Lower Credit Scores = Higher Rates Mortgage loans delivered to Fannie Mae are about to become even more discriminatory toward borrower credit scores.  On April 7th, 2008, investors that sell loans to Fannie Mae will announce the following updated schedule: Scores above 720.............No rate adjustment* Scores >680, <719.....0.125% rate adjustment* Scores >660, <679.....0.500% rate adjustment* Scores >640, <659.....0.750% rate adjustment* Scores >620, <639.....1.250% rate adjustment* Scores <620..............1.375% rate adjustment* *All quoted rate adjustments are estimates based on underlying, pre-determined wholesale pricing adjustments. What does this mean?  Pre-qualifying for a home early in the home buying process is even more important than before.  Since credit repair can take one to three months or more to complete, an early start could save thousands of dollars on a mortgage. Alternatives:  Rather than accept a higher interest rate, buyers with lower credit scores can ask sellers to pay the additional "points" necessary to buy down to the best possible rate.   Additionally, FHA has announced much fewer credit scoring adjustments.  FHA interest rates will start to be affected once their score drops below 620 and will go as low as 550.

Current Percentages*

A Little Perspective

Until next time,

Blair G. Weed | Mortgage Planner/Partner
Meridian Lending Corporation
9362 Teddy Ln, Ste 201 | Lone Tree, Colorado  80124
888.966.1004 | 303.407.0100 | 303.407.0101 fax
www.GetLoanFirst.com

New Development Projects in Douglas County, Colorado:

• The Rueter-Hess Reservoir in Parker is moving along.  It is located about two miles south of Lincoln and Chambers Rd.  It is planned to begin filling in 2010 and should be about 1 1/2 times the size of Cherry Creek Reservoir.  It will provide drinking water and recreation for several Douglas County communites, including Parker, Castle Rock, and others.
  
• Work has begun on the Ridgegate Interchange on I-25 just south of Lincoln.  Ridgegate is probably going to be home to 65,000 new jobs over the next 15 to 20 years.
  
• Castle Pines North is now Colorado's newest city.  Elections have been held for Mayor and City Council and they were sworn in on March 10, 2008.

Search for Castle Rock Homes & Real Estate

Search for Parker Homes & Real Estate

Search for Highlands Ranch Homes & Real Estate

Denver-area home sales transactions were up in February from a year earlier, but sales prices declined, according to recent data from the Denver Multiple Listing Service (MLS).

For the month of February 2008, 4 percent more homes were sold compared to February 2007. Year-to-date sales also were up through the end of February 2008, with 4.9 percent more sales this year compared to the first two months of 2007.

Sales prices of both single-family homes and condos dropped year to year. The median sales price of metro-area homes that closed in February 2008 was $221,486, down 5.8 percent from the median of $235,000 in February 2007.

For condos, the median sales price was $133,750 last month, down 7.7 percent from $144, 950 in February 2007.

The inventory of unsold homes on the market increased 0.8 percent from February 2007 to February 2008.

So what does all this mean?   Prices have been declining from a year ago, while the number of transactions has increased.  For Buyers, this is good news.  There is a great selection of inventory to choose from of well priced homes and interest rates continue to be attractive.  We have an active market and it's a great time to buy!

Bob Bandy

Denver Real Estate Blog

Lending Updates - Colorado HUD loan limits are here! The final determination from HUD has arrived with regard to the higher loan limits for Denver area home loans for both FHA and Fannie Mae/Freddie Mac loan programs.  These amounts have been raised to help provide liquidity to the Denver housing market.  Below is a chart of the new Colorado County limits:                    Loan Limits County            FHA  Fannie/Freddie   Adams  $     406,250.00  $     417,000.00 Arapahoe  $     406,250.00  $     417,000.00 Boulder  $     460,000.00  $     460,000.00 Broomfield  $     406,250.00  $     417,000.00 Chaffee  $     280,000.00  $     417,000.00 Denver  $     406,250.00  $     417,000.00 Douglas  $     406,250.00  $     417,000.00 Eagle  $     729,750.00  $     729,750.00 Elbert  $     406,250.00  $     417,000.00 El Paso  $     325,000.00  $     417,000.00 Gilpin  $     406,250.00  $     417,000.00 Jefferson  $     406,250.00  $     417,000.00 Larimer  $     312,500.00  $     417,000.00 Lincoln  $     271,050.00  $     417,000.00 Mesa  $     371,250.00  $     417,000.00 Park  $     406,250.00  $     417,000.00 Pueblo  $     271,050.00  $     417,000.00 Summit  $     729,750.00  $     729,750.00 Teller  $     325,000.00  $     417,000.00 Washington  $     271,050.00  $     417,000.00 Weld  $     417,500.00  $     417,500.00

Current Loan Rates*

A Little Perspective

Until next time,

Blair G. Weed, CML, MBA
Mortgage Planner/Partner
Meridian Lending Corporation
9362 Teddy Ln, Ste 201 | Lone Tree, CO  80124
888.966.1004 | 303.407.0100 | 303.407.0101 fax
www.GetLoanFirst.com