The home buying process can be quite long and complex, but it can also be a great adventure. What I want to do here is educate you as much as possible about the entire process. This will be broken down into three different pages. Just click the link at the bottom to continue. And please remember to call me if you have any questions at all. Before starting about the home buying process, I first want to address the importance of being represented by a Buyer's agent.
This is a lot of reading, so I have broken it down into several pages. At the end of this page you will see links for the Home Buying Process Part 2 and the Home Buying Process part 3.
Getting Started: Buying a home is the largest purchase most people will ever make, so use this home buying guide to assist you with the process. Home ownership has great benefits. Home ownership also comes with certain responsibilities.
If you're thinking about buying a home, you should also be thinking about your credit. The first step in the home buying process is understanding your credit.
When you apply for a mortgage, lenders will review your credit report. Your credit report is a history of how you've managed your finances: it's a record of money you've borrowed and your history of paying it back.
Your credit report is a record of all your credit transactions whenever and wherever you've used credit to purchase goods and services. Your credit will have a big influence on whether or not you can get a mortgage, the terms of that loan, and the interest rate. If you have good credit, you may have a much wider range of mortgage offers with lower rates.
Organizing your Finances
Get a free credit report. By federal law, you can now get a free credit report once a year from each of the three nationwide consumer credit reporting companies. Go to www.annualcreditreport.com for this. Please note that southern states will have the free reports available after June 1, 2005. If you need to make corrections to your credit report, write each of the three companies below using the format provided:
Experian
P.O. Box 2002
Allen, TX 75013
Trans Union
P.O. Box 1000
Chester, PA 19022
1-800-916-8800
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
________________________________________
Sample letter:
Complaint Department
Name of Credit Reporting Agency
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I
dispute are also encircled on the attached copy of the report I received.
(Identify item(s) disputed by name of source, such as creditors or tax
court, and identify type of item, such as credit account, judgment, etc.)
This item is (not accurate or not complete) because (describe what is
not accurate or not complete and why). I am requesting that the item
(state a specific change) to make the information accurate.
Enclosed are copies of (talk about any documentation you are enclosing like
payment records, court documents) supporting my position. Please
look into this (these) matter(s) andmake the necessare corrections the as
soon as possible.
Sincerely,
________________________________________
Next, create a household budget if you do not already have one. Know what your income and expenses are so that you can determine how much you want to pay each month as a mortgage payment.
Start gathering information for lenders. It is good to have copies of the last three tax returns, bank statements for the last three months, current pay stubs, records of any past derogatory credit history that has been paid off and records of any supplemental income you have had. If you are self-employed, you may need business records and income tax records for the past three years. If you are divorced or have declared bankruptcy, make a complete copy of the settlements.
Get pre-approved for a loan. Having a pre-approval letter from a lender is a must when it comes time to submit an offer. Lenders will pre-approve you and taylor a letter to the specific house you ultimately offer on. If you're paying cash, get a letter from your bank or financial institution stating that you have the funds for the purchase.
Go to Home Buying Process Part 2
Go to Home Buying Process part 3 |