PRIOR TO BUYING A HOME
Buying a home is normally the biggest purchasing decision a person or couple make in their entire lives. It is not the same as going down to to your local store and buying a shirt off the rack. Proper planning is the key to making the home buying process as glitch free as possible. Whether it is - your first home - or a second, third or fourth home. The following suggestions in each link of the "Home Buyer Guide" are provided to assist you in making the most informed decision possible while making your home buying experience one that will be remembered as a very pleasant memory.
CHECK YOUR CREDIT REPORT: Prior to starting your home buying search get a copy of your credit report. Federal law allows you to get a free credit report yearly from each of the three major credit reporting agencies. Check these reports thoroughly. Errors or mistakes on your credit report can impact your ability to purchase a home.
DECIDE HOW MUCH HOME YOU QUALIFY FOR: Sit down and draw up a budget that includes all your fixed monthly expenses. When factoring in your mortgage payment be sure to include property taxes, mortgage and homeowners insurance. Don’t rely on estimates. Get quotes from the insurance company and local tax office.
GET APPROVED FOR FINANCING: Nothing enhances a buyer’s power more than approved financing. Sellers will give the buyer much more favorable terms when they know financing is already in place.
YOUR CREDIT SCORE
Your credit score (FICO) can have a major impact when it comes time to purchasing a home. The following suggestions can assist you in getting and keeping the best rates possible.
Pay bills on time! Your payment history makes up 35% of your FICO score. Don't consolidate and then close out your old, revolving debt accounts. The age of your credit accounts is an important, positive factor for a good credit score. Don't load up a credit card's debt close to its limit. This weighs negatively on your credit score. Pay down high-balances; don't shuffle debts among several lenders. Keep no more than a balance of 30% of your credit limit. Settle collections/past-due accounts less than 2 years old.
Dispute and resolve any inaccurate items in your credit report. Time may be your only remedy for mitigating the damage from bankruptcies, foreclosures and other judgments. The last two years of your credit history are the most important.
Do your credit shopping (mortgage ) over the same 45-day period so that numerous credit applications show up as one inquiry. This minimizes the impact to your credit score.
|
