Buying a home is stressful. Real estate can cost a lot of money. For many, a home is the most expensive thing they will ever buy.
Aside from the price, buying a home involves visiting potentially dozens of homes, a huge amount of paperwork, and an intense mortgage process that can tire anyone.
Credit Karma has a suite of tools called Credit Karma Home that can help simplify the home buying process and reduce the burden on you.
About the product
Credit Karma Home offers a wide range of tools and services that can help simplify the home buying process. This includes a list of lenders, agents, and calculators that you can use to learn more about the cost of home ownership.
Credit Karma Home integrates with the rest of your Credit Karma account, so you can receive personalized recommendations based on your credit profile and history.
Product features
These are some of the main features of Credit Karma Home.
Find Great Mortgage Rates
One of the most important things when buying a home is getting a mortgage. Few people can afford to pay for a home straight away, which means they will need to borrow money to afford a home.
The mortgage interest rate has a huge impact on the total cost. A mortgage for 30 years at 3% costs $ 422 per month. At a rate of 4%, the same loan will cost $ 477, which is $ 50 per month more than $ 18,000 over the life of the loan.
If you live in an expensive area where mortgages can be hundreds of thousands of dollars, a slight difference in interest rate could cost you hundreds a month.
Credit Karma Home can show you a list of potential mortgage providers and approximate interest rates based on your credit profile so you can easily compare rates and find the best lender for you. There is no need for long questionnaires or the hassle of checking multiple sites.
One interesting benefit for home buyers is that you can get a pre-approval letter from Credit Karma’s partner, Better Mortgage, without a tight credit history. You can make your offerings more competitive without the negative credit impact of going through the entire pre-approval process with the lender.
Compare insurance options
Once you buy a home, you need to be sure that you are protecting it. Your home is probably your most valuable asset, which is why getting proper insurance coverage is important and required by most lenders.
Credit Karma Home offers a dashboard that you can use to compare multiple insurance companies to find the policy and price that works best for you.
Find a real estate agent
If you haven’t found an agent yet, Credit Karma Home can use your account profile to match you with an agent in your area. The company has partnered with HomeLight, so you can see multiple agents and choose the one that works best for you.
Automatic Savings Alerts
If you add your home to your Credit Karma account, Credit Karma’s Home Pulse Equity Tracker will automatically keep track of the value of your home. This makes it easy to see how much capital you have accumulated when the price of your home fluctuates and you pay off your mortgage.
Depending on your home equity, Credit Karma may alert you to savings opportunities, such as the possibility of a Private Mortgage Insurance (PMI) exemption from a loan.
You can also enter information about your current mortgage, including the interest rate and monthly payment. If Credit Karma identifies a lender offering a higher interest rate, you will be automatically notified to refinance the loan. Refinancing can lower your monthly interest rate and help you save money in the long run.
Calculators and simulators
Credit Karma Home includes many home buying and home ownership tools that you can use. For example, you can use the Service Availability Calculator to estimate the actual cost of owning a home and determine how much housing you can afford.
Connected: 5 Ways to Calculate How Much Home You Can Afford
There is also a refinancing calculator that you can use to find out how much money you will save by refinancing your loan.
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Prices and fees
One of the best features of Credit Karma Home is that it’s completely free to use. You can create a Credit Karma account without paying any subscription or other fees.
The company makes money by referring its users to lenders, so everyone wins when Credit Karma offers you a service that helps you save money.
How to register
Using Credit Karma Home is very easy. You can use many of the service’s tools, such as rate finder and calculators, without having to create an account.
However, creating an account will open up access to the service’s most powerful tools, including automatic refinancing alerts and the ability to refer you to specific lenders based on your credit profile.
To register, visit the Credit Karma website and enter your email address and password. You must enter your full name, address, date of birth, and the last four digits of your Social Security number. Once you have done this, you will need to answer a few questions about yourself in order for the company to import your credit history.
Credit Karma will then verify your identity by asking about some of the bills on your credit report. For example, if you just opened a credit card, you might be asked who issued it.
Once you’re done verifying your identity, you’re ready to get started.
Mobile accessibility
Credit Karma offers a mobile app for iOS and Android, making it easy to access the company’s services while you’re on the go. The app has all the features you might need, including an easy way to view your credit reports and information available from Credit Karma Home.
You can also easily access your account through your phone’s web browser.
Bottom line
Credit Karma Home is a great addition to Credit Karma’s credit monitoring tools. Using the information on your profile, Credit Karma Home can help you match mortgage and refinancing options based on your financial situation.
Given that the service is free to use, there is no particular reason not to use it.
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