Thinking of an Apartment or Home in Austin? Here Are the Credit Scores You Need for Good Terms

Thinking of an Apartment or Home in Austin? Here Are the Credit Scores You Need for Good Terms

So, you’re thinking of buying a home or renting an apartment in the Austin area? Are you moving into Austin and need a place to live? Well, the housing market here is robust, but getting a good deal on an apartment or favorable terms on a home loan depends on having a good credit score

This article will provide a picture of what the Austin home market is like, and what kind of credit score you might need to get a place you’ll love.

Current Housing Market in Austin

Stated by credit repair Austin experts, while housing prices across the country are dipping as of 2019, and properties are lingering on the market longer than before, some local markets are thriving, which means there’s fierce competition for buyers and renters alike. 

The real estate market here in Austin is one such market, and it ranks as one of the hottest in 2019 and looks to get even better in 2020. According to Zillow, median home values in the Austin area grew by over 6% as of June 2019, and most experts expect that growth to continue, albeit more slowly, over the next year.

 

Because of a thriving job market, values for homes in Austin have continued to grow since 2012, and while this trend is the same for many major metro areas, Austin is one of the strongest. 

While many homes stay on the market longer in other areas — some up to 50 days or more — here in Austin, the average time for a home to be on the market is 12 days, which indicates a healthy housing market with a lot of potential.

One of the major driving factors in the Austin housing market is the incredible population growth as it ranks consistently as one of the best places to live.

Another factor that drives up value here in Austin is the supply/demand ratio when compared to other cities in Texas. 

According to the Home Buying Institute:

As of May 2019, the Austin area had less than a two-month supply of homes for sale. A “balanced” real estate market has closer to five or six months worth of supply. 

austin housing market

What About Affordability?

With a population that’s growing and an economy that’s booming, it’s no surprise that homebuyers and apartment hunters are concerned about affordable housing. 

Although home prices in Austin are climbing and continue to climb, many experts say Austin is still one of the more affordable places when compared to more saturated markets like San Diego and Seattle.

Still, experts advise that if you’re planning on relocating to Austin, you’re going to have your work cut out for you because there is a high demand and low inventory. 

The competition for housing is fierce, which is why it’s advised that you start looking for a house or apartment as soon as possible to give yourself plenty of time to find the right place at the right price. 

Since homes do not sit on the market long in Austin, deciding to wait or ‘think about it’ may mean losing a property to someone else who’s ready to buy. 

Lastly, take advantage of low mortgage rates, which have decreased dramatically over the last few years. The average rate for a 30 year fixed mortgage loan decreased to 3.8% as of June 2019. But to get these low rates, you’re going to need a good credit score, which takes us to the next topic.

What Credit Score Do You Need For A Home in Austin?

So, if you’re looking for a home, it’s essential you examine your credit score before you apply for a loan. Your credit score is a significant determinant factor in whether or not you get a loan and what terms you get with interest rates. 

credit score for austin homeThe higher your score, the more favorable terms you’ll get, and the lower the down payment you’ll need.

While there are a variety of home loans you can apply for, in general, the average credit score for Texas first time home buyers is 671, according to Credit Karma. However, the credit score you need depends on the type of loan you’re getting. 

For example:

With an FHA Loan, you may be able to get that with a score of 580 or above. A VA Loan can be had with a score of 620 or more. A USDA Loan can be gotten with a score of 640 or above, and a conventional loan can be gotten with a score of 620 or above.

What About Renting?

If you’re interested in renting an apartment, your score is still important, but not as much as when you’re getting a loan. Most people or companies who are renting out apartments will expect you to have a score of 620+. 

However, because Austin is a hot market, and demand is high, rental companies and landlords may want to see scores over 700.

While landlords differ in what they look for, generally speaking, they want to know about your income and your credit history to show them you have the money to pay your rent and you’re responsible for making your payments on time.

Just like a low score may get you denied for a home loan, so too will a low score get you denied for an apartment.

Because your credit score is so important when renting or buying, it’s essential that you do all that you can to improve your credit score if it’s not where you want it to be before you begin shopping. Once you start shopping head over to Craft Apartment Locators in Austin to locate your new apartment today!

The best way to improve a low score is to start making all of your payments on time and pay off your debt as quickly as possible. If you need help, contact a credit repair company to get you back on track to get you into the home of your dreams.

 

How Your Credit Score Affects Home Loans For The Dallas Housing Market

How Your Credit Score Affects Home Loans For The Dallas Housing Market

By now, everyone should know that your credit score plays a crucial role in deciding whether or not you get a home loan and how favorable the terms are to you. Dallas continues to grow, and the job market is booming.

In this article, we look at the current state of the housing market in Dallas, what it may look like in 2020, and how your credit score affects your chances of getting a home loan on good terms.  

 

 

Current State Of The Dallas Housing Market

Home values took a slight dip back in April, which many experts attribute to value decreases in the West Coast markets. The net effect of that is that housing prices decreased in the Dallas-Fort Worth area as well. While the drop in prices is relatively small, (0.1%), it points to changes coming to the housing sector.

According to Zillow, housing prices in the Dallas-Fort Worth area dropped slightly back in April, which is the first decline reported since January of 2012.

Also, the information provided by Dallas-Fort Worth real estate agents suggests a month-to-month decline in median home prices.

According to Dallas News

So far in 2019, the median sales price of single-family homes sold by agents in North Texas is up 2% from the first four months of 2018. Zillow said that in April, the “typical U.S. home is worth $226,800.” That’s less than the $243,900 value in the DFW area.

While the housing market is slowing, with the average number of days on the market at about 53 in the North Texas region, experts caution people to not panic just yet because overall, home prices are increasing.

While Zillow says the Dallas market is “cool” they also call for a 7.5% rise in the median home price in 2019, which puts the market on an upward swing.

DM Magazine says: 

The reason for that is simple. There are jobs here, and tens of thousands of people are still moving to this area looking to land those jobs. The Bureau of Labor Statistics says 102,500 new jobs were created in 2018. There are now 3.7 million people in this area going to work every day.

The jobs are here in Dallas, and Texas continues to lead the country in job creation, so the housing market, for the time being, is healthy. If this competitive market worries you’re you about not being able to afford a home, you still have the option of getting something cheaper as you move away from the downtown area.

Affordability isn’t just a problem here in the Dallas area, but throughout the major markets around the country too. Generally speaking, the further away you move from the major metro areas, the better the deals you can find.

 

Predictions For 2020

While the above data paints a conflicting picture, what can be predicted for the housing market in the Dallas Fort-Worth area next year is that the low inventory and high demand will keep the market very competitive for the next few years. 

The strong economy here is giving the real estate market a healthy boost, which should keep prices from dipping too much in 2020. Lastly, according to the experts at Zillow, they predict a gain of 4.8% in the market through the summer of 2020.

As you can see, there’s no reason to panic right now, as the market looks strong throughout the better part of next year.

credit score in dallas

 

Credit Scores & Your Home Loan

If you’re not familiar with how credit scores work, here’s a brief rundown. Credit reporting agencies determine your credit score based on a few factors, including:

  • Your credit to debt ratio
  • They type of credit you have
  • Timeliness of payments
  • If you’ve filed for bankruptcy

Credit reporting agencies look at this information and derive a number that gives lenders an idea of your creditworthiness. 

The typical FICO score breaks down like this: 30% is based on how much you owe; 35% is based on your payment history; 15% is based on the length of your credit history; 10% is based on new credit you’ve acquired, and 10% is based on the types of credit you have.

Your credit score not only tells the lender whether you’re worthy of credit or not but also the interest rate you pay. A high credit score usually means a low-interest rate, while a low score means a high-interest rate.

Lenders differ on what they consider the baseline for good credit, but in general, a score of 700 or above is deemed to be excellent and will net you the most favorable terms. Once you dip down into the 600s, lenders see you as a high risk. For some lenders, a score of 660 or below is a ‘no’ for a loan, so this is why it’s imperative you maintain a good credit rating.

 

How To Fix A Bad Score

So let’s say you want to buy a home, but your credit score won’t allow you to get a loan or will get you one on terrible terms. What can you do to fix it?

The first step is to:

Get a copy of your credit report to make sure there aren’t any errors that are dragging your score down. 

Next, the most important thing you can do to get your score moving in the right direction is to pay every bill on time. Making timely payments is the quickest way to improve your score. Remember to pay down debts quickly, which often means making more than the minimum payment each time.

As you can see, your credit score is essential to getting a home loan on good terms. And, if your score isn’t where it should be, you’re better off holding off on getting a loan until you can improve it. If you need help, contact a credit repair Dallas company to get you back on track and into the home of your dreams.