Although, most of consider, owning a home, of our own, to be, a key component of the American Dream, few are ready, willing, and/ or able, to prepare effectively, in order to reduce some of the foreseeable stresses and strains, in order to significantly reduce many of the hassles of the process. While some of these, may not be, simply addressed, one area, it makes sense, to be prepared for, is, in the area, of enhancing one’s credit worthiness, and being ready and prepared, in this area. With that in mind, this article will attempt to briefly, examine, consider, review, and discuss, some key principles, and ways, to ease, the stress, and strain, of this transaction period.
1. Get a copy of your credit report: Once a year, you are entitled to a copy of your credit report, free! However, if you’ve been denied credit, or a victim of credit theft or attempted theft, you can do so, more frequently. Carefully, review this report, thoroughly, and go beyond, merely looking at the score. Check to see if, there are any errors, and correct them. Are there any items, which you don’t recognize, and, if so, immediately contact the bureau, and associated company, and officially question/ contest these? In terms of your score, in most cases (depending on the agency), the range is from about 300 – 350, up, to 800 – 850. Most mortgage lending companies desire scores, at least, over 700, and the best loans, are available, when these exceed 750.
2. How much mortgage to you qualify for?: Ask around, interview a few, and contact a professional mortgage banker/ broker. Discover, how much mortgage, you qualify for, and ask for feedback, regarding, ways you might enhance your consideration! When you know, how much you qualify for, and understand, what that represents, in terms of down – payment, reserves, and closing costs, you significantly reduce your stress, and tension, during this tense period of time.
3. Relevant money issues: Never over – simplify how you think about your credit, and credit – worthiness! Do so, in an introspective, objective manner, know yourself, and your needs, perceptions, and comfort zone, and prepare accordingly! Don’t begin the home search, until/ unless, you are prepared, from this essential perspective!
If you truly want to own a house, realize, most take advantage of a mortgage, in doing so. Therefore, to avoid excess stress, tension, and disappointment, begin, ready, and prepared!