Tulsa Mortgage : Podcast 32 – Part 1
Tulsa Mortgage Speaker 1: This is stevecurrington.com, episode number 32 of the Steve N Tyler Show.
Automated voice: Welcome to the Steve N Tyler Show. With stevecurrington.com and Tyler Whyburn.
Steve: Who negotiated the contract for you?
Tyler: A realtor.
Steve: Oh, you’re pretty smart. Good for you man.
Automated voice: They’re talking about everything you need to know about mortgages, home loans and more. Nobody knows mortgages like these two. Get ready, because here’s Steve and Tyler.
Steve: What up Tyler?
Tyler: Good morning.
Steve: What’s happening? I think we tricked everybody on Facebook. I told them that I was going off live and they all bailed. But I’m still here suckers. Anyway, we ended the last podcast with this, so I figured we’d start with this.
We’re doing Tulsa mortgages.
Our episode today, we’re talking about, don’t make any purchases under the terms of no interest, no payments. We just talked about something very similar to that, but now we’re talking about– Tyler, I opened a new account of Lowe’s. Well it’s zero interests, and zero payments for six months, what does it matter? How does that affect my approval?
Tulsa Mortgage Tyler: Honestly it’s going to affect it. There’s going to be a payment, it’s going to happen.
Steve: What does that do? What’s it’s going to do?
Tyler: It’s probably going to lower what you’ve pre-approved for, what you qualify for.
Steve: So, what does it do to my credit though?
Tyler: It’s probably going to lower that too.
Steve: Yes. [chuckles] So, it’s under the same freaking terms, and the same issue of opening any type of new credit, right?
Tyler: Yes. Correct.
Steve: Do not make purchases under the terms of no interest and no payments. Because, number one, new credit items could lower your scores substantially. Number two, the full payment might have to be counted against you. Even though it doesn’t start for six months, it’s going to be counted and it’s going to cost you trouble. And look, it may not disqualify you for a loan, you know, it may not make it where you just can’t qualify at all, but it could lower your score where you’re interest rate goes up a little bit, it could cause you to have to dig for more documentation, it could be a little bit more painful, it can delay your loan closing, it can make your realtor mad because she has commission breath, and she’s ready to close. Snap.
Tulsa Mortgage Tyler: Don’t know anyone that’s like that right now– [crosstalk]
Steve: That happened yesterday. God, man. I’d like to go off on a tangent, and talk about a whole episode about realtors with commission breath. I’m going to make that on Facebook.
Steve: I’m going to call our podcast on Facebook Realtors with commission breath, you know, and see if we get some people to watch Realtors with commission breath. And the– Man. I just don’t know if I can get started. If I get started, then we’re probably going to wish that we didn’t. If I get started on the commission breath thing. That happened yesterday. So, anyway, the new credit items could lower your credit score substantially even though there no interest and no payment.
The full payment might have to be counted against you. So you don’t want to increase your payments, and you don’t want your credit score to go up. So some people think that since there is no payment, or no interest, that we won’t have to calculate in their DTI. And it’s not right, it’s incorrect . If you have an account, it’s going to factor in regardless of what you think. You cannot just open up new credit, and expect us not to count it against you in your debt to income ratio.
Tyler: Well, some people are buying a house at the top tier of their approval, of that debt to income ratio. When they go and get that new $25, $75 payment, believe it or not, that can blow it up.
Steve: Yes, we had some of the– A difference of one dollar affected their approval. one dollar, I mean literally. We had to get their insurance down from $101.50 to $100.50. I left the S’s off, I don’t know why. $100 and 50 cent, 50 cent is a rapper. So, don’t make any purchases under no terms, under the terms of no interests no payments while you’re buying a house. And look, we talked about this in our previous episode just a minute ago. Don’t open any new credit while you’re in the process of buying a house. Let’s not tell you to. We just had a guy, we told him to go open up a cap one account because he needs some revolving credit, worked out perfectly. Didn’t it?
Tyler: Yes, it did.
Steve: Didn’t it Currington? Didn’t it .com, yes, it did, it did, because I know what I’m doing. And I told the guy open up a cap one account, he opened up a cap one account. We got it reported to his credit, I re-pulled his credit, his score ran from a 615 to a 647. And guess what that means? Interest rate went down, cost went down, smiles on faces, everyone’s happy, closed loan. Next.
Tulsa Mortgage Tyler: He got a really nice toast of mortgage.
Steve: Boom, easy.
Tyler: Really nice.
Steve: Listen to .com, the mortgage whisperer. That’s good. I like the sound of that. [laughs] By the way, that’s been on the sign for weeks in case you haven’t noticed. Hi, Georgia Draper. Georgia Draper joining us on Facebook, Facebook live right now with stevecurrington.com on the Steve N Tyler Show and we’re live on Facebook talking about purchases with no interests and no payments.
So, Tyler, new accounts on your credit report can lower your score even though there’s no payments for six months, it still has to be calculated in DTI. How many times can we say that without– I mean, it makes me want to shake people because when those realtors get that commission breath and here’s what we say about commission breath, just for everybody, so you know. Trying to be very respectful here. My motivation in doing a loan for somebody and helping them get closed, is so that I can put a smile on their face and I can get the satisfaction of doing that. As a product of that, I get paid, that’s what I do for a living. I get paid to close loans, and I closed a lot of loans, so it’s great.
But, as we talked about in previous podcast, when you have a real estate agent who’s a professional, who does this for a living, but they only close a loan, or sell a house once every six months, or once every twelve months, or twice every twelve months. And they’re banking on, and counting on your deal to close, so that they can make their commission, they become less focused on taking care of you as the customer. And they become more focused on the paycheck that is attached to it. And that’s what we call commission breath.
Tulsa Mortgage Steve: Because it’s irrational, they becomes crazy, just like we had one do yesterday. We won’t say any names, but we don’t need to because it happens a lot unfortunately. It happens a lot, that they were more concerned about making sure that the loan closes, and the deal closes, so that they can get a pay check, than they are about it being right or about the customer being happy or anything else. And so what they do, here’s the other thing they do, little known fact. They go get advances, loans, against future commissions. To be paid by yours house selling. I don’t know why? I don’t know why they do that? Do you know why they do that Tyler?