The Four Tasks To Do When Buying a Home
Buying a home is the largest financial transaction a couple will often make in thier life. It’s important you make the right preparations. Regardless of special circumstances, there are four items you should do when buying a home.
1. Examine the home buying process. This will allow you to make better decisions. Home buying has it’s own language, so be sure to read through a few home-buying glossaries before you get into the thick of things.
2. Obtain your credit report. Get a copy of your credit report and review it for errors. You can get copies from all three credit bureaus at once by visiting www.AnnualCreditReport.com. Mortgage lenders will review your credit with a fine-toothed comb, so you should do the same … before they review it.
3. Fix credit errors quickly. If you find an error on your credit report, go to the company’s website where the report came from (TransUnion, Equifax or Experian) to contest it. It can take time to clean up an erroneous credit report, so get started as soon as you spot the error.
4. Avoid new lines of credit. Try to keep your financial situation as “stable” and favorable as possible. It’s a good idea to pay down some debt (see item #4 above) and to save up some cash. But the worst thing you can do is take out a new loan / line of credit. At best, this could make the qualification process take longer. At worst, it could tip the debt scales into the “greater than 20%” zone, which will make it harder to get a loan.
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