Credit Score

Do You Know the Importance of Your Credit Score?

Kristi and her family purchased their first home in 2016 with Jolene Jaehne at First Centennial Mortgage. It was a brand-new custom-built home that they were able to purchase using an FHA loan. At the time, their credit history wasn’t stellar. As young homebuyers, no one had ever stressed the importance of maintaining good FICO scores.

In early 2019, Kristi called Jolene and wanted to do a cash-out refinance to have cash on hand for putting a pool in the backyard. The family loved the home and wanted to invest in the property. They imagined having a pool while the kids were still young. At the time, they did not have the equity to do a cash-out refinance loan, so Jolene referred them to a small company that did pool financing. Jolene let Kristi know that once the pool was complete, and equity was established, they could refinance the two loans into one 30-year fixed mortgage. Again, Jolene and Kristi discussed credit. Kristi and her family were making headway but still needed to do more work to increase their credit score.

Their pool was completed late in the year of 2019.

Jolene continued to keep in touch – asked about the pool, and the family. Throughout 2020, the market values could not support the loan-to-value needed for the refinance to make sense, but Jolene still kept in touch.

In early 2021, the Bastrop, TX area, like most other areas in the country, began to experience a major uptick in home sale prices, values, and marketability. This young family had gotten their FICO scores up over 700! Jolene was able to offer them a refinance, rolling in both the FHA and the pool loan into one, drop the Private Mortgage Insurance (PMI), and save them $617/month! This is a life changing amount of monthly savings. Through well-executed, consistent follow-up, Jolene and Kristi kept in touch, and when it was the right time to refinance, Kristi’s family never even considered another mortgage company. Kristi is thrilled with how easy the process was once they were able to get rolling. She said, “We will definitely recommend Jolene to our friends and families!”

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