Examine your Finances

Buying a home is a HUGE investment and it takes commitment to get through the purchase process. It is important to consider the role that your credit score plays in your ability to secure a mortgage. Here are a few steps to help you start the process:

 

  • Make sure your finances are in order: The perfect scenario will be to have all your debt paid off and a savings of 3-6 months for emergency expenses. However, in real life you can still buy if your income is higher that your debt. 

  • Check your credit: Request a free copy of your credit report from the three credit bureaus at www.AnnualCreditReport.com  For a small fee you can also obtain your score. If there is any errors, file a dispute. Don't close any accounts, leave older credit lines open. 

  • Avoid opening new credit lines - Pay down loans: Start saving and earning extra cash for down payment and closing cost. Take drastic steps to cut spending. DO NOT buy anything on credit, DO NOT open any new accounts until you have closed in your new home.

  • Consult a lender - Get Preapproved for a Mortgage: The sooner you visit a lender, the quicker you’ll know what you can afford and the steps you need to take to improve your credit or generate more income. The lender will tell you how much you can afford, but you decide based on your monthly budget how much is comfortable to spend. Inquire about Down Payment Resources and seminars that explain the home buying process. Be ready to provide financial documents such as W-2 statement, paycheck stubs, bank account statements, etc...

  • Hire Me: Once you have the pre-approval letter then you can start home shopping. Make a list of your must have to bring to your Realtor. Location, exterior design and interior layout. 

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