Buying a home, even if you already own one, can be a very stressful time.
However, there are many things you can do to help eliminate much of that stress. It
all comes down to finances.Your
Credit History
In this age of Identity Theft it is important to
know what is on your credit report. Additionally, many people find that there are
errors and omissions on their credit report that can adversely effect them being approved
for credit, including a mortgage. The time to find out what is on your credit report
is before you start shopping for your new home, giving you time to correct any errors of
deficiencies.
Federal Law states that you are entitled to a copy
of your credit report, from each credit reporting agency, free of charge once a
year.
There are three credit
reporting agencies in the United States.
Additionally, you can, for a fee, sign up to be
notified each time there is a change to your credit report, even if it is just an inquiry.
This way you can prevent erroneous information from being placed on your report.
Should you get pre-approved for a
mortgage?
In my experience, the answer to that questions is
Yes. Setting down with a mortgage professional to determine exactly how much of a
mortgage you will be approved for and exactly what your price range you should be looking
will save you valuable time. Once you have a letter of pre-approval the chance that
your offer will be accepted by a seller greatly increase. The seller knows you will
have no problem qualifying for their home.
If you are a serious buyer, ready to purchase in the
next 60 days, I can arrange for you to sit down with a mortage professional for a
confidential analysis.
What is the difference between being
prequalified and pre-approved?
It is easy to be prequalified? This is a
process where your income and debt service are calculated to determine how much of a
mortgage payment you can afford and that determines what price range you should be
looking. A pre-approval is a much more intensive process. If you are just
starting to look and aren't sure as to when you will move, then a prequalification is a
place to start.
In either case, getting a recent copy of your credit
report is a vital first step in your home buying process.
|
