Right now, we’re going to talk about why real estate is doing so well right now.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Let’s talk a little bit about what’s going on. We both agree that the market is still booming, whether it’s residential or commercial investment. Yes?
René Nelson: Yes. It’s a very good market.
Marcia Edwards: And I was suggesting that part of it that’s making it sustainable and not a real estate bubble, is the equity position we’re finding that consumers have held onto, and not mortgaged themselves or leveraged or done cash out finance.
René Nelson: Yes, I would totally agree with that. And I think also the Fannie Mae, the residential lenders, are a lot more conservative than they were in 2005 when we had the mortgage meltdown.
Marcia Edwards: The Mortgage Bankers Association suggested that the scores of credit for those who are getting the mortgages are much higher, that the average score is 750.
René Nelson: Wow.
Marcia Edwards: Isn’t that interesting?
René Nelson: It is very interesting. Okay. So I am passionate about credit scores. So I just need to segue real quick on that. For those of you that don’t know this, you can go to creditkarma.com, among other sites, and pull a free credit report. And you absolutely need to do that, and here’s why. You want to know why
Marcia Edwards: Yeah. Tell us why René. Do tell. Sorry, I didn’t hear my cue. Cue to cue you.
René Nelson: Because your credit score is based off of not only how much credit that you have, but how long you’ve had credit cards out. And Bob and I for years have had credit cards that we have a zero balance on, and we just keep them locked up in a safe. I actually had two creditors cancel my cards and not send me anything in the mail, and one of them was a credit card that I have had since 1976. And that shortened my credit history then.
Marcia Edwards: Right. So you’ve got to watch it. You got to monitor it as you go. And things that shift, the wrong information could get onto your account. So you really want to do it before you need that credit as an advantage.
René Nelson: Absolutely.
Marcia Edwards: You need a little time to season what you adjust on that.
René Nelson: Yes. I recommend that people do it once a year when they go into either their dentist or go see their doctor for a checkup, pull your credit report and do a credit checkup.
Marcia Edwards: Now, does that discount you when you pull your credits up?
René Nelson: Nope. Not when you pull it on a website. You can go to Experian also and get a free credit report, or creditkarma.com. It does not count against you as an inquiry. So you can look at your credit. And they’ll also make recommendations on how to bolster your score.
Marcia Edwards: Great coaching there. Thanks René.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.