If you are starting to look at homes, your first step should be to get prequalified. Unfortunately, many homebuyers decide to wait to get prequalified until they get more serious about purchasing. Often this is once they have found a property they are interested in going to see. This is a mistake because once you are interested in a property there is very limited time to make improvements or corrections to your credit.
You may have stellar credit, but as a former affiliate of Wells Fargo, I have seen more than a few people be disappointed when they had their credit for a mortgage – even those who were using a credit monitoring service. What many people don’t realize is the algorithm used for a mortgage is not the same and often more stringent than say applying for credit card or the soft pull of a credit service.
You may be concerned having your credit pulled now and then again later when you feel more ready might lower your score. The credit agencies actually factor in that people shopping for a mortgage may have their credit pulled multiple times. This should not lower your score if done within reason.
The truth is if you are like most, you try to money where you can. So if you try to save money on groceries or with fuel points, why would you not try to what is advised to save on your mortgage? With a little extra time, you might be able to help you boost your score to the next threshold. Even lowering your rate by 1/8 or .125% would save you $22 a month on a $300,000 loan. It may not sound like a lot but in 5 years that is $1,320 or $7,920 over the life of a 30 year mortgage.
You are going to have to do it anyway, and you need to precisely what you can afford. So why not do it now while you still have time to let us help you potentially save some money. There could easily be an item you are unaware of or something that needs to be corrected. Stop putting it off. Don’t let procrastination cost you thousands or worse a missed opportunity at a deal of a lifetime.
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