BAD CREDIT CASH LOANS AND FINANCING: Unique Content Article: Get Your Finances In Order To Buy A Home

Get Your Finances In Order To Buy A Home

by Hannah Valez

Are you waiting out the real estate market, sitting on the sidelines just watching and waiting? Are you trying to figure out when home prices are going to hit bottom and start rising again? What about interest rates? Will they still be at historic lows when the real estate market picks up again? Instead of just waiting, you could be using this time to get ready so that you'll have everything in place when you decide that it's time to make your move. There are many possible hurdles and snags in the complicated, time consuming process of buying a home. Some of them could even stop you from getting the home you want. Now is the ideal time to find out what roadblocks you might face and get them out of your way.

Qualifying for the mortgage is by far the most difficult part of buying a home. You can improve your chances of getting a loan when you're ready by doing a few simple things now.

Make sure your credit score is the best it can be. Contact the credit reporting agencies and get a copy of your credit report. If you're willing to pay a fee, there are many services that will do this for you. But you can get copies of your credit report for free by contact the credit reporting agencies directly. Get copies of credit reports for yourself and your spouse, or whoever you're planning to buy a house with.

Look for errors. If there is any incorrect information on a report, write a letter to the credit reporting agency explaining that the information is incorrect. There is an established protocol where they contact the creditor for a response. Get started now, because this process takes time. Don't just do it with one credit reporting agency. Go through this with each of the three. When you apply for a loan, the lender will request a credit report from at least one of three credit reporting agencies, but it's their choice which one(s).

Make sure you bring all accounts current and make all payments on time. If there is a blemish on your record, it will count for less as it ages. Going forward, make sure that your payment history is spotless.

Don't open new accounts and try to decrease the balances of old accounts. Even if you pay everything on time, it will look bad if you have too many loans. If you're thinking of buying a car, wait until after you've bought your house. Car loans are much easier to get than home loans.

Think about your employment history. Lenders want to see that you are steadily employed in the same field for at least two years. If you have plans to make any major changes - like switching careers or going into business for yourself - you might want to wait. It's okay to switch from one employer to another, as long as you're working in the same field.

Start saving up to pay for closing costs and a down payment. You'll probably need to talk to a mortgage broker or do some research online to figure out how much money you need to save. Most people want to buy the most house that they can afford. When you find out what kind of payments you can qualify for, then you'll know what price range of house you're looking at. Also, the percentage of the purchase price that you'll need for a down payment can vary widely depending on the type of loan you're getting. FHA loans, for example, allow you to put as little as 3.5% of the purchase price down. Closing costs will run about 3% of the home's purchase price. You may be able to negotiate with the seller of the home to have them pay some or all of your closing costs, especially if you buy a brand new home from the builder.

As you can see, improving your credit and saving up money take time. Getting started now will put you in the best position possible so that when you think the time is right to buy a home, you'll be able to move quickly. - 41115

Many new home builders are offering to pay closing costs. Check out these (http://www.brookfieldsd.com/) San Diego new homes, where you can get $10,000 towards closing costs or upgrades. Find more information on (http://www.mortgagerealestatenews.com/manage-your-credit-before-getting-a-mortgage/) improving your credit score.
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New Unique Article!

Title: Get Your Finances In Order To Buy A Home
Author: Hannah Valez
Email: seo@10thdegree.com
Keywords: buying a home,buying a house,residential real estate,real estate,mortgage,credit report,credit,home loans,Finance:Mortgage,Finance:Real Estate,business_and_finance
Word Count: 696
Category: Finance:Credit
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