I know my credit score

creditRecently my husband and I considered buying an investment home in West Seattle. We began the preapproval process so that we could present an offer with a bona fide preapproval letter. We gathered our W2s, tax returns, bank statements and paystubs…and had our credit report pulled.

I see credit reports and scores all day long…it’s my job 🙂   However, it always makes me a little uneasy to have my scores pulled. Part of that is because I’m a bit of a worrier and it’s also because I have witnessed people who had no idea a collection was filed for an overdue library book or that a credit card had reported them late or perhaps the daughter they co-signed for on a credit card has the account charged over the limit. It happens all the time and it’s damaging to credit scores.

I anxiously awaited for my credit score from my Loan Officer (I can’t originate my own mortgage…but I can help you with your Washington home). My mid credit score squeaked in at 740. Phew! My husband’s scores are higher than mine, which means that 740 is the score we will be judged by with underwriters and when pricing out our mortgage interest rates. With a conventional mortgage, this score is very important. Just one digit lower (739) would cause us to have higher pricing for our mortgage rate should we proceed with buying the rental.

Although my score of 740 is fine for getting a mortgage, I’m going to work on improving it…and because I have my credit report, I know what I need to do.

If you are even thinking about buying a home or refinancing, I strongly suggest that you contact your local licensed mortgage professional to review your credit. Even if you’re 6 months or a year or more away from buying a home, you cannot start too soon with the preapproval process and improving your credit scores.

If you are considering buying a home or refinancing a home located anywhere in Washington state, where I’m licensed, I am happy to help you!

 

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