Transcription Tulsa Mortgage
Steve: This is stevecurrington.com and “The Steve ‘N Tyler Show”, episode number 51.
Narrator: Welcome to “The Steve ‘N Tyler Show”, with stevecurrington.com and TylerWhyburn.com
Steve: Who negotiated a contract for you?
Tyler: A Realtor.
Steve: That was good. You’re pretty smart. Good for you, man.
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.
Tyler: Steve, what’s up?
Steve: It’s a Steve and Tyler show. A Steve ‘N Tyler Show. Man, what a day it has been. I mean to tell you we are– gosh we’re cranking man. Tyler, we’re doing The Steve ‘N Tyler show, that’s also a Tulsa mortgage company that does a podcast every week, right?
Steve: I can’t keep track of how many podcasts we’ve done. We’ve just done a lot of them. I hope you guys are going to iTunes and finding us on iTunes. Today we’re talking about how I fix the credit score that’s artificially low due to a mistake, right?
Steve: A mistake might be; student loans, we talk about a lot; report an error that could be a mistake. I guess another mistake might be where a credit card company reports you late and you need to get that corrected. Another mistake might be that I jacked my balance on my credit card up too high.
Tyler: Is that a mistake?
Steve: If you can call that a mistake, that kind of would be. I guess that kind of would be a mistake. The direction I want to take it, Tyler, today, for this podcast, is just talking about what we recently just did yesterday with a customer and did a rapid re-score. That’s kind of like, “I made a mistake and I need to fix my credit maybe, but I don’t really know.” You can actually pay to get your credit score updated and updated quickly, which is called a what Tyler?
Tyler: Rapid rescore.
Steve: Rapidly rescore your credits. Yes, that’s right. If you want to rapidly rescore your credit, this is not something that you, the consumer can do on your own, no. This is something that your lender, your Tulsa mortgage guy can do. Stevecurrigton.com can do it.
Tyler: It’s also not permanent, either.
Steve: It’s also not permanent, either, that’s right.
Tyler: Yes, some people don’t know that.
Steve: It’s not permanent, it’s just for me. It’s just for whoever is doing the rescore. If Guaranteed Rate is doing your home loan, your Tulsa Mortgage, and I need your score to go up and I show you, like I just did, the balance on this credit card was 3,800 bucks and they paid it down to 2100 and it hasn’t updated on their credit yet. I ordered a rapid rescore so that I could get the credit score updated and get this, this is a very interesting thing to think about. Currently, 658 credit score. What do you think? Okay, well they qualify, we’ve talked about this before Steve, you can do an FHA loan. Tulsa mortgage on FHA, VA, even USDA down to a 580, you can do a conventional lender 620 so they have a 658, what’s the problem Tyler?
Tyler: It’s not necessarily a problem, but they need a little bit of help.
Steve: Yes. They want a better interest rate, they want a better Tulsa mortgage insurance rate. We may have hit that topic, I’m sure it’s somewhere down the list of things to talk about, but how your credit score or lack of credit score affects your mortgage insurance premium; because it’s expensive.
Steve: At a 658 on the conventional loan, it is expensive. Here’s what it is, just to tell you. It’s 1.53% monthly. If your interest rate is 4%, let me give you a comparison– if you’re doing an FHA loan you pay 0.8% monthly. It’s basically double that, almost, right Tyler?
Steve: If you’re doing a conventional loan and you have a 658 credit score, then you’re putting five percent down on your loan, which you can put as little as 5% down. Your mortgage insurance monthly premium factor is 1.53% percent and it is refundable, but 1.53%. You take your interest rate of– because you have a low credit score and you need a conventional, let’s say four-and-a-half; and you add 1.53% monthly, now your effective rate is–
Steve: 6.03, yes. That’s high. In this guy’s case, he’s trying to optimize his score so that he can reduce that amount. Here’s two things that are going to happen, 658 to 660 doesn’t do really anything. He needs like what 22 points to get a tulsa mortgage, is that right?
Steve: 23 points, we figured, will get to a 681 so here’s what it does for him– his mortgage insurance premium factor monthly is going to go from a 1.53% monthly to 1.08, so just about a half a point rates, and now its effective rates coming down about five-and-a-half. His interest rate on his loans is going to go to 4%. So he’s basically reducing his interest rate by 1% by jumping 22 points.
Tyler: For this loan that makes a big difference.
Steve: Yes. It’s a big loan, its 307,000. If you’re borrowing 70 grand it wouldn’t make a difference, but in this case it makes a difference. That’s when I want to fix a credit score that’s artificially low. If someone says, “Oh, that credit score’s artificially low.” Or maybe it’s artificially low due to a mistake, I think is what we said?
Steve: If it’s artificially low due to a mistake then your lender can fix it, stevecurrington.com can fix it, tylerweidner.com can fix it. But here’s the thing, I want to tell you, you’ve got to get with a guy that knows what he’s doing. Because when this guy was with someone else who’s not the best Tulsa mortgage lender, they kind of messed him around, remember this? They just re-pulled his credit every seven days.
Tyler: Just hoping that it would come up.
Steve: He was so mad when he went to write his letter of explanation for credit inquiries. Oh my gosh! He had like 15 of them from the same lender. It was once a week for basically seven days. Every seven days they re-pull his credit. Just so you know, if you are maybe not the most perfect score that you want, then this isn’t something that you can necessarily go doing on your own. We’ve talked before about keeping your credit card balances between 21 and 23 percent of the available credit, and you can you can kind of manage that on a monthly basis and make sure that that’s the case and you’ll be good, but it doesn’t necessarily mean that it’s something you can fix overnight.
Let’s say you call a lender Tyler, you’re talking to your lender and they go, “Hey, look. You have a 658 credit score and here’s the terms I can qualify for. We’re in the same situation.” You say, “Oh man, I’m going to go pay down that capital one card.” And so you go pay it down and then you call your lender back the next day and say, “Well, I payed that card down so now my score should go up to a 680 and now I should get a better rate.” Is that how it works?
Tyler: No. You’ve got to provide a little bit more than that.
Steve: But I’m not buying a house until– I mean I just got in contracts and I’m not closing for 30 days. What’s the problem dude?
Tyler: Yes, we just get it done right away.
Steve: Well, I did get it done right away I just paid it, now my score went up. Give me a better interest rate.
Tyler: You have to actually provide some kind of documentation. If you paid down your credit card, you need to get probably a credit card statement or something. Statements probably haven’t come out yet, but–
Steve: I can see it, the balance is lower, I can see it online.
Tyler: Yes, so give us that printout. You need to get on there, give us some kind of printout or something that shows the New Balances, what the card number–
Steve: Come on.
Tyler: All the identifying information for what you did, so that we can order that right after the rescore for you.
Steve: Otherwise you’re going to get [crickets chirping] crickets. Anyway, the point is, very well said Tyler. It isn’t going to happen overnight for you as a consumer. I will tell you this, things do naturally happen over time, so if you get pre-qualified at getqualified.com for your Tulsa mortgage and then you’re out looking for a house and I tell you, “Hey man, here’s the deal. You’re a 660 and you need to be a 700 in order to get you a better deal, and you need to pay these things down.” and then it takes you like a month, maybe, to find a house; or maybe it takes you 45 days to find a house. Then you’re in contract for another month. Then maybe can I re-pull credit Tyler?
Tyler: Yes with that time frame you could probably naturally-.
Steve: You would have already reported? But don’t do this. How many times has this happened? This isn’t the guy we’re talking about, but he paid his card down and I went to do the rescore, so he paid 35 bucks per trade night per bureau. He had one account, lets say it’s a Cap-1, whatever it was, it was a credit card. I had to pay, because I needed two of his scores to come up, so I had to pay 70 bucks. Then he didn’t have documentation to prove that the balance was, so I did it with no documentation. Then they charged another 25 bucks per, so now I’m at 70 plus 50 which is $120. That’s what we had to pay in order to rapidly rescore and it was going to take three to five days to get the rapid rescore.
We get it back and he’s paid his card down and everything and his score goes down. What the heck is going on? His balance is higher. I call him and I said, “Dude, your balance is higher”. And he said, “Well you didn’t tell me I could charge anymore, you just said pay down to that”. And we laughed about it, but make sure you get very specific with your lender, because here’s the other thing. If you pay a card down to $10 instead of $25, if you pay a card down to one dollar instead of 10, if you pay a card down to zero instead of one dollar it makes a difference.
What we do is we have a little credit expert it’s called a “what if? simulator” and we literally tell the system what you’re going to do. And it tells you step-by-step where to go to, you can actually print it out. That’s the lesson we learned in that case, because a $120 later, when we had already ordered the rescore, and also 10 days instead of five, guess who we ran into? We should have done that in the beginning, we should have been more specific with the customer, making sure that he understood and knew what needed to happen. And not only did he have to pay the card down, Tyler, he had to pay it down, but do not charge on it. Do not charge on it anymore until I get the re-score back, because this guy made a $300 payment and then he went and charged 350 on it the next day.
That doesn’t really work, bro, that doesn’t really work. That’s the farm logic thing-
– There’s three minutes and 48 seconds of this if you want to listen to it. Because [unintelligible 00:13:09] We have pharmacological. the logic is, don’t pay down the card and then recharge the balance up so you can qualify for a tulsa mortgage.
Tyler: Well, some scorers are so finicky that if you tell somebody to pay it down the 20 bucks and they decide that they’re going to pay down to 10 instead of the 20 that you told them, it could go down, it could do no help. There’s a magic number and you tell them they need to do exactly that.
Steve: That’s right. I’m trying to get 12 points and you went and gone all cute on me and decided to pay, “Hey man I know you said to pay it down to $72, but I went ahead and paid it down to negative 72, they owe me money.” Look, that seems logical, [Bluegrass music] but in reality it isn’t. I don’t why, don’t ask me why. We’re dealing with a computer algorithm over here, okay? If your lender says, “First of all, you shouldn’t even be talking to anybody else but me.” But if you are, let’s say you are and you’re already out there and you already got some dude, he’s already doing your loan and you needed a rescore, make sure you get a specific direction from them on what you need to pay it down to so that you can get the optimum score.
And then after they screw it up, call me, because I’m stevecurrington.com and I do Tulsa mortgage home loans, right Tyler?
Tyler : Amen.
Steve: Amen. Actually, I do a lot of home loans and fortunately, or unfortunately, however you want to look at it– I really grew my business back in the early years on people that needed help with their credit. I’m just good at it. We’re talking about how to fix a credit score that’s artificially low due to a mistake, which we morphed this into– it’s artificially low, or maybe it’s officially low because of my mistake and not knowing how to use my credit; how you can do a rescore and the specific ways to do that.
You can check out more at stevecurrington.com or getqualified.com, and if you need information about your credit, then go to our website getqualified.com. We will be happy to provide whatever information makes you smile. That’s me, I’m Steve Currington this is The Steve ‘N Tyler Show and we are out.
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