Buying a House? How to Save Money on Your Monthly Mortgage Payment
FICO scores are so important especially since lending in today's real estate market can be the biggest hurdle of a transaction. Where do you fall within this FICO score chart? Do you do a FREE credit report every year? It is your right!
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Buying a House? How to Save Money on Your Monthly Mortgage Payment
Thinking of buying a house?Want to buy the most house you can for the smallest monthly payment?
What’s the magic bullet?
It’s your credit report and FICO score.
In order to qualify for the ‘elite’ low mortgage rates we all hear about, your FICO score should be 760 or higher.
Take a look at this chart* with today’s rates. The difference between a high score and a score in the 600s is about $285 a month on a loan of $300,000.Imagine saving a few thousand dollars each year or tens of thousands over the life of the loan.
When is the best time to check your FICO score?Ideally, about a year before buying a house. If there are any issues, you can work on them and bring your score up.
So, where do you begin? Visit AnnualCreditReport.com. This is the ONLY website authorized to provide the free annual credit report you are entitled to under law from the three major reporting bureaus, Experian, TransUnion, and Equifax once a year. Do get all three, as their information can vary.**
Once you get your credit reports, what should you do?
Comb through each report and look for any information that doesn’t belong there. Check your name spelling. Verify all your account numbers. If you closed an account, make sure the reports reflect that. Make sure all entries apply to you, with no strange names or accounts.
What if you find errors?
Report any errors you have found. You can do this online via each bureau’s website.
What’s the next step?
Work on paying down the balances, make payments on time, try to avoid applying for any new credit, and use credit responsibly.Your FICO score won’t improve overnight, but anything worth doing takes work and determination.
Keep at it and you just might save yourself a few hundred dollars on your monthly mortgage payment and thousands over the life of the loan.
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*Please contact your mortgage lender for today’s rates and other conditions that would determine your rate.
**[NOTE: The free reports will NOT include a FICO score. You will have to pay a fee to get your score. These sites and others offer 'free' scores. However, you will have to register for their online watch to get the score. If you do not cancel the service within a certain period of time --like 14 days--, you will be charged. If you don't feel comfortable using an online service, talk with your lender or contact me for assistance.
Barbara Altieri, REALTOR
Listing and Buyer's Agent
Certified Short Sales Specialist
RealtyQuest Real Estate Sales and Services
203.656.4993 x29
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