Tips on How to Improve Your Credit Score
Hey folks, it's time to get real about your credit score. If you're anything like me, you probably don't pay much attention to it until it's time to apply for a loan or credit card. But did you know that your credit score can make or break your ability to obtain a mortgage loan?
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When you apply for a mortgage loan, lenders take a close look at your credit score and credit history. They want to know if you're a responsible borrower who will pay back the loan on time and in full. A good credit score can help you qualify for a mortgage loan with a lower interest rate and better terms, while a poor credit score can make it more difficult to get approved and result in higher interest rates and less favorable terms.
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In short, your credit score is one of the most important factors that lenders consider when deciding whether to approve you for a mortgage loan. By taking steps to improve your credit score, you can increase your chances of getting approved for a loan with better terms and save yourself thousands of dollars in the process.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills
on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
4. Increase your credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
4. Increase your
credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
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Embracing Optimism for the CRE Industry!
Embracing Optimism for the CRE Industry!
In the world of commercial real estate (CRE), the past couple of years have been challenging. With historic interest rate increases by the Federal Reserve, many predicted doom and gloom for the industry. However, there's a beacon of optimism shining through the clouds, and one expert believes that a CRE boom is on the horizon.
A Recap of Recent Years
Since March 2022, the Federal Reserve has steadily increased the federal funds rate from 0.0% to 5.25%. This move had many anticipating a crash in the CRE market, with dire predictions of banks collapsing under the weight of defaulted loans. Yet, these forecasts have not come to pass.
The expert, who has been unwavering in their analysis, estimated that defaulted CRE loans would only comprise about 2% of total loans, amounting to $92 billion. This revelation debunked fears of a market crash or banking industry collapse.
Forecasting the Future
Contrary to prevailing opinions, the expert doesn't foresee the Fed making only a couple of rate cuts in the later part of 2024 and 2025. Instead, they predict a different trajectory. They anticipate rate reductions starting as early as the second quarter of this year, bringing the federal funds rate to 4%-4.25% by the end of 2024 and further down to 3.0%-3.5% by the end of 2025.
While a decrease of 1.0%-1.25% may not seem significant, it's poised to catalyze a mini-boom in the CRE industry, particularly in the latter half of this year. Further rate cuts in 2025 could usher in a more substantial boom akin to the market resurgence witnessed in 2012 and during the tail end of the Great Recession.
Opportunities on the Horizon
The CRE market is brimming with pent-up demand and capital. With over $150 billion idling in real estate private equity funds, there's ample liquidity to acquire distressed assets and loans. Moreover, the brokerage community, which has seen lean times recently, is gearing up for a flurry of deals.
Transaction volumes, which dipped by 70% during the rate hikes, are expected to skyrocket in the coming years. Developers are eyeing dormant projects, while banks and other lenders are preparing to replenish their loan portfolios. Even shadow lenders, with a growing market share, are poised to seize new opportunities.
Embracing the Future
Institutional investors, including pension funds and sovereign wealth funds, are reawakening their interest in CRE. The REIT industry, after facing turbulence, is projected to see a resurgence with total returns expected to climb.
Distressed sales, particularly in urban areas, and investments in senior housing are highlighted as key sectors to watch. Despite challenges, the outlook for the CRE industry is bright, and savvy investors are encouraged to sharpen their pencils and seize the upcoming opportunities.
In summary, while the CRE industry weathered storms in recent years, an optimistic expert sees brighter days ahead. By navigating market shifts and embracing opportunities, stakeholders can position themselves for success in this evolving landscape.
Should you need an experienced Commercial Real Estate Mortgage Broker, please feel free to contact me at 281-222-0433.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 11920 Southern Highlands Parkway, Suite 302, Las Vegas, NV 89141
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 11920 Southern Highlands Parkway, Suite 302, Las Vegas, NV 89141 https://medallionfunds.com/bill-rapp/