WEBVTT - BA Q&A: Credit Score Jumps Like Jordan 0:00:06.320 --> 0:00:10.119 And now it's time for the b a qa a, 0:00:10.400 --> 0:00:17.479 the b a qaa, the b a qami. Question and answer. 0:00:17.960 --> 0:00:21.520 Y'all have questions, We have answers that cannot be taken 0:00:21.520 --> 0:00:25.680 as legal advice lowercase a answers. 0:00:26.680 --> 0:00:30.680 We have ideas and thoughts, and you cannot see us 0:00:30.680 --> 0:00:31.680 for any of them. 0:00:31.760 --> 0:00:34.120 Yes, because you got to ask your peoples, the people 0:00:34.200 --> 0:00:37.800 that you give money to as financial advisor in them 0:00:37.840 --> 0:00:42.639 your attorney, a doctor, your lawyer, whomever. But certainly take 0:00:42.680 --> 0:00:44.080 what we stay with the green of salt, which is 0:00:44.440 --> 0:00:47.600 two smart girls, two smart, smart brown girls on the internet, 0:00:47.720 --> 0:00:52.199 just you know, given our thoughts. You know so. But 0:00:52.200 --> 0:00:53.840 it's not a substitute for legal advice. 0:00:55.000 --> 0:00:58.240 Yeah, absolutely not. Although this first one, I feel like 0:00:58.280 --> 0:01:00.600 you could be a certified credit expert. I mean, this 0:01:00.760 --> 0:01:02.960 is like you could probably give this kind of advice 0:01:03.000 --> 0:01:06.800 in your sleep. That this comes from listener Regina, who 0:01:06.800 --> 0:01:09.880 had a question about credit scores. Regina says, good evening. 0:01:09.920 --> 0:01:12.279 I'm an avid listener of your show. I am learning 0:01:12.280 --> 0:01:17.360 how my credit scores for Experience, TransUnion, and Equifax are 0:01:17.400 --> 0:01:20.559 significantly higher than my Fyco score. How do I better 0:01:20.600 --> 0:01:23.040 my Fyco score? Since it's used to measure so many 0:01:23.080 --> 0:01:25.880 important things. Please advise when you can. Thank you so much. 0:01:25.920 --> 0:01:28.600 Regina, Hey, Reggie, hope you don't mind to call you 0:01:28.680 --> 0:01:31.039 that Gina. No, actually, Gina like Gina better. 0:01:31.120 --> 0:01:32.880 I feel like she probably would mind if you called 0:01:32.920 --> 0:01:33.520 her Reggie. 0:01:33.720 --> 0:01:38.560 Reggie, that's kind of cue, right, Okay, whatever, Right, we're 0:01:38.600 --> 0:01:42.319 just gonna call you Regina. Right. So Regina, Well, first 0:01:42.360 --> 0:01:45.280 you have to just understand that there's five components to 0:01:45.319 --> 0:01:47.960 your credit score. Actually had to pull this stuff because 0:01:47.920 --> 0:01:50.720 my granny old mind can never remember the percentages except 0:01:50.760 --> 0:01:54.640 for the first two. So thirty five percent is amount, No, 0:01:55.240 --> 0:01:57.880 thirty five percent sorryest payment history. So that's the biggest 0:01:58.160 --> 0:02:00.800 meaning do you pay the people, Regina or time Virginia 0:02:01.720 --> 0:02:03.600 meaning they just want to know, like, are you a 0:02:03.720 --> 0:02:06.800 regular on time payment person? And one of the ways 0:02:06.840 --> 0:02:11.120 you can offset that, Regina, is to automate as many 0:02:11.480 --> 0:02:13.560 bills as possible so you don't forget and you're not late. 0:02:13.800 --> 0:02:16.480 I was late again this week for something I totally forgot. 0:02:16.760 --> 0:02:18.200 My credit score is just going to look like I 0:02:18.200 --> 0:02:21.120 don't know what I'm doing. Because there's a credit card 0:02:21.160 --> 0:02:23.200 that I never use unless I travel, and then I 0:02:23.240 --> 0:02:25.880 swiped it when I was overseas and I forgot because 0:02:25.880 --> 0:02:27.680 I never use it, so I don't have automatic payment 0:02:27.680 --> 0:02:30.720 on it and I forgot, So down goes my score temporarily. 0:02:31.080 --> 0:02:35.160 So payment history thirty five percent automate payments to affect that. 0:02:35.240 --> 0:02:38.320 Part of your Freyco score thirty percent of your Freight 0:02:38.360 --> 0:02:42.240 Go score is amounts owed, often referred to to as 0:02:42.320 --> 0:02:46.640 utilization that month means how much could you borrow versus 0:02:46.639 --> 0:02:49.360 how much you actually borrowed. But they basically want to 0:02:49.360 --> 0:02:52.240 look at your limits versus your balances. So if you 0:02:52.280 --> 0:02:57.320 have a hundred dollars limit credit card, ideally you want 0:02:57.360 --> 0:03:01.320 to keep the balance under thirty dollars dollars under thirty percent, 0:03:02.840 --> 0:03:06.160 So they look at each individual card, but also cumulatively 0:03:06.200 --> 0:03:09.040 at your cards, so the average. So if you've got 0:03:09.080 --> 0:03:12.560 one card that you've got one hundred dollars limit on, 0:03:12.639 --> 0:03:14.800 and another card that you have one hundred dollars limit on, 0:03:14.840 --> 0:03:17.480 and one you're not using it all, and one you're using, 0:03:18.120 --> 0:03:21.960 say like one hundred dollars balance on, So this card 0:03:21.960 --> 0:03:23.600 you're maxed out, this one you're not using it all. 0:03:23.919 --> 0:03:26.839 If you close then not used card, you went from 0:03:26.919 --> 0:03:29.480 fifty percent utilization because you're only using half the money 0:03:29.520 --> 0:03:32.320 that you have available to one hundred percent utilization, which 0:03:32.360 --> 0:03:35.839 is going to bring your score down, down, down, down, 0:03:35.320 --> 0:03:39.160 down down. So keep your utilization low. Basically, pay off 0:03:39.160 --> 0:03:43.200 your debt. Okay, fifteen percent is length of credit history. 0:03:43.240 --> 0:03:44.800 You just got to live a little longer and keep 0:03:44.800 --> 0:03:47.320 your older cards open, you know, like if you have 0:03:47.360 --> 0:03:48.880 one old card, that's what I like to just keep 0:03:48.880 --> 0:03:53.280 one old card open. Ten percent is new credit, also 0:03:53.400 --> 0:03:55.560 called inquiries. That just means the next time you go 0:03:55.560 --> 0:03:58.280 to Marshalls, don't let them people run your credit just 0:03:58.320 --> 0:04:00.040 to see if you can save ten percent on that. 0:04:00.840 --> 0:04:02.760 You know, And in career, is anybody other than you 0:04:02.800 --> 0:04:05.120 who looks into your credit and it brings down your score. 0:04:05.520 --> 0:04:08.120 And then last is a credit mix. They just like 0:04:08.160 --> 0:04:10.120 to see a mix that you have some like installment 0:04:10.160 --> 0:04:13.000 loans like student loans, car no blah blah blah, and 0:04:13.040 --> 0:04:15.400 also revolving debt like credit card debt. They just like 0:04:15.440 --> 0:04:17.279 to see you have experience. You don't have to do 0:04:17.279 --> 0:04:19.640 anything there, just live longer and as an adult you 0:04:19.720 --> 0:04:22.200 have more of that. So ultimately, you want to pay 0:04:22.240 --> 0:04:25.200 down debt and you want to be on time. So 0:04:25.360 --> 0:04:27.640 here's a little trick that I found out how you 0:04:27.640 --> 0:04:29.919 can trick the credit scoring system in a way that's 0:04:29.960 --> 0:04:33.600 super legal. I call it my jump like Jordan method 0:04:34.200 --> 0:04:36.760 because I'm forty two, so Jordan was the lebron of 0:04:36.800 --> 0:04:38.799 the day. Actually, let me not even say that Jordan 0:04:38.920 --> 0:04:43.040 was the Jordan's child. So here's what you do. You 0:04:43.080 --> 0:04:45.400 go to your cheapest bill. For me, it was my 0:04:45.480 --> 0:04:48.200 gym membership that I was never using at what's that place? 0:04:48.240 --> 0:04:52.120 The gym membership is only ten bucks, Mandy, Planet Fitness. Yes, 0:04:52.160 --> 0:04:54.440 Planet Fitness, that nine ninety nine gym membership that don't 0:04:54.440 --> 0:04:57.920 nobody ever use. So I had that membership, and normally 0:04:57.920 --> 0:05:00.119 that membership was just pulling the money directly from my 0:05:00.160 --> 0:05:02.359 bank account. But I put a credit card that I 0:05:02.400 --> 0:05:05.599 had a zero balance on in between. I said, Planet Fitness, 0:05:05.880 --> 0:05:09.360 charge this card, and then I said, bank account, automatically 0:05:09.360 --> 0:05:12.440 pay off the card every month. Something magical happens when 0:05:12.440 --> 0:05:14.960 you pay off a debt in full every month. The 0:05:15.040 --> 0:05:18.640 amount doesn't matter. It's the habit of paying off. They 0:05:18.800 --> 0:05:21.640 like to see. That's that payment history. You paid off 0:05:21.680 --> 0:05:25.000 a debt, even if it's five dollars five hundred five thousand, 0:05:25.080 --> 0:05:29.240 five million, ideally five dollars, So you create that automatic 0:05:29.360 --> 0:05:32.279 loop and you will start to see your credit score 0:05:32.400 --> 0:05:35.919 start to jump like Jordan. Because your credit score is 0:05:35.960 --> 0:05:39.919 your GPA. It is an average of your grades of 0:05:39.960 --> 0:05:42.520 how you handle your money. So every time you pay 0:05:42.520 --> 0:05:44.640 off your card in full, even if it's only five dollars, 0:05:44.720 --> 0:05:47.480 you get an A. So the more age you get, 0:05:47.760 --> 0:05:50.040 the more it will offset any of the bad grades 0:05:50.080 --> 0:05:51.760 you got in the past. So if you do that, 0:05:52.720 --> 0:05:54.680 Regina girl, you should be fine. 0:05:54.800 --> 0:05:56.880 I think in Regina, George, you know what I was 0:05:56.920 --> 0:06:00.039 wondering about her question too with fight Oh, there's like 0:06:00.080 --> 0:06:03.599 a billion different FICO scores, So I'm wondering which Fyco 0:06:03.680 --> 0:06:06.680 score she may be referring to here, because I mean 0:06:07.040 --> 0:06:12.040 the FICO company or whatever, like, they sell their scores 0:06:12.120 --> 0:06:15.280 to lenders as a way of like figuring out if 0:06:15.279 --> 0:06:18.800 borrowers you know, or trustworthier which interest rate to give them. 0:06:18.800 --> 0:06:23.039 In all of that, there's auto Fyco scores. There's I mean, 0:06:23.080 --> 0:06:26.000 obviously we all know FICO is like the main score 0:06:26.080 --> 0:06:29.159 used for mortgage lending, but there's an auto version of 0:06:29.160 --> 0:06:32.560 your score. I was just looking it up. There's versions 0:06:32.560 --> 0:06:33.680 of your score for. 0:06:34.200 --> 0:06:37.480 Just like SPYCO eight FEL nine Yes. 0:06:37.960 --> 0:06:41.320 Yeah, like right now, Auto score, bank cards score ten, 0:06:41.400 --> 0:06:44.880 T score ten score nine score eight score eight. I 0:06:44.880 --> 0:06:48.599 guess is the yeah. This this article says there's sixteen different, 0:06:48.960 --> 0:06:53.000 sixteen distinct versions of the FICO score used by creditors. 0:06:53.800 --> 0:06:56.359 And this is experience itself. And if you're using you 0:06:56.400 --> 0:06:59.880 know those like credit score estimate apps like you men 0:07:00.200 --> 0:07:02.719 one called score sense and your question. Also there's like 0:07:02.760 --> 0:07:07.120 Credit Karma, credit Sesame. There's probably more that I don't remember, 0:07:07.760 --> 0:07:11.600 and you know those are estimates and there if there's 0:07:11.640 --> 0:07:15.520 significant differences between age, like I don't know, how could 0:07:15.560 --> 0:07:19.120 I define significant like twenty five points or more, thirty 0:07:19.120 --> 0:07:23.160 point points or more, then maybe there's something amiss with 0:07:23.200 --> 0:07:26.160 one of your credit reports. And it's good to keep 0:07:26.200 --> 0:07:27.960 tabs on all three of her credit reports that you 0:07:27.960 --> 0:07:29.960 get from the three different bureaus that could explain what 0:07:30.040 --> 0:07:31.920 Maybe one of your scores is a little bit different, 0:07:32.520 --> 0:07:35.280 Like for example, if credit sess Tome is pulling your 0:07:35.320 --> 0:07:38.240 score from a certain credit bureau and Credit Karma is 0:07:38.280 --> 0:07:41.480 pulling it from another one and they're very different, then 0:07:41.520 --> 0:07:43.400 I would check the one that's different and see if 0:07:43.400 --> 0:07:46.280 something on your report that they're pulling it from. Has 0:07:46.560 --> 0:07:49.480 there's an error or something hasn't fallen off quite yet. 0:07:50.600 --> 0:07:52.640 But yeah, I just keep that in mind. And you know, 0:07:52.800 --> 0:07:55.200 at the end of the day, if they're like close 0:07:55.320 --> 0:07:57.720 enough to one another, I wouldn't stress out. I feel 0:07:57.720 --> 0:07:59.520 like too much about it and like obsess over them 0:07:59.600 --> 0:08:00.800 every sing on one matching. 0:08:01.600 --> 0:08:05.000 I think they're never it's never all going to match. 0:08:05.000 --> 0:08:07.160 And the truth is I have been like, you know, 0:08:07.240 --> 0:08:11.440 a fifty point difference between my experience vers micro effects 0:08:11.520 --> 0:08:13.920 versus I, you know, because the reason why there are 0:08:13.960 --> 0:08:16.560 a number of FCO scores like eight, nine, ten, twelve 0:08:16.840 --> 0:08:19.800 is that some of those scores have a heavier leaning 0:08:20.280 --> 0:08:23.559 on different types of debt and activity than other scores don't. 0:08:23.680 --> 0:08:26.400 So like the auto loan people might want to know, well, 0:08:26.560 --> 0:08:28.960 I want to see how much that they have in 0:08:28.960 --> 0:08:32.000 installment loans because auto payments tend to be installment loan. 0:08:32.040 --> 0:08:33.960 So I want this type of FYCO score. And the 0:08:34.000 --> 0:08:35.920 credit card people are like, well, we want to see 0:08:36.360 --> 0:08:39.559 like a FIGHTO score that leans heavily on revolving debt 0:08:39.600 --> 0:08:42.640 because we're revolving debt, because credit cards are revolving debt. 0:08:42.960 --> 0:08:45.160 So ultimately your job is not to know all the 0:08:45.240 --> 0:08:47.960 nuance is just to have a decent score in general, 0:08:48.000 --> 0:08:50.280 and you should be fine across the board. I don't 0:08:50.320 --> 0:08:52.680 worry about my score, like honestly, I'm probably gonna drop 0:08:52.720 --> 0:08:56.000 like thirty stinking points for forgetting to pay make that payment, 0:08:56.040 --> 0:08:56.679 But what do I care? 0:08:56.960 --> 0:08:58.920 IM just call them and get them to like, not, 0:08:59.520 --> 0:09:00.640 how do when is it? 0:09:00.760 --> 0:09:02.280 So now it wasn't. I'm going to probably call Bank 0:09:02.320 --> 0:09:04.840 of America and just say, oh, girl, I forgot. But 0:09:05.040 --> 0:09:06.640 I never forget because I don't use the card. But 0:09:06.640 --> 0:09:08.640 you're right. I could probably call them and say you 0:09:08.640 --> 0:09:10.760 didn't report it, did you? Because they didn't say I 0:09:10.840 --> 0:09:13.080 just logged on randomly No. I got an email. Bank 0:09:13.080 --> 0:09:14.880 of America was like, girl, make a payment. I'm like 0:09:14.880 --> 0:09:18.240 a payment and if my first instant was soone stole 0:09:18.320 --> 0:09:19.640 my car and I was like, oh that's right, that 0:09:19.720 --> 0:09:23.400 was me in Jordian. So but I went to make 0:09:23.400 --> 0:09:25.000 a payment. It was like, girl, you're late, and I 0:09:25.040 --> 0:09:26.760 was like, damn, So you're right. I probably will call 0:09:26.800 --> 0:09:28.320 Bank of America and be like, don't tell all me. 0:09:28.720 --> 0:09:31.760 But the truth is, I don't worry about my credit score, 0:09:32.840 --> 0:09:35.600 like for real, unless I'm like I think to myself, 0:09:35.600 --> 0:09:37.480 in the future, I need to borrow something, because that's 0:09:37.480 --> 0:09:40.680 the purpose of it. Your credit score is so you 0:09:40.760 --> 0:09:44.280 can qualify to borrow something at a good rate. I 0:09:44.280 --> 0:09:46.960 don't like the car I have is paid off. I 0:09:46.960 --> 0:09:49.520 don't have a mortgage, and so I'm not going to 0:09:49.559 --> 0:09:52.400 be renting an apartment anytime soon. But certainly you want 0:09:52.440 --> 0:09:54.679 to keep a decent credit score just in case. But 0:09:54.840 --> 0:09:57.560 I wouldn't stress so much over him and just continue 0:09:57.600 --> 0:10:00.280 to collect good quote unquote grades to off at that 0:10:00.320 --> 0:10:03.160 credit GPA your score, so the more age you can get. 0:10:03.480 --> 0:10:06.400 When my score felt significantly in my twenties, I actually 0:10:06.400 --> 0:10:08.400 did that with two cards where I paid it off 0:10:08.440 --> 0:10:11.080 every month in full, and that really helped to expedite 0:10:11.160 --> 0:10:16.600 bringing my score up. So good good luck to you, Regina. 0:10:16.840 --> 0:10:19.320 Good luck Regina. Thank you for your question, and we're 0:10:19.320 --> 0:10:21.160 actually going to take a quick break when we come back. 0:10:21.200 --> 0:10:23.800 We have another question that is just to your point, Tiffany, 0:10:23.880 --> 0:10:27.280 talking about that delicate timeline when you want to do 0:10:27.360 --> 0:10:29.480 something that you know is a little credit noddy that 0:10:29.520 --> 0:10:32.080 could impact your chances of getting a good rate on 0:10:32.120 --> 0:10:32.920 a future purchase. 0:10:33.000 --> 0:10:33.960 Not naughty creditor. 0:10:36.200 --> 0:10:38.040 We'll take a quick break and be right back with 0:10:38.040 --> 0:10:43.120 more y'all's questions. All right, b a qa, we are 0:10:43.200 --> 0:10:45.640 back with another one of your questions. Hit us up 0:10:45.640 --> 0:10:48.680 at Brandanbission podcast dot com if you'd like to submit 0:10:48.720 --> 0:10:51.000 a question. You can ask us anything there. You can 0:10:51.040 --> 0:10:53.800 also slide into our dms on ig. We are at 0:10:53.840 --> 0:10:57.440 brand Ambission Podcast on Instagram, or you can email us 0:10:57.480 --> 0:11:02.280 Brandonbission Podcast at gmail dot com. All right, this one 0:11:02.320 --> 0:11:06.240 comes from Yordiana. Yodiana says I was just or I 0:11:06.360 --> 0:11:09.360 just recently got approved for an FAHA loan. The problem 0:11:09.480 --> 0:11:11.480 is that for the market I got the loan in 0:11:12.160 --> 0:11:14.880 the loan, which is four hundred and twenty thousand dollars, 0:11:15.000 --> 0:11:17.760 is not enough for my big family. As an immigrant, 0:11:17.800 --> 0:11:20.640 I'm the only one that qualifies at this point to 0:11:20.720 --> 0:11:23.480 make this stream come true for my parents. I make 0:11:23.600 --> 0:11:26.440 mid income at one hundred and sixty K, but I'm 0:11:26.480 --> 0:11:29.680 not approved for a higher loan than what Fight goes 0:11:29.720 --> 0:11:31.920 offering because my credit score is pretty low it's six 0:11:31.920 --> 0:11:35.000 point fifty. I also got in a car accident back 0:11:35.000 --> 0:11:37.240 in November, so I need to get a new car 0:11:37.480 --> 0:11:42.000 and was waiting on purchasing a home until after the home. However, 0:11:42.080 --> 0:11:44.080 now I'm thinking I should buy the car and wait 0:11:44.120 --> 0:11:48.319 for the credit score to qualify me for a bigger loan. However, 0:11:48.559 --> 0:11:51.120 would it be better to get the car and use 0:11:51.160 --> 0:11:54.600 the down payment for that or hold on? Interest rates 0:11:54.600 --> 0:11:57.600 are going up and gas prices are ridiculous. Thank you 0:11:57.720 --> 0:12:01.520 so much for some contact. I work from home, so 0:12:01.600 --> 0:12:03.760 I don't need a car, but maybe if I bought 0:12:03.760 --> 0:12:07.360 a car it could help my credit score to Oh 0:12:07.480 --> 0:12:10.160 this is juicy and juicy, where do we even start, 0:12:10.240 --> 0:12:11.360 my goodness, Well. 0:12:11.200 --> 0:12:13.400 One thing I think that she made a misstep on 0:12:13.640 --> 0:12:18.080 is that your credit score is not the thing that's 0:12:18.120 --> 0:12:21.720 affecting how much you can borrow. Your credit score is 0:12:21.720 --> 0:12:24.400 really going to affect the rate at what you can borrow. 0:12:24.480 --> 0:12:26.760 So I wanted to just for her for some clarity 0:12:26.960 --> 0:12:28.920 that even if you got your credit score to eight fifty, 0:12:29.440 --> 0:12:31.600 it doesn't mean they're going to let you borrow more 0:12:31.840 --> 0:12:36.520 necessarily because you're borrowing the amount is really based upon 0:12:36.920 --> 0:12:40.920 another score called your debt to income ratio, meaning how 0:12:41.000 --> 0:12:44.360 much do you make versus how much do you spend 0:12:44.400 --> 0:12:46.400 on debt every month? They want to just kind of 0:12:46.440 --> 0:12:50.280 know do you have enough money to pay for this house. 0:12:50.480 --> 0:12:51.679 And so even if you have an eight to fifty 0:12:51.720 --> 0:12:53.240 credit score but you make two dollars a month, they're 0:12:53.240 --> 0:12:54.400 not gonna be like, oh my god, with this eight 0:12:54.400 --> 0:12:56.280 to fifty girl, were going you can buy a million 0:12:56.320 --> 0:12:58.719 dollar house. It's like, no, you don't make enough. So 0:12:59.120 --> 0:13:01.079 I just want to just make that clarity that, like, 0:13:01.280 --> 0:13:03.600 they're not gonna let you necessarily borrow more because you 0:13:03.600 --> 0:13:05.320 have a better credit score, but you will borrow at 0:13:05.360 --> 0:13:08.920 a better rate, and you know it might bump you 0:13:09.000 --> 0:13:10.559 up a little bit, like you know, because the rate 0:13:10.679 --> 0:13:13.600 is better that you can afford to, like like your 0:13:13.720 --> 0:13:16.880 your mortgage payment would be lower, and maybe you could 0:13:16.880 --> 0:13:18.840 afford a little bit more house, but it won't make 0:13:18.840 --> 0:13:21.120 it as significant as much of a difference as like 0:13:21.240 --> 0:13:24.120 just making more. But I will say this what you 0:13:24.160 --> 0:13:26.679 can think about since you have a big family. This 0:13:26.720 --> 0:13:28.959 is what my husband and I and the time we're 0:13:28.960 --> 0:13:32.319 thinking about is to get a multi family house because 0:13:32.360 --> 0:13:35.480 what they will let you do is because for example, 0:13:35.640 --> 0:13:37.520 same thing with Jarell. We were looking for a home 0:13:37.960 --> 0:13:40.840 and I could not because I had a foreclosure that 0:13:40.920 --> 0:13:43.240 was still active on my credit score. So they're like, girl, 0:13:43.320 --> 0:13:47.760 kick Tiffany off this mortgage application. So what he was 0:13:47.800 --> 0:13:50.680 able to afford wasn't as much as we wanted to 0:13:50.720 --> 0:13:53.120 in order to purchase a home. But they're like, if 0:13:53.160 --> 0:13:55.840 you get a multi family house, they will take the 0:13:55.960 --> 0:13:59.360 rent that you'll get into consideration for more income. I 0:13:59.360 --> 0:14:02.040 think it was about sixty percent. So let's just say, 0:14:03.080 --> 0:14:04.640 let's just for easy numbers, at my house with making 0:14:04.640 --> 0:14:06.760 one hundred thousand dollars a year, and they were like, 0:14:07.040 --> 0:14:09.000 your rent was going to pay you for the house 0:14:09.640 --> 0:14:13.080 one hundred and fifty thousand dollars. They would take sixty 0:14:13.120 --> 0:14:16.280 percent of that and add it to his income to say, 0:14:16.480 --> 0:14:18.679 when you live in this house, this rent is going 0:14:18.720 --> 0:14:22.240 to help increase his income, and so we can include 0:14:22.240 --> 0:14:24.760 that to allow you to afford more house. So consider 0:14:24.840 --> 0:14:27.520 a multi family house and that rent might be able 0:14:27.560 --> 0:14:29.640 to boost up what you could afford as far as 0:14:29.640 --> 0:14:32.840 the house was concerned. So that's just something to think about. 0:14:33.920 --> 0:14:36.240 Yeah, especially if she's like purchasing it sounds like a 0:14:36.240 --> 0:14:39.800 house for her big family, Yeah, like multi generational. First 0:14:39.800 --> 0:14:40.960 of all, I feel like my heart goes out to 0:14:40.960 --> 0:14:43.680 her because that's a lot of burden, Yeah, for your shoulders, 0:14:43.680 --> 0:14:45.920 And I feel like one sixty k sounds like so much, 0:14:45.960 --> 0:14:48.760 but we know in this economy, like she mentions gas prices, 0:14:49.280 --> 0:14:52.560 interest rates going up on mortgages, it's really freaking hard. 0:14:52.800 --> 0:14:54.640 I question though, I'm like going back to her question 0:14:54.680 --> 0:14:57.120 four hundred and twenty K, so I was just quickly 0:14:57.120 --> 0:15:00.160 doing some googles to see so that's like the minimum 0:15:00.400 --> 0:15:03.000 well faha loans again, like they're meant for the first 0:15:03.000 --> 0:15:05.720 time home buyers. People with lower income and lower credit 0:15:05.720 --> 0:15:08.520 scores can qualify, and you know, they're a great entryway 0:15:08.560 --> 0:15:12.360 into home ownership, but because they are federally backed, they 0:15:12.400 --> 0:15:15.520 have some limitations, and depending on where you live, the 0:15:15.640 --> 0:15:18.200 limit for how much you can borrow can be capped. 0:15:18.320 --> 0:15:20.440 So four twenty is at the lower side of that limit. 0:15:20.520 --> 0:15:22.720 I wonder if she's not asking about what if she 0:15:22.800 --> 0:15:25.680 wants to borrow additional on top of that four twenty, 0:15:25.720 --> 0:15:29.280 because it's not enough to afford the like the size 0:15:29.320 --> 0:15:32.160 of a home that she's wanting. And if that's the case, 0:15:32.200 --> 0:15:34.840 that may explain where her credit score comes in, because 0:15:34.920 --> 0:15:38.600 if you're getting like a jumbo faha, like that's actually possible. 0:15:38.640 --> 0:15:41.280 So that's like when you there's a cap on how 0:15:41.360 --> 0:15:43.880 much you can borrow with the product the faha loan 0:15:43.960 --> 0:15:46.680 and if you want more because the home is do 0:15:46.680 --> 0:15:48.920 you want four family members to live with? You need 0:15:48.920 --> 0:15:50.680 to bring her home. It costs more than four twenty, 0:15:51.120 --> 0:15:52.920 which Jesus like, you can't even get homes in my 0:15:52.960 --> 0:15:56.680 neighbor for four twenty right now, is nuts? And anyway, 0:15:56.720 --> 0:15:57.000 you talk. 0:15:56.880 --> 0:15:57.360 About that later. 0:15:57.360 --> 0:16:01.440 But so you would need an additional loan on top 0:16:01.480 --> 0:16:04.520 of that four twenty And depending on the lender, they 0:16:04.560 --> 0:16:07.320 may have credit score requirements to even approve you for 0:16:07.360 --> 0:16:11.360 that loan. So I wonder if that's what she's saying. Okay, 0:16:11.800 --> 0:16:15.280 but regardless like that, that would explain, you know, regardless 0:16:15.400 --> 0:16:19.520 like getting a car, then for sure could hurt your 0:16:19.640 --> 0:16:23.080 chances of getting approved for that higher loan. It's like 0:16:23.960 --> 0:16:26.840 financial double dutch. I feel like every decision is financial 0:16:26.880 --> 0:16:28.440 double dutch, Like when do I do this? 0:16:29.960 --> 0:16:32.200 Like, well, no, I have to actually do it, like 0:16:32.320 --> 0:16:34.680 really authentically. You gotta gotta hold your chest down. That's 0:16:34.720 --> 0:16:37.160 how you knew you was grown. I want them to 0:16:37.200 --> 0:16:38.600 be so bad. I wanted to be one of the 0:16:38.640 --> 0:16:41.160 double chests girl because I had no chest and I 0:16:41.280 --> 0:16:44.960 was like, oh my gosh, I mean you know they did. Yeah, 0:16:45.120 --> 0:16:47.120 it was like because even though we had no chest 0:16:47.280 --> 0:16:50.640 like this like a technique. No, it was like she's 0:16:50.640 --> 0:16:53.240 supposed to be like, oh my god, I'm entering puberty 0:16:53.320 --> 0:16:55.200 and like I have to hold my chest down. It's 0:16:55.200 --> 0:16:58.200 too much. Meanwhile, we're all of eleven, like girl, what 0:16:58.280 --> 0:17:01.240 are you doing? But no, you're right that that might 0:17:01.280 --> 0:17:06.439 be the case, but consider multifamily, but also too The 0:17:06.560 --> 0:17:09.040 problem is, like I said, that debt to income ratio, 0:17:09.640 --> 0:17:12.600 purchasing a house is not just going I mean, purchasing 0:17:12.600 --> 0:17:15.080 a car now is not just going to affect you know, 0:17:15.119 --> 0:17:17.720 maybe your credit score, you know, because you're I'm assuming 0:17:17.720 --> 0:17:20.760 you're gonna you know, finance and they're gonna have to 0:17:20.800 --> 0:17:22.600 like run your credit that your credit score is going 0:17:22.640 --> 0:17:25.359 to take a dip. But also now you are going 0:17:25.400 --> 0:17:27.439 to affect your debt to income ratio because they're going 0:17:27.480 --> 0:17:31.280 to say you owe someone else, Like mortgage companies are jealous. 0:17:31.400 --> 0:17:33.760 They don't want you to have other booze. You have 0:17:33.760 --> 0:17:36.360 to pay money to this, right, and so now you're 0:17:36.359 --> 0:17:40.399 gonna oh, like, oh, you owe the car company tooown 0:17:40.520 --> 0:17:43.800 no child. So I especially since you don't need a car, 0:17:44.359 --> 0:17:47.600 you know, I would work really hard if if you're listening. Well, 0:17:47.600 --> 0:17:50.359 obviously you're listening. The question before this talked about we 0:17:50.359 --> 0:17:52.320 talked about how to raise your credit score. I would 0:17:52.400 --> 0:17:55.480 lean into those techniques of raising my credit score and 0:17:55.680 --> 0:17:59.240 work on the home. I would also consider like a 0:17:59.240 --> 0:18:01.199 really great program. I like, I know you've been approved 0:18:01.200 --> 0:18:05.640 for faha, but consider this program called NAKA. We talked 0:18:05.680 --> 0:18:09.560 about it before. NACA's NACA NACA dot com stands for 0:18:10.520 --> 0:18:14.600 the Neighborhood Assistance Corporation of America, and it sounds like 0:18:14.600 --> 0:18:16.800 you're a first time home buyer. They will get you 0:18:16.920 --> 0:18:20.280 even lower interest rates. It's a long process, but you 0:18:20.320 --> 0:18:21.919 have to raise your credit score any races, so you 0:18:22.000 --> 0:18:25.919 have SUN okay, but with NAKA you'll get like, you know, 0:18:26.040 --> 0:18:28.840 I'll give you an example, maybe if interest rates were 0:18:28.880 --> 0:18:32.399 currently So, my's brother in law is buying the house 0:18:32.440 --> 0:18:36.200 that Drell and I purchased together for a rental property. 0:18:36.200 --> 0:18:37.840 But I don't want to be a landlord. Drell wanted 0:18:37.880 --> 0:18:40.000 to be a landlord, and so we're selling it to 0:18:40.040 --> 0:18:42.320 his twin, which is awesome because he actually painted it 0:18:42.320 --> 0:18:45.200 for us. He's a master painter, so it's like, you know, 0:18:45.359 --> 0:18:48.000 this is great. The house gets to stay in a family. 0:18:48.200 --> 0:18:51.080 He loves that house, but he was going for the 0:18:51.119 --> 0:18:53.400 FAHA loan route, which he's got a good credit score. 0:18:53.480 --> 0:18:55.480 And then my sister was like, don't forget about NACA. 0:18:55.880 --> 0:18:57.960 Right now, interest rates are like five and a half 0:18:58.000 --> 0:19:01.040 six percent. NACA is offering three and a half percent, 0:19:01.640 --> 0:19:05.920 significantly lower. It's going to lower his monthly payments significantly. 0:19:06.320 --> 0:19:09.280 And now it's a process because he won't be able 0:19:09.280 --> 0:19:12.000 to close until like another like two or three months, 0:19:12.080 --> 0:19:14.280 so it's like a six month process, but it's gonna 0:19:14.280 --> 0:19:16.399 probably take you about six months to raise your credit score. 0:19:16.920 --> 0:19:19.040 I would use that time sign up for NAKA now, 0:19:19.800 --> 0:19:22.600 so maybe you can lock in an even lower interest rate. 0:19:22.600 --> 0:19:25.639 I mean, I don't know what fat interest rates are 0:19:25.720 --> 0:19:27.800 right now, but nacause are the lowest in the country. 0:19:27.840 --> 0:19:33.439 So just consider NACA dot com. That's just not going 0:19:33.480 --> 0:19:35.080 to offer their own type of loan. 0:19:35.119 --> 0:19:36.480 Or is it like an FAH loan. 0:19:36.880 --> 0:19:39.320