Your Custom Home Buyer Credit Plan

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No two people are the same, no two credit reports are the same, and no two home buyers are the same.

For that reason, Blue Water Credit has designed a Custom Home Buying Plan that covers the analysis, resources, and credit report help you need, so you’re 100% ready to start the home buying process and get the best financing possible!

To get started with your next home purchase, contact Blue Water Credit so we can talk about the crucial first step: your credit. Together, we’ll design a custom credit optimization plan for you that will prepare you for the mortgage process and, ultimately, the fun part – house hunting!

Until then, here are some tips that will help you understand what goes into a Custom Home Buying Plan.


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If the goal of homeownership is on your horizon, the process should start about six months before you’re actually ready to get in a Realtor’s car and go house hunting.

If it’s your first home or you foresee some issues with credit/debt/down payment, then it's wise to start nine months or even more ahead of time, while seasoned homebuyers with impeccable financials may only need weeks or a month.

That way, you’ll be prepared to get organized, go through the necessary steps, and have time to rehabilitate your credit or clean up your finances as needed before it’s time to apply for a loan.

Think of it as preparing a resume and list of references for that big job you’re trying to get!


What goes into your score?

But first, it’s crucial for everyone to understand what actually goes into your credit score:

  1. Payment History 35%

35 percent of your credit score is made up by your payment history, including your track record for paying on time with all credit cards, installment loans, mortgages, and more.

  1. Debt Ratio 30%

Your debt ratio makes up 30 percent of your credit score, which is also known as credit utilization. Simply put, that's the ratio of your current debt to the amount of available credit. To optimize your score, we recommend keeping balances below 30 percent of the credit limit, or even 10% ideally.

  1. Length of Credit 15%

15 percent of your credit score is based on the length of your credit accounts, as the credit scoring algorithms highly value older, mature accounts in good standing over newer accounts.

  1. Credit Mix 10%

The types of accounts you have listed on your credit report make up 10 percent of your credit score, as a healthy mix of revolving, installment and mortgage is encouraged.

  1. Credit Inquiries 10%

10 percent of your credit score are inquiries, when banks, lenders, or retailers access your credit report for the purposes of extending new/more debt.


What’s at stake

When you apply for a mortgage loan, the bank or lender will take a close look at a host of factors, with credit score and the information on your credit report is chief among them. If your credit score is high (and your report clean), that means you’ll have access to better interest rates and even loan options or terms.

And just a small bump to your credit score or access to the best possible interest rate can save you A LOT of money in the long run, when you consider the typical mortgage is spread over 360 payments, or 30 years. In fact, keeping your credit clean can save you tens of thousands of dollars or more!


So, checking your credit is essential 

When we get started with your Custom Home Buying Plan, we’ll help you access your credit report and score. From there, we can look at it line-by-line, identifying any negative items that are dragging down your score but also outdated items, duplicates, or blatant errors.


Blue Water Credit Report Review

As credit experts, we can help review the credit report, and develop a custom strategy to help maximize credit scores so you can get the best financing possible. Now that we know the red flags on your credit, Blue Water Credit can roll up our sleeves and get to work to fix your report and boost your score.

We do this by leveraging national consumer reporting laws and regulations around credit, disputing negative items, errors, duplicates, outdated information, and even ID theft.

Although this process takes time, with your new and improved credit score, you’ll be ready to apply for the best possible mortgage to save you a boatload of money.


What else can we cover in your Custom Home Buying Plan?

Reduce debt

If you need to pay off a credit card, reduce debt, or even add a tradeline, we’ll advise you.

Hit pause on new debt

We recommend applying for NO new debt or credit and making NO new big purchases while you’re in the midst of the loan application and real estate process!

Shop at once

Of course, you’ll want the best deal on your mortgage, and that may mean you end up “shopping around” with different banks, lenders, and mortgage websites. Just remember to confine these hard credit inquiries within a finite period of time (like 3 weeks, etc.) in order to avoid any dings on your credit report.

Get pre-approved

It's pivotal you get pre-approved with whichever lender you choose, and BEFORE you go house hunting. Not only will getting pre-approved allow you to identify any big obstacles you may run into, but you'll know your prospective loan type, monthly payment, price range, and the necessary deposit.

Even better, you’ll have a glowing pre-approval letter in hand, which every Realtor will want to see before you go looking at homes for sale, and every seller will require once you make an offer!


Now that you know some of the high points that go into Blue Water Credit’s Custom Home Buying Plan contact us to get started.

Thank you for the opportunity to help!


P.S. Feel free to download Credit Report Audit Worksheet 2021 here.






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