March 24th, Monday Market Update and Mindset Call with Nikki, Cari and Angie

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Mortgage interest rates are currently in the mid to high sixes, with positive movement expected as housing data reports are released this week and reciprocal tariffs appear less impactful than initially feared.

• Consumers without credit scores can qualify for mortgages through both FHA and conventional loans using non-traditional credit
• Having no credit score often results in better interest rates than having a low credit score
• Parents can help children establish credit by adding them as authorized users on credit cards at age 16. Establishing three trade lines with 12 months of payment history provides optimal mortgage qualification
• Success in real estate comes from stepping outside your comfort zone and doing the things you've been avoiding

Make it a goal to do something uncomfortable at least once a week that pushes your boundaries, because growth happens when you're uncomfortable.

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Episode Transcript

Speaker 1 (00:02):
Thanks everyone again for your patience.
Nikki, I'll let you get rightto it.

Speaker 2 (00:06):
Well, good morning everyone and happy Monday as
usual.
So, mortgage interest ratesthis week.
It's going to be a veryinteresting week this week
because we're going to begetting a lot of data about
housing prices, mortgageapplications, how things are
going from a shelter standpoint.
We're going to get a lot ofreports that are coming out that
talk about how the home saleshave been going so far this year

(00:29):
, and so that's going to startto play into what the mortgage
interest rates are going to dothis week.
Right now we're seeing 30-yearfixed in the mid to higher sixes
, which is good.
We've seen some positivemovement on that.
The one thing that we also havecoming up that we're going to
want to take a look at afterthis week is the reciprocal
tariffs and what that's going todo to the stocks and bond

(00:50):
market.
If we get some good informationthis week from a PPE standpoint
and from a housing standpoint,we should get to see a rally
towards the end of the week onbonds, which means when we have
a rally on bonds, it usuallyjust means that mortgage
interest rates are going to dipa little bit lower than what we
saw in previous weeks andprevious time this week, so

(01:11):
we're really hopeful for that.
The tariffs are going to, ifthey go into effect from a
reciprocal standpoint, those aregoing to affect the bond market
.
We're not entirely sure howmuch at this point, but it
sounds like the amount oftariffs and the specific
products that are going to besubject to those tariffs have
narrowed down a lot, which meansthat they aren't going to be to

(01:37):
the degree that was originallythought.
So that's actually good newsfor us, good news for the bond
market, because it won't createas much volatility as it could
have if we were in facttariffing that many countries
for that amount of reciprocaltariffs.
So we'll kind of keep an eye onthat.
Things are looking good, like Isaid, mid to high sixes for
30-year fixed loans, which iswonderful.

(01:58):
I did want to talk about today asubject that has came up, which
is that you actually have Ihave some clients right now who
actually do not have creditscores.
So they're younger, they're intheir, you know, mid twenties or
low to mid twenties, and theyactually came to me to get
approved for a mortgage and theydo not have a credit score.

(02:19):
So it got me thinking like howmany people know that you
actually do not need to have acredit score in order to get a
mortgage.
It used to be that FHA was theonly one that would allow this
by establishing what we callnon-traditional credit.
Non-traditional credit isestablishing payment history on
things like cell phones,utilities, rents, electricity,

(02:42):
things like that, where theyhave a positive pay history and
we can document that they'vemade 12 on-time payments, and
then they are not required tohave a credit score in order to
obtain a mortgage.
We can do that now, not only onthe FHA side, but we can also
do that on the conventional side.
Fannie and Frenny both haveallowances for clients who do
not have credit scores.

(03:03):
Believe it or not, not having acredit score gives you a better
interest rate than having a lowcredit score.
So it's really interesting thatyou can absolutely obtain a
mortgage without a credit score,and it's really interesting
that even it's better toactually not have a score than
it is to have a low credit score.
So just an interesting tidbitand something to keep track of,

(03:23):
as we kind of see first-timehomebuyers come through and we
can talk through either one,establishing a credit history,
or number two, just still doingthe mortgage without the credit
history.

Speaker 1 (03:36):
Yeah, that's so interesting because I know way
back when, when my husband and Iwent to get approved, he didn't
have one because he just wastaught, you know, I mean we're
almost 50.
So back then it was like stayaway from credit cards, you know
, don't do this.
So he just did everything cashand he didn't have any of that
history.

(03:57):
So it's good to hear that nowthat's kind of coming around,
any of that history, so it'sgood to hear that now that's
kind of coming around, would yousay, just as we're talking to
the youth of today or justhelping people that are going to
be coming up and coming forthat, for purchasing a home or
getting a mortgage, what aresome things that we can instruct
either our kids to do, or ourcousins or our nephews and

(04:21):
nieces in order to get ready?

Speaker 2 (04:23):
One of the best things a parent can do for a
child who is 16 or older is toput them as an authorized user
on one of their credit cards.
What that does is it allows thischild to establish credit
history that is from the parents, but as long as they're an
authorized user.
That credit history thenbecomes their credit history.
So when they turn 18 and theygo to get their first car or

(04:45):
they get to go to get theirfirst credit card or whatever it
is they actually have a creditscore already and that credit
score as long as the parent isobviously paying on time, et
cetera that credit score isusually starts off around
between 750 and 800.
So it's really nice to be ableto have that.
Do that for your child, or youcould do it for pretty much

(05:05):
anyone a niece, a nephew,whatever you want it to do but
it helps them to establishcredit history and gives them
the opportunity to build morecredit over time and also allows
them to, right off the bat,have that score, which means
that normally they'd pay lessinterest rates or lower interest
rates by having a higher creditscore.

Speaker 1 (05:24):
I love that.
That's great.
Is there anything else we cando for our kids besides putting
them on a credit card that youcan think of?

Speaker 2 (05:32):
Yeah, if they have a car that they want to buy,
co-sign a car loan or have themdo a 12-month car loan or
something of that nature.
What we really want to see isthat they've made 12 on-time
payments, and when we run ourautomated underwriting, it's
looking for credit history overthe last 12 months, and so we
really want to make sure that,if we can help them establish at
least three trade lines, thatwe do that for them for an

(05:52):
entire year, because that'swhat's really going to help
drive credit scores and it'sreally going to help from a
mortgage qualificationstandpoint as well Not required,
but it does help.

Speaker 1 (06:03):
Yep.
So three trade lines is whatwe're looking for.
Correct, Good no.

Speaker 2 (06:10):
I love that.
So could that be threedifferent credit cards?
Or it can be three differentcredit cards.
It can be a car loan, it can beyou know what combination of
all three student loan, whateverit is at least three trade
lines that they are paying onNow.
If they're not paying on theirstudent loan, whatever it is at
least three trade lines thatthey are paying on Now.
If they're not paying on theirstudent loan, that one doesn't
really count.
But if they are still wantingto pay on that student loan
while they're in school orwhatever that is, as long as
there's a payment history,that's what we're looking for.

Speaker 1 (06:32):
Got it.
Love that.
Yeah, so timely.
My son turned 16 today.
There you go.
Well, happy birthday to him.
I love it.

Speaker 2 (06:39):
happy birthday Maybe his present will be an
authorized user card.
Oh, they'll have to have a goodconversation before that.
Well, see what I, what I woulddo, is I would do, I would put
my kids on as authorized user,and then I would never give them
the credit card.
It makes sense yeah, so thatthey weren't spending on it.

Speaker 1 (06:58):
I like that.
That's good, that's good.
Well, wonderful, raul, do you?

Speaker 3 (07:04):
have any questions for Nikki or myself?
No, so, nikki?
Do they even know that you haveput them as authorized users?

Speaker 2 (07:12):
They do when they turn 18, but not before that.

Speaker 3 (07:13):
Yeah, that's wise.
I will do that as well, becausemy son is turning 15.
So this is about the right time.
Thank you for the tipabsolutely absolutely perfect.

Speaker 1 (07:24):
Well, wonderful, well , I, I appreciate it and I guess
you know I just sent out um anemail this morning to, uh, some
of the growth collaborative andagents that I work with here and
my whole mindset thing for thisweek is really just to do
something that makes youuncomfortable or that you've
been putting off.

(07:45):
I know that so many times wemake you know like someone will
pop in our head that we shouldcall or you know, especially if
it's business related, or wedon't want to reach out or we
don't want to bother them or wedon't want to appear salesy, and
I just say kind of, get over it, because we're in our own heads
so much and telling ourselvesthese stories or what they're

(08:05):
going to think or what they'regoing to say, and it's just most
of the time, not true.
So my whole thing is, as we'regoing into this spring market
and things are heating up, dosomething at least once a week,
if not once a day that makes youa bit uncomfortable, because,
again, the growth happens whenyou're uncomfortable.

(08:26):
If you stay comfortable andkeep doing what you're already
doing, you're going to keepgetting what you already got.
So if you do want that biggergoal or that thing that's just
out of your reach.
Know that it's when you becomedifferent and you stretch
yourself and you get used to andyou get comfortable being
uncomfortable.
That is where the magic and thebeauty and the goals happen.

(08:50):
So, yeah, I just want toencourage everyone to even if
it's just one thing this weekthat you've been putting off or
that just makes you a little bituncomfortable or a lot a bit
uncomfortable, do it and do itnow and don't wait for sure.
Well, good, well, as usual.

(09:10):
Everyone, thank you so much forjoining.
I appreciate you all and I'llget the recording on my YouTube
channel and podcast andthroughout social media as well.
So if you want to listen to itagain, you can absolutely find
it there.
And until next time, make it agreat week and go sell something
.