Happy Holidays Dear Friends, Clients, and Colleagues!
I hope that you are enjoying time with family, friends and loved ones. May your holiday season be filled with laughter, peace, and fun memories.
We had the pleasure of attending the Golden Gate Sotheby's Holiday event which is always such a treat to connect with so many other professionals, many turned friends! Looking back at 2024, I feel an overflow of gratitude, awareness, connection, and growth. I appreciate the opportunities to learn from each and every encounter.
The holiday season brings a chance to wrap up loose ends and plan for what’s ahead. If you’re curious about property values—whether for tax purposes, future planning, or just peace of mind—myself and our team would be more than happy to assist.
Curious for a deeper dive into what the market was like this year? Please feel free to reach out.
Thank you for allowing me to be part of your journey. Cheers to a wonderful holiday season and manifesting a bright year ahead!
Soni
Your Credit Score: The Secret to Lower Mortgage Payments
When buying or refinancing a home, one of the most important factors that influence your mortgage rate is your credit score. The difference between a low score (620 or lower) and a high score (780+) can range from 1-2% in interest rates—and in some cases, a lower score might prevent you from qualifying for a loan at all. This can translate into thousands of dollars over the life of your mortgage, so it’s crucial to plan ahead (ideally 2-3 months) to improve your score before applying.
It’s also important to know that the credit score you see through free services often differs from the score mortgage lenders use. The mortgage version is usually lower, so don’t be alarmed if your score is higher in other reports.
How to Improve Your Credit Score
Here are some key strategies to boost your score:
- Pay Your Bills on Time: Payment history is the most significant factor in your credit score. Always pay your bills by the due date to maintain a strong credit standing.
- Reduce Your Credit Card Debt: Your credit utilization ratio, which compares your balances to your total available credit, should be below 30%. If you charge more than this, make an extra payment before your statement cutoff date. In some cases, borrowing from your 401(k) to pay down credit card debt can be a smart move, as long as you’re comfortable with the trade-offs.
- Check Your Credit Report for Errors: Mistakes, like incorrect late payments, can harm your score. You can get a free annual report at annualcreditreport.com. If you spot errors, contact the creditor to correct them.
- Avoid Opening or Closing Credit Accounts: Opening new accounts will temporarily lower your score, so don’t apply for new credit if you’re planning to apply for a mortgage soon. Similarly, closing old accounts can hurt your score by reducing your available credit, so keep your old credit cards open.
The Bottom Line
Improving your credit score before applying for a mortgage can significantly reduce your monthly payments and increase your chances of approval. Start early and consider working with a mortgage lender (like me) to receive tailored advice on boosting your score.
Bryan Wallpe
NMLS 290807
(775) 690-9900
NEXA Mortgage
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Soni Jackson
Overall Hamilton Group
S.0177775
13945 S. Virginia St. #606
Reno NV 89511