Sarasota homes for sale -- whether Sarasota or Fort Myers, Florida, Karen Adams knows how to overcome credit shock at closing table to grab the keys to her new home.
Karen thought it was the right thing to do to allow mortgage lenders to compete for her business.
She had no reason to believe this “mortgage shopping” would cause her credit scores to drop 90 points.
She had no reason to believe she’d lose her dream of home ownership at the closing table.
“So many people have checked into my credit that my score has gone from 659 down to 569. I am tired of paying 1280- $1400 a month for rental units. I want to own my own home. If I can pay these prices I should qualify for a rent to own home,” says Karen.
Allowing mortgage lenders to compete for your business proves disastrous for Karen (and others) who have reported the same result.
Click Read More below now for the safer alternative to letting mortgage lenders compete for your business
KAREN’S WAKE-UP CALL….
Amidst Karen’s shock and disappointment, Karen realized she hasn’t lost her dream. She must postpone her dream.
Karen *thought* allowing mortgage lenders to compete for her business was smart shopping. What she didn’t realize is that filling out one online application allowed MANY different mortgage lenders to pull Karen’s credit. Each credit pull penalized Karen’s credit scores.
Experts claim every 3-5 credit pulls penalize one’s credit 12-36 points.
How the heck does a 90-point hit occur when it’s not supposed to happen?
Good question….
90 Point Drop!
Interestingly, Fair, Isaac & Company (FICO), the creators of the FICO scoring algorithm, claim what happened to Karen and many others is not supposed to happen.
According to FICO, all inquiries within a 30-day period and 14 days prior to scores being calculated are supposed to be treated as ONE inquiry, a much LESS hit to one’s credit scores. Unfortunately, that’s not happening.
Karen needs a minimum 630 middle credit score.
Yes, the interest rate will not be as good; therefore, she’ll pay more. But not that much especially when she initially was qualifying with a 679 and interest rates are extremely low.
On Karen’s credit reports, she discovered her points. No one had told her about credit utilization — accounting for 30% of her FICO credit scores.
She knows now, and this totally is within her grasp.
She also knows how to challenge inquiries.
Allowing mortgage lenders to compete for your business is not supposed to drop your scores 90 points!
A Better Alternative
Consider this alternative: If you don’t personally know an experienced, trusted & COMPETENT mortgage professional, talk with your friends, especially any friends involved with real estate. If you know a realtor, ask him or her to refer you. When mortgage people have a relationship with someone else (such as a realtor or investor who buys and sells many properties while working with this mortgage person), you’re in better hands than “one-offing it.”
You don’t need to fill out an online application or allow many different mortgage lenders to pull your credit and drop your scores.
Get yourself a trusted, experienced & competent mortgage professional who sees (you) beyond a mortgage commission. The last thing you want is to find your dream home, thinking the financing easily will take care of itself. No mortgage; no keys!
I’ve seen more dreams shattered when the buyer, either before closing or even at the closing table, can’t close…can’t grab the keys to his/her/their new home.
If you or someone you know wants to buy or sell a house in or around Sarasota, please call me. If you’re buying, one of my first questions after thanking you for calling me will be: “Who’s your mortgage person, and may I talk with him/her?”
What question, comment or mortgage-related experience have you had? Scroll down to the box below & leave a comment. I will respond.
Sarasota homes for sale need buyers who can get to the closing table and CLOSE. Confirm you’re working with a “good” mortgage professional who will prevent unpleasant surprises and help you grab the keys to your new home.
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