Bay Equity Home Loans Offers Tips for 2019 Homebuyers

Tips to increase your credit score

Good credit scores are key to getting a home loan at a reasonable interest rate. Like anything that’s good, increasing a credit score requires responsibility, planning, and moderation.

  • Borrow conservatively; a lower “credit utilization ratio” is best.

  • Reduce debt with a structured payment plan.

  • Make payments on time—this can stick with you for seven to 10 years.

  • Avoid excessive credit inquiries.

  • Check your credit report annually at

  • Established account of on-time payments can benefit your score (use caution when considering closing these accounts).

  • Look out for credit traps: Excessive accounts, balance transfers, or avoiding credit altogether.


It’s Not Too Late for Lower Rates

Have you been waiting to purchase a home or refinance? The Federal Reserve—the U.S. central bank—is raising rates as the economy cruises ahead. Rates have jumped recently, but are still at 40-year historic lows.

To combat inflation, the Fed has raised the federal funds rate three times in 2018. Policymakers predict one more in December followed by three more in 2019. Typically, mortgage interest rates tend to follow and may continue to rise.


Down Payment Assistance Available

While a 20-percent down payment may be ideal, increasing home values make that tough—especially for first-time, moderate-income home buyers.

For those borrowers, federal loan programs like the Federal Housing Administration offer down payments as low as 3.5 percent. Veterans Administration and USDA loans can be as little as zero percent down for qualifying current and former service members.

In addition, there are thousands of national, state, and community down payment assistance (DPA) programs to help with the down payment if you don’t have one. The average down payment amount for first-time buyers now ranges between five and 10 percent.


Desi Evans and Mike Picore of Bay Equity

1319 Grand Avenue, Glenwood Springs



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Equal Housing Lender. This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Bay Equity LLC, 28 Liberty Ship Way Suite 2800, Sausalito, CA 94965; NMLS ID #76988. Colorado Mortgage Company Registration #76988. Regulated by the Division of Real Estate. NMLS consumer access: APPROVAL CODE

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Disclaimer: Rates are dependent on the current market situation and cannot be promised while scores are improving. This piece of information was prepared for general informational purposes only. This information does not constitute as legal, tax, or financial advice. It cannot replace the advice of competent legal counsel or a tax advisor or finance professional licensed in your state. This information is provided “as is” without warranties, expressed, implied, or statutory. Any and all implied warranties of merchantability or fitness for a particular purpose are hereby disclaimed.