Why See My Credit Report?
It would be terrible to go through the process of applying for a loan and get to the closing table only to find out your interest rate is higher than you were quoted. This means a higher monthly payment and no doubt thousands of dollars wasted. How did this happen? Something happened on your credit report!!
As a first time home buyer, you may or may not be aware of what your credit score is. Your credit plays a very large part on what type of a mortgage and how much your interest rate will be. Your credit score is figured from what is on your credit report.
For example, a lady client of mine had a 735 middle score when she applied for her home loan. When she went to close, her interest rate had jumped 1.5%. Here she was, at the closing table, the seller was there, realtors, title people and she felt pressure to close. It was a purchase and once she signed, it was hers even though the interest rate was higher.
The sad thing was it was a very large national lender. However, she felt the loan officer was not honest and told her that since her score dropped 20 points she would not qualify for the loan she had applied for. She ended up in a different product at a higher rate. Now I have no way to tell if she was telling me the truth, but one thing I know for sure, she was mad and wanted me to refinance her out of that loan.
You Need to Understand What Your Credit Score Is and What Affects it!
That is why its a good idea to take a look at your credit report and understand what your credit score is. Sometimes we might get excited about closing on our home and then decide we need furniture. Such a major purchase of furniture just before closing could affect your credit score. Lenders pull your credit report again just before closing. If your score has lowered it can change your interest rate and what program you will be closed with.
I always encourage people to not do anything major until after the closing. I know your excited, but wait until after to make any major purchase!!! I’ve seen it where couples decided to buy a car after they were approved for a loan and then guess what happened? You’re right, it changed what they expected for closing.
It all starts with your credit report. Make it a habit to know what is happening to your credit profile and how it affects your score. It is a very good idea to see your credit report periodically, especially if you’re planning a major purchase. You may even want to subscribe to a service that monitors your report for you. That way you’re notified when something affects your score and can act on it immediately.
Why waste time and money? Mr. Ragan has 24 years helping people reach their goals. Construction, buying foreclosures, real estate investing, first time home buyers finding a mortgage and doing your own credit repair. Avoid costly mistakes and visit his website with hundreds of pages and free reports.
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It would be terrible to go through the process of applying for a loan and get to the closing table only to find out your interest rate is higher than you were quoted. This means a higher monthly payment and no doubt thousands of dollars wasted. How did this happen? Something happened on your credit report!! As a first time home buyer, you may or may not be aware of what your credit score is. Your …
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