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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🏗️ What Is a Capital Stack in CRE? | Understanding the Building Blocks of Real Estate Finance 💰
🏗️ What Is a Capital Stack in CRE? | Understanding the Building Blocks of Real Estate Finance 💰
💼 Breaking Down the Capital Stack: How Investors and Lenders Structure CRE Deals 🏢
🏢 What Is a Capital Stack in Commercial Real Estate (CRE)?
In commercial real estate (CRE), understanding the capital stack is essential — it’s the foundation that determines who gets paid first, who takes the most risk, and how returns are distributed. Whether you’re a developer, investor, or lender, knowing how a deal’s capital stack is structured gives you a clearer picture of potential risk and reward.
💡 What Is a Capital Stack?
The capital stack represents the hierarchy of all capital invested in a commercial real estate project — from debt to equity. Each “layer” of the stack carries different levels of risk, priority, and return. Generally, the lower the layer, the lower the risk — and the lower the potential return.
The four main layers include:
1.Senior Debt – The foundation of most deals. This is usually provided by banks or institutional lenders and has first claim on cash flow and collateral.
2.Mezzanine Debt – A higher-risk loan that sits between senior debt and equity. Mezz lenders often receive higher interest or warrants.
3.Preferred Equity – Investors here get priority over common equity but don’t have the same security as debt holders.
4.Common Equity – The riskiest but most rewarding position. Common equity investors are paid last but enjoy the upside of appreciation and profit.
📊 Why the Capital Stack Matters
Understanding the capital stack helps you:
·Gauge risk exposure — Know where your money sits in the repayment order.
·Negotiate better terms — Lenders and investors structure deals based on perceived risk.
·Plan your financing strategy — Optimize leverage by blending different layers effectively.
For mortgage brokers and investors, structuring the right capital stack can make or break a deal. At Medallion Funds, we help investors, developers, and business owners align their debt and equity structure to maximize returns while minimizing exposure.
🧮 Example: A Simple Capital Stack Breakdown
Let’s say you’re developing a $10M retail center:
·Senior Debt: $6M from a bank at 6%
·Mezzanine Debt: $1M from a private lender at 10%
·Preferred Equity: $1.5M from an investor group with an 8% preferred return
·Common Equity: $1.5M from the developer’s own funds
This layered approach allows the project to be financed efficiently while balancing risk and reward among stakeholders.
🧠 Pro Tip
Investors who understand how to blend capital sources — from traditional banks to private capital — gain a competitive advantage. They can close deals faster, negotiate better terms, and attract partners who value strong deal structuring.
⚙️ Final Thoughts
The capital stack isn’t just financial jargon — it’s the blueprint for every commercial real estate transaction. Knowing where you stand in the stack gives you clarity, control, and confidence in your investment decisions.
At Medallion Funds, we specialize in helping borrowers and investors structure winning capital stacks that align with their goals and risk tolerance.
📞 Schedule a strategy call today: BillRappOnline.com
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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
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 ©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/