What Makes Up your Credit Score?

There are many San Gabriel Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Payment Calculator so you know what buyers will pay for your home in today's market. You may also call me at (626) 914-6859 for a FREE home buying or selling consultation to answer any of your real estate questions.

What Makes Up your Credit Score?

Today I want to welcome back Rick Mount from Fareway Independent Mortgage Corporation. He is my expert on credit and he will be discussing a few credit-related issues today. 

Credit scores are very important to today's lending climate, so we like to make sure our clients know about their score and what it means for them. It can impact the type of loan they get and what their interest rate will be, so it's very important.  

Credit scores are made up of 5 major categories. 

1. Payment History accounts for 35% of your score.


2. The amount of debt that you owe on credit cards or other transactions will affect your score.


3. The length of time that you have been borrowing matters. It's not that new borrowers will be at a disadvantage, but it helps to show lenders that you have been borrowing money responsibly for a long time.


4. New credit that has been acquired is factored in as well. New car payments or loans of any type will affect your score. If you're opening up a lot of new credit, it could have a negative effect on your score.


5. Types of Credit Used: This would be when we compare an auto loan to a jewelry loan. Lenders want to see major debt that has been extended to you and not frivolous purchases. 

There are certain things that you can do to improve your scores and help them from dropping, and that is when you would get into contact with me or one of my credit experts. We are always here to help you and are more than willing to guide you through the real estate process.

If you ever need assistance, please contact me and we could easily arrange a time to talk.

Get Top Dollar on Your Home by Pricing it Attractively with my Advice

There are many San Gabriel Valley area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Payment Caculator so you know what buyers will pay for your home in today's market. You may also call me at (626) 914-6859 for a FREE home buying or selling consultation to answer any of your real estate questions.

Pricing Correctly from the Beginning of Your Listing
With the spring and summer markets picking up here in the San Gabriel Valley, I think it's a good time to begin talking about how you can price your home attractively so that you can sell quickly and for a great price. I have some tips for you on how to price your home in order to get top dollar.

1. Get Top Dollar When Your Home is New on the Market: The longer your home has been on the market, the less money you will likely be offered for it. This is one reason why it is critical to price your home attractively, because if it hits the market with a good price, it will likely sell for top dollar. Buyers are very savvy, and will be privy to a home that is exorbitantly priced.


2. Buyers Shop Around: Buyers, just like when they're buying cars or other items, will shop around to find the best value. Buyers have access to internet listing sites, and will know right away if your home is a good deal or not, so you need to be aware that home buyers these days are much more educated than ever before.


3. Negotiation: Negotiations are much easier when your home is priced accurately. You can leverage a buyer into a good deal for yourself if your home is priced fairly. An accurately priced home is a great bargaining chip during the negotiation process. Instead of having to accept an offer out of desperation, you can pick and choose which buyer's offer will benefit you the most.

Something else that can happen if your home is not priced right is that a buyer will have an appraisal done on your home. When the appraiser gives an estimate that does not match the listing price, you will likely lose out on a sale. In this situation you will have lost a deal and will probably have to reprice your home

In today's environment you have to pay attention to the market, because the market is ultimately what will decide the best price for your home. Because of this, you need a good understanding of the real estate market.

So, if you need advice on pricing your home or want assistance finding or selling real estate in the San Gabriel Valley, then please contact me. You can call me at (626) 914-6859 or email me at alex@alex-re.com