So, you've been saving money every paycheck and now have quite the nest egg for a down payment on a home! Congratulations! That's an awesome accomplishment!
Next, you contact a Realtor that a friend or family member referred to you. They hopefully say 'First things first, we need to get you pre-approved with a lender.' They give you a few names you talk to a couple of them.....
And, bummer....you find a less than stellar FICO score is going to hold you back a bit.
But wait! There are things you can do to clean up your scoring. And, no, you don't have to pay some company a part of your precious home down payment to do so!
You know who's the best one to tell you what you need to do? What you shouldn't do? One of the mortgage lenders that your trusted Realtor referred you to! Yes indeed!
Paying off all of your debt? Eh! No, credit reporting companies want to see regular payments, as in responsible payments, vs a zero debt. Old debt still showing up? Contact those oldies and ask for them to be deleted. Or marked paid in full as agreed. Large car loan that reduces your income to debt ratio....might consider paying that one off....IF THE LENDER TELLS YOU TO!
The people that work for you to get you qualified for a loan know exactly what works and what doesn't. They have such extreme knowledge they can even give you an idea of timing to raise up that FICO score so we can get in the car and actually find your home and use that nest egg!
That's my topic for today! Clearing up the credit score to use that pretty nest egg!