The Truth About Credit Scores and Buying a Home

The Truth About Credit Scores and Buying a Home Your credit score plays a big role in the homebuying process. It’s one of the key factors lenders look at to determine which loan options you qualify for and what your terms might be. But there’s a myth about credit scores that may be holding some buyers back. The Myth: You Need To Have Perfect Credit According to Fannie Mae, only 32% of potential homebuyers have a good idea of what credit score lenders actually require. That means two-thirds of buyers don’t actually know what lenders are looking for – and most overestimate the minimum credit score needed. The Reality: Perfect Isn’t Necessary But the truth is, you don’t need perfect credit to become a homeowner. To see the average score, by loan type, for recent homebuyers check out the graph below: There is no set cut-off score across the board. As FICO explains: “While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders, and there are many additional factors that lenders may use . . .” So, even if your credit score isn’t as high as you’d like, you may still be able to get a home loan. Just know that, even though you don’t need perfect credit to buy a home, your score can have an impact on your loan options and the terms you’re able to get. Work with a trusted lender who can walk you through what you’d qualify for. Simple Tips To Improve Your Credit Score If you want to open up your options a bit more after talking to a lender, here are a few tips from Experian and Freddie Mac that can help give your score a boost: 1. Pay Your Bills on Time This includes everything from credit cards to utilities and other monthly payments. A track record of on-time payments shows lenders you’re responsible and reliable. 2. Pay Down Outstanding Debt Reducing your overall debt not only improves your credit utilization ratio (how much credit you’re using compared to your total limit) but also makes you a lower-risk borrower in the eyes of lenders. That makes them more likely to approve a loan with better terms. 3. Hold Off on Applying for New Credit While opening new credit accounts might seem like a quick way to boost your score, too many applications in a short period can have the opposite effect. Focus on improving your existing accounts instead. Discover the truth about credit scores and buying a home. Learn how your credit score impacts mortgage approval, interest rates, and steps to improve it for your dream home. ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="1">Credit scores and home buying ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="2">Credit score impact on mortgage ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="3">Improve credit score for house ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="4">Home-buying credit score tips ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="5">Credit score for first-time home buyers ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="6">Buying a home with bad credit ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="7">Importance of credit score in home buying ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="8">Credit repair homeownership ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="9">Mortgage interest rate and credit score ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="10">Home loan credit requirements Learn more: ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="1">Understanding Credit Scores ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="2">How to Improve Your Credit Score ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="3">The Role of Credit Scores in Homeownership ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="4">Buying a Home with Bad Credit ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="5">Credit Score Requirements for Mortgages ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="6">Tips for First-Time Home Buyers ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="7">How Your Credit Score Affects Your Mortgage Rate ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="8">Improving Credit Before House Shopping ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="9">Benefits of Good Credit in the Home Buying Process ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="10">Common Credit Score Myths Bottom Line Your credit score doesn’t have to be perfect to qualify for a home loan. The best way to know where you stand? Work with a trusted lender to explore your options.

How Much Home Equity Have You Gained? The Answer Might Surprise You

How Much Home Equity Have You Gained? The Answer Might Surprise You Have you ever stopped to think about how much wealth you’ve built up just from being a homeowner? As home values rise, so does your net worth. And, if you’ve been in your house for a few years (or longer), there’s a good chance you’re sitting on a pile of equity — maybe even more than you realize. What Is Home Equity? Home equity is the difference between what your house is worth and what you owe on your mortgage. For example, if your house is worth $500,000 and you still owe $200,000 on your home loan, you have $300,000 in equity. It’s essentially the wealth you’ve built through homeownership. Right now, homeowners across the country are seeing record amounts of equity. According to Intercontinental Exchange (ICE), the average homeowner with a mortgage has $319,000 in home equity. Why Have Homeowners Gained So Much Equity? The rise in home equity over the years can be credited to two key factors: 1. Significant Home Price Growth Home prices have climbed dramatically in recent years. In fact, according to the Federal Housing Finance Agency (FHFA), over the past five years, home prices nationwide have risen by 57.4% (see map below): This appreciation means your house is likely worth much more now than when you first bought it. 2. Longer Tenure in Homes Data from the National Association of Realtors (NAR) shows people are staying in their homes for a decade (see graph below): This increased tenure means homeowners benefit even more from home values growing over time. That’s because the longer someone has lived in their house, the more that home’s value has grown, which directly increases equity. And if you’re one of those people who’s been in their home for 10 years or more, know this – according to NAR: “Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.” The Benefits of Having Home Equity What does that mean for you? It means your house might be your biggest financial asset — and it could open up some exciting opportunities for your future. Let’s break it down. Moving to Your Next Home Your equity could help you cover the down payment for your next home. In some cases, it might even mean you can buy your next house all cash. Financing Home Improvements Thinking about upgrading your kitchen, adding a home office, or tackling other projects? Your equity can provide the funds to make those improvements happen, increasing your home’s value and making it more enjoyable to live in too. Getting a Business Going If you’ve been dreaming about starting your own business, your equity could be the kickstart you need. Whether it’s for startup costs, equipment, or marketing, leveraging your home’s value can help bring your entrepreneurial goals to life. Discover how much home equity you've earned and why it might astonish you. Learn the key factors behind rising equity and how it can impact your financial future. ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="1">Home equity ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="2">Gained home equity ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="3">Rising home value ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="4">Property appreciation ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="5">Real estate investment ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="6">Housing market trends ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="7">Equity calculator ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="8">Financial benefits of equity ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="9">Real estate equity growth ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="10">Surprising home equity facts Learn more: ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="1">What is Home Equity? - Investopedia ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="2">How to Calculate Home Equity - NerdWallet ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="3">7 Ways to Increase Home Equity - Forbes ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="4">Current Housing Market Trends - Zillow ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="5">Understanding Property Appreciation - Realtor.com ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="6">Benefits of Home Equity Loans - Bankrate ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="7">How to Leverage Your Home Equity for Investments - SmartAsset ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="8">Why Home Equity is Growing Faster Than Ever - CNBC ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="9">Average Home Equity by State - Rocket Mortgage ol]:!pt-0 [&>ol]:!pb-0 [&>ul]:!pt-0 [&>ul]:!pb-0" value="10">Maximizing Your Home’s Value - HGTV Bottom Line Whether you’re thinking about selling, upgrading, or simply want to understand your options, your home equity is a powerful resource. If you’re wondering how much equity you’ve built or how you can use it to meet your goals, let’s connect and explore the possibilities.

Key Market Highlights for December 2024

    Key Market Highlights for December 2024 Median Sold Prices on the Rise Single-Family Homes: The median sold price climbed to $555,307 in December 2024, reflecting a 4.8% increase from December 2023. This steady growth showcases the ongoing demand for single-family homes, even amidst changing market conditions. Condos and Townhomes: These properties saw an even more significant jump, with the median price reaching $434,366, up 11.4% from last December. Condos and townhomes continue to be an attractive option for buyers seeking affordability and low maintenance. Homes Sold: A Strong Year-End FinishA total of 2,924 homes were sold in December 2024, marking a 15.3% increase compared to the same period last year. Breaking it down further: Single-Family Homes: 2,057 units sold. Condos/Townhomes: 867 units sold. This substantial rise in sales indicates robust buyer activity, even during what is typically a slower season. Market Dynamics: Days on Market and Price Per Square Foot Median Days on Market: Homes spent an average of 46 days on the market in December 2024, up slightly from 41 days in November. While properties are taking a bit longer to sell, this is still a competitive timeframe. Median Price Per Square Foot: The median price per square foot reached $234.74, a metric that highlights the rising value of real estate in the area. Residential Inventory: Steady SupplyNew listings entered into the market in December remained stable compared to last year: 2024 Listings Entered: 2,568 2023 Listings Entered: 2,567 This balance in inventory helps create opportunities for both buyers and sellers as we head into 2025. What These Numbers Mean for You For Sellers:With prices continuing to rise, now is a great time to list your home. Buyers remain active, and your property is likely to attract interest if it’s priced correctly.Preparing your home for sale, including proper staging and professional photography, can help you stand out in a market where buyers have slightly more time to consider their options. For Buyers:Rising prices mean it’s essential to stay proactive and work closely with your real estate agent to find the best deals before they’re gone.Condos and townhomes have shown strong appreciation, making them an excellent choice for first-time buyers or those looking to invest in properties with significant upside potential. For Investors:With strong year-over-year appreciation in both single-family and condo/townhome markets, now is a great time to evaluate opportunities to invest in properties with long-term value growth. Closing ThoughtsThe December 2024 housing market reflects a vibrant and growing real estate landscape. Whether you're buying or selling, understanding these trends will help you make informed decisions. As always, I'm here to guide you through every step of your real estate journey. If you’re curious about your home’s value or looking to make a move, don’t hesitate to reach out! Let’s make 2025 your year for achieving real estate goals.

January Events in Salt Lake, Utah

  Electric Alley Arcade at Millcreek Common Jan 7th-11thBack by popular demand! The Electric Alley Arcade features classic pinball, bubble hockey, skee-ball, arcade games, and more. Admission is only $5 for unlimited play. Ice skating admission includes a wristband to the arcade. Come play! 11am-9pm daily.   Gallivan Center Ice Rink Lace up your skates and glide into the heart of downtown Salt Lake City, where our outdoor ice rink and colorful lights create a magical winter wonderland. Have an enchanted evening skating, and stay cozy with a warm snack or cup of hot chocolate from our concessions. All our skate times are open to the public, and no reservations are needed. However, we do have a party area you can reserve for groups, or we offer private rink rentals outside of our regular hours. For more information about our rink, call us at (801) 535-6117. Sunday–Thursday: 4pm–10pmFriday & Saturday: 12pm–12am.   Salt Lake Home Show at Mountain America Expo Center Jan 10th-12th Solve all your projects in one place in one weekend at the Salt Lake Home Show! You’ll find the latest products and services for your home: builders, remodelers, contractors, building materials, decks, spas, entertainment systems, storage solutions, kitchenware, home accessories and so much more. Friday@ 2-9pm. Saturday 10-9pm. Sunday 11-6pm.   Celebrating Chinese New Year of Snake with Utah Chinese Community Jan 11thThe celebration of Chinese New Year is the biggest annual event for the local Chinese community in Utah. Our new year is based on the Chinese calendar, also called the Huaxia Calendar, the most widely adopted lunisolar calendar in the world. Traditionally, we celebrated the festival with families, friends, neighbors, and beyond. We carry forward the traditional rituals with a history of a couple of thousand years. The 2025 Year of Snake is coming! CAST-UT and sister Chinese communities in Utah are going to host a New Year Celebration, All are welcome! During the event, 1) art performances are deeply rooted in traditional Chinese elements. 2) cultural tours interactive cultural activities are prepared to get all attendees involved, including traditional Chinese calligraphy and paintings, paper cutting, Chinese Martial Art (Kung Fu), trying Traditional Chinese Costumes, i.e. Hanfu, making spring festival couplets, the guess of lantern riddles and the touch of blessing and many more. 3) Lion Dance. We will also prepare special gifts that will also be given during the event. 5-9pm.   Urban Flea Market at The Gateway Jan 12th. The Urban Flea Market is the largest year-round monthly flea market in Utah and is located at the north end of The Gateway, near the Snowflake Fountain. The Indoor Winter Market features 65+ vendors offering the best eclectic and unique vintage and antique finds. Local crafters provide cool handcrafted and upcycled vintage items. Time: 10:00 AM - 4:00 PM Where: The Gateway, 18 N Rio Grande Street, Salt Lake City UT 84101. Admission: (Cash Only) $3 for adults. Ages 12 and under free (must be accompanied by an adult) Parking: FREE PARKING in the Gateway 'NORTH Garage' - Enter on 100 South or 400 West. We also invite you to support the Wildlife Rehabilitation Center of Northern Utah, by donating your gently used clean towels and sheets for their new facility. Please take these items to the Urban Flea Market entry table. Friendly dogs on leashes are welcome at the market. Vendor information and details are on the website at www.fleamarketslc.com.   Date Night at the Museum Jan 15th Looking for a unique night out? Join us on Wednesday, January 15, 2025, from 6–8 pm for a romantic and creative evening at the Utah Museum of Contemporary Art. Here’s what’s planned: A catered dinner to kick off the night. An exclusive, guided tour of the exhibition In Memory led by UMOCA Executive Director Laura Allred Hurtado, offering unique insights into the exhibition’s themes and artwork. A hands-on art activity led by Curator of Exhibitions Jared Steffensen, where you’ll create a collaboratively produced artwork to take home. Tickets are $250 per couple ($200 for Contemporary Circles members). Spots are limited, so grab yours now!   Utah International Auto Expo at Mountain America Expo Center Jan 17th-20th New cars, trucks and SUVs will fill the Mountain America Exposition Center for the 2025 Utah International Auto Expo! Friday 11 am – 9 pm Saturday 10 am – 9 pm Sunday 10 am – 8 pm Monday 10 am – 8 pm.   Salt Lake Gallery Stroll Jan 17thThe Salt Lake Gallery Stroll is committed to bringing the value of visual art to the forefront of Salt Lake City’s cultural identity. By gathering galleries and other businesses to promote visual art, we strive to stimulate interest and investment in an ever-growing local visual art community through this FREE public event. Join us on the 3rd Friday of each month. Galleries are open after hours for the public to meet artists and browse the exciting and thriving visual arts market in Salt Lake City. Some sponsors offer special discounts and rates for those who participate in Gallery Stroll. 6-9pm.   MLK Week: Learning to Action, Movement Toward Just Communities Jan 18th-25th The legacy of Dr. Martin Luther King Jr. reminds us of the transformative power of learning and collective action in the pursuit of justice. His unwavering commitment to equality, nonviolence, and community empowerment serves as a guiding light for creating inclusive societies. The theme "Learning to Action, Movement Toward Just Communities" echoes his call to turn understanding into meaningful action, fostering change that uplifts everyone. View link for full schedule of events. https://mlkweek.utah.edu/events/.   Utah Travel Expo at Mountain America Expo Jan 24th-25th. Come celebrate 29th annual Morris Columbus Travel Expo! This year promises to be our biggest expo ever with representatives from around the world, including our trusted travel partners from the biggest names in the industry. Come explore airlines, cruise lines, hotels and resorts, tourism offices, and other related destination services. Representatives from these companies can bring you up-to-date on the hottest travel trends for 2025 and beyond, plus offer you exclusive deals that can’t be found anywhere else. We’re also hosting fun, informative travel seminars given by experts in some of the world’s hottest destinations. And there’s more! Our award-winning Morris Columbus travel consultants will be standing by to help book your next dream vacation and to help answer your pre-trip questions. Did we mention the over $10,000 worth of free prizes and trip giveaways we’ll be having? Whether you venture in-state, nationally, or internationally, the 29th annual Morris Columbus Travel Expo is the one-stop place for valuable travel tips, seminars, booking specials, and the chance to win exciting trips and prizes. Friday: 2-8pm Saturday 10-5pm.   DinoFest at Natural History Museum Jan 25th-26th. Have you ever wondered what lurked beneath the surface of oceans, rivers, and streams during the age of dinosaurs? At NHMU's ninth-annual DinoFest on January 25-26 @ 10-5pm we will explore these Underwater Worlds and examine how dinosaurs interacted with them. We’ll be joined by a lineup of world-class paleontologists who specialize in the diverse creatures that lived underwater alongside dinosaurs, including ichthysaurs, plesiosaurs, crocodilians, turtles, and fish. These experts will offer DinoFest guests a rare, insider look at the latest and most groundbreaking discoveries from the world of paleontology. DinoFest guests will also enjoy special access to the Paleo Preparation Lab and Paleontology Collections to get up close with incredible fossils. And community partners in the Museum's Canyon will highlight the region's many dinosaur research and educational communities.