If you are thinking about purchasing a home this series of short lessons will provide you with some important advice. Don’t make the mistake of starting the process without taking the time to prepare. It will make your task much easier.
One of your first steps should be to run a Credit Report on yourself to be certain that there are no problems in your credit history. There are web sites available to obtain a free credit report, and they are easily found on the internet.
Next do an analysis of your current financial situation. In other words where is your money coming from and where is it going. While you are at it you should put together a budget based on your analysis. More on this in a later lesson.
As part of the budget process analyze how the purchase of a home will affect your budget. If you are already paying rent you may be surprised.
Watch your spending patterns and keep them in check.
Start getting ready for the mortgage process, by getting together items such as; the last 3 years Income Tax Returns, current copies of your pay stubs, (if you haven’t been keeping them now is the time to start), records of any past debts that have been paid off, and any records showing any additional income that you may have. You will need this when you select a mortgage company to start the process.
This next advice is very important. Do not incur any new debt. Don’t buy a new car, new furniture, appliances, etc. A lot of mortgages have been derailed because the applicant decided to make a large purchase prior to closing on their new home. Mortgage companies always do a check of your financial situation just prior to closing to verify that nothing has changed since you made your application.
Be sure to watch for LESSON #2 on tips for saving money.