WEBVTT - BA Q&A: The Best Way to Increase Your Credit Score? 0:00:16.320 --> 0:00:20.760 And now it's time for the b a q a 0:00:20.920 --> 0:00:24.840 b a q the b a q A. I would 0:00:24.880 --> 0:00:27.440 love if somebody made us a b a q a 0:00:28.120 --> 0:00:31.920 theme song. I'm going to reach out to like Chris 0:00:32.280 --> 0:00:34.479 and his wife again because they made my Budgetessa budget 0:00:34.520 --> 0:00:37.839 liesta what was it? Look at me? A budget has 0:00:37.880 --> 0:00:38.760 to breakdown theme song. 0:00:39.840 --> 0:00:42.120 Yeah, it's so funny that you say that, because I 0:00:42.159 --> 0:00:45.199 texted my little brother over the weekend. Uh is a musician, 0:00:45.640 --> 0:00:47.880 you know, in his partum whenever he feels like yeah, 0:00:48.040 --> 0:00:50.600 you know, he used to go by Rain in college, 0:00:50.600 --> 0:00:52.640 but he's dropped that moniker and now he's just whatever 0:00:52.680 --> 0:00:55.320 he is. And he and he's in Atlanta, and I 0:00:55.320 --> 0:00:56.880 was like, there's got to be some great you know, 0:00:57.080 --> 0:00:59.760 yeah musicians in Atlanta. So he's on the lookout. I 0:01:00.080 --> 0:01:01.920 don't want him to do it, but he's acting like, 0:01:02.000 --> 0:01:03.760 I don't know, this is like jingle. I don't really 0:01:03.840 --> 0:01:08.040 do jingles. Oh, come on, Rain, he's very Yeah, he's 0:01:08.080 --> 0:01:10.319 so sensitive about his music. I shouldn't even be talking 0:01:10.319 --> 0:01:10.640 about it. 0:01:10.760 --> 0:01:11.800 Wow, I'm it's amazing. 0:01:11.880 --> 0:01:12.560 I'm pissed at me. 0:01:13.000 --> 0:01:14.640 No, I'm sure it's amazing. Honestly, that would be great 0:01:14.640 --> 0:01:16.680 to have a Baqa theme song. I mean, just a 0:01:16.720 --> 0:01:19.000 prohibition theme song in generad would be awesome. 0:01:19.520 --> 0:01:21.440 I mean, but hearing you sing it is never get. 0:01:22.840 --> 0:01:26.479 All right, we have questions. If you have questions, we 0:01:26.720 --> 0:01:29.000 semight have answers that are not to be taken as 0:01:29.040 --> 0:01:31.959 professional answers. They're really supposed to be answers that you 0:01:32.000 --> 0:01:33.440 know you could take with the grain of salt and 0:01:33.440 --> 0:01:36.919 then reach out to the Yeah it's just for fun sies, Yeah, exactly, 0:01:37.600 --> 0:01:41.920 suit your grandma. All right, So first question, I read 0:01:41.959 --> 0:01:46.479 the right question. Bianca says, Hello, ladies, love your show. 0:01:46.959 --> 0:01:49.640 Thank you for giving out the wonderful advice you provide 0:01:49.680 --> 0:01:52.880 for free every week. A few years ago, I got 0:01:52.880 --> 0:01:56.480 into some serious debt and eventually used a financial debt 0:01:56.520 --> 0:01:59.640 services company to get it paid off. All of the 0:01:59.640 --> 0:02:03.360 accoun were settled. There were seven credit cards total. My 0:02:03.440 --> 0:02:06.600 credit score dropped a bit low, and now it's a 0:02:07.040 --> 0:02:10.000 six fifty. That's actually not bad, siss. I was wondering 0:02:10.040 --> 0:02:12.680 what might be the best way to increase my credit score. 0:02:14.200 --> 0:02:17.160 Now I know now the mistakes I made before, so 0:02:17.200 --> 0:02:19.280 I'm not afraid to use credit. But I wasn't sure 0:02:19.960 --> 0:02:26.360 what the best method would be, so it could be, Yanka, 0:02:26.760 --> 0:02:29.240 I have a bunch of things. But what do you think, Mandra. 0:02:29.360 --> 0:02:31.480 Well, I thought maybe because I know you talk about 0:02:31.520 --> 0:02:34.080 this a lot. So as far as settling accounts that 0:02:34.160 --> 0:02:36.560 stays on your credit report as well, does that take 0:02:36.600 --> 0:02:37.800 like seven years to fall off? 0:02:38.040 --> 0:02:38.399 It does? 0:02:39.000 --> 0:02:41.000 Yeah, so she's a few years in so it's been 0:02:41.040 --> 0:02:42.680 there for a minute. Yeah, that was my first question 0:02:42.720 --> 0:02:44.640 because I'm just curious how all of that works. 0:02:45.200 --> 0:02:47.760 Well for two years, it will It'll be things are 0:02:47.840 --> 0:02:51.080 most harmful or helpful within the first two years. So 0:02:51.440 --> 0:02:53.280 after two years, it doesn't mean that it's not there, 0:02:53.360 --> 0:02:55.280 but it doesn't play as big of a role on 0:02:55.320 --> 0:02:55.840 your score. 0:02:56.639 --> 0:02:59.400 Yeah, she says, I know now the mistakes I made 0:02:59.440 --> 0:03:01.679 before so afraid to use credit, but I wasn't sure 0:03:01.680 --> 0:03:04.800 what the best method would be. Listen, learning from your 0:03:04.800 --> 0:03:07.080 mistakes is good because seven credit cards is a lot 0:03:07.520 --> 0:03:09.799 and having to go through the stress of getting that, 0:03:10.200 --> 0:03:12.880 you know, even if you're you handle it, which is great, 0:03:12.880 --> 0:03:15.680 like you take care of business, you know. My first 0:03:15.680 --> 0:03:18.799 thought went to a secured credit card, me too, Yeah, 0:03:18.880 --> 0:03:22.440 here ay, because with a secured credit card, it's it's 0:03:22.480 --> 0:03:25.280 complete opposite of a regular credit card, which is unsecured, 0:03:25.280 --> 0:03:27.120 which means that you don't have to put up any money. 0:03:27.520 --> 0:03:29.440 They just give you account. They give you a credit 0:03:29.440 --> 0:03:31.640 card with with the with the limit, and you know, 0:03:31.760 --> 0:03:34.440 they take your word that you won't that if you, 0:03:34.440 --> 0:03:36.080 you know, use the card, that you'll pay it back. 0:03:36.480 --> 0:03:39.680 With a secured card, they require a deposit upfront, and 0:03:40.120 --> 0:03:42.560 you know, you put that money, let's say it's five 0:03:42.640 --> 0:03:44.839 hundred dollars or whatnot, you give it to the bank 0:03:44.880 --> 0:03:46.160 and they hang on to it and that is their 0:03:46.160 --> 0:03:49.800 collateral and they basically issue you a quote unquote line 0:03:49.800 --> 0:03:53.480 of credit in that amount, and then you can use 0:03:53.520 --> 0:03:55.720 that card to make a purchase here and there, and 0:03:55.760 --> 0:03:57.920 then you pay it back. And if at the end 0:03:58.000 --> 0:03:59.720 of your term, like what is it usually a year, 0:04:00.120 --> 0:04:04.040 m right, they will return your deposit to you or 0:04:04.040 --> 0:04:05.800 they'll hang on to it. If you didn't make your 0:04:05.800 --> 0:04:09.040 bills on time, hopefully they returned the deposit to you. 0:04:09.200 --> 0:04:12.160 And well what happens is month to month they will 0:04:12.200 --> 0:04:15.640 report that good behavior to the credit bureaus. So it 0:04:15.640 --> 0:04:19.400 can help you, it can help you rebuild. That's one idea. 0:04:19.640 --> 0:04:23.880 So another idea, because credit bureaus like to see like 0:04:24.000 --> 0:04:26.919 you have different types of debt that you've managed. So 0:04:27.760 --> 0:04:30.040 credit card debt is called revolving debt because it never 0:04:30.080 --> 0:04:34.480 really closes, just keeps revolving. Right, So there's also I 0:04:34.520 --> 0:04:37.080 just had at the tip of my tongue it's revolving debt, 0:04:37.080 --> 0:04:40.720 and then it's not I'm not stationary, no evolving debt. 0:04:41.400 --> 0:04:44.719 Basically loans, but I forget the technical term for loans. 0:04:44.880 --> 0:04:47.680 Basically it's it's debt that you pay that you pay 0:04:47.680 --> 0:04:51.680 off installment installments. I was gonna say yes. For some reason, 0:04:51.720 --> 0:04:53.800 I was thinking departments. I don't know why, department. I 0:04:53.839 --> 0:04:59.039 was like the department store, ya sidebar? What I text 0:04:59.040 --> 0:05:01.800 you to be like Mandy, where are taping? It, says mandrake, 0:05:02.080 --> 0:05:04.360 And I meant to say mandra but for some reason, 0:05:04.360 --> 0:05:07.240 my my autocorrect was like mandrake. 0:05:07.360 --> 0:05:08.280 I was like, oh lord. 0:05:10.160 --> 0:05:12.640 So anyway, that's just how my brain is working today. 0:05:12.680 --> 0:05:16.040 Installment loans, So, an installment loan was basically any loan 0:05:16.440 --> 0:05:18.919 that like, you pay off an installment. So think mortgage, 0:05:19.040 --> 0:05:23.200 think car note, think student loan dead you know, so 0:05:23.560 --> 0:05:26.600 one way you can do an installment loan that is 0:05:27.279 --> 0:05:30.000 I call it like the loan fake out is they 0:05:30.000 --> 0:05:33.080 call the credit builder loan. So for example, they're company 0:05:33.200 --> 0:05:35.080 like like a a self. They used to call themselves 0:05:35.080 --> 0:05:38.480 self lender, right, so, but also credit unions have these 0:05:38.480 --> 0:05:40.120 two So if you're part of a credit union, they 0:05:40.200 --> 0:05:42.200 likely have a credit builder loan. But if you don't 0:05:42.240 --> 0:05:44.760 self as a company that you might look into. So 0:05:44.800 --> 0:05:47.159 the way it works is you say, hey, credit union 0:05:47.240 --> 0:05:49.880 or self or whatever, I want to do a credit 0:05:49.880 --> 0:05:52.880 builder loan, and they say, okay, you choose the lowest amount. 0:05:53.000 --> 0:05:56.159 That's just my suggestion. And I know on self is 0:05:56.160 --> 0:05:58.000 five hundred dollars. I think I don't know what it 0:05:58.040 --> 0:06:00.360 is at credit unions, but let's just pretend it's too hundred. 0:06:01.000 --> 0:06:04.240 They let you borrow two hundred dollars, but you're not 0:06:04.279 --> 0:06:06.720 actually going to get the two hundred. They're actually going 0:06:06.800 --> 0:06:08.800 to keep that two hundred for you in a savings 0:06:08.800 --> 0:06:12.080 account or a money market account, but still on the books, 0:06:12.120 --> 0:06:14.719 it looks like you borrowed it, and then over the 0:06:14.760 --> 0:06:16.640 course of a year, you're going to pay that money 0:06:16.680 --> 0:06:19.479 back each month, you know, So if it's five hundred dollars, 0:06:19.480 --> 0:06:22.840 divide five hundred dollars by twelve months and at the end, 0:06:22.960 --> 0:06:29.160 so one it says, hey, it's Bianca, right, Hey, right, 0:06:29.240 --> 0:06:33.559 Bianca borrowed money and she pays it back monthly on time, 0:06:33.760 --> 0:06:35.479 and at the end of the year, she paid it 0:06:35.520 --> 0:06:38.000 off in full. So you get these like these boosts 0:06:38.000 --> 0:06:40.080 of like she paid it off and she paid on 0:06:40.240 --> 0:06:43.000 time and so and then at the end of that year, 0:06:43.080 --> 0:06:45.280 you get your two hundred dollars back, plus the little 0:06:45.279 --> 0:06:48.400 bit of interest it accrued, you know, because you remember 0:06:48.440 --> 0:06:50.320 you never actually got your money, but you paid it back. 0:06:50.640 --> 0:06:54.240 And so people sometimes use these credit builder loans also 0:06:54.279 --> 0:06:57.440 as for savings. So I remember I did this whole push. 0:06:57.440 --> 0:07:00.440 We're like in November, Like, hey, sign up for a 0:07:00.440 --> 0:07:03.200 credit builder loan in November if you're looking to raise 0:07:03.240 --> 0:07:05.520 your credit. So by this time next year, not only 0:07:05.560 --> 0:07:08.320 will you have your money in time for the holidays, 0:07:08.720 --> 0:07:10.800 you know, like your lump sum back, but you'll also 0:07:10.800 --> 0:07:13.080 have a better credit score to go into the holidays with, 0:07:13.120 --> 0:07:16.840 which is great. And so that's another tool that you 0:07:16.880 --> 0:07:20.800 can use to raise your your credit score, because, like 0:07:20.840 --> 0:07:23.200 I said, credit reporting companies like to see that you 0:07:23.280 --> 0:07:26.680 have a variety of ways that you've borrowed, and so 0:07:26.960 --> 0:07:32.280 revolving that installment loans are two different ways. Here's like 0:07:32.360 --> 0:07:33.760 a trick that I will tell you how to how 0:07:33.800 --> 0:07:37.200 to really boost up your the credit card, the security 0:07:37.200 --> 0:07:40.240 credit card that Mandy mentioned, put your lowest bill on it. 0:07:40.360 --> 0:07:42.560 So the gym membership that you know you don't use, 0:07:44.360 --> 0:07:47.320 Netflix that you know you do use, put the cheapest 0:07:47.320 --> 0:07:50.600 bill on it. And you're going to say, Hey, Netflix, 0:07:50.800 --> 0:07:53.240 I want you to charge my secured card every month. 0:07:53.520 --> 0:07:55.760 And then you're going to say, hey, bank account, I 0:07:55.800 --> 0:07:59.120 want you to pay this card off every month. And 0:07:59.200 --> 0:08:01.600 that card you're not using it for anything else. It's 0:08:01.600 --> 0:08:03.480 not to leave the house, it's not to leave the drawer. 0:08:03.800 --> 0:08:06.080 It's just sits somewhere inside your drawer and gets paid 0:08:06.120 --> 0:08:09.200 off every month automatically. Because when you pay off a 0:08:09.240 --> 0:08:12.960 debt in full, Bianca, it's like the credit score agencies 0:08:13.000 --> 0:08:16.120 do like a happy dan. It's like, oh gobiyanka, go byada. Now, 0:08:16.160 --> 0:08:20.440 whether it's five dollars fifty five hundred five thousand, it's 0:08:20.440 --> 0:08:22.560 not so much to the amount. It's the habit of 0:08:22.640 --> 0:08:25.360 paying off a debt in full that jumps your credit score. 0:08:25.720 --> 0:08:27.320 But you want to be mindful that you don't pay 0:08:27.320 --> 0:08:30.080 it off too early. So you're gonna say, hey, credit card, 0:08:30.120 --> 0:08:32.920 what's my statement date, Like, what's the day that you 0:08:33.000 --> 0:08:36.640 actually tell the credit bureas bianca use the card because 0:08:36.679 --> 0:08:39.559 you want them to tell that you use the card, 0:08:39.720 --> 0:08:41.480 so they can also tell that you paid it off. 0:08:41.720 --> 0:08:43.839 If you paid off too soon, they never get a 0:08:43.920 --> 0:08:45.480 chance to say that you made you know, you made 0:08:45.480 --> 0:08:47.920 a good choice. So you want to pay off the 0:08:48.000 --> 0:08:52.520 card after the statement date, but by the due date. 0:08:53.080 --> 0:08:55.480 People always get confused by that. So I think the 0:08:55.600 --> 0:08:56.040 date is so. 0:08:56.080 --> 0:08:58.319 Hard on purpose. It's not y'all's fault that this stuff 0:08:58.400 --> 0:09:01.680 seems difficult, because it is. They make it hard. It's 0:09:01.720 --> 0:09:03.680 like the best way to get a good credit score 0:09:03.720 --> 0:09:05.280 is to like use the tools and know how they work, 0:09:05.280 --> 0:09:07.000 but then like, I mean, know how they work, but 0:09:07.080 --> 0:09:09.080 never use them, and if you do use them, use 0:09:09.120 --> 0:09:10.080 them a specific way. 0:09:10.800 --> 0:09:12.880 Yeah, it ish could be really overwhelming, But I'm telling 0:09:12.960 --> 0:09:15.200 if you do those three things, get yourself a secured 0:09:15.240 --> 0:09:19.320 card paid off every month in full automatically, and potentially 0:09:19.320 --> 0:09:22.280 get a credit builder loan automatic and automate those payments 0:09:22.320 --> 0:09:24.720 as well, then you should see your credit score, which 0:09:24.720 --> 0:09:27.200 is actually not that bad. A seven six point fifty 0:09:27.240 --> 0:09:29.920 is not terrible because seven forty is the beginning of 0:09:29.960 --> 0:09:32.560 perfect credit, So you should you know, you should? You 0:09:32.600 --> 0:09:36.280 know see like some movement. I can't tell you when 0:09:36.440 --> 0:09:38.960 because your credit score is like a GPA, so we'd 0:09:38.960 --> 0:09:41.400 have to know all your other grades. But just know 0:09:41.520 --> 0:09:43.600 that any A you get which is paying off in 0:09:43.679 --> 0:09:46.440 full or paying in general, any A you get is 0:09:46.440 --> 0:09:48.800 going to offset any f you might have gotten previously. 0:09:49.520 --> 0:09:51.520 I love that GPA analogy. I steal it from you 0:09:51.520 --> 0:09:51.920 all the time. 0:09:52.000 --> 0:09:53.720 Yeah, give your credit though, I give you credit. 0:09:54.000 --> 0:09:56.920 It's fine, absolutely, and just let time do the rest, 0:09:56.960 --> 0:09:59.480 because you're a few years away from having those settlements 0:09:59.480 --> 0:10:01.600 fall off your which sounds like a long long time, 0:10:01.640 --> 0:10:10.000 but hopefully it'll go by quickly. All right, miss Bianca, 0:10:10.040 --> 0:10:11.560 thank you for your question. Let me move on to 0:10:11.600 --> 0:10:15.200 this this doozy of a question from listener Jennifer Colin 0:10:15.400 --> 0:10:18.960 or colin In emailing us from the Bay Area in 0:10:19.040 --> 0:10:22.640 San France. So she and her hubby are thinking about 0:10:22.679 --> 0:10:24.400 buying a house. I think this question is good, so 0:10:24.400 --> 0:10:26.679 I've highlighted the essentials. Let me let me get into it. 0:10:26.720 --> 0:10:29.599 Because Jennifer was she was very detailed. I'll leave it 0:10:29.640 --> 0:10:31.760 at that, all right. Jennifer says, I love love, love 0:10:31.800 --> 0:10:34.520 brown ambition not only the good advice and thoughts, but 0:10:34.559 --> 0:10:36.200 you're both just a lot of fun and inspiring to 0:10:36.240 --> 0:10:39.840 listen to each week. Thank you, Jennifer alrighty, she says. 0:10:39.880 --> 0:10:42.120 My husband and I are in our late thirties. We 0:10:42.160 --> 0:10:44.720 live in the San Francisco Bay area and we're currently 0:10:44.720 --> 0:10:46.920 saving for our first home as our next big goal. 0:10:47.440 --> 0:10:51.240 Our household income has jumped from about one fifty a 0:10:51.320 --> 0:10:54.240 year to three sixty five a year almost two years ago, 0:10:54.760 --> 0:10:57.280 and we are making a sizable but late push for 0:10:57.400 --> 0:11:01.199 retirement in college savings. For our two chill trend. Right now, 0:11:01.200 --> 0:11:04.400 we have about two hundred and thirty thousand dollars earmarked 0:11:04.400 --> 0:11:07.520 for a down payment, and that doesn't include our emergency fund. Okay, 0:11:07.559 --> 0:11:11.160 pause for the snaps. Very impressive, but here's a problem. 0:11:11.200 --> 0:11:13.600 We live in a very wealthy area of Silicon Valley 0:11:13.760 --> 0:11:16.400 where even for a teardown home, we're looking at under 0:11:16.440 --> 0:11:20.720 two million dollars for that tear home teardown home. Unless 0:11:20.720 --> 0:11:23.640 my husband's startup gets acquired, which is a real possibility, 0:11:23.720 --> 0:11:25.720 we'll have to move to a more affordable area to 0:11:25.760 --> 0:11:28.640 buy a house. But as I approach forty, I really 0:11:28.640 --> 0:11:31.240 want that house. In all caps, growing up in a 0:11:31.240 --> 0:11:34.160 black household. Home ownership was a big symbol of security 0:11:34.200 --> 0:11:36.800 and prosperity, and I'm disappointed that I have not achieved 0:11:36.800 --> 0:11:39.600 this milestone yet. I have this crazy idea that we 0:11:39.600 --> 0:11:42.040 should buy a house in the East Bay area and 0:11:42.080 --> 0:11:45.480 purchase a cute bungalow for one point two million dollars. 0:11:45.720 --> 0:11:47.480 We can rent it out or just keep it until 0:11:47.480 --> 0:11:50.280 we're ready to make our next move. I'm nervous that 0:11:50.320 --> 0:11:52.559 home prices will go up and up and up and 0:11:52.600 --> 0:11:55.560 may become out of our reach. All caps again, am 0:11:55.559 --> 0:11:58.280 I Cray? Cray? Would you go for it and start 0:11:58.280 --> 0:12:00.800 looking or just wait to see what life looks like 0:12:00.920 --> 0:12:05.920 in two to three years. Jennifer, Jenny from the Block. 0:12:06.440 --> 0:12:08.040 Isn't it a damn shame that you can have all 0:12:08.040 --> 0:12:10.000 this money and still behind? 0:12:10.440 --> 0:12:11.360 That's what's crazy. 0:12:11.520 --> 0:12:12.839 This country is crazy. 0:12:13.040 --> 0:12:18.360 It is crazy. Yeah, well this is really I'm full 0:12:18.400 --> 0:12:22.000 of emotions, Jenny, because don't be fool by the rock 0:12:22.080 --> 0:12:24.640 so that I got, I'm still I'm still Jenny from 0:12:24.679 --> 0:12:26.959 the Block. I love that. Jenny. 0:12:28.720 --> 0:12:30.120 My mom, my, mom, mom. 0:12:30.520 --> 0:12:32.680 Okay, we gotta work it out. We gonna let's just 0:12:32.679 --> 0:12:34.280 talk talk it through because I don't have it. Sometimes 0:12:34.280 --> 0:12:38.280 I have a definitive yes no, so one congratulations for 0:12:38.320 --> 0:12:44.480 having that money saved. I because to your point, I 0:12:44.480 --> 0:12:46.920 actually was just watching, like reading this article. I forget 0:12:46.920 --> 0:12:50.920 where how although people left California, a lot of people 0:12:50.960 --> 0:12:55.920 are coming back now, you know post like you know quarantine. 0:12:55.960 --> 0:12:59.000 So yes, although you know, certainly a lot of tech 0:12:59.000 --> 0:13:01.520 companies moved out, but there's still a lot of people there. 0:13:01.520 --> 0:13:03.839 So I don't know that home people keep talking about 0:13:03.840 --> 0:13:07.400 a home, you know, home prices crashing, just like the 0:13:07.440 --> 0:13:09.440 Great Recession. But the truth is, we have very a 0:13:09.520 --> 0:13:12.520 very different set of circumstances than we had during the 0:13:12.600 --> 0:13:14.960 Great Recession that are not that are not. I'm not 0:13:15.000 --> 0:13:17.760 saying that there won't be a home correction, which is 0:13:17.760 --> 0:13:20.040 when people's houses that they bought for a lot of money, 0:13:20.360 --> 0:13:22.040 you know, go back to the price that they should 0:13:22.080 --> 0:13:24.520 have been. But I don't know that we're not this 0:13:24.559 --> 0:13:27.559 is not what it should be because one, our interest 0:13:27.640 --> 0:13:31.680 rates are significantly lower than during the Great Recession, and 0:13:31.840 --> 0:13:34.280 we don't have a bunch of people with bad loans 0:13:34.280 --> 0:13:36.120 like they did with the Great Recession because after the 0:13:36.120 --> 0:13:38.439 Great Recession there was all this legislation put in place, 0:13:38.760 --> 0:13:44.000 so we're not in the same position. So I don't 0:13:44.040 --> 0:13:46.760 know that. I don't know because part of me is 0:13:46.800 --> 0:13:49.640 like maybe just finding like you know how sometimes you can, 0:13:49.760 --> 0:13:52.040 like you can live in New York, or you can 0:13:52.080 --> 0:13:54.079 come on over to Newark and get something more affordable 0:13:54.080 --> 0:13:56.720 and that's not too far out. That's probably where I 0:13:56.840 --> 0:14:01.520 lean into. I like the idea of you know, getting 0:14:01.600 --> 0:14:04.640 something to start. But know this, if you're going to 0:14:05.360 --> 0:14:09.120 qualify for an FAH loan, which is a federally backed 0:14:09.240 --> 0:14:13.000 like mortgage, you have to be a new home buyer 0:14:14.320 --> 0:14:16.920 within within the last three or four years. Meaning so 0:14:17.559 --> 0:14:20.280 let's just say what you could do is say the 0:14:20.320 --> 0:14:22.240 first home I can get under my name, if you can, 0:14:22.280 --> 0:14:24.560 if you're able to get a mortgage with just you, 0:14:25.120 --> 0:14:27.520 so that way you can get the because I think, faha, 0:14:27.600 --> 0:14:29.840 the down payment is only like three point five percent, 0:14:29.880 --> 0:14:32.400 which is a significant drop to the twenty percent that 0:14:32.440 --> 0:14:35.440 a regular traditional loan will require of you. And then 0:14:35.480 --> 0:14:37.960 maybe when you're ready, your husband gets the next one. 0:14:38.000 --> 0:14:40.800 I don't know. That's my only thing is that, like, 0:14:40.880 --> 0:14:44.360 if you that I don't want that. You know, if 0:14:44.400 --> 0:14:46.120 I was going to get my first house, I would 0:14:46.120 --> 0:14:47.920 think to myself, I would like to get a house, 0:14:47.960 --> 0:14:51.680 maybe that is something with more than one unit, so 0:14:51.760 --> 0:14:54.840 I can take advantage of the fach loan and then 0:14:54.880 --> 0:14:56.640 potentially pull money out of that house to get the 0:14:56.640 --> 0:14:59.800 next one. So I'm I'm conflicted. I think home ownership 0:14:59.840 --> 0:15:01.800 is a cornerstone for wealth in the United States for 0:15:01.800 --> 0:15:03.200 the most part. I know, we hear people say that 0:15:03.200 --> 0:15:05.080 that's not true, but the truth is when you shake 0:15:05.080 --> 0:15:08.280 the numbers out at the end oftentimes that it just 0:15:08.400 --> 0:15:11.840 is true. But at the same time, I don't want 0:15:11.840 --> 0:15:14.720 you guys to like drown yourself and be house you know, 0:15:15.600 --> 0:15:16.680 house poor. 0:15:16.480 --> 0:15:19.760 Or yeah, yeah, I think I just keep going back 0:15:19.760 --> 0:15:21.520 to the part where she says, you know, growing up 0:15:21.520 --> 0:15:23.640 at a black household, home ownership was a big symbol 0:15:23.680 --> 0:15:26.160 of security and prosperity, and I'm disappointed that I've not 0:15:26.240 --> 0:15:30.000 achieved that milestone yet. Go easy on yourself. I mean, 0:15:30.000 --> 0:15:31.760 you guys have achieved a lot. You have a two 0:15:31.840 --> 0:15:35.360 year old, you have two children's nine two children's two 0:15:35.440 --> 0:15:38.520 kids ages nine and twelve, and you've managed to still 0:15:38.560 --> 0:15:42.040 build this incredible nest egg, this incredible amount of money 0:15:42.080 --> 0:15:43.880 that you have for your down payment, not including your 0:15:43.880 --> 0:15:46.960 emergency fund, and you've started their you know, college savings, 0:15:46.960 --> 0:15:49.880 and it sounds like your husband's in a position to 0:15:50.000 --> 0:15:52.640 unlock even more wealth if his startup gets acquired. I know, 0:15:52.680 --> 0:15:55.120 it's a huge if. The thing is, I think when 0:15:55.160 --> 0:15:57.480 it comes to making big personal finance decisions, at the 0:15:57.560 --> 0:16:00.360 end of the day, there's a there's a combination of 0:16:00.920 --> 0:16:02.920 the what ifs, and there's a common and there's like 0:16:02.960 --> 0:16:06.560 you have to find the happy ground between uncertainty and 0:16:06.680 --> 0:16:10.120 the information that you have now and your your personal 0:16:10.120 --> 0:16:12.720 goals and your personal happiness. And I think at a 0:16:12.720 --> 0:16:14.920 certain point, especially buying a home is one of the 0:16:15.000 --> 0:16:17.720 most is one of the greatest examples of this and 0:16:17.720 --> 0:16:20.600 where it can all be really difficult to balance out 0:16:20.640 --> 0:16:22.680 because I don't think there's for a lot of people 0:16:22.680 --> 0:16:24.880 it is the single most expensive purchase you're ever going 0:16:24.960 --> 0:16:27.320 to make. It's always going to be fraught, and I 0:16:27.320 --> 0:16:29.840 think the more educated we get about the housing market 0:16:29.920 --> 0:16:32.280 and the ups and downs of it, there is more fear. 0:16:32.480 --> 0:16:34.280 You know, am I making the right decision? Is it 0:16:34.320 --> 0:16:36.800 actually going to be a good investment? I think if 0:16:36.840 --> 0:16:39.080 you guys, if you look at it as you know, 0:16:39.240 --> 0:16:41.320 we have the information that we have today, we are 0:16:41.320 --> 0:16:44.640 going to look at, you know, look at the comps 0:16:44.680 --> 0:16:48.760 in our area and buy a reasonably priced home relative 0:16:48.800 --> 0:16:51.200 to the market that we're in. And we're not going 0:16:51.240 --> 0:16:54.480 to you know, we're not going to cut ourselves off 0:16:54.480 --> 0:16:56.920 at the knees financially in order to afford this home 0:16:57.120 --> 0:16:59.480 just because we think we need it. But if you're 0:16:59.520 --> 0:17:02.160 doing it because you have children, you want to be, 0:17:02.480 --> 0:17:04.840 you know, in a good school district, you want this 0:17:04.920 --> 0:17:07.840 certain lifestyle, you want the stability that comes with home ownership, 0:17:07.920 --> 0:17:10.199 and you have the finances to pull it off and 0:17:10.280 --> 0:17:13.480 still have room to reach your other goals like retirement, 0:17:13.680 --> 0:17:17.399 like college shavings, your emergency fund. Then I feel like 0:17:17.480 --> 0:17:21.080 you have you have enough good information, you have enough 0:17:21.080 --> 0:17:23.640 good reasons to want to own a home, and if 0:17:23.680 --> 0:17:27.199 you have the opportunity and you feel like it's a 0:17:27.240 --> 0:17:29.400 good time for you, guys, you have to just kind 0:17:29.440 --> 0:17:31.760 of make peace with that decision and the fact that 0:17:32.400 --> 0:17:34.879 you will not have all the information. There is no 0:17:35.000 --> 0:17:38.359 crystal ball. You can make the best decision with the 0:17:38.400 --> 0:17:40.159 information you have today, and then you've got to just 0:17:40.240 --> 0:17:43.800 like let it go, let it go, and try to 0:17:43.840 --> 0:17:49.120 be mindful of how to protect yourself against certain situations. 0:17:49.119 --> 0:17:51.440 Down the line. Like Tiffany said, you know, look at 0:17:51.960 --> 0:17:53.800 you just because you have two hundred and thirty k 0:17:54.359 --> 0:17:56.879 for a downpaymentant to put all of that down, It 0:17:56.920 --> 0:17:59.800 may make you more competitive as a bar or as 0:17:59.840 --> 0:18:02.160 a buyer in your market. But you know, you don't 0:18:02.160 --> 0:18:04.480 have to put every dollar down. You can save some 0:18:04.600 --> 0:18:07.040 to have as a slash, like an emergency fund for 0:18:07.040 --> 0:18:09.000 your for just for your home itself, or for those 0:18:09.040 --> 0:18:12.840 repairs or remodeling you might want to do. But as 0:18:12.840 --> 0:18:15.880 far as you're nervous, having nervousness around home prices will 0:18:15.920 --> 0:18:17.600 just go up and up and up and eventually become 0:18:17.640 --> 0:18:19.800 out of our reach. I think that's a real yeah, 0:18:20.800 --> 0:18:24.399 that's a real understandable fear, especially in a place like 0:18:24.600 --> 0:18:28.720 San Francisco. And I don't think that your Craig Kray 0:18:28.840 --> 0:18:31.119 at all to start looking for homes now. It's kind 0:18:31.160 --> 0:18:34.679 of like what Tiffany said about pricing out that range Rover, like, 0:18:35.000 --> 0:18:37.879 don't talk yourself out of it until you do the legwork. 0:18:38.440 --> 0:18:40.720 You know, go see the homes. Are there even homes 0:18:40.720 --> 0:18:44.160 that you want to buy out there? Do you does 0:18:44.200 --> 0:18:46.480 it make you excited and happy to look at them? 0:18:46.520 --> 0:18:48.159 And do they give you do they help you. You 0:18:48.200 --> 0:18:49.919 said that you're really happy now your kids are in 0:18:49.920 --> 0:18:53.200 a school, a good school, and yeah, your husband has 0:18:53.200 --> 0:18:56.880 a short commute, Like those things matter. So to get 0:18:56.920 --> 0:18:59.480 what you want in a home, what are you sacrificing 0:18:59.520 --> 0:19:01.760 any of the things that already make you? Guys so happy? 0:19:01.920 --> 0:19:03.840 And you really want to know that until you're looking 0:19:04.480 --> 0:19:07.240 that was good? Was that good? 0:19:08.880 --> 0:19:14.240 It was great? It was endous? Even got it? No, no, no, 0:19:14.280 --> 0:19:16.160 I don'd say that was I don't even have anything 0:19:16.160 --> 0:19:17.960 to add to that, honestly, because I to your pot, 0:19:17.960 --> 0:19:20.840