Jeff Hansen - King Condo

Market Updates Category

How Much Of A Role Does Credit Play In Purchasing A Home?

Lender Dave Setti of Turnkey Mortgage does a fantastic job of breaking down the different aspects of credit and how each of those aspects play a role in purchasing a home. Read below in his article of the “Five Factors of Credit Scoring.”

Five Factors of Credit Scoring

Not to put too fine a point on it, CREDIT IS KING! When it comes to buying a home, yes a lender want you to put some money down and have a solid income. But credit comes before down payment and income every time. Why you say? Simple: if you have a low income, you can always get a co-signer. If you have no down payment, you can always get a gift. However, if you have poor credit, you have to work for months, sometimes years, to erase the damage you have done. Remember, the best indicator of whether you will pay your bills in the future is whether or not you have paid your bills in the past! So what are the factors that make up your credit score?

Credit scores are comprised of five factors. Points are awarded for each component, and a high score is most favorable. The factors are listed below in order of importance.

1. PAYMENT HISTORY – 35% IMPACT
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Delinquencies that have occurred in the last two years carry more weight than older items.

2. OUTSTANDING CREDIT CARD BALANCES – 30% IMPACT
This factor marks the ratio between the outstanding balance and available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit at least 2-3 months prior to trying to purchase a home.

3. CREDIT HISTORY – 15% IMPACT
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.

4. TYPE OF CREDIT – 10% IMPACT
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only. You should always have 1-2 open major credit card accounts.

5. INQUIRIES – 10% IMPACT
This percentage of the credit score quantifies the number of inquiries made on a consumer’s credit within a twelve-month period. Each hard inquiry can cost from two to 25 points on a credit score, depending on the amount of points someone has left in this factor. Note that if you pull your credit report yourself, it will have no effect on your score.

Was this article helpful? If you have any other questions about this topic, please don’t hesitate to contact me.

Current Listing at Paseo Villas Unit #414

This Could Be Your New Home!

New Condo Listing at 27 Bassett Street

This end unit is set in an amazing urban location. It is in walking distance to downtown yet far away enough from the hustle and bustle. You can walk to work, the park, and Trials Pub! Easy freeway access and close to the light rail. A cool and safe community with friendly Neighbors. The unit itself is new, bright, and includes a spacious balcony where you can barbeque.  Click here for more details or contact me directly through phone or email!

 

When Was The Last Time You Heard Buon Appetito?

Looking For A Delicious Italian Meal?

Look no further! Paesano Ristorante Italiano is a unique little Italian restaurant located at 350 West Julian #1. This is the perfect place to bring a date if you’re looking for a romantic dining experience. Inside this little gem of a restaurant contains a bar that yells, “have a glass of wine and watch some soccer while you’re at it!” The interior design can be best described as modern meeting simplicity in a very tasteful way. Not only is there a sufficient amount of seating indoors, there is also an outdoor patio on the side of the restaurant. Away from all the inside noise, the patio creates that warm and fuzzy feeling that people love to have when dining out with their significant other. Or is this just me? In any case, the grape vines above this area adds a nice touch. I chose to have the gnocchi which was absolutely delicious and definitely a must try. Have I convinced you enough to get a small taste of Italia here? Leave a comment if you’ve tried this place, and don’t be shy to share your thoughts about it. Just like our server said before we took our first bite, “buon appetito!”

Do You Forget To Ask These Five Questions When Interested In Buying In A Complex?

Motivated buyers have a lot of decisions to make. They have to decide where they want to live, the type of home, the size, and last but certainly not least, the price they are willing to pay for it all. So what are four questions that a buyer should ask to save time in case their agent isn’t on top of their game?

The first question they should ask if interested in a unit is whether or not the complex is in litigation. This is because it greatly affects their ability to buy. If the complex is in litigation, buyers please be ready to make that offer all cash.

You should then ask what the owner occupancy ratio is because if it isn’t over 50%, it may be nearly impossible to get financing.

Third, it would be smart to ask what percentage of the complex is delinquent on HOA payments. If it reaches 16%, that is 16% or more are late on HOA payments, then it would also be nearly impossible to get financing. Read the rest of this entry »

Downtown SJ Condos/Townhomes Sold In Past Week (95112, 95110, 95126)

Address	City	Beds	Baths	DOM	LOE	SqFt	$/SqFt	HOA	List Price	Age	Sale Price
SOLD
801 Modern Ice Dr #173	San Jose	3	2|1	56	105	1,391	$300.58	$213	$418,102	1	$418,102
144 S 3Rd St #335	San Jose	2	2|2	43	33	1,421	$285.01	$462	$425,000	14	$405,000
202 Kentdale Pl	San Jose	3	2|1	245	50	1,581	$195.45	$238	$339,000	6	$309,000
743 Northrup St	San Jose	2	2|0	109	52	1,095	$272.15	$239	$279,900	6	$298,000
30 E Julian St #204	San Jose	1	1|0	174	40	838	$274.46	$333	$249,000	11	$230,000
500 Shadowgraph Dr	San Jose	2	2|0	99	22	871	$236.51	$228	$206,000	24	$206,000
1550 Technology Dr #4020	San Jose	1	1|0	40	84	1,070	$191.59	$400	$205,000	6	$205,000
1310 Saddle Rack St #430	San Jose	1	1|0	197	41	1,175	$171.57	$342	$227,900	7	$201,600
882 La Barbera Dr	San Jose	2	2|0	100	36	987	$202.63	$275	$210,900	26	$200,000
1550 Technology Dr #3020	San Jose	1	1|0	59	154	1,070	$177.57	$376	$219,888	6	$190,000
1550 Technology Dr #1060	San Jose	1	1|0	71	43	914	$196.94	$315	$185,900	6	$180,000
516 Martha St #202	San Jose	1	1|0	51	27	652	$230.06	$321	$132,900	11	$150,000
AVERAGE VALUES				104	57	1,089	$227.88	$312	$258,291	10	$249,392