Tip 1 – Know your FICO credit score –
This series of essential tips for Arizona home buyers are designed to help you through the home buying process – a road map to follow while buying a home for sale in Arizona to ensure a smooth transaction – and, most importantly, a rewarding home ownership experience.
Being informed is important when you are making any financial decisions, and there are few financial decisions bigger than buying your own Arizona home for sale. Take time to educate yourself about the home purchase process before you commit to buying any property.
Know your FICO credit score before looking at homes for sale in Chandler, Gilbert and Mesa AZ will save you a lot of frustration...
Your FICO credit score is the biggest factor in determining whether you will get a loan and what your loan terms will be. Find out what is your FICO score during the initial phase of applying for a loan, and work with a trusted buyer agent and lender to see how it can be maximized. Having a good FICO credit score, which leads to a lower interest rate, can save you tens of thousands of dollars over the life of the loan.
Lenders look at your tri-merged FICO score from three independent credit scoring agencies to gauge how good a money manager you are and whether you might become a credit risk and default on the loan. If you have a low FICO score, you are judged to be a higher credit risk. The investor, who will be buying your loan, will want to be better compensated for the higher risk of default in the form of a higher interest rate.
Investors don’t know who you are and don’t judge you personally. Investors buy loans in bulk based upon the credit worthiness of the loans within the loan portfolio. You want your loan to be placed in a preferred “A” paper loan portfolio with the lowest interest rates.
Your FICO score impacts the terms of many of your financial transactions besides your home loan including the cost of car insurance, life insurance, credit cards rates, car loan rates, and whenever any form of credit is being requested or to evaluate how responsible and reliable you are as a person.
STAYED TUNED - Anything in big doses is hard to digest. Instead of blasting you with the complete series of home buyer tips, you are going to receive my recommendations in small bites…
So this is the first installment. If you are buying a home now and want the complete series all at once, email me and it will be sent on its way to you. Otherwise, my blog will eventually include all home buyer essential tips. Continue to Buyer Tip # 2 Post
Author: Sam Elam, Associate Broker, CRS, GRI, e-Pro, SFR
Berkshire Hathaway HomeServices Arizona Properties,