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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š¼ CRE Financing Explained: Everything You Need to Know š¦
š¼ CRE Financing Explained: Everything You Need to Know š¦
š Understanding CRE Financing: A Beginnerās Guide to Commercial Real Estate Loans š”
CRE Financing Explained: How It Works and Why It Matters
Commercial Real Estate (CRE) financing is the backbone of investment and business growth. Whether youāre purchasing an office, retail space, multifamily building, or warehouse, understanding how CRE loans work is key to structuring a profitable deal.
Unlike residential mortgages, CRE loans are designed for income-producing properties and are typically offered to entitiesāsuch as LLCs or corporationsārather than individuals. They involve more complex underwriting standards, higher loan amounts, and detailed financial reviews.
Types of CRE Financing
Here are the main types of CRE loans investors and business owners use:
Ā·Conventional Bank Loans: Standard term loans with fixed or variable rates. Great for established borrowers with strong credit and income.
Ā·SBA Loans (504 & 7a): Ideal for owner-occupied properties and small business expansion.
Ā·Bridge Loans: Short-term financing used to acquire or stabilize a property before long-term financing.
Ā·Construction Loans: Fund ground-up development or major renovations.
Ā·CMBS Loans: Commercial Mortgage-Backed Securities offering non-recourse options and competitive rates.
Ā·DSCR Loans: Designed for investors focused on property cash flow rather than personal income.
Key Loan Factors to Understand
Lenders analyze several critical components before approval:
Ā·Loan-to-Value (LTV): Typically 65ā80%, depending on the property and loan type.
Ā·Debt Service Coverage Ratio (DSCR): Measures the propertyās ability to cover loan paymentsāmost lenders want 1.20x or higher.
Ā·Property Type and Condition: Retail, industrial, medical, multifamily, and special-use properties each carry unique risk levels.
Ā·Borrower Experience & Financial Strength: Lenders prefer experienced investors with strong liquidity and reserves.
Why Work with a Mortgage Broker
A seasoned mortgage brokerālike Medallion Fundsācan help structure the best deal possible by:
Ā·Accessing 600+ lenders including banks, private capital, and non-recourse programs.
Ā·Comparing loan terms, rates, and fees to fit your investment strategy.
Ā·Navigating appraisals, underwriting, and closing efficiently.
Ā·Saving time while ensuring your financing aligns with your project goals.
Final Thoughts
Whether youāre purchasing your first investment property or expanding your portfolio, understanding CRE financing is essential to your success. With the right structure, financing can unlock leverage, increase ROI, and accelerate portfolio growth.
š Connect with Medallion Funds today to explore your best financing options for commercial real estate.
š
Schedule a call: https://calendly.com/vikingenterprise
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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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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/