Today more than ever it is important to have a good, stable mortgage. When purchasing a home you are becoming involved in a purchase that will likely be the largest single purchase that you will ever make. It simply makes sense to secure the best possible mortgage that you can find. How should you go about finding this dream mortgage? Well, there are a few things that you can do in preparation to ensure that you get a fair shake when the financing comes in.
Preparation is the key when looking for home financing. The more you know about your financial history the easier this process will become. The first step that you should take is finding out what your credit score is. Aside from the act of purchasing a home, its a good idea to learn as much as you can about your credit. Many people have no idea what their credit score is, it’s something that everyone should know about.
The first step is to request your credit report from the credit bureau. Once received, you should go over your report in detail. Check it for any old or out of date items that may be holding your credit back. Make sure that any outstanding items that you have dealt with are removed and anything that you have not dealt with, you should clear up as soon as possible. Having a clear report will make it much easier when you apply for your home financing.
So, your report is clear and you are ready to secure your financing. If you want to make the home buying process much less stressful then you will ask your lender for a full pre-approval. A full pre-approval lets you know an exact dollar figure of what is available to you in terms of financing. This will let you know exactly what you can afford in a home. This simple step can save a lot of heartache when the buying process begins. Nothing is more frustrating than finding a home that you love, only to discover that you cannot secure enough financing to pay for it. The other aspect of pre-approval that is extremely valuable is that fact that a pre-approval lets the seller know that the closing process will quick and easy with no scrambling by the buyer to secure financing at the last minute. If you ensure that these steps are taken care of before you start your shopping, then closing should be a snap.
Tyler Fawcett
http://www.articlesbase.com/real-estate-articles/preparing-to-buy-a-home-financially-101640.html
March 5th, 2010 at 1:23 pm
How do I prepare financially to buy a house?
I had a couple of years with barely any income and had to declare bankruptcy. Now I have a good job, savings and no debt other than car payments. I bought a few things on credit and paid them off in less than 6 months.
I’m ready to buy a home, but I am still worried that the bankruptcy will make it impossible. I am only 4 years out, do I have to wait 7 years?
March 5th, 2010 at 6:25 pm
Your best bet is to attend a Fannie Mae homeownership workshop. It will provide you with sources of where to find income and how much you should have saved before you even purchase a home.
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March 5th, 2010 at 6:27 pm
work on getting your credit score up as high as posible.
Keep saving for huge downpayment.
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March 5th, 2010 at 6:29 pm
I think the best way to find it out is to talk to your bank or several banks. Ask them if they accept such situation, if yes, fine – go ahead.
If no, what you need to do or provide to prove that you are ready for it.
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March 5th, 2010 at 6:31 pm
no, 4 years out is good. i think the minium is 3 years. idealistcally, have AT LEAST $6000 in savings. that really depends on how much the house is. but you have to remember, there are closing costs. and no house is perfect. you will want to do things to it right away. and maybe even NEED to make repairs overlooked earlier. also, most homes wont include appliances…fridge, stove. if you dont own your own, plan to purchse these things too. generally the actual down payment is about half of what it actually costs to get into a house.
your credit socre is important too. instead of paying off your credit cards in less than 6 months, leave a balance. generally up to 30% of your credit limit is considered good. for it to impact your credit score a balance must be carried for MORE than 6 months. there is also a thing called debt to income ratio. the more expendable income you have the better. payment history on bills like utillity, phone, cable…things like that are taken into account too. job history…not so much if you have been at the same place, but how long have you been in the same field of work. 3 years + is a good thing.
GOOD LUCK!! and HAPPY HOUSE HUNTING!!!
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March 5th, 2010 at 6:33 pm
I am a mortgage specialist. You are fine. You do not have to wait 7 years. If all is as you say, I can get you a mortgage with no problem. Contact me at wwi_2@yahoo.com so I can walk you through the process. If you have a house picked out, I may be able to get you closed in 2-3 weeks.
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