Tips on How to Improve Your Credit Score
Hey folks, it's time to get real about your credit score. If you're anything like me, you probably don't pay much attention to it until it's time to apply for a loan or credit card. But did you know that your credit score can make or break your ability to obtain a mortgage loan?
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When you apply for a mortgage loan, lenders take a close look at your credit score and credit history. They want to know if you're a responsible borrower who will pay back the loan on time and in full. A good credit score can help you qualify for a mortgage loan with a lower interest rate and better terms, while a poor credit score can make it more difficult to get approved and result in higher interest rates and less favorable terms.
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In short, your credit score is one of the most important factors that lenders consider when deciding whether to approve you for a mortgage loan. By taking steps to improve your credit score, you can increase your chances of getting approved for a loan with better terms and save yourself thousands of dollars in the process.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills
on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
4. Increase your credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
4. Increase your
credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
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🔓 The Mortgage Lock-In Is Breaking — What It Means for Buyers & Sellers in 2026 🏡📉
🔓 The Mortgage Lock-In Is Breaking — What It Means for Buyers & Sellers in 2026 🏡📉
🏠 Housing Supply Is Finally Thawing — How Higher Rates Are Unlocking the Market 🔑📊
The Mortgage Lock-In Effect Is Fading — and That Changes Everything
For nearly three years, the U.S. housing market has been frozen by one powerful force: the mortgage lock-in effect. Millions of homeowners with ultra-low pandemic-era mortgage rates simply refused to move, choking off inventory and keeping prices elevated despite higher interest rates.
That dynamic is now beginning to change.
According to reporting by The Washington Post, for the first time since 2022, more homeowners now hold mortgage rates above 6% than below 3%. This shift materially reduces the financial penalty of selling a home—and signals a gradual thaw in U.S. housing supply.
Why the Lock-In Effect Mattered So Much
During 2020–2021, millions of homeowners locked in fixed mortgage rates below 3%. When rates surged in 2022–2024, selling became prohibitively expensive:
A homeowner trading a 2.75% rate for a 6.5–7% loan often faced 40–60% higher monthly payments
Even buyers with strong equity hesitated to reset their debt at higher rates
Inventory stalled, especially in move-up and downsizing segments
This wasn’t about affordability alone—it was about rate psychology.
What’s Changed in 2025–2026
The mortgage rate landscape looks very different today.
As Redfin notes, while rates below 5% still discourage mobility, the growing share of homeowners already carrying 5.75–7% loans makes selling far less painful than before. In short:
Fewer owners are “giving up” golden handcuff rates
More households are rate-neutral when moving
Life events (job changes, family needs, downsizing) are regaining priority
That shift matters.
Data Confirms a Slow Supply Rebound
Housing market data from the National Association of Realtors, published via the Federal Reserve Bank of St. Louis FRED, show a modest but meaningful pickup in existing-home sales in mid-to-late 2025 after years of stagnation.
At the same time:
Home price appreciation has slowed
Sellers are becoming more flexible
Days on market are stabilizing in many regions
This is not a housing crash—but it is a normalization.
What This Means for Buyers
For buyers, the fading lock-in effect creates opportunity:
More listings mean better selection
Less competition reduces bidding wars
Negotiation power improves, especially on move-in-ready homes
For borrowers, this is where strategy matters. Rate buydowns, ARM structures, and future refinance planning are increasingly important tools—not afterthoughts.
What This Means for Sellers
Sellers no longer have the luxury of assuming instant demand. Pricing correctly, understanding buyer financing constraints, and working with mortgage professionals early in the process will be critical in 2026.
The market is shifting from scarcity-driven to execution-driven.
Bottom Line
The mortgage lock-in effect hasn’t disappeared—but it is weakening. As higher-rate borrowers replace ultra-low-rate holders, housing mobility improves, inventory rises, and transactions resume.
For buyers, sellers, and investors alike, 2026 will reward preparation—not hesitation.
If you want to understand how to navigate this transition with the right loan strategy, this is exactly what we cover on our channel.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | Medallion Funds
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Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/