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Tulsa Mortgage : Podcast 33 – Part 1

Tulsa Mortgage Steve: This is stevecurrington.com and Steve ‘n Tyler Show episode number 33.
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Narrator: Welcome to the Steve ‘n Tyler Show withstevecurrington.com and Tyler Weiber.
Steve: Who negotiated the contract for you?
Tyler: A realtor.
Steve: You’re pretty smart.
Tyler: Yes.
Steve: Good for you, man.
Tulsa Mortgage Narrator: 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.
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Steve: Hello, Tyler.
Tyler: Hello.
Steve: Stevecurrington.com, what’s up? How’s your morning?
Tyler: It’s good. It’s a good morning.
Steve: We’re knocking out — we’re knocking out podcast here. I’m talking about—[crosstalk]
Tyler: — Our job.
Steve: What’s that?
Tyler: I said, like it’s our job.
Steve: It is our job. Hi, Kyle Myers on Facebook. We’re live on Facebook. We’ve got Joe Jones and Josh Harrington, Kyle Myers. We got — Josh said he heard the Farm Logic, because it was playing on the computer which he could hear right there. But, we couldn’t hear it in the studio. We could hear it in the studio, but not through the listeners on the podcast because it wasn’t connected — technology problems, folks.
Tulsa Mortgage Steve: That’s what it feels like. Have we used Galaga? That’s loud. It seems that’s a little hot. Come on now. Come on. All right, today we’re talking about — we are talking about, “Do not apply for any new credit cards for any reason.”
Tyler: Yes, that’s what we’re talking about.
Steve: I want to talk about Commission Breath again.Credit cards– Look, if I tell you to open a credit card, open one; if I don’t, don’t. That’s a whole podcast.
Tyler: Hold on. I have a way that we can we can do this both at the same time.
Steve: Okay.
Tulsa Mortgage Tyler: If you’re a realtor with Commission Breath, open up a credit card.
Steve: [laughs] There you go. Instead of getting a loan against your future commission, get a credit card and charge all your stuff on there. Hi Greg McGuffin [laughs]. Get a credit card. Then you won’t have Commission Breath, because you just can pay off that card when your loan closes.
Tyler: There you go.
Steve: And if you can’t, you just make payments on it for the rest of your life. Yes, Tyler I love you. That’s amazing.
Tyler: [laughs]
Steve: We just killed two birds with one stone or maybe we killed two stones with one bird. I don’t know if something happened. Opening a new line of credit can lower your credit score substantially and new payments will affect your DPI — this DTI. I know these are very similar topics to other topics that we’ve done in the past. But, listen, we can’t dumb it down enough for people. Because if I say don’t open up any new credit, they’re like, “I didn’t, I just open up a credit card.”
Tyler: I think the first word in what you opened up is credit.
Steve: Yes. But, listen, very smart people are very good at what they do in their jobs and they’re intelligent, they got high IQs. They just become knuckleheads when it comes to buying a house. And it’s not dogging anybody, except for the realtors with Commission Breath. But, I’m just saying they just become kind of knucklehead-ish, right?
Tyler: Yes.
Steve: I’m just saying, “Don’t apply for anything.” People don’t understand, they’re like, “Well can I apply for a credit card?” No. So, I have to do an entire podcast only focusing on credit cards. Zack Collins said, “Some people think it’s an auto, home, RV, boat, etcetera that you don’t apply for,” I guess. Is that what you were saying? They don’t think about revolving credit. They’re not thinking about credit cards or it doesn’t matter because if– A couple of things, you open up a new credit card or you jack up the balance on your credit card, it’s going to cause a problem most of the time, unless you’re just a high net worth, high income, high credit score, big down payment borrower. Well, if you are, go to stevecurrington.com and apply. I’m showing everyone on Facebook the gun show. If you know a good vet, these puppies are sick. If you are a high net worth individual with a lot of money down, a really high credit score, please call me, because I can do a loan for you. If you’re not, don’t apply for any new credit cards, because it’s going to lower your credit score and it’s going to affect your DTI, because I got to count the payment against you. It’s just like what we talked about in the last episode. Open up a Lowe’s account. Do you know what a Lowe’s account is? It’s a credit card, okay? I don’t care if it’s zero interest or not. It’s a credit card. It is a revolving account that’s going to report to your credit. If you do that you are not going to get to see the gun show. You’re not going to get to meet.com, because dot-coms are not going to do a loan for you because, you screwed things up, be careful. Applying for a new credit card can reduce your credit score and raise your DTI, not a winning combination, [laughs]. I’m trying to be like Hillary.
Tulsa Mortgage Steve: I’m reading from the teleprompter. I’m reading everything. Hold up. Applying for credit cards can reduce your credit score, and raise your DTI. Not a winning combination,–
Tyler: [laughs]
Steve: Did that sound all proper Tyler?
Tyler: Sure.
Steve: Talk about that with me Tyler. I know we hit this in the previous episodes, but just hit it. Hit it again, because people might listen to this one and they don’t listen to another one.
Tyler: Right. Well, the simple fact that a new item on your credit is going to lower your score for a while. No matter what it is, be it a new house you’re buying, a new car, a credit card– Today, we’re talking about credit cards. But, it’s going to lower your score when that opens, potentially; we’ve had some cases. And then, it can raise your DTI. So, honestly –
Steve: With debt-income ratio.
Tyler: Right. If you’re hinging on a 25 difference — $25 difference between approval and denial for what you wanted to buy, that new $25 payment obviously will put you in denial range.
Steve: That’s right.
Tyler: So–
Steve: And, listen if your lender tells you to do it then that’s one thing. Zack Collins was saying, “What about increasing credit limits?” And I would say not a problem as long as they don’t have to pull your credit to do so, because some creditors will just give you an increase without pulling your credit. But, again, I don’t want inquiries on your credit.
Tyler: Right.
Steve: It can help you, if your balance versus your available credit is high. Let’s say you have a limit of 10,000 and your balance on your card is 7,000 and they Tulsa Mortgage increase that to 20,000, then that lowers your numbers, so now you’re below 50% of your available credit instead of being at 70% of your available credit. So, yes, that would be a good idea provided that they won’t pull your credit. Be careful because, if they pull your credit, that’s another inquiry. Now, we got to explain it. We’re going to make sure your balance didn’t go up. There is a bunch of stuff that goes into that. So, just be careful. Zack, if you’re doing that about increasing credit lines because it can affect things negatively. Many people think that opening new accounts will increase their credit scores and this is not always the case. In fact, it’s not the case. Absolutely, not the case.
Tyler: No.