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Take Action |
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If you are planning to purchase a 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: |
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Start Saving |
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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 utilize the Down Payment Assistance Program for free gift funds. |
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Order a credit report |
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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 loan. Too many open accounts can be a detriment, even if you have a zero balance! Free credit reports are available here. |
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Examine your credit? |
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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 Junum Credit Management. |
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Restructure your debts |
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Refinancing or lowering your vehicle and credit card payments can help you save more money for a downpayment 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. |
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Document your bill payments |
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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 will be an important way to demonstrate that you meet your expenses on time. |
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Save your pay stubs |
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Begin saving all your pay stubs from your employers. If these pay stubs are computer-generated, they can, in many instances, be used to verify your income, without having to obtain documentation from your employer. |
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Save bank statements |
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Bank statements showing deposits and withdrawals will be needed to demonstrate funds for the downpayment and funds to close. If you can provide lenders with original statements, they may not have to wait for your bank to verify the information when you apply for your mortgage, a process that takes time. |
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Consider waiting on major purchases |
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Borderline mortgage applicants may sabotage their own eligibility if they sign on for a large ongoing debt (such as a car loan) just before applying for a mortgage. Your mortgage professional can answer your questions on this. |
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Find a real estate agent you are at ease with |
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Even if you are still in the exploratory stages, you can ask a real estate agent to provide information on the town in which you are interested. He or she can usually 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 listed for sale. |
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