Meet or speak with a mortgage lender to complete a loan application (Request an Application).
STEP TWO:
Your loan officer will review your loan application, pull your credit, and determine if you qualify for a loan and for what amount.
STEP THREE:
Your loan officer will provide you with a Good Faith Estimate which details the expenses associated with buying (closing costs and prepaids) and your estimated monthly payment (PITI: Principal, Interest, Taxes, and Insurance) you qualify for.
NOTE: A pre-approval letter is a requirement to make an offer to buy a home. It is important that you choose a lender who is reputable and dependable as your pursuit for the American Dream depends on it. (Request a Lender Referral).
Need MONEY for your Down Payment?
If you have not purchased a home for at least 3 years, you may be eligible to receive up to $7500 in a First Time Home Buyer Tax Credit if you purchase a home before July 1, 2009. Income limits do apply. The payback provision essentially makes this an interest-free loan to be paid back over 15 years. This is a great opportunity though for buyers to borrow from themselves (ie. 401k) or from family to help them with their down payment, but be able to repay them shortly after with the money received from the government. Then the buyer pays back the loan interest free over the next 15 years.
Request more information about how this Tax Credit can benefit you.
What makes a GOOD Credit Score?
Good credit affects whether you can receive a loan to purchase a home, car, or even personal property! Your credit determines the level of risk you are to the lender. It is the driving force behind how much you can borrow and what interest rate you get. In addition, insurance companies and employers are using credit history to determine your accountability. The HIGHER your Credit Score the LOWER your interest rate and the more loan opportunities you will have. Every point in your Credit Score can make a big difference as every point improvement in your interest rate can save you thousands of dollars over the life of your loan. However, the lender will also take other factors into consideration to determine your actual interest rate. So, if you are planning to buy a home in the near future, I suggest not making any major financial or credit changes before speaking with a qualified loan officer.
To receive your copy detailing the "Five Elements that Impact your Credit Score", please click here.
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