Understanding the Credit Score Needed to Buy a Home

Buying a home is a significant milestone in many people’s lives. It’s a major financial decision that requires careful planning, and one of the most crucial factors in this process is your credit score. Your credit score plays a pivotal role in determining whether you qualify for a mortgage and what interest rate you’ll be offered. We’ll delve into the importance of your credit score when buying a home and discuss the credit score needed to secure a mortgage.

What is a Credit Score?

A credit score is a numerical representation of your creditworthiness and financial history. Lenders use this score to assess the risk associated with lending you money. The most commonly used credit scoring model in the United States is the FICO score, which ranges from 300 to 850. The higher your credit score, the lower the perceived risk to lenders, and the more likely you are to secure favorable loan terms.

The Role of Credit Scores in Homebuying

When you apply for a mortgage to buy a home, lenders will scrutinize your credit score to evaluate your creditworthiness. Here are some key ways in which your credit score impacts the homebuying process:

  1. Loan Eligibility: Your credit score directly affects your eligibility for a mortgage. Lenders typically have minimum credit score requirements, and if your score falls below this threshold, you may have difficulty getting approved for a loan.
  2. Interest Rates: A higher credit score can result in lower interest rates on your mortgage. Borrowers with excellent credit scores often qualify for the best rates, which can save them thousands of dollars over the life of their loan.
  3. Loan Amount: Your credit score can also influence the amount of money a lender is willing to lend you. A higher score may enable you to borrow a larger sum, while a lower score may limit your borrowing capacity.

Credit Score Requirements for Homebuying

While credit score requirements can vary by lender and the type of mortgage you’re seeking, here’s a general breakdown of credit score ranges and their implications for homebuyers:

  1. Excellent Credit (740 and above): Borrowers with excellent credit scores typically have the widest range of mortgage options and the best interest rates. They are considered low-risk borrowers.
  2. Good Credit (670 to 739): Borrowers in this range can still qualify for many mortgage programs, but their interest rates may be slightly higher than those with excellent credit.
  3. Fair Credit (580 to 669): While it’s possible to secure a mortgage with a fair credit score, you may encounter more limited options and higher interest rates. Lenders may require a larger down payment.
  4. Poor Credit (579 and below): Though the minimum credit score to buy a home is 500, borrowers with poor credit scores may face significant challenges in obtaining a mortgage. It’s advisable to work on improving your credit before attempting to buy a home.

Improving Your Credit Score

If your credit score is below the desired range for buying a home, there are steps you can take to improve it:

  1. Pay Bills on Time: Consistently paying your bills on time is one of the most effective ways to boost your credit score.
  2. Reduce Credit Card Balances: High credit card balances relative to your credit limits can negatively impact your score. Aim to keep your credit card utilization below 30%.
  3. Avoid Opening New Credit Accounts: Each credit inquiry can lower your score, so be cautious about applying for new credit before buying a home.
  4. Check Your Credit Report: Regularly review your credit report for errors or inaccuracies, and dispute any discrepancies you find.

Your credit score is a critical factor when it comes to buying a home. While there’s no one-size-fits-all credit score requirement, a higher credit score generally leads to more favorable mortgage terms and greater access to loan options. It’s essential to understand your credit score and work on improving it if necessary before embarking on the homebuying journey. By doing so, you can increase your chances of securing the home of your dreams at a price that fits your budget.

Does a seller or seller’s agent have to disclose a death on the property?

In Texas, does a seller or seller’s agent have to disclose a death on the property?

Let’s look at what the law says.

Under Texas law, a seller or seller’s agent has no duty to disclose a death from natural causes, suicide, or an accident unrelated to the property’s condition (Texas Property Code 5008[c]).

This means unless a death was related to the property’s condition there is no duty to disclose.

Protecting a Property from Winter Freeze: Is the Tenant or Landlord Responsible?

Winter freeze is coming. There’s concerns about the pipes and potential damage if pipes burst. Whos’ responsible for protecting a property from winter freeze? Is it the landlord or the tenant.

Responsibility is determined by what’s stated in the lease agreement but it is typically the tenant’s responsibility.

If the rental property is a single-family home and the landlord and tenant used a Texas Realtors Residential Lease with the assistance of a real estate agent the terms of the lease are clear.

Section 17.A.7 says Tenant’s General Responsibilities: Tenant, at Tenant’s expense, must take all necessary precautions to prevent broken water pipes due to freezing or other causes.

If the property is an apartment using the Texas Apartment Association Apartment Lease contract the tenant has responsibility to reducing risk by taking action with the interior of the property.

Section 24.4 states Unless we instruct otherwise, during freezing weather you must for 24 hours a day: (A) keep the apartment heated to at least 50° Fahrenheit, (B) keep cabinet and closet doors open, and (C) drip hot- and cold-water faucets. You’ll be liable for any damage to our and others’ property caused by broken water pipes due to your violating these requirements.

If your lease is neither a Texas Realtors Residential Lease or the Texas Apartment Association Apartment Lease you will need to review the terms to determine responsibility. If you do not have a copy of your lease you can request it from the landlord.

If it’s unclear who is responsible I recommend you contact an attorney.

Preparing for Freezing Weather in Houston

Protect People

Make sure to have extra blankets and layers ready in case power goes out.  Check in with your elderly family and neighbors to see if they need help.

Protect Your Pipes

Insulate the pipes and open up sink cabinets to expose the pipes to heated air.  Disconnect outdoor hoses and turn off water to the sprinkler system.

Protect Your Pets

Keep your pets warm, dry, and indoors

Vehicle Preparedness

Make sure your vehicle has supplies such as water and blankets in case you get stranded due to hazardous road conditions.  Check to see if you need to fill up your tank before the cold weather event.

Stay Alert

Be sure to check in with the latest forecasts and learn the signs of hypothermia and frostbite.

Those are the tips to keep your prepared.  Weather can change quickly here so do not wait until the last minute.  Do these things right now.

Cheat Sheet for Texas Property Tax Dates & Deadlines

Here is your annual cheat sheet for property tax dates and deadlines for homeowners.

January 31: Last day to pay previous years’ property taxes without penalty and interest. If you have a mortgage most lenders collect the property taxes each month, hold it in escrow, then pay the tax bill on your behalf each year. If you are unsure contact your mortgage lender. Note: Failure to receive a property tax statement does not waive penalty and interest.

Mid-April: Tax assessor mails appraised value and property taxes for the current year.

May 15: Last day to file a protest for property taxes with the Appraisal Review Board (ARB).

October 1: Tax assessor mails tax bills for the current year. Payment is due by January 31 of the following year. Note: Failure to receive a property tax statement does not waive penalty and interest.

County-specific resources are below for the Houston area:

IMPORTANT: Don’t get scammed! Learn how homeowners are getting defrauded with fake property tax debts or fees for services.

Have questions about the property tax dates and deadlines or need other assistance from an experienced real estate agent? Let’s chat!

When Are Property Tax Bills Mailed in Texas?

Starting in October the tax assessors are beginning to mail property tax bills for the year which is due in full by January 31 to avoid costly late fees. Note: Failure to receive a property tax statement does not waive penalty and interest.

Your property tax dollars are used to fund community services such as:

  • Public schools
  • Infrastructure projects
  • Police and fire departments
  • And other local services

The tax rates set by local elected officials at your school district, county commissioners court, and city council every year help determine how much your property tax bill will be.

Texas REALTORS® works to fight for laws that make property taxes fairer and more transparent. To learn more about property taxes, visit https://knowyourtaxes.org/.

County-specific resources are below:

IMPORTANT: Don’t get scammed! Learn how homeowners are getting defrauded with fake property tax debts or fees for services.

July 2022 Houston Real Estate Market Update

“The frenetic pace of home sales that dominated the Houston housing market throughout most of the pandemic continues to slow.” – Houston Association of REALTORS®

Single-family homes:
• Single-family home sales fell 17.1 year-over-year, their fourth and biggest decline of 2022 as the market continues on the path toward a more normalized, pre-pandemic pace
• Days on Market (DOM) for single-family is 26
• The ‘Close to Original List Price Ratio’ for single-family homes fell below 100 percent for the first time since April 2022, meaning that most buyers did not pay above list price for homes on the market
• The single-family average price rose 9.9 percent to $426,494

Townhomes/Condominiums
• Townhome/condominium sales experienced their second consecutive monthly decline, falling 21.5 percent, with the average price up 5.0 percent to $257,834

Additional Reads:

Housing economists: Mortgage-rate volatility likely to level off even with Federal Reserve interest-rate hikes
Houston ranks No. 2 on list of most million-dollar homes in Texas in new study

Have a real estate question or thinking about buying or selling a home in the Houston area?

Cheat Sheet for Chambers County Property Tax Dates & Deadlines

Here’s the cheat sheet for Chambers County property tax dates and deadlines for homeowners.

IMPORTANT: Don’t get scammed! Learn how homeowners are getting defrauded with fake property tax debts or fees for services.

January 31: Last day to pay previous years’ property taxes without penalty and interest. If you have a mortgage most lenders collect the property taxes each month, hold it in escrow, then pay the tax bill on your behalf each year. If you are unsure contact your mortgage lender.

May 16: Last day to file a protest for property taxes with the Appraisal Review Board (ARB).

  • Click here to begin a Chambers County property tax protest application.

October 1: Tax assessor mails tax bills for the current year. Payment is due by January 31 of the following year. Note: Failure to receive a property tax statement does not waive penalty and interest. You can view the statement online at the Chambers County Tax Payments page.

You deserve to know how your property taxes are set

Top 10 Reasons People Love Living in the Houston Area

Narrowing down the limitless reasons to the top 10 reasons people love living in the Houston area was tough. I asked many of my former clients, lots of friends and family, and other acquaintances around the community to get their thoughts. Here are the reasons in no particular order.

  1. The location – There are 4 major cities in Texas – Houston, Dallas, San Antonio, and Austin – but Houston is the only major coastal city.
  2. The food – Some of the best restaurants in the world are located in the area.
  3. The diversity
    • The Houston metro area has approximately 7.2 million people and ranks 95 out of 100 for diversity according to bestneighborhood.org.
  4. The culture
    • Houston is a multicultural city with a thriving international community supported by the third largest concentration of consular offices in the United States, representing 86 nations. In addition to historical Southeast Texas culture, Houston became the fourth-most populous city in the United States. (Culture of Houston Wiki)
  5. The housing options
    • No other major Texas city has the variety of housing options. There are beach homes, townhouses, condos, lakefront homes, gated golf course communities, multi-family residences, and acreage homes just to name a few.
  6. The employment options
    • Though almost every job exists in the area, Houston is medical, engineering, aerospace, and petroleum hub. Top employers include Memorial Hermann Health System, Houston Methodist, MD Anderson Cancer Center, and Shell Oil.
  7. The two major airports
    • William P. Hobby Airport (HOU) is located in south Houston. George Bush Intercontinental Airport (IAH) is located in north Houston.
    • Fun fact: There is a 3rd airport called Ellington Airport. It supports the operations of the United States Military and NASA. It is also the home of the hugely popular annual Wings Over Houston Airshow.
  8. The entertainment and events
    • Every day in the Houston area is filled with things to do. There are professional sports teams including football and basketball. There are venues throughout the metro area that regularly host concerts, family shows, and plays. There are 19 museums in the Museum District, 55-acre Houston Zoo, and NASA Space Center.
  9. The schools
  10. The lifestyle options
    • Whether you’re looking to be the center of the downtown nightlife, more laid back in the suburbs, or on island time on the coast, we have it all and everything in between.

Thinking about buying or selling in the Houston area and want a local on your side through the process?

Essential Guide for Preparing for Hurricane Season & Severe Weather

This post may contain affiliate links which means I may receive a commission if you make a purchase using these links.

Having an essential guide for preparing for hurricane season and emergency weather is important to avoid last-minute panic. Most people wait until there is bad weather alert to prepare but then it is too late. Supplies are scarce. Stores are crowded. Streets are jammed with traffic. Gas stations have lines miles long. Avoid the chaos by staying prepared for severe weather.

After an emergency you may need to survive on your own for several days. Being prepared means having your own food, water and other supplies to last for several days. A disaster supplies kit is a collection of basic items your household may need in the event of an emergency.

Make sure your emergency kit is stocked with the items on the checklist below. Once you take a look at the basic items consider what unique needs your family might have, such as supplies for pets or seniors.

Consider adding the following items to your emergency supply kit based on your individual needs:

  • Masks (for everyone ages 2 and above), soap, hand sanitizer, disinfecting wipes to disinfect surfaces
  • Prescription medications. About half of all Americans take a prescription medicine every day. An emergency can make it difficult for them to refill their prescription or to find an open pharmacy. Organize and protect your prescriptions, over-the-counter drugs, and vitamins to prepare for an emergency.
  • Non-prescription medications such as pain relievers, anti-diarrhea medication, antacids or laxatives
  • Prescription eyeglasses and contact lens solution
  • Infant formula, bottles, diapers, wipes and diaper rash cream
  • Pet food and extra water for your pet
  • Cash or traveler’s checks
  • Important family documents such as copies of insurance policies, identification and bank account records saved electronically or in a waterproof, portable container
  • Sleeping bag or warm blanket for each person
  • Complete change of clothing appropriate for your climate and sturdy shoes
  • Fire extinguisher
  • Matches in a waterproof container
  • Feminine supplies and personal hygiene items
  • Mess kits, paper cups, plates, paper towels and plastic utensils
  • Paper and pencil
  • Books, games, puzzles or other activities for children

After assembling your kit remember to maintain it so it’s ready when needed:

  • Keep canned food in a cool, dry place.
  • Store boxed food in tightly closed plastic or metal containers.
  • Replace expired items as needed.
  • Re-think your needs every year and update your kit as your family’s needs change.