Painted it like six different colors. Alright. Tell me more about the great eighties lampstand.
Well, when I bought it first, it was white and then I painted it blue. It basically got painted every time I changed the color scheme of my bedroom. So I went through blue, green, black. I painted it silver. And then I think it ended with copper. So a lot, a lot of paint on that.
And what kind of lamp do you have in your office today?
I actually don’t have a lamp today. You know what? I take that back. I have one of those, what’s it called? It’s like a corner lamp. It’s like five, six foot tall. Got a nice little, I’ve lost the name of the lampshade. That’s what it is. It’s got a lampshade on it that looks like France. So it’s very nice. It’s got a picture of the Eiffel tower and stuff. Yeah.
Okay. Pretty cool. So let’s get back to when we were talking about our last podcast and we were talking about once again, and this is Mark Morley at insureUOklahoma. And this is the home insurance Tulsa podcast. Today. We’re talking to Josh Holford of cityscape mortgage. Josh, give me some reasons why someone wouldn’t get a mortgage or things that they would have to work on in order to get a mortgage.
So things that most have to work on to get a mortgage would be credit. That’s typically what we see is something that prevents somebody from getting a mortgage right now, because of all of the COVID overlays. The requirement for credit is a little bit higher at six 40. Typically it’s five 80, but with COVID six 40 is kind of a minimum score. The good news is that we do have some ability to work on those scores. So someone applies and they don’t have credit where it needs to be. We can put a plan together to do that in a short amount of time. Now, if we can’t do that, then we connect them with someone who just does credit repair, but that’s the primary reason people don’t buy a house. The other reason is money. People think that they need 20% down to buy a house. And in the past it has been a city. There has been a situation where you need 20% down to buy a house, but now you can get away with as little as 3% down. If you’re a first time home buyer and a conventional 3% down, we’ll get you done. And we have down payment assistance programs that are pretty phenomenal, which really eliminate out of pocket. So there’s a lot of ways to get into a house regarding cash in hand down payment expenses, closing costs, that kind of stuff. Right? So
That’s fascinating to me because home insurance Tulsa I, I always thought repairing a credit took a long time. What are some of the tools you use to repair credit in the short amount of time and how many points are you talking about? How much can you?
So the biggest impact I’ve been able to do is about 75 points in a 10 day period. And the way that I was able to do that credit is based on primarily the most of your score is built on history. So how long is your history on a credit line and the balance or the, the amount that you have used? So if you have a thousand dollar credit card, it’s a thousand dollar limit and you’re using $999 of it. You’re high risk. You’re going to have a lower school score because you’re utilizing more of your credit availability. So if you bring that level down to around $50, now you’re using your credit, but you’re not using a ton of it, which impacts your score in a positive way and bumps your score up pretty high. The fastest way to turn score around is to open up a new credit card, $500 limit, spend $10 and wait 45 days. That’s the fastest way to bumper school. That’ll bump you 20, 30 points, no
Magic. I think that’s gonna be a wait. No, I guess the protectors growing up, picked it up. Okay. A couple other things.
I mean, that’s one of the biggest things is opening up a new credit line and utilizing that. The other things that we look at is a lot of people think that medical collections are gonna prevent them from getting a house, but we actually don’t count medical collections against the borrower. Medical collections are something that we exclude right off the bat. Now, if you’re looking at other collections that are not medical, we do count those against the borrower. If they’re over $2,000. So eliminating some of those collections can also be a positive. Really the trick is that when we pull credit, we use a third party service to do that. We don’t want the liability of holding all that information. So we use that third party. That third party has a tool where we log into the back office, if you will. And we adjust all the numbers on your credit card balances and payment history, that kind of stuff. And we can tell how fast we can bump a score and how much that’s when I can go in. And if you do have a credit card with a high balance, I can lower it. And it’ll tell me how that will impact your score and how quickly it will. So that’s really one of the best ways to adjust the credit scores.
We at home insurance Tulsa at insureUOklahoma. We do work with a lot of mortgage brokers and we’re proud to be your business partner. We do occasionally get a lender who will tell us what a insurance rate has to be because they’re trying to get the rate lower. Sometimes it doesn’t matter, but I know we’ve, we’ve personally had people would be shocked at how much insurance costs and I think it could affect how they afford the home or not on a monthly basis. But what would be a reason why you would need a policy to be below a certain number, either below 2000 or below $1,500?
So the biggest reason we need the ability to adjust an insurance rate on a monthly basis is for debt to income ratio, because we have caps on those numbers. We have guidelines. We have to follow. If it’s a conventional, it needs to be
Becca, go back and explain the debt to income ratio.
So debt ticket debt to income ratio basically means it’s a percentage of your gross monthly debt that we can utilize to serve. It’s a percentage of your gross monthly income that we can use to service debt. What’s a good number for that. 45% is really the sweet spot. Okay? Lower, the better lower, the better we can go up to 50, but really what we’re looking at is keeping that ratio around 45%. So basically saying 45% of your gross monthly income goes to service your house payment, your car payment, your credit card payments, anything that reports to credit, but your house payment goes into that. And home insurance Tulsa is a part of it. So if we’re too high. Yeah. So if we’re too high above a ratio, let’s say where we have 46%, but we need 45. The easiest way to adjust that number is by lowering the insurance premium. And it’s really because we can adjust taxes. We can, we can look at interest rate and lowering payment, but that does not significant enough to drop it.
Well, if someone’s at that line, you’re not lowering interest rate because they’re not the best risk is if someone’s at 30%.
So we’re looking at what can we adjust on their monthly debt? And if we can’t pay off a $25 credit card with a $25 a month payment were gonna lower the insurance premium. And so having a partner that is, has the ability to make that adjustment, that’s important because we need to do that. And that’s for what home insurance Tulsa.
Excellent. is there a percentage of total principle, interest tax and insurance that you’d like to see as a percentage of gross income?
Just on the house payment or on the home insurance Tulsa too? Yeah. I mean,
Total, hang on. I think I’m getting better. So total principal, interest taxes and insurance to gross income. Is there a number of theory like to see, instead of all debt I’m talking about just the housing payments.
Honestly, I, I don’t myself. Look at that ratio. I look at the total because I want to make sure that their total monthly debt, because it could be different in every situation. If they have a giant car payment, then we know we’re not gonna have a giant house for people to go along with it. We just have to stay around 45% and that’s, what’s going to guide how much house they can buy
And your sweet spot when it comes to borrowers. First time, home buyers, jumbos, what do you guys look for? What do you do the most?
There are so many different numbers for each program and each scenario it’s really, really difficult to pin one down. But I would say if you, if we can keep a borrower at 45%, that will open up potentially every program that we have access to 45% is really the sweet spot.
And in our next episode, I would like to talk about jumbo loans and the differences and explain what they are to people. But we’ve kept Josh long enough today talking about home insurance Tulsa and mortgages in Tulsa and why the whole insurance also can matter to a mortgage. So are you ready for the next lightning round? Yeah, let’s do it. Alright. If you could be any animal, what would it be and why?
If I could be any animal, I would say probably an Eagle and the reason I would be an Eagle is because they, there, first of all, they’re protected by the United States government. So I’m not, I have really good chunk chance of living. But also the ability to fly has always been a fascination of mine. I wanted to get a pilot’s license when I was young and, and never pursued that. Maybe I will pursue it in the next couple of years, but to the ability to fly and to be this giant bird, with the ability to fly and dive into water and catch fish and do all that kind of stuff, it just seems really cool to me.
Okay. That’s wrong. You would be a hedgehog. Okay. Because if you’ve ever read good to great, the hedgehogs are the one who ended up being successful because they keep their head down and they work on business and they do what it takes to be successful. And I’ve known you for a few years and there have been distractions. There have been setbacks, but you’re someone that I admire because I know you’ve put your head down and you’re now enjoying the success of being that hedgehog. So the correct answer was hedgehog. I’m sorry. Okay. Okay. Next question. If a movie was made of your life, what genre would it be and who would you play? Oh man.
Most likely it’d be like a hallmark movie. Maybe lifetime, depending on which way you want to go with it, depending on what the ending looks like. It’s not the husband with three wives. No, no, it’s not the, no, it’s the, it’s the guy with the family. That’s crazy. And all of the distractions at definitely at Christmas hallmark movie, my kids are infatuated with Christmas. So yeah,
Our role would be your character.
My character would be the husband providing for the family and making sure Christmas is the best one they’ve ever had.
So you just described, it’s a wonderful life. I agree. That is 100% correct. And that’s all we have. Thank you, Josh. Thank you.