Though the economy is brutal right now, if you have been planning to buy a home it is still possible to do so. Prices are good on real estate right now but credit is getting tighter so it is a good idea to check out your credit report before you talk to a lender about purchasing a new or older home. Many people never get a copy of their credit report until they are trying to get car financing or have found a home that they want to purchase. It is better to plan ahead so that if any errors are found you can get them corrected and have your credit report updated.
Checking out your credit report ahead of time and performing steps to improve your credit score will save you a lot of money when you go talk to your lender about home financing. There are many great deals on real estate right now and you don't want to miss out on a great deal because your credit isn't approved or be charged a high interest rate.
The best place to start is by getting a copy of your credit report from each of the major credit reporting agencies and to review them for errors. If you find an error and get it corrected your credit score should improve which can qualify you for a lower interest rate or a lower down payment on the home of your choice. It is up to you to report these errors and get them corrected and it is important to do so, especially when you are thinking of purchasing a new home.
The next step in preparing yourself to purchase a new home is to pay your bills on time. This is one of the best ways to improve your credit score. Lenders look favorably at borrowers who pay their bills on time and will be more likely to approve your home loan. If possible, pay off your credit cards but do not close the accounts. Closing the accounts can actually hurt your credit score so keep them but try not to use them or at least try to keep your balances low. You should try to keep your credit card balances under fifty percent of the credit limit you are allowed.
An important step when buying a new home is to find a good, reputable real estate agent who can help you find the home that you want and can afford. With housing prices down, there are many choices of homes for sale and the right real estate agent can help you find the home that is right for you and your family. Find a real estate agent that you are comfortable with that will take the time to work with you and you will be happy in your new home.
Buying a home is one of the most important purchases that you will make in your lifetime and a good real estate agent can guide you through the process. With a little thought and preparation you will be able to achieve the American dream of home ownership.
By:Ryan Tollefsen
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