charge-off amount, Deferred pay start date (if you have worked out an arrangement to defer payments, it will be shown here), Balloon pay amount, Ballon pay date, Date Closed.

Some credit agencies show Current Status, Type of Account (installment/revolving), Type of loan (auto, mortgage, etc.), Whose account (joint, individual or authorized user). 

Make your credit report sparkle:   

no late payments

have only 4 or 5 credit cards: 2 bank cards such as Visa, Mastercard or Amex, 1 gasoline card, and 2 store cards such as Sears

no finance company loans

no bank personal loans

no foreclosures

no unpaid debt judgments

no bankruptcy

no unpaid taxes

no repossessions

Home mortgage loan is a bonus to credit if always paid on time. Any of the above negative items can be removed when they are more than 7 years old.  Mortgage lenders give heavier weight to recent negative items (past 2-4 years).

A Strategy for Credit Card Success:

 Close out all store credit cards from places where you no longer live, and all cards you no  longer use regularly.  Keep your oldest cards, as they demonstrate your long-term credit history.  (Cancelled and closed cards will still appear on your credit history for 7 years.) 

 Aim to pay off all cards completely.

 Use one card regularly (after all are paid off) paying it off each month.  Use the other cards at least 2-3 times a year, paying them off completely when the bill comes.    

 Keep a ratio of less than 20% of total amount owed to total lines of credit.  Example:   $2,000 owed on all 4 credit cards combined, with combined total credit limit of $10,600 = 19% credit-to-debt ratio (in other words, don't max out your credit cards)

A basic credit card strategy is to have access to instant credit through having a good payment reputation, but never use the money as a long-term loan.

Financial Health Strategy:  Determine to pay down all credit cards and secure a savings stash to rely on instead of credit cards.  Gradually put aside enough to cover car repair ($600+), appliance repair/purchase ($500+), medical emergencies ($1000+), and job loss buffer (enough to cover three months of bare necessities. Total financial health savings = $8,000 up. Don't touch this money unless a major disaster strikes (don't use for Christmas, vacations or to shop sales!)

Target date: To have your stash built up in 2-4 years, divide total desired amount by 24 to find amount to put aside each month to save in 2 years ($334 per month = $8,000 in two years)  Set up an automatic withdrawal from the bank account where your paycheck is deposited to a savings account to make this happen.  If you don't have to make the decision again every month, there is less chance you will fail.

You can have a terrific credit report now that you know the secret:  examine and correct it, then pay down your debt and prepare your cash reserves.  You'll be in a great place to get a home loan.

Calculate your mortgage or search for a home online at www.homekey.org. For a home in Arizona, call Marsha Cleaveland, Keller Williams Realty 623 337-8990.