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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šŸ’ø How LLPAs Impact Your Mortgage Rate & Costs šŸ“Š

šŸ“‘ Loan Level Price Adjustments Explained: What Homebuyers Need to Know šŸ”

Bill Rapp, Commercial Mortgage Broker
September 02, 2025ā€¢2 min read

šŸ“‘ Loan Level Price Adjustments Explained: What Homebuyers Need to Know šŸ”

šŸ’ø How LLPAs Impact Your Mortgage Rate & Costs šŸ“Š

šŸ“‘ Understanding Loan Level Price Adjustments (LLPAs)

When applying for a mortgage, many borrowers are surprised to learn that their interest rate isnā€™t only based on market conditionsā€”itā€™s also shaped by something called Loan Level Price Adjustments (LLPAs).

LLPAs are risk-based pricing fees set by Fannie Mae and Freddie Mac. They adjust the cost of a mortgage depending on the borrowerā€™s risk profile. Think of LLPAs as a way lenders balance risk when offering home loans.

šŸ” What Triggers LLPAs?

Several factors can increase or decrease LLPAs, including:

Ā·         Credit Score: Lower scores generally lead to higher LLPAs.

Ā·         Loan-to-Value Ratio (LTV): Higher down payments often reduce LLPAs.

Ā·         Property Type: Condos, multi-unit homes, or investment properties may carry additional LLPAs.

Ā·         Loan Purpose: Cash-out refinances usually come with higher adjustments.

Ā·         Occupancy: Primary residences usually get lower LLPAs compared to second homes or investment properties.

šŸ“Š Why LLPAs Matter for Homebuyers

LLPAs directly impact your mortgage interest rate and closing costs. For example, a borrower with a high credit score and strong down payment will pay less in LLPAs than someone with weaker credit and minimal down payment.

Even a small difference in LLPAs can add up to thousands of dollars over the life of your loan. Thatā€™s why understanding these adjustments is crucial when planning your home purchase or refinance.

šŸ› ļø How to Reduce the Impact of LLPAs

Here are a few strategies to minimize LLPAs:

1.      Improve Your Credit Score ā€“ Pay down debt and keep credit utilization low.

2.      Increase Your Down Payment ā€“ A lower LTV reduces LLPAs.

3.      Consider Loan Programs ā€“ VA, FHA, or specialty loan products may avoid or reduce LLPAs.

4.      Work With a Mortgage Broker ā€“ Brokers can shop multiple lenders to find the best pricing.

āœ… Bottom Line

LLPAs may seem like ā€œhidden fees,ā€ but with the right preparation, you can position yourself for better rates and lower costs. Whether youā€™re buying your first home, refinancing, or exploring investment properties, working with a knowledgeable mortgage advisor ensures youā€™re not overpaying because of LLPAs.

šŸ‘‰ At Medallion Funds, we help clients understand all the details behind their mortgageā€”including LLPAsā€”so you can make smarter financial decisions.

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Ā© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory

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Bill Rapp - Commercial & Residential Mortgage Broker

Whether you're a first-time homebuyer, a seasoned investor, or a business owner with ambitious plans, securing the right financing is crucial. At Medallion Funds, we take the guesswork out of mortgages, offering a comprehensive suite of residential and commercial loan options to fit your unique needs. Looking for Your Dream Home? We understand the excitement and challenges of navigating the residential real estate market. Our experienced mortgage brokers will guide you through every step, from pre-qualification to closing. We offer a variety of loan programs to suit your financial situation, including: ā€¢ Fixed-rate mortgages: Offering stability with predictable monthly payments. ā€¢ Adjustable-rate mortgages (ARMs): Providing competitive rates for a set period. ā€¢ FHA loans: Making homeownership accessible with lower down payments. ā€¢ VA loans: Rewarding veterans with attractive rates and flexible terms. Investing in Your Business Future? Growth often requires capital, and we can help you unlock the potential of your commercial property. Our brokers specialize in a wide range of commercial loan options, including: ā€¢ Purchase loans: Financing the acquisition of new buildings or land. ā€¢ Construction loans: Facilitating the development of your project. ā€¢ Refinance loans: Restructuring your existing mortgage for better terms. ā€¢ SBA loans: Providing access to government-backed financing for qualified businesses. The Medallion Funds Difference: We go beyond simply finding a loan. We take the time to understand your goals and develop a personalized strategy. Here's what sets us apart: ā€¢ Expertise: Our brokers have a deep understanding of both residential and commercial lending. ā€¢ Competitive Rates: We leverage our strong lender relationships to secure the best possible terms. ā€¢ Streamlined Process: We handle the paperwork, keeping you informed every step of the way. ā€¢ Exceptional Service: We're committed to providing you with a positive and stress-free experience. Ready to Take the First Step? Contact Medallion Funds today for a free consultation. Let's discuss your financing needs and help you achieve your dreams!

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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/