figure since I received this request three times this week it seemed appropriate to blog about it.
Yes, this is an amazing time to buy a house...there are lots of great buys out there is you, as a buyer, have done some planning and either have cash, darn good credit or an even better plan.
Since most of the folks leaving these message have less than steller credit I will go straight to the plan.
Why do you want to buy a house?
Is it just because there are some great deals and you want in on the action? Or do you want to take advantage of the recent price cooling to get into something affordable?
If you want in on the action, you're on your own, but if you are looking to work hard and plan then this is the place for you...
Step 1 - Go to www.AnnualCreditReport.com and get your free credit report. Yes, if you've been avoiding taking a good look at your credit report, get your head out of the sand and take a look. You can't fix it, if you don't know what's wrong.
Step 2 - Fix those items that are incorrect and for those negative items that are legitimate we need to find a way to either stop the negative reporting or get those items removed.
Step 3 - Set up an income vs. expense budget. Once you know where you are you can start making adjustments. In a nutshell, that either means finding ways to cut back spending, increase income or both.
Step 4 - Now you know where you are at financially, it's time to start negotiating with creditors based on what you can afford. If you can afford to pay off an outstanding bill, then negotiate the negative reporting removal with the payoff - in writing. It's not always successful, but you'd be suprised at what they will agree to in order to get that debt off their books!
Step 5 - In order to get the more difficult negative items off your credit report you can take a couple different routes:
- Write letters to the credit reporting agencies disputing those items; or
- Hire a reputable credit repair company. These folks often charge per item for removal, but I have seen some great success.
Step 6 - Find a Realtor and Lender well-versed in various lending and owner-financing options e.g. FHA, USDA, NACA, VA, SONYMA and many other programs that can provide a 30 year loan with a competitive interest rate, and reasonable downpayment.
Step 7 - Do yourself a financial favor and search out various grants, tax credits, and other options that are available to you on national, state and local agency levels.
If you need more guidance we have other blogs, podcasts, and seminars that can help!
Don't stop believing in you!! We all have good times and bad times...find a way to turn the negative frustrations you have and find a positive spin and positive folks that can help you!
You can do it!
Peace and Financial Success,
Principal and Real Estate Consultant
The Machree Group, LLC