Episode 3 - Your Credit: How It's Calculated and How to Improve It

Episode 3 (our best yet):

In The Rundown, Michael and Brad highlight the latest mortgage news and real estate market stats. Michael makes his next prediction for where interest rates are headed.

In The Scoop, it's all about credit - what goes into your credit score and tips on how to improve it. There are multiple credit scores, and there are multiple scoring models that look at credit scores differently, so your "karma" score may not be the same as what a mortgage lender will report. They discuss about the 5 most important things that go into your credit score: payment history, amounts owed, length of credit history, new credit, and credit mix. And they review some tips on how to improve your credit score.

In The Unreal, the guys discuss buyer regret, plus the head-scratching changes the FHFA made to loan level price adjustments (LLPAs). It's unreal!

In The Spotlight, it's Berri Purple in Timonium - check them out!

Episode Highlights

• Dispelling the bad information about credit scores
• There's never a shortage of unreal news stories
• Michael's crystal ball rating: 1 for 1
• Interest rates are the best they've been in 4 months
• Rates vary based on a number of factors, and everyone's situation is different
• 2023 mortgage applications are increasing
• Refinances are up too, but it's easy to see increases from near zero
• National trends are helpful, but real estate is hyper-local
• Holiday impact on sales volume in the last 7 days
• Sellers are offering credits more frequently
• Michael's crystal ball prediction for the coming week: rates steady, with a caveat
• The challenges and benefits of credit scores
• Do you know what FICO stands for?
• Who was Issac, and what's so fair about him?
• What you should do if you're going to be late paying a bill
• Why it's not always a good idea to close a credit account, or why you might not want to pay off a balance completely
• Brad is old, but not that old (and Michael is just as old)
• It's been scientifically proven that isteners of this podcast have a far greater attention span than most people
• "Like fine wine, whiskey and cheese, most credit histories only get better with age."
• Our first credit cards were from Bamberger's - who remembers them?
• Dangers of those "no interest, no payment" opportunities when you're buying a house
• Mortgage loan inquiries don't hurt your score as much as you might think, but not all credit inquiries are the same
• Teaser rates, and why you need a "direct line to God" to qualify for some rates
• 26% of all credit reports have a material error - so check your reports (for free)
• The huge impact of medical collections
• CFPB credit complaint
• National Association of Realtors (NAR) reports more than 3/4 of buyers felt buyer's remorse in 2022
• We're not sure if the FHFA uses actuaries - LLPAs don't make sense
• Brad has an acai bowl obsession (and never pronounces it correctly)
• Next episode: The Homebuying Process, Part 1

Hosts

Michael Becker, Sierra Pacific Mortgage
NMLS #200085
[email protected]
[phone] (m) / [phone] (office)

Brad Cox, The Vesta Group of Long & Foster Real Estate
MD Lic #652795
[email protected]
[phone] (m) / [phone] (office)

Links

Michael Becker, Sierra Pacific Mortgage
Brad Cox, The Vesta Group of Long & Foster Real Estate
@berealmdpod