Mike Martin: Changes To Rates & Impact of Credit Scores

Navigating Real Estate 7

In this episode Ryan Buccola and Mike Martin discuss

• Upcoming changes to the mortgage rate tables and how the weight of your credit score when buying a home may be impacted.
• How to best manage your credit given the upcoming changes.
• Current lending trends, including the recent uptick in mortgage loans applications.

Key takeaways:

• Mortgage lenders are seeing that borrowers are becoming more comfortable at the levels they are currently. With rates dropping roughly 1% from what we saw for a peak in October, that translated to about a 10% decrease in a monthly payment. This is encouraging.
• Given the situation we’re in with the newer rate tables and adjustments, it’s more critical now than ever to optimize credit. The practice of using your credit card for everyday items like gas and groceries to earn airline miles or other benefits may not be a smart strategy anymore. Even if you pay off your cards every month, the new tables may force a situation that affects your mortgage rate. Keeping your balances to the suggested minimum threshold, typically 20% of allowable balance, and practicing wise credit behavior is more important.
• Common credit apps like Credit Karma do not tell you the entire story and will not mirror what a lender will pull for your credit report. Every category of lender has a different model to follow, whether it’s for a car loan or a home loan or a personal loan. It’s important to keep this in mind and understand how credit is pulled from a mortgage standpoint.

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Happy listening!

Have an idea for a show? Let us know! Email marketing@rmkporegon.com  with ideas and feedback.

Navigating Real Estate is all about the skills, strategy, and success mindset you need to be a successful real estate broker in today’s market.

Improve your business and profitability with conversation and coaching in the areas of:

• Skills
  • Common Contract Problems & Solutions
  • Time Management
  • Knowing the Market
• Strategy
  • Price Reductions
  • Difficult Conversations with Clients
  • Dispute Resolution through Mediation
  • Finding Your Buyers
  • How To Get More Reviews & Testimonials
• Success Mindset
  • Goal Setting
  • When & How To Reward Your Work
  • Making Time To Learn

We produce a new episode every other week Created and hosted by Ryan Buccola, Broker/Owner at RE/MAX Key Properties.

Listen. Follow. Drop us a Review! And please share with your real estate community.