The American dream is to own a home someday. We all have
this passion deep down in side. Most Americans don't have
the money to pay cash, so they turn to lender to assist
with the purchase of there first or second home. With all
the new guidelines in banking I will give you exactly what
you need to do to secure a mortgage. I know everyone's
situation is different, but there are some steps you can
take so you will not have problems in today's lending
market. This will also help you regardless of what the
lending market is doing.
Know what's on your credit report
Most people have not idea what is on thier credit report.
They also have not idea what their credit scores are. This
is amazing to me, since the way to financial freedom is to
manage your credit health. Otherwise you are probably
paying too much in the way of terms and rates. Get a copy
of your credit report with credit scores regularly to mange
your scores.
Pay all your bills on-time
If you think paying a bill late every once in a while is
ok, you might want to rethink that logic. A single late
payment on any obligation will lower your credit score
between 100 and 150 points. So if you had a credit score of
750, now it's a 600 score. If you are having financial
problems and think you might be late, call the creditor to
make arrangements. Make sure once you work out something,
that you get something in writing stating they will not
report any payments late with the arrangement. So the idea
is to not be late on anything. Lenders don't like to see
you late on anything, because this looks like you are
having financial problems. This ultimately means you are
not ready to buy in a underwriters eyes.
Save your money
When applying for a mortgage, having savings is a big plus.
This shows you have stability and the ability to save money
for emergencies. Most loans are run through a automated
underwriting engine, and with savings in the bank could
mean the difference between a approval or a denial. A good
goal to have is 6 months worth of mortgage payment in the
bank. If you are buying a house around $200,000 six months
payment would be $12,000 in savings.
Pay your Rent on-time, and don't break a lease.
Being able to pay rent for at least 12 months on-time is a
plus. It looks better to pay rent and all your utilities on
time for 12 to 24 months. This shows a underwriter you are
able to handle responsibility. Lease agreements are one of
those contract deals that if you break it and don't pay the
fee to break the lease it can show up on your credit
report, plus the apartment complex typically will not give
a good verification for rent due to the lease being broken.
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About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.
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