subject: Be Ready To Buy A Home In 2013 [print this page] Get your finances in shape. Get your finances in shape.
Does your New Years Resolutions list usually include something about getting in shape next year? Are you planning on buying a home in 2013? Its not too early to begin thinking about getting your credit score in shape too.
Check your Credit Score: All the experts tell you to take advantage of your free annual credit reports to see what you score is and fix any problems on it BEFORE you submit your loan application. The earlier you do it, the better off you will be.
Lower Your Credit Card Debt: Yes, thats hard to do during the holiday season, but its important to pay them off right away and then dont use them for a while.
Once you pay off the cards, leave them unused for at least 45 days before you apply. suggests John Ulzheimer for Mint Life. This will ensure the balances on your credit reports will be $0. Sometimes it can take a full billing cycle to update accounts on credit reports.
You can still use debit cards though because these dont show up on your credit report.
Get a Pre-Approved Home Loan: In this home market, its important to be pre-qualified for a home loan. This makes it easier to put an offer on a house because the seller knows you have financing in place and it also helps you know how much home you can afford.
Now that youve been approved, says Ulzheimer, its possible that your credit reports and scores will be pulled again just before your closing date. The purpose is to make sure that nothing has happened with your credit and debt that could cause the lender to change their minds.
So, dont apply for new credit until after the loan has closed, or it will affect your credit scores negatively. Buy that new big screen TV for the basement after you close on the house.
Read more great real estate tips and news, online at Metro Brokers TV.
