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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šµ Texas Construction Costs Are Surging ā Hereās What Builders Need to Know š§
šµ Texas Construction Costs Are Surging ā Hereās What Builders Need to Know š§
š Texas Builders Face Rising Construction Costs: Financing Strategies That Still Work š°
šµ What Rising Construction Costs Mean for Texas Builders
Construction costs across Texas are climbingāfast. From labor shortages to supply chain constraints, builders are feeling pressure on every line of the budget. Whether you're developing subdivisions, building custom homes, or taking on commercial projects, higher costs impact timelines, margins, loan qualification, and borrowing strategy.
As a mortgage broker with access to hundreds of construction, bridge, and permanent financing options, I see the downstream effects of these cost increases every day. The good news? Builders who understand how lenders underwrite rising costs can still thrive in this environment. Hereās how.
š Why Construction Costs Are Rising in Texas
Texas is still one of the fastest-growing states in the country. That demand brings opportunityāand increased pressure on materials, labor, and land pricing.
Main drivers include:
Ā·Material cost volatility (lumber, steel, concrete)
Ā·Skilled labor shortages
Ā·Higher land acquisition prices
Ā·Insurance and regulatory increases
Ā·Supply chain bottlenecks
Ā·Higher interest rates affecting project carrying costs
Most builders now face 10ā25% higher all-in costs vs. just a few years ago.
š° How Higher Costs Impact Builder Financing
1. Loan Qualification Gets Tighter
Lenders scrutinize:
Ā·Updated budgets
Ā·Cost escalation cushions
Ā·Contingency reserves
Ā·Builder experience
Ā·Borrower liquidity
Expect lenders to request stronger PFS/SREO documentation and higher liquidity buffers.
2. Appraisals Need Realistic Cost Projections
With construction costs fluctuating, appraisers rely heavily on:
Ā·Verified material bids
Ā·General contractor cost books
Ā·Current market comparables
Inaccurate budgets can kill the deal faster than anything.
3. DSCR and Feasibility Matter More
For investment products (BTR, multifamily, spec builds), lenders are laser-focused on:
Ā·Stabilized rents
Ā·Operating expense ratios
Ā·Local vacancy rates
Ā·Cap rate trends
When costs rise, profit compression becomes the real risk.
4. Builders Must Use Better Loan Structures
Hereās whatās working for Texas builders right now:
ā One-Time Close Construction Loans
Reduces rate risk, simplifies the process for owner-occupied builds.
ā Construction-to-Perm Loans
Ideal for long-term rentals and BTR communities.
ā Bridge Loans
Useful for covering cost overruns or delaying permanent financing until stabilization.
ā Land + Vertical Build Packages
Combining both phases helps lock in better terms.
ā Interest-Only Options
Lower monthly expenses during construction.
At Medallion Funds, we structure custom financing so builders retain margins even as costs rise.
š¦ What Builders Should Do to Protect Margins in 2025
š¹ Update Budgets Every 30 Days
Prices shift quicklyādonāt rely on bids older than 60 days.
š¹ Add 10ā20% Contingency
Lenders are expecting it. Investors appreciate it.
š¹ Lock in Material Contracts Early
Pricing stability can save margins.
š¹ Work With a Mortgage Broker Who Specializes in Construction Lending
A banker gives you one option.
A broker gives you hundreds.
š Final Takeaway
Rising construction costs arenāt slowing Texas demandābut they are forcing builders to be smarter with budgeting, execution, and financing. With the right loan strategy, Texas builders can still scale, win projects, and stay profitableāno matter what the market throws their way.
If youāre a Texas builder needing construction financing, cost-overrun solutions, or better loan termsāMedallion Funds can help.
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Ā© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Refinancing youe loan and when to do it
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š§® Renovation ROI Calculator
š ļø Renovation ROI Calculator š°
Copyright Ā©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 Ā© 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright Ā©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/