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hope it helps
My husband and I are trying to buy another home. This is what we did hope it helps.
1. Get your credit in order! A decent credit score is anything above 600 with 900 being the best. You want to make sure that your score is as high as possible to get the best rate. If you have any current outstanding debt (esp. 7 years of age or younger) clear it up and write a letter to the credit bureaus stating that they have been paid. Make sure to get copies of all three credit reports. Sometimes creditors report only to one of the three agencies.
2.Make sure you have enough money in the bank to cover the down payment. Say you purchase a $100,000 home and the down payment, which is usu. 3% or more,is $5000 ;if you have $4300 in the bank or less and try to borrow the rest and place it in the bank account. The lenders will only look at what you had prior to the deposit. Start saving at least 6mos-2yrs before purchase.
3. Get your mortgage approved before looking for the house. That way you know what you can spend. This is the longest and most arduous process.
4.Go through a bank first if you can. If your credit is a-one a bank or credit union is the best choice. Most times they offer the best rates and can offer a lower interest rate. Mortgage companies tend to sell their loans to other mortgage companies. Ask a reputable realtor with yrs. of experience about the mortgage companies. Try to find a company that has been in business the longest with a reputable history. If they tell you to pay for the credit report first 9 times out of 10 they are sheisty.(trust me it happened to us....long story).
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