| Thinking of buying a home? Have you found the perfect place?
Well if you’re like most people you will need a mortgage. Buying a home is a
big step; there are a lot of factors involved. Before you even begin looking
at potential homes, you need to be aware of your credit history.
CREDIT
HISTORY
As with any loan, the terms really depend on your credit history. The
current interest rates published by the FED (Federal Reserve) could be low,
however if you have poor credit history, it can be a totally different
story. With poor credit history, the lender is taking more of a risk when
s/he lends money to you. You should order you credit report and know exactly
what is on there. Review your credit report; make sure everything is
accurate. It could take months to correct, so you want to have everything
corrected before you apply for the mortgage. If everything on there is
accurate and your credit history is imperfect, there is still hope.
PROPERTY APPRAISAL
The lender hires someone to appraise your future home. This is very
important because this determines your mortgage loan amount. This number
also sets the stage for the mortgage loan insurance amount. This insurance
protects the lender from loan defaulters.
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