Real Estate Backstory is your weekly update for real estate news, changes, and trends relevant to the Atlanta area and surrounding markets. Topics covered this week include:
- Old school manners still matter!
- We discuss Zillow’s predictions for the hottest markets of 2023.
- Mortgage rates continue to decrease while applications increase.
- How to get your credit score over 800.
- We look at current market trends.
- Homebuilders continue to slow.
- U.S. homebuilders file federal lawsuit against EPA new waters rule.
- Top claim against agents: failure to disclose.
The following is a synopsis of this week’s discussion about the importance of your credit score when buying a home. You can watch the entire episode here or hit the video below to watch the portion discussing credit and raising your credit score.
The State of Credit Scores in America
The average FICO score in the U.S is 716 which is considered a strong number. Nearly half of Americans have a credit score of 750 or higher, a big jump from just 10 years ago. This is a healthy sign for the real estate market as Americans are taking their credit scores seriously.
Misconceptions about Credit Scores
However, there are still misconceptions about credit scores. Only two-thirds of borrowers know that the amount of money invested in the stock market does not impact their credit score. Similarly, only 47 percent of borrowers know that the mortgage companies will check their credit and employment on the day of closing. This can have serious consequences as deals can fall through if the borrower’s credit or employment status changes.
How to Raise Your Credit Score to 800 and Above
To raise your credit score to 800 and above, it is important to pay your bills on time. On-time payments account for 35-40% of your credit score. Managing credit utilization, keeping credit accounts open, and having a mix of different types of loans can also help improve your credit score.
Additionally, it’s important to note that credit scores above 800 are the best rate you’re going to get. Having your score above 800 will put you in really good shape with lower interest rates and better terms.
In conclusion, understanding your credit score and how to improve it is crucial to securing the best rates on mortgages and other loans. By paying bills on time, managing credit utilization, keeping credit accounts open, and having a mix of different types of loans, you can increase your credit score and secure the best rates on mortgages and other loans.