Informed California

Why You Need A Good Credit Score To Buy A home In California

To Kathy and Brian, a mortgage free home means they could help Bryan's mother pay off her mortgage.

Buying a house has been a part and parcel of the traditional American dream and since purchasing a home is not that easy, most buyers go for the most practical and rational way; obtaining a mortgage. However, for you to get a mortgage, you need to have a good credit score. While credit score is not the only factor that mortgage lenders consider, it plays a significant role in determining the amount of interest you will pay. Considering this, an excellent credit score becomes a prerequisite to obtaining less costly home financing.

Despite information on credit scores being in the public domain, there so many bugging questions lingering in many buyer’s minds. Such as; What is a good credit score to buy a home? What is the average score required for you purchase a home? What is the minimum score? Is there any direct relationship between credit score and interest rates? This text will try to shed light by answering these bugging questions.

The Basics about Credit Score

credit score chartYour credit score is not for only obtaining mortgage financing; it is a comprehensive score that paints a picture of your overall financial status. After the sub-prime market collapse that brought a ripple of effects to the entire mortgage sector, lenders started to be more diligent in their lending practices. They began using the credit score to determine whether the borrowers were reliable.

Credit score which is also referred to as FICO Score is a measure that ranks the best borrowers to the worst. To clearly represents a person’s creditworthiness the FICO score range between 300 and 850. If buyers have a low FICO score, it means they are unreliable; thus, it is difficult for them to obtain a loan and if they do, they will have to pay higher interests. If you have high FICO score, it means you have been paying your debts on time, and you can be relied upon to pay your mortgage on time.

What Kind Of Score Do You Need To Buy A House?

For a conventional home loan, the accepted credit score to obtain the lowest interest rate used to be 720 or above but these days you must have a credit score of 740 and above. The minimum score to get a conventional loan is 620. For government-sponsored entities and the Financial Housing Authority, the minimum score may be 580.

Your ability to secure the best mortgage rates will highly depend on your score. To get the best you need to have 720 or more. It is, however, imperative to note that having a score that is less than 580 doesn’t mean you can’t get a home loan. You can still find lenders who are willing to lend you, but you will have to part with very high interests rates.

How Is Your Credit Score is Calculated?

To get your credit score, Fair, Isaac, and Company developed a formula that takes the following factors into account:

I. Your past debt payment history. This determines a significant percentage of your credit score. The more you pay your debts on time, the better the score.

II. Amount owed. The number of credit lines does you have; using large percentage of available credit will lower your score

III. The duration you had credit- a large credit use history tends to be better for your score.

IV. New credit. If you are used to opening many new credit accounts, you may hurt your score.

V. Type of credit. Having several credit cards, installments loans or mortgage loans tends to boost your score.

Know and Repair Your Credit Score Long Before You Decide to Buy a House

Before you set up for a mortgage application, it is imperative that you view your credit score long before then. This is because repairing your credit score will need time and if your credit score has been pulled down by few mistakes, it will take months for them to be rectified. You should also make sure that you obtain all the three credit scores from the three agencies. Many lenders pull a tie-merge of the three credit report from the three bureaus(Equifax, Experian, and TransUnion) . The will triple-check your credit before they decide to give you a loan.

Start repairing your credit as early as possible. Pay off your debts, make all your credit card payments on time and ensure that your credit card accounts are open even after you have paid them. Even though some people view a difference of 1% in rates as insignificant, it can cost you dearly, in the long run, it is, therefore, wise to keep your credit score on point if you want to avoid increased interest rates when you are buying a house.

History of California Missions

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As a person who loves the country, you are sure to be familiar with the twenty-one missions in California. They were established by the Spaniards in an attempt to strengthen their presence in the region. A drive along 1-101 in California would take you to the coastal highway which leads to the Kings Road. This was the travel route of the Spaniards in the region. The missions were built in such a way that each one was just a day’s drive from the other.

They were built using the materials easily available in the region. For this reason, most of them succumbed to the pangs of the weather. However, the remains are kept there for generations to come. Some of them are even built anew. History of California Missions The 16th century was known as a time of explorations. Europe was brimming with the excitement of renaissance. They wanted to know what lay beyond the oceans they knew.

Trade relations already existed between Asia and Europe. But, the journey to the continent and back to their native places were fraught with dangers. Besides, a single voyage took several months to complete. For these reason, the Europeans decided to find out safer and easier routes for trade and development. This they believed was possible only by expanding their influence to other regions. Spanish adventures At that time, Spaniards were known to be the most adventurous among the seafarers in Europe.

They had managed to discover America. The King of Spain wanted to see if an expansion would be possible along that route. Spain also wanted to find safer routes to its trade partners in Asia. Hernan Cortez, one among the renowned explorers of Spain had sailed from the Caribbean Sea and had come to the Central America. He and his men had conquered a large tribe there who lived in the region now known as Mexico. They named it €New Spain€ and decided to explore further with a view to expand their country. This task was given to Juan Cabrillo one among the members in his army. He began sailing through the Pacific Ocean and found many harbors in California. However, he died due to injuries he received while on the sail.

By this time, Spaniards had established numerous colonies in the region. The missions After almost sixty years, the King of Spain tried again and sent one among his reliable men into the area His attempts too failed miserably. However, the information that Russia had come to the land became a cause of concern for the Spaniards. They had already known how to win over people to their sides with their overtaking of Mexico. And, they established missions. These helped them to convert the residents to Christianity and made them fighters for the King. The architecture The architecture of the missions at that time was designed in such a way as to fulfill the following purposes. € To stay safe from enemies within the region € To ensure protection from harsh climate € To protect the residents from wild animals. cornerstone rehab California.

It was through a long period of innovation and adaptation that all these things were possible. At present, the influence of the Spaniards, especially their attempts to suppress the native religion is being questioned. However, California Missions are still preserved to tell the story of the tribes who fought and died during a tough time of colonization.

What to see in California

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California is a beautiful state filled with numerous places to see. When you think about California the cities of San Francisco and Los Angeles come to mind but there are many other cities you can explore in California. Start by picking up a travel guide for the state and looking through the different attractions in the lesser known cities of California. Another idea is to talk to people who live in California to get suggestions on what to see there.

Things To Do In California

Chatsworth-CA-91311One good city in California to visit is Chatsworth. Check out the athletic training center for youths and young adults called the Ballyard. This facility is a place where young ones can receive instruction in fitness and athletics over a period of weeks from trained and experienced coaches. The facility teaches footwork, flexibility, speed and endurance, which are all important in athletics and fitness exercises. If you have active children, this facility would be great for them. There is also the Stoney Point Park and this place has plenty of hiking trails and beautiful dens.

 

12Another neat city to visit in California is Salinas. If you’re a huge John Steinbeck fan you should check out the National Steinbeck Center in Salinas. This center is dedicated to the life and career of this great author and you will enjoy the walk-through exhibits there. For those who are history buffs, check out the Medical History Museum. This museum is located inside the Salinas Valley Memorial Hospital and you will learn about important moments in the field of medicine going back to the 1700s.

 

13If you visit Gilroy California, you should check out the Garlic Festival. The festival is one of the state’s top festivals and you can savor a variety of garlic Chemed dishes from the area’s most talented chefs. You might also see a few celebrities since they often appear at the festival. The Casa de Fruta is another cool place to check out in Gilroy. It includes a farmers market, carousel, and a wine and cheese shop. This is a great destination for foodies.

 

In conclusion, there are many attractions in California to check out that you don’t always hear about from travel writers or your travel agent. This is why it pays to read a variety of travel guides to get a better picture of what the state offers. California generally has great weather with rainy periods throughout the year so you will be comfortable during your visit.