I talk to lots of people about buying homes. Not long ago I was talking to a newlywed couple and they mentioned they wanted to buy a house and they were saving for a down-payment. I then asked them what else they were doing to prepare for the home purchase. They looked at me with a most quizzical expression and asked “What do you mean”?
While a down-payment is a necessity, it takes much more than a down-payment to buy a home. Buying the home is the goal and to accomplish this goal you must have an ‘Action Plan’ to get there! What do I mean by action plan? I mean there are many steps that must be taken along the way prior to the home purchase. For example:
- Do you know what your credit score is? This is an important factor in obtaining a loan. You must have a minimum credit score to qualify for a loan. Your credit score is based on your payment history (on time & delinquent) and how much debt you have.
- Have you seen a copy of your credit report? This is very important. You can download a free copy of your credit report every year from each of the three credit bureaus. This report contains a list of your creditors, balances, payment history, and personal information. It is a good idea to get this report and verify that the information is correct. There could be outdated or incorrect information on your report that negatively affects your credit score. You can contact the credit bureau directly to dispute or correct information. This may take some time so factor that into your timeline of your action plan.
- Have you spoken with a lender about how much house you can afford now? Another very important step. A lender will meet with you and get a picture of what your financial status is and advise you of where you need to be prior to purchasing a home. The lender can also advise you of what documentation will be required to qualify for a loan (pay stubs, tax returns, employment verifications, etc.)
- Have you educated yourself about down-payment assistance programs that might be available to you? Your lender can assist you with this information. There is also a great organization called the Tri-Valley Housing Opportunities Center. The Tri-Valley Housing Opportunity Center (TVHOC) provides home-buyer pre and post purchase education, income and asset development education, information regarding private sector lender programs, and funding sources – helping match those in need with programs and services that benefit them most.
After performing these tasks, you may find out that you may have some financial work to do before you can buy a home, and you can establish a time line (action plan) for accomplishing this goal. Or you may find out that you are financially ready right now. Either way it is worth the effort to be educated, informed, and prepared.
As we head into the 4th quarter of 2009 I want to remind you that each year you are eligible to receive a FREE copy of your consumer credit report from each of the three major credit bureaus. TransUnion, Experian, and Equifax will provide these to you at NO CHARGE. So if you haven’t done so this year, this would be a great time to get your updated reports.
Go AnnualCreditReport.com to obtain your FREE reports. There is NO credit card information required on this site to obtain your reports. (There are other sites out there that say they are free, but they will ask for credit card information before giving you access to your information.)
All sites will offer access to Credit Scores and there is usually a fee for that report. It may be worth the cost to keep an eye on your credit score, especially if you are planning on buying a home in the near future. Also if you are trying to repair credit problems, you can periodically check your score to determine how your score is improving over time.
You will have the opportunity to download your report from all three credit bureau reports at once, or you can download one (of your choice), and revisit the site at a later time to download another. Some credit professionals suggest downloading one every 4 months to keep an eye on changes throughout the year. Whichever method you choose, this is a valuable tool!
In some cases, if the system is unable to identify you online, you may be required to order your report via phone or mail. If this happens to you, simply follow the online instructions for obtaining the phone number or the appropriate form to download and mail. You will receive your credit report in the mail usually within 2 weeks.
You can also download forms to correct errors, dispute incorrect information, and/or remove outdated information.
Hope you found this information useful!
The year is half-over, but its not too late to remind you that each year you are eligible to receive a FREE copy of your consumer credit report from each of the three major credit bureaus. TransUnion, Experian, and Equifax will provide these to you at NO CHARGE.
Go to www.AnnualCreditReport.com to obtain your FREE reports. There is no credit card information required on this site to obtain your reports. (There are other sites out there that say they are free, but they will ask for credit card information before giving you access to your information.)
All sites will offer access to Credit Scores and there is usually a fee for that report. It may be worth the cost to keep an eye on your credit score, especially if you are planning on buying a home in the near future. Also if you are trying to repair credit problems, you can periodically check your score to determine how your score is improving over time.
You will have the opportunity to download your report from all three credit bureau reports at once, or you can download one (of your choice), and revisit the site at a later time to download another. Some credit professionals suggest downloading one every 4 months to keep an eye on changes throughout the year. Whichever method you choose, this is a valuable tool!
In some cases, if the system is unable to identify you online, you may be required to order your report via phone or mail. If this happens to you, simply follow the online instructions for obtaining the phone number, or the appropriate form to download and mail. You will receive your credit report in the mail usually within 2 weeks.
You can also download forms to correct errors, dispute incorrect information, and/or remove outdated information.
Hope you found this information useful!
With the new year rapidly approaching, now is a good time to remind you that each year you are eligible to receive a FREE copy of your consumer credit report from each of the three major credit bureaus. TransUnion, Experian, and Equifax will provide these to you at NO CHARGE.
Go to www.AnnualCreditReport.com to obtain your FREE reports. There is no credit card information required on this site to obtain your reports. There are other sites out there that say they are free, but they will ask for credit card information before giving you access to your information. All sites will offer access to Credit Scores, and there is usually always a fee for that report.
You will have the opportunity to download all three credit bureau reports at once, or you can download one (of your choice), and revisit the site at a later time to download another. Some credit professionals suggest downloading one every 4 months to keep an eye on changes throughout the year. Whichever method you choose, this is a valuable tool!
In some cases, if the system is unable to identify you online, you may be required to order your report via phone or mail. If this happens to you, simply follow the online instructions for obtaining the phone number, or the appropriate form to download and mail. You will receive your credit report in the mail, usually within 2 weeks.
You can also download forms to correct errors, dispute incorrect information, and/or remove outdated information.
Hope you found this information useful!
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