The Cost of a Laguna Beach Home? Know the Score.

Unless you happen to be an all-cash buyer, your interest rate will impact the cost of a Laguna Beach home. And the ruler of interest rates is the almighty credit score. This magic number tells lenders if you’re worth the risk -- and how much the risk will cost you. If you’re eyeing Laguna Beach real estate, you’ll obviously want to know where you stand on the credit meter. With that in mind, I’ve prepared this easy-step credit score guide to give you a handy heads-up before buying that beautiful Laguna Beach home for sale.

Know the Score. You’ve been bombarded by the media…so many places that issue credit scores. Which do you choose? Answer: FICO. This is the gold standard embraced by the world’s leading lenders, and about 90 of the top financial institutions. For your FICO, I recommend going straight to the source – myFICO.com.  If you opt for a different credit bureau, FICO’s next closest relative is Equifax.

Double Check. Nobody is perfect, not even those super-sophisticated credit bureaus. Yes, errors can blemish your report. Popular wisdom holds that you should check your credit report a minimum of once a year. Otherwise, this important window to your credit worthiness could be marred by damaging misinformation. Believe me, unless you discover the blemishes, they’ll stay right where they are -- permanently pulling your score toward the basement. Maybe you don’t need to borrow money now. But you never know. Don’t get caught with your score down.

Protect Yourself.  Alright, you’ve done all the right things, and you have a healthy credit score to prove it. So how do you keep that hard-earned score shiny-bright?

• First and foremost – pay those credit bills by their due dates. Payment history comprises a hefty 35% of your score. 
• The next 30% is made up of debt load, meaning you’ll want keep balances at zero -- or close to it. At the very least, owe no more than 30% of any borrowed amount.
• Additional score-influencers are length of credit history (15%), types of credit (10%), and inquiries for new credit (10%). 

Remember, interest rates vary, depending on your credit score. 730+ will put you into prime territory, at about 3.750%.  Less than a 620 can make you an all cash buyer. Between these two poles is a full range of rates tied to different scores.

If you’d like to learn more about credit scores and how they can impact your home purchase, contact The Coastal Property Experts. Our experienced credit team can offer expert insights that will help you make the best possible decision.

And, of course, if you’d like to learn more about the opportunities in the Laguna Beach real estate market, our acclaimed team is ready to assist you. Contact The Coastal Property Experts today to schedule your complimentary consultation. 

The Coastal Property Experts

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