Page 6 January 7, 2021 EL SEGUNDO HERALD
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Jumping on the Real Estate Boom?
(BPT) - Over the past several months,
everyone’s lives have been upended, with
consequences nobody predicted. One
unexpected result of the pandemic? A real
estate boom.
With so many more people working from
home, people are re-evaluating their living
spaces, including those who need to factor in
homeschooling. Some families are realizing
they need more bedrooms, larger yards or
just more space in general. Others who have
suffered financial setbacks may be looking to
downsize. And many city dwellers are trying
to move away from congested areas to smaller
towns or suburbs. All of these changes, plus
the low mortgage rates, have resulted in plenty
of activity in the housing market.
Long before you make any large purchase,
whether it’s a car or a home, you should
check your credit score and your credit report.
Before you even start scoping out
neighborhoods, visit AnnualCreditReport.com,
a site where you can access for free your
credit report - these days, on a weekly basis.
Also be sure to review the report to ensure
there are no errors. You can also check your
VantageScore credit score for free at websites
like CreditKarma.com, MyLendingTree.com
and MyCreditGuide from American Express.
The VantageScore model, widely used by
lenders, helps both consumers and lenders
by providing a more accurate representation
of the risk for someone to default on a
payment on his/her loan. It also provides
more consistent scores regardless of which
national credit reporting company provides
your score, which is helpful especially for
first-time home buyers.
If your credit score is not up to par,
improve it by:
* Making timely payments on bills,
especially credit cards, and pay more than
the minimum when you can.
* Reducing the percentage of revolving
credit you’re using by paying down some
of your cards. Under 30% of the maximum
credit available is optimal.
* Asking for your credit limits to be
increased. If you increase the credit limit
but don’t charge more on your card, you’ll
be using a smaller percentage of your limit.
* Keeping a neglected credit account active
by making a small purchase on it that you
can quickly pay off.
No matter which strategies you use, allow
a few months for your improved credit habits
to show up on your report before applying
for a mortgage.
Being pre-qualified makes you a much
more attractive buyer.
The first step in getting pre-qualified is
checking your credit score (see above).
Next, crunch some numbers. You’ll need to
figure out your debt-to-income ratio (DTI)
based on the anticipated mortgage monthly
payment: How much (percentage) of your
gross monthly income goes toward debt
(student loans, credit cards, car payments,
etc.)? Most mortgage lenders look for a DTI
of 36% or lower. If your DTI is high, see if
you can decrease your debt by paying some
down and/or increase your income (perhaps
with a part-time job).
Apply with a number of lenders - some
will give you better rates than others. Before
applying, ask what information and documents
you (and your co-borrower, if there is one) will
need. This will include proof of employment
and income, plus previous tax returns.
Also, be sure to apply to all the lenders
within a span of two weeks. That way,
only one “credit inquiry” will impact your
VantageScore credit score.
Whether you’re buying and/or selling,
don’t let the emotions of the moment push
you into making a hasty decision. Make sure
you know your budget and the acceptable
terms or conditions for the purchase (or sale).
If the seller (or buyer) suddenly changes
something about the deal - from the closing
date to the offer or asking price - don’t
make a snap decision. Tell them you’ll think
about it overnight and discuss it with your
real estate agent. Weigh the pros and cons
before agreeing.
For more financial tips and information
about credit, visit www.yourvantagescore.com.
Lynn O♥Neil Real Estate
(310) 261-0798
Assoc Broker 31 years/Manager
TOP PRODUCER BEACH CITY BROKERS
355 Concord 224 W Imperial 818 Main St
SOLD
SOLD
SOLD
210 Whiting St 912 Sheldon St 610 W Pine
SOLD
SOLD
SOLD
823 SHELDON 715 Hillcrest 840 Hillcrest
SOLD
SOLD
SOLD
Looking to sell in
2021? Look no
further! Call Lynn
today for a complete
and comprehensive
marketing plan to
achieve the highest
price for your home!
LYNNONEIL@GMAIL.COM #♥00 88 008 0 WWW.LYNNONEIL.COM