Riverside, Corona Norco, CA Homes and Real Estate - Sharon Shepherd

With mortgage rates low and prices just about perfect for buying, Iʼve had a lot of discussions lately with first-time home buyers about what it takes to get a loan these days at a good rate. Naturally, a good credit score is important. (Typically, weʼre seeing the best rates for buyers with scores above 740.) You may not be ready to buy soon, but if youʼre thinking about it in the next couple of years, now is a great time to work on your credit score. If youʼre not familiar with how credit scores work, hereʼs what typically goes into them: • Your past payment history = 35%. The more paid on time, the better. • Amount you owe = 30%. The less you owe relative to your total available credit, the better. • How long youʼve had credit = 15%. Longer is better. • How much new credit = 10%. Lots of new credit lowers your score. • Kind of credit = 10%. Itʼs better to have different sources of credit. Of course, credit score is only one part of the picture. Having a down payment of 20% or more can also influence your shot at the best rate. You can now get a Convention Loan with a 3% or 5% down at a cost less than the FHA loans with the same rates. If you ever have any questions about the path to home ownership or the ins and outs of financing, please feel free to get in touch. 909-223-1094, Sharon@SharonShepherd.com, www.YourRiversideHomeFinder.com

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