What are the factors that impact your credit score?
1. Payment History 35% Impact
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.
2. Outstanding Credit Balances 30% Impact
This factor marks the ratio between the outstanding balance and available credit. Ideally, you should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
3. Credit History 15% Impact
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.
4. Type of Credit 10% Impact
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.
5. Inquiries 10% Impact
This percentage of the credit score quantifies the number of inquiries made on a consumer credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower credit score. Note that if you run a credit report on yourself, it will have no effect on your score. Call Luchechko Team for more information on how we can help you to better your credit score before you decide to get that mortage.
Since the pandemic started there are few trends that appered in the mortage industry. One fo them that Convertible Space is King
Speaking of multi-purpose rooms, the desire to do more things at home doesn’t appear to be going away anytime soon. Extra rooms that you can use in a variety of ways hold a high value to buyers. The more uses you can find for a room the more value it maintains. Look for rooms that can be used for multiple purposes, including:
Home office
Game room
Bedrooms
Home gym
Craft room
If you’re selling, stage rooms in your house to show how they can be repurposed and reimagined. You can also keep these types of spaces in mind when prioritizing your home remodeling projects.
Since the pandemic took place in our lives, we are experiencing few trends in the homebuying industry that appeared. Outdoor Features Rank High on Buyer’s Most Wanted Lists
According to a recent article in Kiplinger(Opens in a new window), “In today's housing market, outdoor living spaces have become the most coveted outdoor home feature.” An outstanding 82% of home buyers indicate they want a patio, and 81% say they want a front porch. Both are eye-catching and offer great curb appeal. They also provide additional living space for homeowners, giving them another space to relax and enjoy being outside.
If you have great outdoor features, such as a manicured lawn, garden beds, etc., don’t forget to showcase them with outdoor lighting. This feature also ranks high on the list of homeowner desires. Good lighting helps with presentation and the overall ambiance and enjoyment of your outdoor spaces. Best of all, it’s often relatively inexpensive to add. Kiplinger estimates the cost to install outdoor lighting at $260-$530.
No matter which stage you're at in your homeownership journey, you can learn a lot from current trends. Whether you’re looking to increase the value of your home for resale, enjoy the space you're in, or find a home that will meet your needs both now and in the future, these three trends will steer you in the right direction. Looking to learn more? Contact your Lucehhcko team members so we can help you stay informed on the latest in homeownership.