What Credit Score Do You Really Need To Buy a House?

You may have heard homeowners today have a lot of equity built up. But what does that really mean? Let’s break it down. Because your equity isn’t just a number, it’s a powerful asset that can help you take your next big step in life. How Much Equity Does the Typical Homeowner Have? Here’s how it works. As you pay down your loan and home prices rise through the years, the share of your home that you own free and clear grows. That’s your equity . And according to data from the Census and ATTOM , two-thirds of homeowners have a substantial amount of it today. 39% own their home outright without owing anything on it. And another 27% have at least 50% equity in their homes ( see chart below ): 

At some point, a house that once felt perfect just… doesn’t anymore. Maybe you need more space. Maybe working from home turned your dining room into a permanent office. Maybe the layout just doesn’t match how you live now. If your current house is starting to feel like it’s holding you back instead of supporting your life, it’s natural to think about making a move . But that brings up the next big question: once you sell, where do you go ? For a growing number of buyers , the answer is something brand new. New Construction Is a More Popular Choice Lately According to the National Association of Realtors (NAR), more people are buying new homes than they have in years. The latest annual data available shows 16% of homes purchased were newly built. At first glance you may not see why that’s a big deal. But that’s actually the highest share of new home purchases in almost two decades. Why More Buyers Are Choosing a Brand-New Construction For many buyers, especially move-up buyers, new construction isn’t just about aesthetics. It’s about lifestyle, convenience, and peace of mind. 1. Everything Is Brand New You’re not inheriting someone else’s projects. No wondering how old the roof is. No budgeting for a new HVAC right after move-in. No big surprises when the previous owners patch job fails. For move-up buyers who’ve been dumping money into updating their current house, that’s a win. 2. You Can Customize Before Move In If you choose a home that's still under construction, you could have the chance to pick the flooring, counters, cabinets, hardware, lighting, and so much more. That level of personalization can be a draw for move-up buyers like you, because it allows you to hand pick the fit and finishes you've been wanting for so long. 3. A Home Designed for How People Live Today Most new construction homes are built to current building standards and buyer preferences, which means you could see built-in smart home features, better energy efficiency (which can lower utility bills), and even more modern floor plans and features. And if your layout just isn’t working for you anymore, you may find exactly what you need now in a new home. 4. Neighborhood Amenities New developments often include shared community spaces like walking trails, parks, playgrounds, or even pools and gyms. For families and active households, that’s a big bonus to have that just a few steps out of their front door. 5. Builder Incentives Not to mention, since there are more new homes on the market than the norm, builders are motivated to sell what they have. So, you may find they’re more willing to negotiate than you’d expect on things like price, upgrades, and more. Bottom Line I know, you may be reading this and wondering how come I am posting a blog about new construction when I’m a resale agent. The reality is I actually sell brand new homes as well as resale homes. Many of my clients would prefer to buy a new home for many different reasons as listed above. If you’re looking to make a move within Roseville, Rocklin, Sacramento, Folsom, or even El Dorado Hills or Granite Bay. There are some new home builders available that have some great options for many different price points. If your current house isn’t meeting your needs anymore, don’t assume your only choice is an existing home. New construction is becoming a real contender, especially for move-up buyers who want space, features, and a home that works for how they live now. Curious whether new construction might be a fit for you? Let’s chat. 

If you’re planning to buy a home this year, you may be focused on the spring market. And hoping that when spring does hit, you’ll see: Mortgage rates drop a little more. More homes hit the market. But here’s what most buyers don’t realize. Buying just a few weeks earlier could mean paying less, dealing with less stress, and feeling less rushed. Here are three reasons why accelerating your timeline over the next few weeks could actually be a better play. 1. Holding Out for Lower Rates May Not Pay Off A lot of buyers are hoping mortgage rates will fall even further. But that’s not the best strategy. Here’s why. Experts are pretty aligned on this: rates are expected to stay roughly where they are. Forecasts throughout the industry all point to the same thing: rates are projected to be in the low-6% range this year ( see graph below ) : 

There’s finally a little good news for anyone who’s been priced out or sitting on the sidelines. Buying a home is getting more affordable. Monthly payments have started to come down, and the squeeze buyers have been feeling for the past few years is slowly loosening. Now, that doesn’t mean everyone can suddenly afford a home, but with how tough the market’s been, the improvement we’re seeing matters. Affordability Is Finally Moving in the Right Direction One of the best ways to see this shift is by looking at how much of a household’s income it takes to buy a home. According to Zillow , housing is typically considered affordable when it takes 30% or less of your monthly income to cover your expenses. That includes your mortgage payment, taxes, insurance , and basic maintenance. For the past few years, the math was well above that threshold, and it made buying a home unachievable for many. But now, we’re slowly moving back toward a balance. Zillow research shows it’s taking less of a typical household’s income to buy a home than it did just a few years ago ( see graph below ): 

For a growing number of homeowners, retirement isn’t some distant idea anymore. It’s starting to feel very real. According to Realtor.com and the Census , nearly 12,000 people will turn 65 every day for the next two years . And the latest data shows as many as 15% of those older Americans are planning to retire in 2026. And another 23% will do the same in 2027. If you’re considering retiring soon too, here’s what you should be thinking about. Why Downsize? Now's the perfect time to reflect on what you want your life to look like in retirement. Because even though your finances will be going through a big change, you don’t necessarily want to feel like you’re living with less . But odds are, what you do want is for life to feel easier . Easier to enjoy. Easier to manage. Easier to maintain day-to-day. The Top Reasons People Over 60 Move You can see these benefits show up in the data when you look at why people over 60 are moving. The National Association of Realtors (NAR) finds the top 4 reasons aren’t about timing the market or chasing top dollar. They’re about lifestyle: Being closer to children, grandchildren, or long-time friends so it’s easier to spend more time with the people who matter most Wanting a smaller, more functional home with fewer stairs and easier upkeep Retiring and no longer needing to live near the office, so it’s easier to move wherever you want Opting for something smaller to reduce monthly expenses tied to utilities, insurance, and maintenance 

Buying a home is one of the biggest purchases you’ll ever make. And homeowner’s insurance is what protects that investment. Think of it as your safety net. NerdWallet explains it: Covers Repairs and Rebuilding Costs : If your home is damaged by fire, storms, or other covered events, it helps pay for repairs and possibly even a full rebuild, if that’s deemed necessary. Protects Your Belongings : It can also cover personal items like furniture, electronics, jewelry, and clothing if they’re stolen or damaged. Provides Liability Coverage : And, if someone gets injured on your property, your policy can help cover medical bills or legal expenses. But that peace of mind does come with a cost, and lately those costs have been rising. Why Home Insurance Premiums Are Going Up There are a number of factors causing insurance premiums to rise today. But, in the simplest sense, here’s what’s driving prices up according to the Insurance Research Council (IRC). Severe weather events and natural disasters are happening increasingly often, leading to more claims. At the same time, homebuilding materials and labor are more expensive. So, when it comes time to work on those claims, insurers have to manage higher costs to repair or rebuild the affected homes. That combination adds up to higher premiums. You can see how it’s climbed recently in the graph below. Each bar marks the percentage increase in insurance costs for that calendar year. 

If you’re one of the thousands of homebuyers waiting for rates to fall, you should know it’s already happening. And they recently crossed an important milestone. Rates officially dipped their toes into the 5s – something that hasn’t happened in about 3 years. This moment marked a critical threshold. Now, rates are sitting in the low 6% territory. And expert forecasts project they’ll hover near this range throughout the year. Here's why that’s so good for you. Why Current Rates Are Such a Big Deal A mortgage rate doesn’t just affect the interest you end up paying on your home loan. It shapes your entire buying experience. When rates were up around 7% just one year ago, a lot of buyers felt priced out. Payments were higher. Budgets felt tighter. Affordability was a bigger challenge. That’s especially true for first-time homebuyers, who felt the biggest pinch. But according to industry experts, that’s starting to change now that rates are slowly inching down. Let’s break down why. Right now, borrowing costs are in their lowest range in almost 3 years . And that can change the type of home you can afford. At 6% or below, you'll see: Lower monthly payments. The payment on a $400k home loan is down over $300 compared to when rates were around 7%. More buying power, thanks to the extra breathing room in your budget. In other words, you can now make a stronger offer, purchase in a different location, or buy a home that checks more of your boxes. And that feels like a big shift compared to when rates were at 7%. This Opens the Door for 550,000 Buyers To drive home just how much this helps potential homebuyers like you, consider this research from the National Association of Realtors (NAR). It shows that when mortgage rates sit around this level, millions more households can afford a home. When rates are at 6% or below: 5.5 million more households can afford the median-priced home And roughly 550,000 of those people will likely buy a home within 12 to 18 months That’s not just speculation. That’s pent-up demand finally getting the green light they’ve been waiting for. You’ve got the chance right now to get ahead and buy before more people notice the game has just changed. Because whether rates stay in the low 6s or dip back down into the upper 5s, the math is already working in your favor. And the difference from a low 6% to a high 5% isn’t as big as you may think. But the difference from 7% to 6%? That is very much a big deal, and it’s a number that’s already working in your favor. An Important Call Out Mortgage rates don’t operate in a vacuum. Home prices, local inventory, property taxes, home insurance, and your personal finances still matter. And a rate in this territory doesn’t mean every home suddenly works for every buyer. That’s why getting pre-approved and running your numbers with a trusted lender is key. Still, this rate environment puts more buyers in play than we’ve seen in years . So, if buying didn’t work for you before, it’s worth taking another look. Bottom Line Mortgage rates dropping to a 3-year low isn’t just a headline. For many buyers, where rates are now could be the difference between watching from the sidelines and finally getting the keys to their next home. If you’ve been waiting for a sign to re-run your numbers and see what’s possible now, this is it. Let’s take a look at what today’s rates mean for your budget and your options.

When you see a house that’s been sitting on the market for a while, the reaction is almost automatic. You start thinking: What’s wrong with it? Why hasn’t anyone bought it yet? Am I missing something? That mindset made sense a few years ago. But in today’s market, you may actually miss out. More Time on Market Isn't Automatically a Concern Anymore A few years ago, homes sold in just a matter of days. Sometimes, hours. Anything that lingered longer than that raised concerns. But that’s no longer the baseline. Inventory has grown. Buyers have more choices. And homes are taking longer to sell across the board. Those are some of the reasons why the typical time it takes a home to sell has climbed this year: 

Wondering what to expect from the housing market in 2026? You’re not the only one. For the past few years, affordability has been the biggest barrier standing between most people and their next move. And a lot of buyers and sellers have been holding their breath waiting for things to get better. The good news? It’s finally happening. In 2025, affordability was the best it’s been in 3 years. And experts agree the momentum will keep going in 2026. And that’s based on their analysis of the key factors shaping the housing market in the year ahead: mortgage rates, inventory, and home prices. Lower Mortgage Rates Are Already Here Mortgage rates have already come down from their peak. By some counts, they dropped by almost a full percentage point over the course of the last year. And that’s a big deal, even if it doesn’t sound like it. But how low will they go? And should you wait for them to come down more? Here’s your answer. Forecasts suggest they’ll stay pretty much where they are now and hover in the low 6% range throughout 2026 ( see graph below ):