My new friend went to the mortgage shopping website. Not knowing the process he used his wife’s credit, and his income because his income was good, but his credit was not. That resulted in false confidence and an offer on a house that was left unfulfilled. It was embarrassing and a waste of time.
Spoiler alert! We are working together and he will be score worthy in less than 60 days. So says the lender’s credit score simulator that was run based off of what we know can happen. It’s not elf and magic. Results are based on fact, not fiction.
Disappointed by ups and downs of not being score worthy my friend found a local mortgage lender. They pulled his credit and gave him pointers on how to get his scores up. He had more credit information than before, but he was still clueless as to how everything fits together and works in harmony.
To me, the whole credit reporting, credit scoring, consumer lending process is like a symphony. When everything is in order, working in harmony, this symphony makes the beautiful music of great decision making conducted by a savvy consumer. Lack of understanding in one area or every area can cause your beautiful symphony to sound like a daycare right before naptime; bad information heaped into bad decisions with a cost of funds that continue to soar.
Who does my new friend blame for his lack of knowledge? The mortgage shopping website? How can he? It did what he asked it to do; get quotes based on the information he provided. What about the local lender who took some time to give him more credit knowledge than he previously had? How could it be the local lender’s fault? The local lender answered my new friend’s questions. His lack of knowledge is placed squarely on his shoulder’s. Why? He didn’t know what he didn’t know. He lacked a level of curiosity that would drive him to want to know how to get the best financing possible.
As a society, we have been dumbed down on many levels. Look at the ads we see daily. State Farm implies we can trust them. They are our good neighbors; they would never overcharge us and spend millions trying to convince us they didn’t. Or would they? If you read my blog about a mother of 5 you will see the answer is yes they will overcharge you
How credit, why credit, how credit scores, why credit scores and understanding consumer finance from top to bottom is important. But understanding how it all fits together is where your future runs into your goals of homeownership early retirement. People you have to do your homework. That process starts with a great question that leads to a great answer that leads to more questions that leads to more answers. That is the main reason I would only work with a mortgage person or a bank that gave me a copy of my credit report when they pulled it. The credit information on all of the silly sites giving silly scores doesn’t matter. What matters is what is on the credit report your lender pulls. That is the best at that moment credit information you can get.
What you don’t know is costing you a fortune. I have 14 years worth of stories to share from over 30,000 hours spent solving credit problems. Helping you ask better questions to get better information to solve your problems is what I do.