In The Dallas Housing Market, How Your Credit Score Affects Home Loans
Everyone should be aware that your credit score plays a significant role in determining whether or not you are approved for a house loan and how favorable the terms are. Dallas' economy is booming, and the job market is booming as well.
In this post, we'll look at the present situation of the Dallas housing market, what it might look like in 2020, and how your credit score influences your chances of acquiring a good home loan.
THE STATE OF THE DALLAS HOUSING MARKET RIGHT NOW
In April, home values fell somewhat, which many analysts blame to value drops in West Coast areas. As a result, property prices in the Dallas-Fort Worth area have plummeted as well. While the price decline is little (0.1 percent), it indicates that changes in the housing market are on the way.
Housing prices in the Dallas-Fort Worth area fell marginally in April, according to Zillow, which is the first drop since January 2012.
In addition, data from Dallas-Fort Worth real estate brokers indicates a month-to-month drop in median home prices.
The Dallas News reports:
The median sales price of single-family homes sold by agents in North Texas has increased by 2% in the first four months of 2019 compared to the same period last year. According to Zillow, the "average U.S. home is worth $226,800" in April, which is less than the $243,900 value in the DFW area.
While the housing market is stalling, with the average number of days on the market in the North Texas region hovering around 53, experts advise buyers not to panic just yet because home values are rising overall.
While Zillow describes the Dallas market as "cool," they forecast a 7.5 percent increase in the median home price in 2019, indicating that the market is on the rise.
According to DM Magazine:
The explanation for this is straightforward. There are employment here, and tens of thousands of people continue to migrate to the area in search of them. According to the Bureau of Labor Statistics, there were 102,500 new employment created in 2018. Every day, 3.7 million people commute to work in this region.
Jobs are plentiful in Dallas, and Texas continues to lead the nation in employment creation, so the housing market is stable for the time being. If you're worried about not being able to purchase a property because of the competitive market, you can still acquire something cheaper if you move out from the downtown area.
Affordability is a concern not only in the Dallas area, but also in other major cities around the country. In general, the further you get away from large metro regions, the better the deals you'll find.
PREDICTIONS FOR THE YEAR 2022
While the above data creates a contradictory picture, the property market in the Dallas Fort-Worth area is expected to remain competitive for the next few years due to low inventory and high demand.
The solid economy in this country is boosting the real estate market, which should keep prices from falling too far in 2022. Finally, according to Zillow's experts, the market will rise by 4.8 percent until the summer of 2022.
As you can see, there's no cause to be concerned right now, as the market appears to be robust for the rest of next year.
CREDIT STANDARDS AND YOUR HOUSE LOAN
Here's an overview of how credit scores operate if you're unfamiliar. Your credit score is calculated by credit reporting bureaus based on a number of factors, including:
- Your debt-to-credit ratio
- What kind of credit do you have?
- Payments are made on time.
- If you've declared bankruptcy,
Credit reporting organizations analyze this data and calculate a score that lenders use to determine your creditworthiness.
The following are the components of a typical FICO score: 30% is based on the amount you owe; 35% is based on your payment history; 15% is based on the duration of your credit history; 10% is based on new credit you've obtained, and 10% is based on the categories of credit you have.
Your credit score not only tells the lender if you're creditworthy, but it also determines the interest rate you'll pay. A high credit score usually translates to a cheap interest rate, whereas a low credit score usually translates to a high interest rate.
Lenders differ on what they consider to be a good credit score, but a score of 700 or more is considered exceptional and will get you the best conditions. Lenders consider you a significant risk once your credit score falls below 600. A credit score of 660 or lower may be a 'no' for some lenders, which is why it's critical to keep a solid credit rating.
WHERE DO I GO TO FIX MY BAD SCORE?Let's imagine you want to buy a house, but your credit score prevents you from getting a loan or just allows you to get one with bad terms. What can you do to make things better?
To begin, do the following:
Obtain a copy of your credit report to ensure that there are no inaccuracies affecting your credit score.
Next, the most crucial thing you can do to improve your credit score is to pay all of your bills on time. Making on-time payments is the fastest strategy to raise your credit score. Remember to pay off your debts as quickly as possible, which usually involves paying more than the minimum amount each time.
As you can see, having a strong credit score is crucial to receiving a suitable house loan. And, if your credit score isn't where it should be, you should avoid taking out a loan until you can raise it. If you need assistance, contact a credit repair company in Dallas to help you restore your bad credit and get into the home of your dreams.
Related Articles:
https://thephenixgroup.com/everything-you-need-to-know-about-national-credit-systems
https://thephenixgroup.com/el-paso-a-hot-housing-market-with-affordable-homes-and-well-paying-jobs
Comments
Post a Comment