Welcome back Ready Set Sold I’m your host Bryan Vogt hope you’re having a fantastic weekend anything plans maybe you’re out looking at houses right now maybe you’re out going out later on today are possibly even Sunday our this week you know tell you enough that this house the housing market is really picked up so if you are a buyer this is not time to wait now there’s still some good selections out there so I don’t want to panic you that way but many times you have to be ready and able to go and so we’re talking with Deb Russell New American Funding about that simple fact is that sometimes there is still mystery about it or some type of intrigue or some type of fear that really just doesn’t exist when people only check and find out if they can be approved or what they’re approved for.
And then we were talking between the break about that simple fact that really is it’s not that way at all is it no not at all you know I was saying to you on a break sometimes I find that the people that don’t worry about their credit should worry and the people that do worry about credit should not so a prime example that I always use and my dad would kill me if I if I said this but you know my dad’s kind of old school and he came from her mortgage side of things always paid cash for everything and my mom you know didn’t work and she was the department store credit card person and that and when it came time for my dad to pull credit for whatever reason he had no score and my mom had you know close to an 800 credit score which my was mind-boggling to him but the reality was he has demonstrated no worthiness.
He had demonstrated that you know he paid cash for everything which is great and he thinks you know he thought that was the way it is but from a lender we had no basis on which to tell if he was a good borrower or not you know we there’s no record of that so it’s very very important to keep your credit you know use credit I guess for lack of a better word so the things that make up your credit score like I said in the earlier segment is not just paying your debts on time it’s what kind of debts you have how long you’ve had them open how many new debts you get in a certain amount of time and then the diversity of credit so credit cards are not the devil installment loans are not but you want to have a good mixture of both of them.
It’s your earnings or you’re borrowing potential that determines a lot of your score what paying on time keeping a credit card open not paying it off every month but just keeping a small balance on there and utilizing your available credit responsibly for lack of a better word so there’s a lot of people that think there’s a lot of myths out there that I hear all the time with respective you said people are afraid to talk to lenders because they don’t want to check their credit because they think that it’s going to cost them as I had mentioned earlier you can get the free credit report as well as from New American it’s the cost of business for us we’ll pull your credit with for no charge go over with you and then you give you know any insight that we can on what you know we can do to make you a potential customer a lot of people think checking your credit numerous times hurts you and that’s not really the situation.
Either any time you pull your credit on your own and it doesn’t result in a loan or a credit card or whatever it doesn’t hurt your score you know in any way if you a good example of that is car shopping people go for shop for a car and the dealer may try 12 different lenders or banks at that you know exact time your score doesn’t drop two points or three points for every single lender that they pull through you know there’s a there’s a there’s actually a rationale I guess that the the FICO has where it knows what you’re doing so you can shop lenders you can stop banks you can shop you know different things to make sure you’re getting the best deal and a lot of people I find especially around income tax time a get come into a good deal of money for their income tax return and they think I’m just going to clear off all my debt pay off everything and it’s very important to understand that any swing and your debt situation.
Your credit situation good or bad will negatively impact your score for a short time so if you get a big you know thousand or two thousand dollar income tax refund and you pay off all your small credit cards you think you’re better in your situation it’s instability as far as how Sycho is looks at it they’re thinking uh-oh what’s going on you know are they in trouble now they have all this borrowing power are they going to go max them all out you know what are they going to do and so it takes a while and your score will negatively be impacted for several days you know 45 60 days until it realizes okay you know she just paid off some stuff she’s fine and she’s not you know getting herself back into the dead or you know anything like that so it’s really important to talk to somebody about it and I’ll always kind of counsel people pay if you’ve got a five hundred dollar Macy’s card.
And you just want to do the best thing for your credit the best thing to do is kind of pay it down so 40% of your high limit so you wouldn’t want to pay it off necessarily but just paint it down to you know $200 balance and just keep you know paying on that every month and your score just jumps by you know leaps and badge sure and I think it just reiterates of why you need to talk to a lender try not trying to make these decisions on your own and you might think me doing the right thing but maybe you are not saying is you never are but again talking to a professional here on the phone with Deb rust of New American Funding and is it again just scores again why it’s so important to talk with the lender have that conversation.
There are a lot of things that can come up and as you said there’s situations where people think that they are doing the right thing and they might be and they might be you know paying off that is usually very good thing but like you explained that may not be the best way to use those monies and the only way you’re going to know that is to talk to a professional and it’s just it and it’s okay and I think that’s the other part of the two that you mentioned to Debbie I think was a great point now you’re here to help them through the process for good if they need you to sit down and talk whatever they need that’s what you’re there for correct absolutely and something I think people forget and this is something that’s been age old and has never changed you know cash is king if someone has money in the bank any underwriter any lender will look at that as being stability over your score.
So even if you’ve got a 580 school or you know low sixes but you’ve got two grand in the bank the lender can look at that and rationalize a you know there’s AB the ability to save money and that’s a very strong point so if you’re trying to get your score to a 640 to qualify for a grant program but you know your $20 in your checking account then you’re just robbing Peter to pay Paul maybe I’m not sure what the request term is but you’re not really bettering your overall situation so I can’t I just really can’t stress enough how important it is to talk to someone talk to someone that can guide you in the right direction you know something you said that really struck with me that I think it’s important to bring out maybe you don’t think you have the credit score that you need.
But again there could be circumstances around that like you mentioned of having cash in the bank that could change that and so yeah you don’t want me in a situation especially with the market being the way it is and how does it is to be holding back with information that may or may not be correct to where if you talk to someone like that brusse to American Funding they could get you that information find out oh no you’re good okay well I’m going to keep you over for one more segment that I want to get into a myth that we fear still a lot and I know devil know what it is to but I’ll put teased out it hasn’t been true for many years when it comes to lending and purchasing home and that goes for again a stellar looking to sell their home and live into another house by looking to buy their house we’re talking to you listen Rachel so was Bryan’s up.