While most consider owning a home, ours, to be a key part of the American Dream, few are ready, willing, and / or able to prepare effectively, to reduce some of the predictable stresses and strains, in order to dramatically reduce many hassles in the process. While some of these issues are not just addressed, one area it makes sense to prepare for it in the area to improve your creditworthiness and be ready and prepared in this area. With that in mind, this article will attempt to briefly, review, consider, review, and discuss some key principles and ways to alleviate the stress and strain of this time of trading.
1. Get a copy of your credit report: Once a year, you are entitled to a copy of your credit report, free of charge! However, if you have been denied credit or are the victim of credit theft or attempted theft, you can do this more frequently. Read this report carefully and go beyond it, just looking at the score. Check if there are any errors and correct them. Are there any items that you do not recognize and if so immediately contact the office and associated company and question / officially challenge them? In terms of score, in most cases (depending on the agency) the range is around 300 – 350, up to 800 – 850. Most mortgage companies want scores , at least, greater than 700, and the best loans, are available, when these exceed 750.
2. How Much Mortgage Are You Eligible For ?: Educate yourself, interview a few, and contact a professional banker / mortgage broker. Find out how much mortgage you qualify for and ask for feedback on ways you could improve your credit rating! When you know how well you qualify and understand what that means in terms of down payment, reserves, and closing costs, you dramatically reduce your stress and strain during this tense time.
3. Relevant money issues: Never again – simplify your perception of your credit and your solvency! Do it introspectively and objectively, know yourself, your needs, your perceptions and your comfort zone, and prepare yourself accordingly! Do not start the home search until / unless you are ready with this essential prospect!
If you really want to own a home, know that most take advantage of a mortgage in doing so. Therefore, to avoid excess stress, tension, and disappointment, start, ready and prepared!