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Columbus home buying credit tipsThe most common credit scoring model in the country, FICO, will soon be changing how it calculates credit scores. This new change is predicted to affect over 8 million consumer credit scores, and not everyone will be happy with the results. Here’s what Columbus home buyers should know!

A key element in the current FICO model is the “debt utilization” ratio. Simply put, the less debt you carry, compared to your available credit limits, the better. Under the new FICO 10 model, this ratio will become a larger influence on your score, primarily in the evaluation of credit card usage and unsecured loans.

Another aspect of FICO 10 is the use of “trending debt” scoring. This will consider whether your debt load has increased or decreased during the past two years. If you have reduced your debt during the past 24 months, your score will improve under the new calculations. But if you have increased your debt obligations, your score may drop by 20 points or so, even if you are making on-time payments.

FICO says that its new scoring model helps lenders identify high-risk debt patterns, which can lead to loan defaults and bankruptcies. Making on-time payments still matters, of course, but indebtedness levels and debt accrual habits are under greater scrutiny than ever before.

According to industry reports, FICO 10 will not be used in Freddie Mac and Fannie Mae mortgage underwriting in 2020. But as a rule of thumb, home buyers should avoid increasing their debt loads and pay down their debt obligations wherever possible. This will improve your credit score under FICO 10, and save you money in the long run!

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

Columbus home demandThe Columbus real estate market has been gaining steam for years, and this past year was no exception. As 2019 drew to a close, homes priced under $350,000 spent an average of just 30 days on market, according to November statistics from Columbus Realtors®. Homes priced from $350,000 to $500,000 spent an average of 63 days on market. Homes priced $700,000 and above averaged only 95 days in market, which is a quick pace for the price range.

Throughout the year, Central Ohio home buyers experienced limited inventory and rising home prices. November 2019 home inventory was 2 percent lower than the same time a year ago. The average home sale price increased 6 percent on a year-over-year basis, reaching $241,810.00.

No slowdown is in sight for 2020. It is projected that Columbus area real estate will outperform the national average for the next three to five years. In fact, Columbus is considered a “Top 10” market by industry analysts, and has been ranked among the most popular housing markets in the country since 2018.

2020 home buyers do have some things in their favor. Mortgage interest rates are lower than they were a year ago, which takes some of the bite out of higher home prices. Also, the number of housing starts have improved in Central Ohio, which will gradually add inventory at localized levels. More developments are on the table, though it can take years to work through the planning, approval and building stages before these properties reach the market.

Columbus area home buyers will find their best opportunities in 2020 by working with an Exclusive Buyer’s Broker! This is because we can show you any home on the market, including For Sale by Owner (FSBO), new construction for sale by builders, and homes offered through the Columbus Regional MLS. We will also help you avoid overpaying for your home, no matter how “hot” the market may be!

As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

Ohio Home Buyers Have Advantages in Winter Months

December 11, 2019

Buying a home may not be the first thing you think of in December or January. But for Central Ohio home buyers, these two winter months offer some of the best market conditions you’ll see all year! According to a study by ATTOM Data Solutions, buyers around the country have been facing higher home prices […]

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Ohio Home Inspector License Requirements Begin April 2020

December 11, 2019

It might surprise Columbus home buyers, but until recently, home inspectors were not required to hold a professional license in the State of Ohio. Virtually anyone could conduct business as a home inspector and follow their own interpretation of the job. This left home buyers vulnerable to bad actors in the trade, with practically no […]

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Home Sales Show Brisk Pace in Columbus Metro

November 18, 2019

Home buyer enthusiasm didn’t fade with the change of seasons, according to September sales data from Columbus REALTORS®. Favorable mortgage interest rates, along with positive economic conditions, have kept buyers motivated. Here’s a look at the numbers! On a year-over-year basis, the volume of Central Ohio home sales increased by 8.9% during September. Conversely, home […]

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Columbus Real Estate Stays Popular with Home Buyers

November 14, 2019

Columbus real estate remains among the most-searched and fastest-moving markets in the U.S., according to statistics from Realtor.com. Four Ohio markets made the website’s “20 Hottest Markets” list for October 2019, with Columbus leading the pack: #3 Columbus #9 Springfield #13 Canton-Massillon #14 Dayton The Columbus market has been on the “hot” list multiple times […]

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Population Growth Fuels Columbus Building Boom

October 22, 2019

Columbus has become a magnet for young adults seeking housing affordability and career opportunities. Between 2010 and 2018, population growth in Columbus has exceeded 13%, bringing an economic boost that shows no sign of slowing down. Powerhouse tech employers such as Facebook, Google and Amazon are expanding their presence in the Columbus Metro, while 300 […]

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Franklin County Approves New Conveyance Fee on Home Sales

October 3, 2019

Effective October 7, 2019, all home sales in Franklin County will be subject to higher conveyance fees. The conveyance fee has increased by $1.00 per every $1,000 in sales price, bringing the total conveyance fees to $3.00 per every $1,000 in sales price. For example, on a $300,000 home sale, the conveyance fees would amount […]

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Columbus Area Housing Market Among Healthiest in U.S.

September 17, 2019

Columbus real estate has bubbled up on another media list! A report by SmartAsset, a financial technology company, named the Columbus area real estate market as one of the healthiest in the country, placing it #86 nationally and #2 in Ohio. What exactly is a “healthy” real estate market? In the case of the SmartAsset […]

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For Millennial Home Buyers, the Struggle is Real

August 9, 2019

Home ownership has begun later in life for this generation of young adults. For years the media assumption was that Millennials were unmotivated by home buying and unready for the financial responsibility that went along with it. But when a study by Business Insider crunched the numbers, it demonstrated that economic headwinds, more than personal […]

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