Tag Archives: loans

5 Tips To Get Rid Of Clutter Around The House

Happy New Years to everyone in the Central Coast! We at Valley Hills Realty have had a great start to 2017 and we hope that you have too. This year will bring many changes to you and family around you and one of those changes may be in the comfort of your own home. One way to make your home more comfortable is to get rid of clutter. Here are 5 ways to bring down clutter around your house.

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Follow these tips for easy and quick ways to de-clutter your home.

1.  Adding shelves: The addition of shelves in your home will not only create space but also give your home a different feel. Get rid of stuff that is lying around on the floor and place them on shelves to give you more floor space.

2. Garage storage: Make your garage your main storage area. Yes you can have multiple uses for the garage but if you set it as your primary storage area, you will have more space in your home.

3. Getting rid of broken items: It may be hard to get rid of some precious stuff in your house but if the item is broken or un-useable, then why keep it? They just take up space around your home so get rid of them to get your space back.

4. Placing stuff in drawers: If you have extra drawers around the house, you can use those drawers to create more space. By neatly organizing in drawers, one can get rid of clutter that is simply lying around.

5. Reorganize one room at a time: By taking it one room at a time, it will seem much less stressful when reorganizing. Take it easy and calm.

By going through these steps on a monthly basis, you will experience a home that is much more livable than before with more space and room to mingle in.

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What Everyone Should Know About Credit Scores

For starters there are different classifications for what is considered a good credit score. They can also be described as poor, average, good, great, excellent, or even exceptional based on the credit score number that you have. Your credit score will fall within one of these categories, but keep in mind the names for these categories differ from industry to industry but to give you a general idea of how good, or bad your credit score is, we have provided you this article outlining what most lenders or banks, even credit card companies and car dealerships, use to determine the likeliness of providing you with a loan at a reasonable rate. Below there is a pie chart outlining what FICO classifies credit score ratings nationwide.

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A good credit score depends on many factors. A credit score when applying for a mortgage is different when applying for a credit card or a car loan at your local dealership.
Based on our experience most credit scores, or what seems to be the average among individuals, fall within 620 to 669. A score between 670 to 680 would be considered above average or generally good credit for most lenders. Anything between 680 and 720 will be measured as excellent or very good credit and will help you attain that interest rate that everyone wants. Now, generally anything above 750 will be seen as exceptional credit, which is what lenders like to see. The higher your score, the better credit decisions lenders will make because they will be more confident that you will repay any future debts.

Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships to make decisions about whether or not to offer you a reasonable loan and what the terms of the offer (such as the interest rate or down payment) will be. We have broken down the differences among these types of loans below.

Home Loans
Mortgages have two key credit score requirements. The first is the minimum score needed to qualify for the mortgage and the second is also a minimum score but this is for qualifying for a low interest rate. Keep in mind that when buying a home there are many types of loans that one can attain. There are conventional loans, FHA Loans, and VA Loans, all with different minimum credit score requirements.

Credit Cards
Credit card lenders do not reveal their requirements unlike mortgages, credit card issuers don’t disclose their standards. There is no data readily available to the public in regards to credit cards.

Car Loans
Also with car loans, there are no set standards, and credit score requirements vary from one lender to the next. Just like the rest of the type of loans (mortgages and credit cards) it is best to keep your credit score in the above average section of credit score rating. To get the best possible interest rate available as well as the type of loan you can be approved for.

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Do You Know What Affects Your Credit Score

First question any one buying a home or getting a home loan wants to know is what is the rate? Reality is that rate for you may not be the same rate for someone else simply because of credit.  That’s not to say that there are not other factors in play.  But credit score has a huge impact when qualifying for a home loan.  Someone with a 700 score is going to get a much better rate than someone with a 580 score.  And even someone that makes 10k a month and even a nice down payment, but with a 500 score is going to be looking at high double digit interest rates.

Here are the five categories in regards to your credit that have the greatest impact to what your scores are.

• Past Payment Performance (35%): Do you pay your bills on time? The more recent the late payments, the lower you credit score. In fact, a 30 day late payment today hurts more than a bankruptcy five years ago.  After a few months go buy those 30 days and 60 days will hurt your scores even less.  But usually that may take as long as 6 months to a year depending on how often you have done that.   Plain and simple budget and do not get your self in a situation where you cannot pay them on time.  Do not just live within your means but even below so there is always that extra cushion for those times when the car breaks down for example.

• Credit Utilization (30%): Have you maxed out your credit lines? Low balances on a few cards are better than high balances on one or two cards. Keeping balances below 30% of the credit line increases your chance for a higher score.  Once you pass that 50% credit limit you scores are going to drop.  Just because you have a credit card limit up to 2k or 5k.  Does mean you are suppose to use it.  Your credit card was meant for incidentals and emergencies stop buying into the hype every time you watch TV.  A kiss does begin with the letter “K” but it does not mean you have to spend 5k to get one.

• Credit History (15%): The longer your accounts have been open, the better, so surfing for a new lower rate on a credit card and transferring balances can hurt your score.  Just keep in mind that most lenders in trying to get you a home loan are looking to see credit lines established for at least a year.  This is sometimes an issue for those that filed Bankruptcy because they have no established credit after a BK.  As soon as your Bk is discharged get yourself a secured card that reports to the agencies so you can start to get some scores.

• Types of Credit In Use (10%): Getting a loan at a finance company rather than a bank or credit union lowers your score. Even if you have collection accounts believe it or not they will help you maintain a certain score.  They may not give you the best but sometimes your scores can actually drop if you pay them all off.   I know the commercial says “Problem Solver Loan” and get your money in just one day.  But those so called “Problem” solver loans are the problem.  Most of them in that tiny fine print disclose that the APR is well over 100%.  So not only are you paying nose bleed interest rates.  But they actually keep you from getting a better score, than you could of gotten from lets say your credit union.  But key to not getting or having to get in that situation is just watch your spending and get a budget.

• Inquiries (10%): Applying for new credit lowers your score, but multiple inquiries from the same type of creditor – like mortgage companies or car dealers – within 14 days count as only one inquiry, and many times in getting a mortgage the point drop even within a 45 day period if moderately done will not affect you. Promotional or administrative inquiries do not count against the score – only those times that you applied for credit count.  In other words just because you are Target or where ever and they offer you 10 % off your purchase.  You do not need it, because you keep applying everywhere will cost you so much more in the long run, when your scores drop.  

It is so much easier for your scores to literally drop like a rock than it is to get them to climb up in numbers.  So watch your scores the better your score the better your rates and programs that you can qualify for.

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