Bonnee Proo's Blog
If you are thinking of buying a home in the near future, there’s one three-digit number that could be oh so important to you. That number is your credit score. Read on to find out how a credit score can affect you and the steps you can take to be sure that your credit is in good standing when you head to apply for a mortgage.
What Is A Credit Score?
Your credit score is checked by lenders of all kinds. Every time you apply for a loan or a credit card, there’s a good chance that your credit score is being pulled to see if you qualify for the loan. Your credit score is calculated based on the information on your credit report. This information includes:
Length of credit history
New credit accounts opened
The areas with the most impact on your score is your payment history and your debt-to-credit ratio. This means that on-time payments are super important. You also don’t want to get anywhere close to maxing out your credit cards or loan amounts to keep your score up.
What’s A Good Score?
If you’re aiming for the perfect credit score, it’s 850. Most consumers won’t reach that state of perfection. That’s, OK because you don’t have to be perfect to buy a house. If your score is 740 and above, know that you’re in great shape to get a mortgage. Even if your score is below 740 but around 700 or above, you’ll be able to get a good interest rate on your mortgage. Most lenders typically look for a score of 620 and above. Keep in mind that the higher your credit score the better your interest rate will be.
What If You Lack Credit History?
Most people should get a credit card around age 20 in order to begin building credit. You can still qualify for a mortgage without a credit history, but it will be considerably harder. Lenders may look at things like your rent payments or car payments. Lenders want to know that you’re a responsible person to lend to.
What If Your Score Needs Help?
It doesn’t mean you’re a hopeless case if you lack good credit. Everything from errors on your credit report to missed payments can be fixed. The most important thing that you can do if you’re buying a home in the near future is to be mindful of your credit. Keep an eye on your credit report and continue to make timely payments. With a bit of focus, you’ll be well on your way to securing a mortgage for the home of your dreams.
"Motivation" could be defined as a positive energy that is applied to the achievement of a desired goal.
You may be wondering whether you, as a home seller, need to be motivated. The short answer is: "Yes! Your attitude and energy level can potentially make a huge difference in the sale of your home!"
In rare instances, the right buyer may show up at just the right time, without much effort on your part. However, when it comes to getting the best price for your house and selling it within the shortest period of time, you don't want to leave things to chance! The stakes are too high and the window of opportunity is too brief to depend on luck. Although there are several variables that are beyond your control -- such as market conditions, location, and time of year -- there are plenty of things you can do to increase the probability of a fast sale.
Choose a proactive real estate agent: The encouraging news is that there are many full-time real estate agents who are personable, focused, and results oriented. They know their business and they recognize the value of positive client relationships. However, all real estate agents are not created equal. Unless you're hiring a real estate agent based on a rock-solid recommendation from a trusted friend or relative, it's always best to interview at least two agents before making your final decision.
The real estate agent you ultimately work with will have a direct impact on many aspects of your home-selling experience, so it pays to choose carefully. Although a good rapport does go a long way toward a successful working relationship with an agent, it's vital to find one who's experienced, knowledgeable, and successful. Success is important because if they don't have a proven record of selling houses in your area -- especially ones in your price range -- then how can you be sure they'll market your home effectively?
Always put your best foot forward: One crucial thing house sellers do have control over is making a good impression. You rarely get a second chance to make a great first impression, so it's well worth your while to prioritize things like curb appeal, cleanliness, and home staging.
If there's anything about the appearance or functionality of your home that concerns you, you can be sure prospective buyers are also going to notice it. An experienced real estate agent will have a good sense of effective home staging, what might put off buyers, and how you can cost-effectively remedy problems.
Half the battle usually involves thoroughly cleaning your house, applying a fresh coat of neutral-colored paint where needed, and getting rid of clutter in and around all surfaces, including floors, countertops, walls, and storage areas. Although every situation is different, when it comes to furniture arrangement and room décor, "less is (usually) more!"
Buying a California luxury house should be a stress-free experience. However, challenges may arise that prevent you from discovering your dream residence in Los Angeles, San Francisco or any other Golden State city or town.
Luxury homebuyers who understand the ins and outs of the California real estate market may be better equipped than others to enjoy a stress-free homebuying experience. In fact, these buyers likely can address potential problems before they get out of hand.
Now, let's take a look at three problems that California luxury homebuyers may encounter, as well as ways to resolve such issues.
1. Honing Your Luxury Home Search
When it comes to pursuing a California luxury house, it helps to enter the real estate market with homebuying criteria. That way, you can narrow your luxury home search and speed up the homebuying journey.
Think about where you want to live in California. For example, if you want to live close to Disneyland, you may want to pursue luxury houses in and around Anaheim. Or, if you want quick, easy access to Staples Center, you may choose to check out luxury residences in Los Angeles.
2. Obtaining a Jumbo Mortgage
A jumbo mortgage is a must-have for most California luxury homebuyers. Although homebuyers sometimes think it can be tough to obtain a jumbo mortgage, meeting with lenders will enable you to quickly and effortlessly get the financing you need to buy a Golden State luxury home.
Of course, when you meet with lenders, don't hesitate to ask lots of questions about jumbo mortgages. Lenders employ friendly, knowledgeable mortgage specialists who can teach you about a variety of jumbo mortgage options. With expert insights into jumbo mortgages, you can make an informed mortgage decision.
3. Determining How Much to Spend on a Luxury Home
You know that you want to buy a California luxury house, but you're uncertain about whether to submit an offer to purchase at, above or below a seller's initial home asking price. Luckily, real estate agents are available who can help you put together a competitive offer on any Golden State luxury residence.
Hiring a real estate agent who possesses luxury housing market experience is a must, particularly for those who are searching for a California luxury residence for the first time. A real estate agent can provide a broad assortment of housing market data. Also, he or she will make it simple to submit an offer to purchase a luxury residence that matches a seller's expectations.
Let's not forget about the comprehensive support that a real estate agent can provide at each stage of the homebuying journey, either. If you have questions as you pursue a luxury residence in San Diego, Sacramento or any other California city or town, a real estate agent is happy to respond to them at any time.
Limit challenges as you pursue a California luxury home – collaborate with a real estate agent, and you can receive plenty of assistance throughout the Golden State luxury homebuying journey.