3 Steps To Take Before Buying A Home

Look at you! You’re going to buy a house! Yay! Wait, what should you do to get ready? Bankrate has 3 Steps to Take Before Buying A Home. They are:

1. Get your credit in shape: Order your credit reports
One of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law.

2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements.

3. Craft a budget: How much house can you afford?

There is a difference between the maximum payment a borrower can qualify for — which can sometimes be surprisingly high — and the amount you can comfortably afford.

The article goes into more better detail, so check it out. —MEGHANN MARCO

3 Steps to Take Before Buying A Hous
e [Bankrate]
(Photo: whalt)

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  1. e10 says:

    When I was 11 years old, I was outside playing in the backyard and the Re/Max hot air balloon nearly made a crash landing in the trees on my parents property. It was literally feet from the tops of the trees and sinking. My entire family hopped in the car and followed it al the way to the local airport where we watched it safely land.

  2. LearningForever says:

    I totally agree that it is important for step 1 and 2 to happen. It is even more crucial for first time buyers in a time like this where lenders are concern about the type of loans they are making.

    I recently closed on a transaction. Between finding a correct lender and closing, there were only 15 working days. Lucikly for me, all the paperwork were in good order. We manage to close in time. Advise is to keep all your financial documents, tax etc well organized.

    However, if I was given the chance to do this again, I will add an additional step to this. I would choose a good mortgage lender BEFORE I shop for a home. A good book to look at is

    “How to save thousands of dollars on your Home Mortgage” by Randy Johnson.

    I gathered a lot of information for him regarding the different mortgages out there. Find the lender before you make a serious offer.