Step 1 of the Home-Buying Process for A and Me

I’ve be avoiding posting about the specifics of my current life in an effort not to get to personal with y’all, but I’ve been bursting at the seams to share this awesome news.

Andy and I had a fab day on Monday. We had a leisurely morning, went to the Zoo on what turned out to be a gorgeous day, ate some great burgers and got to visit the Apple store. The day was finished off with froyo and a signature A&V exploratory drive of part of Seattle.

But the best part was we got our FICO scores.

You can’t keep reading this blog thinking the big news will be anything but financially related. Seriously.

In the quest for a mortgage, we want to explore two options: using exclusively Andy’s credit and salary and using both of our credit and salaries. The goal is that we get a mortgage we can afford on just his income so if I have a bad year freelancing we won’t be up a creek and putting our mortgage on a credit card.

I was so nervous. I have some credit card debt and have missed a payment or two on my credit card in the past. I have only been building my credit score for the last 7 years. I knew Andy’s was going to be stellar. He’s a pro at paying off his cards, keeping on top of bills, and paying off loans early. It was no shock when his came up and was well in what experts call the “Excellent” range of 720+.

But what was shocking was that…mine was too!

WHAT???? Crazy!

So basically what this means is that we will be in good shape whether we go with his credit or both of our credit. Now we just have to convince a bank to give us enough to cover a decent mortgage.

Just a quick note about FICO scores, the difference between a good, bad and excellent FICO score can mean the difference between being charged the national average for a home loan at 3.87% or being charged up to 3.5% more. Over the life of mortgage that can literally be the cost of an entire other house. On a $300,000 mortgage at 4%, the cost is $1,432 per month, at 7% it’s $1,995. Over 30 years the difference is $202,680. Yeah, almost another house.

So take your credit score seriously and look for the two-part post next week about what exactly your FICO score is and how to keep it in tip-top shape.

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