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credit scores

Real Estate and the 80-20 Rule

The Economy’s Gordian Knot “For many events, roughly 80% of the effects come from 20% of the causes.” –The 80-20 Rule, also known as the Pareto Principle My corollary to the 80-20 Rule in today’s housing market:  Twenty percent of prospective home Buyers can get financing on a home of their choice, on terrific terms....
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"Would Your Client Consider a CD?"

Low Rates . . If You Qualify Last year, I heard that question from would-be Buyers maybe 3 times. This year, I’ve logged that question three times . . . just this week! And that, with mortgage rates plumbing all-time lows: just above 4.5% to those with impeccable credit. Which, of course, is the catch....
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"Don’t Buy That New Car/Boat/etc. Till AFTER You Close"

New Fannie Mae Credit Check Planning on a(nother) major purchase, but haven’t closed on your home yet? Better hold off. That’s because Fannie Mae has just announced plans to pull Buyers’ credit a second time — this time, up until 5 days before closing (credit check number one is when the Buyer initially applies for...
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Not Your Father’s Bankruptcy

What’s So Bad About Bad Credit?? For many consumers, preserving one’s credit rating is one of those sacrosanct, preserve-at-all-costs values. But what if you don’t plan to buy anything? Or are afraid to? Or simply can’t afford to? Then, a trashed credit rating really may not matter so much. Especially if it means ditching a...
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Credit Score Pitfalls

Cash Buyers “Off the (Credit Score) Radar”I can’t say I’ve run into any as clients, but an article in today’s Wall Street Journal makes the counter-intuitive point that simply not using credit — as opposed to using it irresponsibly — can lower your credit scores (“Credit Score Pitfalls of the Wealthy“). As the article notes,...
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