What’s the Best Credit Score to Get A Good Mortgage?

So you want to buy a house and you wonder how your credit score will impact your ability to get a mortgage loan with a good interest rate.

A perfect credit score is 850, but all scores 760 and above are considered to be in the best range. Mortgage lenders want your business and will offer you loans with the lowest interest rates.

A good score is from 700 to 759 and a fair score is from 650 to 699. Since a lower score means you’ve had some late payments or other dings on your credit history, lenders see you as more likely to default on your home loan. They may still give you a mortgage, but it will be at a higher interest rate.

Credit scores below 650 are considered poor. This doesn’t necessarily mean you can’t qualify for a loan, but it may be tough, and you’ll pay a higher interest rate.

If your score is lower than you’d hoped, you can raise your credit score. Just keep in mind that you can’t improve a credit score overnight, which is why you should check your credit score annually—long before you want to start house hunting.

If you want to buy a home or you know someone who’s looking to buy a home, contact me to learn your financing options. I can refer you to experienced mortgage loan officers who will consider your financial standing and help you get the best possible loan. Then we can begin your home search.


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Don’t Overprice Your Home! And Here’s Why…..

5 Common (but Terrible) Reasons for Overpricing Your Home
Adapted from author Craig Donofrio | Realtor.com
CLICK HERE to find out what your home is worth

We know, we know—you love your house and you know all its special fine points. And of course, you want to list your treasured home at a price that reflects all those good points that you’re sure potential buyers will recognize as truly outstanding.

Perhaps you’ve seen the comps for your neighborhood, but you just know your home is worth more, so you’re going to list it at a higher price.

The following list are reasons sellers overprice their home, and none of them is smart. If you price your home too high, it’ll take longer to sell, raising doubts in buyers’ minds about whether there’s something wrong with it, and you’ll probably have to drop the price eventually anyway. So don’t fall for any of these five common justifications sellers use to inflate the price of their beloved property.

1. You have the Midas touch in decor (you think)

The reason that interiors are often painted white or neutral colors before a sale is because it allows potential buyers to envision their own decorating. Your quirky or colorful touches might not be for everyone, and can actually devalue your house.

Alexandra Axsen, owner and managing broker of Lake Okanagan Realty in British Columbia, Canada, listed a home whose bathrooms were all sorts of strange colors—olive-green toilets, a purple bathtub, and a pink sink. When Axsen recommended to the seller a price that factored in the cost of necessary updates, things got a little heated.

“He got very upset and argued with me that his colorful fixtures added value, because people are tired of the all-white, stale hospital look,” Axsen explains.

So they tried the seller’s way first, listing it for his desired price. It didn’t sell, and buyers gave feedback that the home was overpriced. After weeks on the market, the seller finally agreed to lower the price. It sold within a month.

2. You’re nitpicking comps

Comps (or comparable market analysis) are valuable reference points that allow your Realtor to compare your home to similar nearby homes in order to price it to sell. But some homeowners place too much value on ultimately negligible differences between their home and the comps.

An agent in Atlanta has heard sellers make these statements: “My home has a 60-gallon hot water heater; every other home has 40. My deck is 60 feet larger. My den has real barn wood paneling.”

Small features like this might be worth pointing out to potential buyers, but they’re not going to make or break a deal—and trying to price your home based on the size of your deck is a setup for disappointment. Plus, you might not see the flaws in your home—your deck might be big, but it might also need work.

Your Realtor looks at all the features of your home from an objective point of view, primarily based upon how potential buyers may view it, and by a careful analysis of comps for homes similar to yours. Your idea of the ideal listing price will be based on emotion; an experienced Realtor will deliver a realistic, market-based suggested listing price.  Rely on his/her knowledge!

3. You’re too focused on your ROI

A house is an investment, and everyone wants a return on their investment. Couple that with emotional attachment, and you’re primed to mark up your home’s value.

“Sellers think that their house is worth what they want or need to sell it for, but the harsh reality is that a home is worth whatever a buyer is ready, willing, and able to pay for it,” states another real estate agent.

Even in a seller’s market, there’s no guarantee that you’ll make money on your house. And just because you need $450,000 to buy that house on Greener Pastures Lane doesn’t mean you can sell your house for the same amount.

4. You built it yourself, so you’re emotionally invested

Speaking of emotional attachments, if you built your home yourself, you might have some serious issues with overpricing your property.

Case in point: Ariel Dagan, an associate broker in New York City, co-listed a property for a woman who priced a townhouse she built herself at $18.5 million. Dagan’s team tried to get the woman to lower her price, but she was adamant about sticking with the high price tag and ultimately dropped Dagan and his team from the property.

“Shortly after we were dropped from the listing, the price dropped from $18.5 million to $16.9 million,” Dagan says. “Eight months later, the listing sold for $15.5 million—or 19.35% less than the original asking price.”

So, why does that happen? Dagan calls it the “Ikea effect.”

“Most people who buy furniture from Ikea and assemble it themselves think it’s more valuable than it really is, because they built it,” he explains. “Same thing happens in today’s real estate market.”

5. You’re imagining you’ll haggle

Perhaps the most common reason people overprice their home is because they’re looking to negotiate so they want to price their house 10% higher than it’s market value, fully expecting a buyer to offer a lowball offer which will net them the price they wanted all along.

It doesn’t work like that in today’s real estate market.  It’s better and smarter to price it right and create interest and demand where buyers are chasing you, versus you chasing the market backward [and] searching for the demand. Don’t be afraid to price your home fairly, or even underprice it—which is likely to attract buyers and boost the price to where it should be.  Every home sells when it’s priced right.

If you’re thinking of selling,  CLICK HERE TO LEARN YOUR SUGGESTED LISTING PRICE.   Your home may be worth more than you think, and I will provide you with an accurate estimate of your ideal listing price. Above all, do NOT rely on the generalized pricing estimates provided in the national real estate sites (Zillow, Trulia, etc.).