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

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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 home

The 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.

 

What Do Landlords Look For in a Credit Score?

What Do Landlords Look For in a Credit Score?

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Whether you’re applying for a loan or an apartment, at some point, the state of your credit will likely matter. Before entering into a monetary arrangement with a customer, a lot of businesses and business owners will check your credit.

 

As important as your credit is, a lot of people know very little about credit and how it works. That’s why we’re going to break down a few of the most common questions regarding credit, credit scores, and why they’re checked.

What is a Credit Score?

Your credit score is an average score based on your credit history. This credit score is affected by several factors, the biggest of which is your payment history. Your payment history is basically a record of your payments that takes into account whether or not they were made on time.

What is a Credit Check?

Simply put, a credit check is a report to understand your financial behavior. It can show if you paid back your credit on time, how much credit you currently have and how well you are managing it.

 

A company doesn’t need your consent to do this, but they must have a legitimate reason for looking it up.

Who Can Check My Credit?

Anyone from banks, credit providers to landlords, and even employers can run a credit check. However, to do so they’ll need the right information. To check someone’s credit you’ll need their social security number, address, and employment information.

 

This is why landlords will often ask for this type of information on the rental application.

Why Do Landlords Run Credit Checks?

When it comes to renting to a potential tenant, landlords want to make sure the applicant is dependable. Late payments and broken leases can be a real inconvenience for landlords, so they typically avoid situations like as much as they can by choosing less “risky” tenants.

 

To avoid entering into a contract with someone that regularly submits late payments, Landlords will often run a credit check. While your credit is mostly determined by your payment habits, several other factors can affect your credit score.

What’s Included in a Credit Check?

A lot more than your credit history goes into a credit check. In addition to credit-related payments, a credit check will provide your potential landlord with a history of your finances, criminal convictions, and lawsuits.

 

Additionally:

 

A credit check will provide your potential landlord with information regarding your financial stability. They can check your employment status as well as your income during the screening process.

 

A credit check will also provide landlords with information regarding their applicant’s debt. However, debt doesn’t usually play as big a part in the landlord’s final decision. Typically, they’re more interested in your income and your credit.

What Do Landlords Look For in a Credit Check?

Different landlords have different standards when it comes to who they’ll sign a lease with. In some cases, landlords won’t even run credit checks, although most choose to do so.

 

Landlords have the right to refuse an application due to criminal convictions. However, according to the law, they aren’t supposed to let an arrest affect their decision unless that arrest was followed by a conviction.

 

When it comes to a credit check, the two biggest factors for a landlord are your income and your credit history. Landlords typically want to make sure you make enough money to pay them.

 

Furthermore, they want to make sure you have a habit of paying your bills on time.

 

Landlords and Credit Score

 

What Are Some Dealbreakers for Landlords?

Again, different landlords have different standards when it comes to what they would consider a dealbreaker.

 

Most landlords want to rent to tenants that have a credit score of 620 or higher. A credit score lower than 620 might be a dealbreaker for some landlords. Similarly, past evictions are another red flag that landlords will often take into consideration.

 

A credit check doesn’t provide your landlord with information regarding past evictions. However, they can find out about evictions through other means. While a single eviction might not be a dealbreaker for a landlord, it’s still a red flag that will likely affect their decision.

 

Another potential dealbreaker for landlords is the applicant’s income. Your potential landlord wants to make sure that your income is substantial enough to cover the cost of your rent.

How Do I Check My Credit Score?

Checking your credit is particularly easy. All you’ll need is your social security number, address, and employment information. However, you should be very careful when it comes to giving your social security number.

 

Be sure to only check your credit score with trusted platforms.

 

One of the most commonly used and trusted credit check sites is Experian. To check your credit, just click the link! It’ll redirect you to Experian’s online credit check.

A Good Credit Score is the Key to Financial Freedom

At the end of the day, having good credit mostly comes down to paying your bills and rent on time. There are a few other ways to increase your credit score. However, as long as you live within your means and spend responsibly, your credit score will usually be okay.

 

If you’re worried about what a potential landlord might find on your credit report, look first. You’re entitled to a free annual credit report. Plus, there are several ways to check your credit for free online.

 

You can’t control how a landlord or property manager might interpret your credit report, but if you know what’s on it, you’ll be more prepared to answer any questions they might have.

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