August 11, 2023 - HomeSight

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August 11, 2023March 13, 2025 HomeSight

Are you ready to buy a home?

Quiz: Are you ready to buy a home?

August 11, 2023

The benefits of homeownership are great, but getting there takes preparation. There are many factors to consider before you buy a home, such as your income, savings, credit score, debt, budget, lifestyle, and goals. How do you know if you’re ready to take this step? Take our quiz!

Do you have a stable and reliable source of income? (2 points)
Have you been saving money for a down payment and closing costs? (2 points)
Do you have a good credit history and score? (1 point)
Do you have a realistic budget that includes all the costs of homeownership, such as mortgage, taxes, insurance, maintenance, and utilities? (1 point)
Do you plan to stay in the same area for at least five years? (2 points)
Do you have an emergency fund that can cover at least six months of living expenses in case of unexpected events? (1 point)
Do you have a clear idea of what kind of home you want and need? (2 points)
Are you willing to compromise on some features or amenities if necessary? (2 points)
Are you prepared to deal with the responsibilities and challenges of homeownership, such as repairs and maintenance? (2 points)

Add up your score:

11-15 points: The House Hunter

You’ve prepared financially and done your homework. You’re ready to learn about your mortgage options. Call HomeSight today and learn about all the opportunities we can offer to start building equity in your new home!

6-10 points: The Web Surfer

You may be perusing homebuying websites, but you haven’t evaluated your own financial toolkit. Even if you’re just surfing on Zillow or Redfin, it’s never too early to lay the groundwork so when the time comes, you’re financially prepared. The good news is you’re not alone. HomeSight’s homebuying classes can help you budget, plan and get you financially ready to take this first step toward building equity.

0-5 points: Square One

You’ve got to start somewhere! You may think homeownership is out of reach for you, but HomeSight’s lending experts can show you how to prepare. If you’re at the beginning of your homebuying journey, we’re happy to help you create a realistic budget and timeline. Try our Homebuyer Education class to get your budget in shape.

We love showing our clients what’s possible for them in the Washington housing market.

News

August 11, 2023March 13, 2025 HomeSight

Your Credit Score

HomeSight Mythbusts: Your Credit Score

August 11, 2023

Your credit score is the number that reflects how well you manage debt. If you’re getting ready to borrow money to buy a new home, a good credit score will open options for you. In general, the higher your credit score, the more likely you are to get approved for loans with lower interest rates and better terms.

Because HomeSight’s mission is to help low- and moderate-income families buy their primary residences, we’re able to offer mortgages at competitive rates that don’t rely on your credit score or the loan amount.

But good credit is a valuable tool in any homebuyer’s toolkit. You can build your credit if you don’t have any, or if you’ve made past mistakes, but there is conflicting advice on how to do that. Below, HomeSight separates myth from fact.

MYTH or FACT? You should check your credit reports often.

(MOSTLY) MYTH: This is only partially true. Multiple inquiries into your credit report can lower your score a few points. However, you should check your credit once a year. You can get a free copy of your credit report every year from each of the three major credit bureaus—Equifax, Experian, and TransUnion— through this website. Review your reports for any errors or inaccuracies and dispute them if you find any. You can also sign up for alerts and notifications that inform you of any changes or suspicious activity on your credit report.

MYTH or FACT? Your payment history is the most important factor in your credit report.

FACT: Your payment history accounts for 35 percent of your credit score, making it the largest factor in your credit score. Make sure you pay at least the minimum amount due on all your bills every month, preferably more if you can afford it. Pay your bills on time! Set up automatic payments or reminders to prevent missing deadlines.

MYTH or FACT? You need to apply for several credit cards to establish credit.

MYTH: Apply for new credit sparingly. Every time you apply for a new loan or credit card, the lender will perform a hard inquiry on your credit report, which can lower your score by a few points. Too many hard inquiries in a short period of time can signal that you are desperate for credit and pose a higher risk to lenders. Only apply for new credit when you really need it, and ask yourself twice: do I really need a credit card from Sunglass Hut?

MYTH or FACT? High credit use leads to a high credit score.

MYTH: Your credit use is the percentage of your available credit that you are using. For example, if you have a credit card with a $1,000 limit and a $500 balance, your credit use is 50 percent. Ideally, you want to keep your credit use below 30 percent, as this shows lenders that you are not overextended and can handle your debt responsibly.

MYTH or FACT? You need to diversify your credit mix to improve your credit score.

FACT: Your credit mix is the variety of credit accounts that you have, such as revolving (credit cards) and installment (loans). Having a diverse credit mix can boost your score, as it demonstrates you can handle different types of debt. However, this factor only accounts for 10% of your score, so don’t open new accounts just for the sake of diversifying your credit mix.

Building your credit takes time and patience, but the effort is worthwhile.

HomeSight can help you create a budget and learn how to manage your finances to ensure your credit is in the best shape possible when you’re ready to put that credit score to use.