If you are starting to look at homes, then your first step should be to get prequalified. Many homebuyers decide to wait until they are more serious about purchasing before they get prequalified. This is usually once they have found a property they are interested in seeing. This can be a costly mistake. Once you are interested in a property, there is very limited time to make improvements or corrections to your credit.
You probably have stellar credit. But as a former affiliate of Wells Fargo, I have seen more than a few clients be disappointed when they had their credit pulled for a mortgage. Many of these were using a credit monitoring service. What most people don’t realize is the algorithm used for a mortgage is more stringent than what is used by credit monitoring services.
You may be concerned about having your credit pulled now and then again when you are ready to purchase. Maybe you think this could lower your score. Credit agencies actually factor in that buyers will shop for a mortgage and might have their credit pulled multiple times. If done within reason, this should have little to no effect on your score.
If you are like most of us, you probably try to save money where you can. So if you try to save on groceries and fuel points, why would you not also do what is advised to save on your mortgage? With minimal effort and a little time, we might be able to help you boost your score to the next threshold. Even lowering your rate by a mere 1/8 or.125% will save you $22 a month on a $300,000 loan. This may not sound like a lot, but every month for 5 years equates to $1,320 and $7,920 over the life of a 30 year mortgage.
You are going to have to do it anyway, and you will need to know what you can borrow. So why not do it now while you still have time to potentially save some money? There could easily be an item that you are unaware of or something that simply needs to be corrected. Stop putting it off. Don’t let procrastination potentially cost you thousands. Get prequalified now while you are still in the early stages of looking for Clayton GA homes for sale.
Contact us today for a brief no obligation phone consultation with our preferred lender.