If you’re in the market for a new home, you’re about to take advantage of some of the best real estate deals money can buy. But don’t forget to get your mortgage credit score, or risk paying more for your home than you need to. It’s a simple step you can do for free, and it can save you having to come up with thousands of more dollars in cold hard cash at closing.
Your mortgage credit score is one of the most important pieces of personal information that your lender will use to determine what you will pay. That method the meaningful to knowing exactly what your monthly mortgage expense will be and how much home you can truly provide can be known by taking a look at your score.
But there’s something else…
If your mortgage credit score is below the edges standards, you’ll get stuck paying what is called premium mortgage insurance (PMI). What is PMI?
It’s a fee. That’s it. A fee that is charged to new home owners simply because their credit is just a tad bit too loan. It’s not necessarily low enough to get denied credit, but it’s not high enough to get approved for the best rates.
In most situations, the differences are so slight that if the home owner simply checked their score beforehand, they could have fixed this before their lender ever had a chance to see their rating. By taking a look at your personal information ahead of time, you can see if there’s anything you need to do to quickly raise your score in order to pay those excessive fees that you’ll need to come up with at closing.