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

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

Reading Time: 4 minutes

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.

 

What Do Landlords Look For in a Credit Score?

What Do Landlords Look For in a Credit Score?

Reading Time: 4 minutes

Whether you’re applying for a loan or an apartment in Fresno, California or in other states – 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.

Share this Image On Your Site

The Truth About Credit Reports: What Are They & How to Get Them for Free

The Truth About Credit Reports: What Are They & How to Get Them for Free

Reading Time: 4 minutes

Having good credit is essential to a healthy financial life and to ensure that you’re able to do things you want to do such as purchase a vehicle or house, or even get a cell phone contract.

 

Many people aren’t aware of what their credit score is, how it’s determined, or how to improve their credit score if it’s not where they’d like it to be. In this article, we look at the credit report, which is where you go to find out everything you need to know about your credit and to see what lenders see when they consider lending you money.

What is a Credit Report?

A credit report is a document that details your credit history, activity, and your current state of ‘creditworthiness.’ Because multiple agencies report on your credit, most people have more than one credit report.

 

These reports contain information such as your payment history, how much you owe, and your general financial history. In the United States, there are three reporting agencies: Equifax, Experian, and TransUnion.

 

The importance of the credit report is that it’s used by lenders and companies who decide whether you’re an acceptable risk to lend money, extend credit, or offer a contract to. And, it’s not just banks who use credit reports; it’s companies like cell phone providers, cable companies, and utility companies who look at the information and decide whether to provide you with their product or service based on the information therein.

 

Most credit reports contain the following information:

 

  • Your personal data such as your name, address, date of birth, social security number, and phone number.
  • Credit accounts, including mortgages, vehicle loans, credit cards, and store cards. This information also includes your balances for each account, your payment history, the date the account was opened or closed, and your credit limit.
  • Also included in the credit reports are incidents such as bankruptcies, foreclosures, credit inquiries, and liens.

 

As you can see, your credit report contains quite a bit of information about your financial and credit health, which is why it’s vital you know what’s in it so you can improve areas that are bringing you down or dispute items that are in error.

How Often is it Updated?

In general, your credit report is updated every 30 to 45 days, and upon getting updated, your credit score will reflect any changes very quickly. Keep in mind that while most creditors report to the agencies every month, they may report at different times of the month and may not report to all three credit bureaus.

 

So, while your score and information may be decent in one report, it may not be so good in another if they both don’t have the same information; that’s why it’s essential to get your credit report from all three bureaus to get an accurate picture of where you stand in relation to credit.

 

If you’re worried about your credit score, remember, these scores are usually calculated when a lender requests that information. The score you get when you request your credit score depends on which company was used to score your credit, which bureau supplied the data, and what your score will be used for, such as a loan.

 

If your score isn’t where you’d like it to be, you can take measures to put it in the right direction and see results quickly if you work hard.

 

what is a credit report

Which Report is the Most Accurate?

Since all credit bureaus have to follow the same laws, it’s not prudent to say which one is the best or most accurate. While these companies are for-profit businesses and do compete with one another, there isn’t an advantage for one to ‘skew’ your credit one way or the other.

 

Also, keep in mind that you won’t know which agent your creditor will check when you’re applying for a loan or credit; and while your credit may look pretty good on one report, it may not be so hot on another. Keeping track of your credit report from each agency is key to getting a good picture of your credit health and staying on top of issues that could drag down your score.

 

And, because errors on one report don’t necessarily make it onto all three, it’s essential to look at all of them to make sure all of your information is accurate.

How to Get a Free Credit Report

According to the FTC, everyone is entitled to get one free copy of their credit report every 12 months from each of the major credit reporting agencies thanks to the Fair and Accurate Credit Transactions Act of 2003.

 

You can go online to get your report at annualcreditreport.com or by calling 1-877-322-8228. Free credit reports are also available by checking Credit Karma or Credit Sesame.

 

You’re required to give them your name, address, social security number, and DOB to make sure you are who you say you are.

 

There are other situations in which you can get another free credit report such as if you’re unemployed and will begin looking for a job soon, if you’re on welfare, if you’ve been a victim of identity theft and have errors on your credit report because of it, and if you’ve been denied credit because of information contained in your report.

 

To find out where you stand in regards to your credit it’s essential you get a copy of your credit report every year; it’s free, and this report plays a huge role in your ability to use capital to improve your life or make large purchases.

 

Also, reviewing your credit report as you would your bank statement allows you to find out if there is any misinformation that could be dragging your credit score down or keeping you from getting credit. Finally, information on a credit report is often the first sign that someone has been a victim of identity theft.

 

If you need help deciphering your credit report, or assistance in rebuilding your credit score, contact credit repair attorneys today!

 

 

Credit Limits: Can Yours Be Reduced?

Credit Limits: Can Yours Be Reduced?

Reading Time: 4 minutes

Having your credit limit reduced is common and can even happen if you’ve been good with credit and made all your payments on time. When a creditor lowers your credit limit, it can negatively impact your credit score. However, you need to know that there are things you can do – by yourself and with the help of a credit repair company – when this happens to minimize the damage to your credit and to fix the problem

Why Would a Credit Limit be Reduced?

So, you received a message from your credit card company notifying you that your credit limit has been lowered. It happens all the time, and while it’s frustrating because it limits your purchasing power and harms your credit score, you don’t have to sit around and accept it.

Why Would a Bank Lower Your Credit Limit Anyway?

During times of financial crisis or recession, banks may evaluate outstanding risk, which is often unused credit. To minimize the risk to banks in uncertain economic times, the bank may choose to slash your credit limit in the event you decide to use your card more and wind up not being able to pay because of financial circumstances.

 

It’s important to remember that credit limits aren’t a right, nor are they guaranteed; a bank can reduce your credit limit at any time, and they don’t need to give you a reason. You did read the fine print when you signed up for your card, didn’t you?

 

Also keep in mind that the reduction of credit limits is usually made by an algorithm rather than a human being sitting down and assessing your financial health, payment history, and credit.

 

Another reason a bank or credit card company might lower your limit is because of ‘low usage.’ If you have a limit of $20,000 and you’re not using a fraction of that, the bank may alter your limit to reflect your usage pattern.

Does it Matter if Your Limit Is Lowered?

In a word: Yes.

 

When a bank lowers your credit limit, it immediately affects your buying power and the amount you’re allowed to borrow. Also, a reduced credit limit can affect your credit score by increasing your overall credit utilization. For example, let’s say you had a limit of $20,000 and only had a balance of $5,000.

 

You’re only using a quarter of your credit, which looks good on your credit report. However, if the bank suddenly slashes your credit limit to $10,000, now you’re at the half, which looks terrible and reflects poorly on your credit score.

 

Credit utilization accounts for 30 percent of your credit score, so it’s easy to see how a lowered credit limit can reduce your score.

 

Now, it’s important to remember that while a bank can reduce your credit limit for any reason, what they can’t do is cut it and then hit you with an over-the-limit fee if you’re currently above your new limit. The bank is required by law to give you at least 45 days from the time they notify you about your lowered threshold before assessing any fees.

 

What to do if Your Limit is Lowered

Most people assume there’s nothing they can do when they get notified that their credit limit has been lowered, but that’s not the case. The first thing you can do is to contact your creditor and ask to speak to a representative.

 

Most times the limit was lowered by a computer algorithm rather than a person, so talking to a live rep is an excellent way to get answers as to why this happened, whether it was an error, and if your old limit can be restored.

 

Remember:

 

To be polite when you call, and it never hurts to mention how long you’ve been a customer and never missed a payment if that’s the case.

 

If you’re new lowered limit has put your credit utilization in a bind, consider transferring the balance to a card with a higher limit. If you’ve been in the market for a new card, now is the time to go on the hunt to find one with zero percent interest for balance transfers.

 

Just keep in mind that opening new lines of credit can cause your credit score to take a hit too.

 

What you don’t want to do is to close out your old card to spite the bank because if you have a long credit history there, that’s going to reflect negatively on your credit score if you wipe out years of on-time payments. Also, closing out that account lowers the available credit you have to work with, so transfer the balance, and suck it up.

 

If you maintain good relations with that bank and continue to make on-time payments, there’s a good chance you can get your limit raised in the future if needed.

 

It’s also essential you monitor your credit reports when a limit gets lowered to see what kind of a hit you take. If your score does drop, you can take the necessary steps to build your credit score back up such as using your card for small purchases like Netflix or coffee and paying it off every month to keep the account active and in good standing.

 

Finally, paying off your balance quickly on the card that got hit with the lower limit goes a long way to bringing down your credit utilization and pointing your credit score in the right direction.

 

Having your credit limit lowered isn’t a reflection on you or your credit, so don’t it personally. These things happen to everyone; you have to be smart about how to handle it and roll with it until you can get yourself straightened around.

 

Make your payments on time and pay down your balances to ensure your credit score moves up. And keep in good standing with your bank that lowered your rating in the hopes it can be restored in the future.

 

 

3 Most Common Questions That Credit Repair Companies Get Asked

3 Most Common Questions That Credit Repair Companies Get Asked

Reading Time: 4 minutes

Your credit score determines a lot of things in life. A poor credit score can keep you from securing an auto loan, being eligible for an apartment lease. It can also determine the interest rate on any credit card that you apply for. That is why having a good credit score is so important, but how can you get a good credit score if you currently have a bad one?

 

Credit issues are sometimes complicated, and improving one’s credit score can be a very time-consuming endeavor, which is why many people opt to hire professionals to assist in improving their credit scores. These professionals are employees of credit repair companies.

 

A credit repair company is a business entity that offers to improve the client’s credit in exchange for payment. You can hire these active companies to raise your credit score. Once you hire one, they typically go about improving your score by first requesting your credit report from each of the three major credit bureaus.

 

They look for derogatory marks such as charge-offs, bankruptcies, and tax liens. They also look for possible errors in your report that could be negatively affecting your score. Then they usually petition for these marks to be dropped off your record or negotiate with the creditors to make your report more favorable.

 

Once they have done everything they could on their end to amend your credit report, a good credit repair company will then work with you directly to devise a financial plan that will keep you on the right path towards better credit. There are a lot of essential questions that get asked of these companies during this process, which include:

 

How Long Will it Take to See an Improvement in my Credit?

Most people have specific plans and goals which is why they reach out to credit repair companies in the first place so questions often get asked about how long it will take a company to improve one’s credit.

 

The length of time will vary greatly depending on the situation, but there are usually simple steps that can be taken that make an immediate improvement. A credit repair company can request certain frivolous marks against your credit be removed, and creditors will usually comply with these requests. So a good credit repair company can make a slight improvement in as little as a month.

 

If a request for an investigation is made on the client’s behalf, the reporting bureau has 30 days to complete the investigation to determine if any mark should be stricken or sustained. Of course, the bureau has the right to review and deny any request for an inquiry if they deem it to be dubious.

 

Sometimes though it is not as simple as sending out a letter and improving a client’s credit can take up to a year. This usually happens when litigation must be involved to dispute fraudulent reports from crediting entities.

 

Do you Offer A Money Back Guarantee?

What if a client’s credit cannot be improved? There are certainly cases that can’t be helped so what if you hire a credit repair company and they can do nothing for you? These situations are why so many companies hear questions about a money-back guarantee.

 

The truth of the matter is that most reputable credit repair companies will not ask for money upfront. The credit repair industry is rife with scams, and one of the most telling signs that you are dealing with an illegitimate organization is if they ask for money before any services are rendered.

 

On the flip side, almost all respectable credit repair companies will not charge you if they could not improve your credit score and they will never guarantee results. They will usually offer a free initial consultation wherein they will assess your situation and how they might be able to help. Or not.

 

What Kind of Information will I need to Provide?

The reason people opt to work with credit repair agencies is there is usually a lot of confusing red tape, and the process takes a lot of time. So one concern that is often expressed relates to how much of the client’s time will need to be committed to the process and what kind of information or documents they will need to produce.

 

Most companies will request things like a list of current debts, payment histories for existing obligations, and if possible, the client’s credit utilization rate. This will involve gathering some documents and also giving the company access to any credit monitoring software that the client uses.

 

Hiring a credit repair company will usually mean a correspondence will open up between the company and creditors and the credit bureaus. All correspondence letters are sent to the client’s address, and they will need to either physically give copies of these letters to the company or send them digital copies.

 

There is no improving your credit without being directly involved in the process and carving out at least a little time to work with whatever company you hire so you should avoid any company that says they will take care of everything for you as they are probably trying to scam you.

 

 

Share this Image On Your Site