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There are four separate home buyers purchasing the same exact home with the same sales price of $300,000, same seller concessions and down payment. Everything is the same for the four buyers except how much they eventually pay. You think since the sales price is the same for the four buyers, they will all pay the same. They don’t. They all will pay different amounts. This is where prospective homebuyers make the number one most costly mistake!


When you purchase a home, you work to get every dollar – by negotiating a lower sales price and asking for more concessions from the seller. You want the best deal possible. 


The Four Home Buyers

Annual Payments for Four Home Buyers

Home Buyer FICO® Credit Score Principal and Interest Mo. Mortgage Insurance Total Payment*  Extra Paid Annually
1 765 $1,389.35 $85.00 $1,474.35 0
2 725 $1,410.71 $147.50 $1,558.21 $1,006.32
3 685 $1,453.95 $217.50 $1,671.45 $2,914.20
4 655 $1,520.06 $297.50 $1,817.56 $4,118.20

(Loan amount for all four buyers is $300,000. Based on the four different FICO Scores, interest rates for Buyer 1 is 3.75%, Buyer 2 is 3.875%, Buyer 3 is 4.125%, and Buyer 4 is 4.50% - 30 year fixed rates)


In this example, Buyer 1 is paying $1,474.35 monthly with a total of $17,692 annually. Annually, Buyer 2 is paying $18,699, Buyer 3 is paying $20,057 and Buyer 4 is paying $21,811.


How are they all paying differing amounts?


The annual amounts paid are based on their four different Classic FICO credit scores.


Most prospective homebuyers walk into their lenders office and want to close on a home within weeks. They don’t know where to check on their Classic FICO Scores, let alone get with a knowledgeable resource a few months in advance to improve their FICO scores to secure a better deal on their mortgage. (A loan officer is definitely NOT a knowledgeable resource).


You Can Do Something NOW – 


Buyer 2, with a 725 score, is paying over $1,000 annually more than Buyer 1 with a 765 score. And Buyer 4 with a 655 score, is paying almost $3,100 more each year than Buyer 2. You don’t want to buy a home with a hole in its roof, have mold issues, or have hidden rusty pipes that could cost you thousands to repair. You also don’t want to buy a home without MAXIMIZING YOUR CLASSIC FICO SCORES!




Most consumers do not know where to find their Classic FICO Scores. A non-profit certified credit counselor, such as My Credit Plan, can provide your 3 Classic FICO Scores to you.


Additionally, many think you cannot improve FICO scores within a short period of time. For most, that’s a false assumption. Just to illustrate, My Credit Plan has a 44 point average score improvement for clients enrolled in the score improvement program, all within 45 days. That is usually thousands of dollars in savings every year on an average mortgage!


The one change that you can make that most all homebuyers fail to address – increasing your Classic FICO scores before purchasing your home.  


Looking to buy a home in the next year, know your true standing with all mortgage lenders and check your FICO Classic Scores with a certified non-profit credit counselor - such as My Credit Plan. Next, you can look at every possible solution through My Credit Plan to improve your Classic FICO Scores. An increase in your FICO scores can take as little as a couple of weeks. It is definitely worth it.


A small investment today of less than $100 through My Credit Plan could save you thousands annually.


This is no game – it is your money. See what solutions My Credit Plan can identify today in your credit report to increase your FICO scores.

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