Why Your Credit Score is so Important!

When Higher is Lower

Buyers need to know their credit score before writing a contract to buy a home so they'll have a realistic idea of what their payment will be. Most lenders quote rates based on the best credit score. If a buyer has a lower than "A" credit score, the rate goes up in increments that could dramatically affect the payments.

There is an inverse relationship between the credit score and the interest rate charged. The higher the score, the lower the rate will be. You can see from the chart, this lender quoted their best rate for a credit score of 760-850. However, this lender's minimum acceptable score of 620-639 would have to pay 1.5% higher interest. In the example below, it makes almost $200 a month difference. It is critical to know your credit score before you make a decision to buy a home.

30 year Fixed Rate Mortgage - $200,000 Loan Amount
FICO Score
APR
Monthly Payment

760-850
4.466%
$1,009

700-759
4.688%
$1,036

680-699
4.865%
$1,057

660-679
5.079%
$1,083

640-659
5.509%
$1,137

620-639
6.055%
$1,206

Buyer's logical first step is to get pre-qualified or pre-approved with a mortgage lender prior to looking at homes. This gives the buyer the confidence of knowing how much mortgage is available and if they can expect the best interest rate which will lower their payment. Other benefits include bargaining power, quicker closing and the chance to discover any issues on their credit report that need to be corrected before going on contract.

The Worlds Most Expensive Home $1B

Measure out: one part Hollywood; six parts traffic; a bunch of rich power-moguls; pour in six heaped cups of poverty; equal parts of mayhem and order; fold in your mixture with equal parts India; throw it all in a blender on high (adding generous helpings of pollution to taste) and presto: Mumbai.

This 27-story single-family residential tower recently finished in Mumbai almost certainly vanquishes all pretenders to the throne of world's most expensive private home, with a price tag estimated at somewhere close to $1 billion.
Built by Mukesh Ambani, the chief executive of Reliance Industries, the home reaches new levels of decadence, with three helipads, swimming pools, four-story "hanging gardens" and a six-story parking garage. Dubbed "Antilla," the 173-meter tall mansion also includes a 50-seat cinema, ballroom, gym and every room is custom designed.

According to published reports, the tower cost $77 million to build, but that only hints at its value. After all, how do you put a price tag on a one-of-a-kind building in a city where every piece of open land is coveted like gold?

I could find a billion other things i'd rather do with my money.