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Rates
may be rising:
Mortgage & refinancing
preparation made simple
Buying a home
is probably the single largest investment most people make in a lifetime.
By preparing yourself and your credit before a home purchase or refinance,
you can ensure a smooth finance process and can potentially save thousands
on your loan. Improve your financial profile now so you can take advantage
of the low interest rates before they disappear.
Start
by checking your credit
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To get the
best possible mortgage rate, make sure your
credit history is healthy and accurate. Aim to raise your
credit score above 650 in order to qualify for most prime loans.
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If your
credit score is not quite 650, focus your efforts on paying bills on
time, reducing your debt balances, avoiding new inquiries and clearing
negative inaccuracies from your credit report.
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Make sure
the information on your report is correct and fix any problems you
discover. Give yourself 30-90 days for correcting inaccuracies. You
can learn more about the dispute process online in the
Credit Learning Center.
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Found an
error while reviewing your
credit with the lender? Ask about the "rapid rescoring"
process where you can submit a dispute and potentially improve your
credit in 72 hours.
Figure
out how much you can afford
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The rule of
thumb is that most borrowers can afford a home that runs about
two-and-one-half times their annual salary.
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Calculate
your loan-to-value ratio to see how much you can afford to borrow by
dividing the loan amount by the property's value. If your
loan-to-value ratio is above 80 percent your rates may increase
significantly. Find a less expensive home or save up for a down
payment to lower this percentage.
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Calculate
your debt-to-income ratio by adding up your monthly debts and dividing
by your monthly income. A debt-to-income ratio under 20-39 percent is
usually considered good and will help you be perceived as
financially stable.
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Don't be
afraid to start small. Just because you may qualify for a large loan
doesn't mean that it is a smart financial decision to buy as large a
home as possible. Take a careful look at your family budget and your
housing needs before you decide how much you can really afford.
Be a smart
borrower this summer and save thousands by preparing your credit
before you apply for a loan. Click here to view your complete credit
report plus score in seconds.
Sign up today for an absolutely N0 C0ST credit repair analysis.
To take advantage of this FANTASTIC offer CLICK HERE!!
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