When you decide to purchase a home, the first step to take after a careful analysis of your finances is to shop for a lender, and shop very carefully to ensure you are getting the best financing possible.
Certainly, you are anxious to meet with your Realtor and get started on the search for your new home, but not getting your financing in place first could be a costly mistake. Finding a lender with the most favorable terms in this tight credit market will assuredly take some time, so, comparison shop a number of lenders, and be patient, cautious and pay close attention to every detail of the loan terms offered.
Before you meet with a prospective financier, be absolutely sure that your credit (FICO) score is high enough to attract a lender, (750 or more) otherwise, if lower than 750, even if approved, it is likely your loan terms will be nowhere near as attractive as the terms you could have obtained with a higher score. However, besides your FICO score and employment history and income, each lender has its own additional criteria in deciding whether to grant a loan, and at what terms.
Obtain copies of your credit reports from the three major credit reporting agencies
Tags: Mortgage