|
|
|
Take Action |
|
If you plan to purchase a Colorado home in the near future, begin now to make certain you'll be ready. You can prepare for the home purchase process by doing the following: |
|
|
|
Start saving for down payment and closing costs |
|
If you're serious about purchasing a home in the future, demonstrating your ability to save and having funds on hand will help you in the approval process. If you need help with a down payment or closing costs, try a relative or grant. |
|
|
|
Order a credit report
 |
|
Check your credit, this is the first step to a new home loan. By ordering your credit report in advance of your purchase, you will have the opportunity to correct errors on the report or close down/satisfy accounts that may present a problem when you are ready to apply for a mortgage loan. Too many open accounts can be a detriment, even if you have a zero balance! Good online credit reports are available at
Free 3-in-1 Credit Reports
|
|
|
|
Examine your credit? |
|
Improve your credit rating by repairing and rebuilding what you have. Don't continue on with poor credit, improve your financial future by removing negative marks or arranging negotiations for debt reduction and consolidation. A couple of ways to do this is either on your own with a self help credit repair kit or a professional service like
360 Credit Reports
|
|
|
|
Restructure your debts |
|
Refinancing or lowering your vehicle and credit card payments can help you save more money for a down payment and qualify you for more home. Usually available are low interest balance transfers so you can consolidate credit cards to a very minimum. With instant online approval for these services, there's just no reason not to conserve. |
|
|
|
Document your bill payments |
|
The ability to demonstrate that you are diligent about paying your bills on or before the due date is important. Don't pay your bills by cash because documented print-outs and cancelled checks can help to demonstrate that you meet your expenses on time. |
|
|
|
Save your pay stubs |
|
Begin saving all your pay stubs from your employers. If these pay stubs are computer-generated from a Colorado company, they can, in many instances, be used to verify your income, without having to obtain documentation from your employer. |
|
|
|
Save bank statements |
|
Bank statements showing deposits and withdrawals will be needed to demonstrate funds for the down payment and funds to close. If you can provide lenders with original bank statements, they may not have to wait for your bank to verify the information when you apply for your Colorado mortgage loan, a process that takes time. |
|
|
|
Consider waiting on major purchases |
|
New mortgage applicants may sabotage their own eligibility if they sign on for large ongoing debt (such as a car loan) just before applying for a home loan. Your mortgage lender professional can answer your questions on this. |
|
|
|
Find a real estate agent you are at ease with |
|
Even if you are still in the exploratory stages, you can ask a real estate agent to provide information on the Colorado town in which you are interested. An agent can give you information about the schools, taxes, price ranges and town services. If your real estate agent understands that you are working with a mortgage lender, he or she will know that you are a serious buyer and will be happy to invest time in your home search process. This is particularly true if you have been pre-qualified or if you have a pre-approval loan commitment. Once you've found an agent you like, stick with them! Through the multiple listing service, they have access to almost every home in Colorado listed for sale. |
|
|
|
|
