Avoid the stress from the complications of home buying. Let us breakdown the home buying process for you with these 3 steps:

  1. Examine your Credit Report and Credit Score: Examine your credit report before you contact a mortgage lender. The law allows you one free credit report per year. Go to Annualcreditreport.com which gives you information from these three credit report agencies: ExperianTransUnion, and Equifax.Once you get this report review it to make sure everything is accurate. Challenge any missing information or errors with each agency. The Federal Trade Commission (FTC) publishes an excellent guide on “How to Dispute Errors on Credit Reports”.Your credit report provides the data to FICO (Fair Isaac & Co.) which gives a credit score. The credit score ranges from 350 to 850. The highest credit score ensures a lower interest rate for your mortgage. Lower rates indicate you as risky deserving a higher interest rate.

    Your credit scores depend upon:
    Amounts owed – The total of your debt
    Payment history – Whether you timely paid your debts
    Credit history length – The length of time you borrowed money as lenders prefer a credit history over a long period of time
    Credit types – Lenders like a range of debt types like car loans, bank cards, and student loans; and
    New credit – Did you recently apply for new credit?

    What’s a Decent Credit Score?:
    Above 720 – Gets you a lower mortgage interest rate.
    Above 580 – Qualifies you for an FHA loan with favorable interest rates.

  2. Figuring Out How Much You Can Pay:Determining how much you’re able to pay. Qualifying for a large mortgage loan shouldn’t mean you want to make those higher monthly payments. Use this free online mortgage affordability calculator which helps you to see what you can afford.Now find a local Realtor who can research your local housing market based on your affordability.
  3. Finding a Good Realtor: Do you know the difference between a Realtor and a real estate agent? A real estate agent licensed in your state to help you buy, sell, or lease real properties for a fee or a commission.A Realtor is a real estate agent who joined the National Association of REALTORS® (NAR). This association produces a Code of Ethics requiring ethical standards of professionalism and practice for its members. In addition, NAR provides valuable training and resources for its over 1 million members across America.Contact local Realtors and meet with them to see if they fit with your desire for a confidante, advocate, and hand-holder in your home buying process.

About Danielle Verboski

Whether you are looking for homes for sale or looking for a real estate agent to sell your home, having a dedicated professional who is committed to excellence is essential to a smooth real estate transaction. I am that person! The path to and from home ownership is best traveled with an experienced professional. Let me lead the way and help simplify the process. Born and raised in Connecticut, my level of expertise in the local area and market is unparalleled. With over 12 years experience in the customer service industry, the undivided attention that all clients receive while working with me is what sets me apart from the rest. I am personally committed to each and every one of my clients, no matter what their role is in the Connecticut real estate market.