How credit scores are calculated

Posted on September 10, 2018 by Scott Culberson

home on a stack of cash

Today we have guest content provided Michael Timmons, NMLS# 894265, Mortgage Officer with Gibraltar Mortgage Services.

When you check your credit score, you get a number, usually between 500 and 800. But what does that number mean? What is weighed to come up with that number? Here are some facts about how your credit score is calculated.

There are 5 factors that are used to come up with the number you know as your credit score. 35%-Payment History, 30%-How Much you Owe, 15%-Length of Credit History, 10%-New Credit, 10%- Credit Mix.
Payment history is a heavy hitter here! Demonstrating on time payments is critical for good and above average credit scores. Multiple late payments especially in reference to a mortgage loan, can be extremely hard to fix down the line. That is why on time payments are so important.
The amount you owe is also a heavy hitter. Did you know: when it comes to revolving credit (aka credit cards), your balance to limit ratio shouldn’t be more than 30%. When you allow the balance to go over that 30%, your score will be affected! Low balances=better credit scores.
Length of credit history is sometimes something you cannot help, so it is weighed less than the first two. Young credit isn’t necessarily bad, it’s just young! Someone who is older and has lots of history can be approved quickly. Whereas younger credit, may require a co-signer or guarantor.
When it comes to new credit, the amount of new accounts opened is being referenced. Sometimes, multiple new accounts in a short period of time could be viewed as a risk! That is why it comes into play here.
Credit mix means just that. Having a well-rounded credit report means having a bit of everything. Revolving credit, installment loans, a mortgage, line of credit, all of these would be a part of a well-rounded credit report. Showing creditors that you are able to handle all kinds of credit is important to proving that you will present minimal risk.

In conclusion, your credit score is important in 2018! And building good credit is a lot easier and faster than fixing bad credit. Understanding why this number matters and what goes into creating your credit score is the key to making sure you are able to borrow what you want (and sometimes need) without issue.

A big thank you to our guest contributor Michael Timmons, NMLS# 894265 Mortgage Officer, Gibraltar Mortgage Services. Give Michael a call if you have Mortgage questions at 281-364-7879 or email him at MTimmons@Gibraltarlending.com.

I look forward to helping you to… LIVE LIFE TO THE FULLEST, Scott Culberson, Broker Associate, Better Homes and Gardens Real Estate Gary Greene, SCOTT@SCOTTCULBERSON.com, 281-467-4691

BACK TO SCHOOL, BACK TO BASICS

Posted on August 22, 2018 by Scott Culberson

School is back in session; tax free weekend is over so now we will see a retail dash for missed school supplies or forgotten articles of clothing. If there is a new school gadget that the kids are needing I haven’t heard of it. Schools now have their own wi-fi, and maybe even a library full of tablets for the students to check out. Education has come a long way from the days of a hand-held chalk board. Many teachers will have students turn in projects over the internet or have their students access the internet during class. Computers, smart phones, tablets, we are living in an interesting time, a time where information is at our finger tips but is this preparing future generations for a dramatic fall?

Information overload, the need to get the one right answer, the ability to seek information without interacting with another person. Let’s be clear, not everything on the internet is true. We cannot allow our youth to take what they find on the internet at face value. Students need to continue to consult experts in the field of knowledge…real people not a blog or Facebook articles. They need to continue to have discussions with their peers, their teachers and their parents.

Lastly and in my opinion most importantly, the students need their parents support. I am NOT talking about crazy soccer parent support. I am talking about going back to the basics of human decency, manners, courtesy, respecting everyone’s opinion, everyone’s bubble, etc. Above all I think that children need to be taught how to be gracious WINNERS again.

When my son was starting high school football my dad told my son, “If you ever get the chance to score a touchdown, act like you have been their before.” Yes, that pretty much came out of nowhere. I could see the wheels going in my son’s head, he was thinking past the obvious meaning and starting to understand the deeper meaning. Winners win because they prepare to win. Winners don’t win because they berate the other team. Winners don’t when by cheating. Winners don’t win because they have the best touchdown celebration. Winners win because they practice winning.

“I hate to lose more than I love winning. —Jimmy Connors

So, school is back in session. Be mindful of the school zone and the big yellow school buses picking up and dropping off children. Be on the lookout for unexpected little bikers that haven’t quite go the hang of riding their bike but are so excited to have the independence to ride to and from school. It’s going to be a GREAT school year; the weather is slowly getting cooler and football will be here soon.

If you would like more information about buying, selling or renting real estate Email me at: SCOTT@SCOTTCULBERSON.com. I look forward to helping you to… LIVE LIFE TO THE FULLEST Scott Culberson, Broker Associate, Better Homes and Gardens Real Estate Gary Greene

July 2018 The Woodlands, TX Recap

Posted on August 8, 2018 by Scott Culberson

Speaking of real estate in The Woodlands, Texas 213 homes went under contract in July which was down 17.4% against last year. Listing inventory for July was 870 which was down 13.6% against last year. Here are some more notes as of May 6^th:

There are 830 active listings to choose from. $169,00 to $7,000,000.
There are only four properties for sale below $200,000.
For Sale listing inventory is down 13% compared to last year’s selection at this time. This is positive news for sellers, less inventory means less competition between sellers.
For buyers, less inventory means less selection and more competition between home buyers for prime properties.
Average Days on Market for August active listings is 73 Days on Market. Up 5 days compared to July Days on Market.
The Average Active List Price = $775,150
The Median Active List Price = $489,000
The Average List Price of properties placed Under Contract in July = $479,600
The Median List Price of properties placed Under Contract in July = $400,000
Important! Of the 213 sales in June 52.6% sold in 31 days or less. 112/213
Average Days on Market for listings placed Under Contract in April = 44 Days on Market.
Overall in The Woodlands across all price ranges there is 5.3 Months of supply which is a seller’s market.
We expect steady showing appointment activity and Open House traffic through August.

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