Looking for your first home and your only concern is one factor? Getting approved for a mortgage. Believe me -- your loan officer and realtor are too!
They don't care if you are paying a lot more for a mortgage - and we are talking $50, $100, or even $200 more on a monthly payment. Be careful here. Your loan officer and realtor are looking for you to complete the transaction -- so that they can get paid.
You think they are looking out for you? Hardly.
How much can you save on a mortgage payment?
From CNBC / Alicia Adamczyk
A good credit score can save home buyers hundreds of dollars a month on mortgage payments — and potentially tens of thousands over the course of their loan.
A high credit score gives lenders confidence in your ability to repay your loan. The higher it is, the lower the interest rate they’ll be willing to give you. For a mortgage, in particular, which is likely the biggest loan most people will take out, a high credit score is the ultimate money saver.
To read the entire article, click here:
https://www.cnbc.com/2019/07/18/increasing-your-credit-score-can-save-you-big-on-your-mortgage.html
In her example on an average mortgage balance of $266,000, the payment drops $67 by going from a 655 to a 665. That's a savings of $804 a year on this loan.
Please read the entire article to know what savings is possible. Raising your FICO scores improves your purchasing power. If you are looking to purchase a home within the next year, go to MyCreditPlan.org and see what steps you can take to lower you monthly payment.