So, you’re thinking of buying a home, maybe your first?
Once you make that life-changing decision, it can be a whirlwind from there, with different professionals, information, applications, timelines, and A LOT of money flying around.
But too many people start the home-buying journey by jumping online and looking at listings. Of course, that’s what you really want to see, but that’s also putting the cart WAY before the horse, so to speak.
Of course, you can start by talking to a trusted mortgage broker or lender, and we encourage you to do so. But at the same time – or even to kick off the whole process, it would really benefit you to check in with Blue Water Credit.
Here’s why:
- Credit score REALLY matters.
When applying for a home loan, your credit score is one of the most important factors. In fact, the higher your credit score, the better your interest rate may be, which means a lower monthly payment. Additionally, top credit scorers will qualify for loan programs for better terms, lower fees, and have far more options than those with sub-par scores.
- Timing
Life can come at you fast, and the home-buying process can come at you even faster! But once you’re in the midst of a mortgage application and real estate deal, you won’t have time to operate if your credit score needs some improvement. But by checking in with Blue Water Credit as early as possible (ideally six months or more before you plan on buying), we’ll be able to boost your credit score in plenty of time.
- Addressing debt.
Another big part of the home loan equation is the amount of debt you currently hold, measured in terms of monthly payments. The banks or lenders will gauge your DTI, or Debt to Income Ratio. If your total monthly payments on all current debt or loans are higher than their ideal target, you may not be able to qualify for a home loan. Goodbye, house dreams!
The good news is that Blue Water Credit can review your credit report (which the lenders see) and calculate your DTI, counseling you to pay off certain debts or credit cards, etc., if needed. (More on that later!)
- One wrong move…
Sure, you can access your credit score and report yourself (just make sure you get the right version!) and try to start paying things off to increase your own credit score. The problem is that the wrong move, and you can easily HURT your credit score, derailing your homeownership goal.
For instance, paying off and closing an old credit card may sink your score, paying and closing out that installment loan could drop your FICO, and settling up that old debt in collection may be a wrecking ball to your score.
Oops! Better check with Blue Water Credit first!
- Identity theft
Even if you’re confident that you’re paying all of your debts on time, your DTI is low enough, and your FICO score is top-notch, you still need to be wary of identity theft or ID fraud. Each year, the prevalence of fraud, scams, theft, and data hacks grows exponentially.
And once someone gets ahold of your social security number or important financial data, your credit report and score could be a hot mess, taking years to sort out before it’s cleaned up and you’re eligible to buy a home again.
- Work with your mortgage lender.
By no means are we suggesting that Blue Water Credit will serve in the capacity of your mortgage lender (or Realtor, for that matter!). Instead, we will be your mortgage lender’s best friend, getting you 100% prepared, optimizing your credit score, cleaning up negative or incorrect information, and making sure your DTI is in-line.
Blue Water Credit works closely with your mortgage lender of choice, so you’ll have an elite team on your side, ensuring you get the best possible home loan – and house!
- Why Blue Water Credit?
We’re the nation’s leader in ethical, legal, and highly effective credit repair. Our whole focus is working with and for mortgage lenders, who have Blue Water Credit on speed dial every time a mortgage applicant needs help or has some credit issues that need smoothing out.
So, if you’re thinking about buying a home sometime in the future, contact Blue Water Credit for a no-risk credit consultation.
Your home buying dreams may depend on it!
