I love when I can save people $1000s with some good coaching. Of course they have to follow my advice.
Last year, Mr. “R” came in for a refi. He had a 4.99% 30 year fixed and had paid in for 1 year. Now he wanted to refi because rates were low. But when I pulled his credit, I learned he had built up debt and had filed tax returns with ½ the income of the year before.
So I told him to wait a year, file tax returns with a different strategy to save on tax, but still keep the income high enough to qualify (of course telling him to verify it with his CPA) .
When he came in this year his credit score was still low because there was a new collection on there and some debt. The income was back to normal. We were able with just a couple of tweeks to get him from 690 to 770 credit score giving him $80 more in savings per month (.25% less in rate), dropping his interest rates from 4.99% to 3.5%.
YEAH, that’s a lot of saving: $270 per month x 12 x at least 5 more years of ownership = $16,200! Had he filed the same kind of tax return as last year, he would not have qualified.
Had he fixed his income but left his credit alone, he would have paid $80 more per month. With a little coaching he made a big difference in his life.
I can help anyone you know achieve healthier credit and a better loan.
Bad credit costs us in ALL area of life.