homes,condos,new homes,realtor,homes,agent,Nevada,Las Vegas home search.  FirstTimeHomeBuyerLV.com  homes,condos,new homes,realtor,homes,agent,Nevada,Las Vegas home search.
Las Vegas Real Estate Las Vegas Homes Las Vegas Condos Henderson Homes

HOME  CONTACT US  SITE MAP

HOME

CONTACT US

Home Buying Tips
Steps to Home Ownership
Buyer Information Reports
Credit Report Information
Mortgage Calculators
Get Pre-Approved
for a Loan
Do's & Don'ts  During the
Loan Process
Terrific Tips for First
Time Home Buyers
Las Vegas Home Search
How to Save for
Your First Home
Home Search
Starts With Lender
 
For more complete real estate information for Buyers and Sellers, please visit our main website:

www.billsmithlv.com


Bill Smith,REALTOR®


Submit Your Site To The Web's Top 50 Search Engines for Free!
SITE MAP

Home Search Starts With Lender

**By Stef Donev, INTEREST.COM

Shopping for a home without a good loan to pay for it makes as much sense as playing in traffic.  Without a loan lined up first, financing could be delayed and the home could be lost to someone else, or the interest rate may change, costing thousands of dollars more over the life of the loan

So even though shopping for a home is more fun than shopping for a mortgage, the mortgage comes first.  Shopping for one doesn't start at the lender's office, however.  It normally starts on the computer or phone, since that's where most people order copies of their credit reports.  if possible, the process should start months before house hunting begins

A major factor in the equation a lender uses to decide who gets a mortgage and what the interest rate will be is the credit report.  The better a borrower's credit and credit score, the lower the interest rate should be.

Everyone is entitled to a free copy of their credit report annually from each of the three major credit-reporting companies: Equifax, Experian and TransUnion.  However, borrowers cannot get a free report by going directly to the companies or their websites.  They will attempt to sell the reports.  The free reports are available only by going to www.annualcreditreport.com or calling 1-877-322-8228.

For married persons, each spouse is entitled to a free copy.  Each report contains information on how to report and correct any mistakes that might appear.  it is important to remember that credit-reporting agencies just accept raw information from companies and others that issue credit.  They do not check the information.  Mistakes are common.  Each company has its own way of working, and often each has some different information.

With the growth of identity theft, people should check their credit reports on  a regular basis even if they are not planning to get a mortgage.  It will show up on a credit report if someone tries to use another person's information to obtain credit.

Armed with a credit report, job one is to look for mistakes that could lower the credit score.  if there are errors, follow the directions to fix them.

Most of us have perhaps a black mark or two that is valid.  Those will remain there until they are corrected.  Any late payments, missed payments, judgments, liens, repossessions or a bankruptcy in the last seven to 10 years will appear on a borrower's credit report and have a negative impact on credit rating.

There are two courses of action with legitimate black marks.  First, write a letter explaining the black marks -- what happened and why it won't happen again -- and send copies to all three credit reporting agencies.  many lenders understand that life events such as divorce and illness can temporarily affect even the most well-meaning borrower.

Second, start paying bills on time, month after month.  in most cases, the better the "current" history is, the better the credit score will be.  These two steps could lead to a lower interest rate.  It might not be a lot lower, but every fraction it drops saves money over the life of the mortgage.

Next, take a close look at personal finances, both income and "outgo."  What's a comfortable amount to spend per month on mortgage payments?  Lenders want to lend as much money as they can on the most expensive home their clients can afford.  The buyer must decide what is really affordable.

You can look at "afford" in terms of how much you can squeeze out of your budget by cutting back on all other activities and hoping that the car will not need work, that the kid won't need braces, and that there will be no unexpected expenses in the next few years.  Or, you can be realistic.  Plan for unexpected events and then consider what's affordable.

With credit history cleaned up as best as possible and a reasonable budget established, find a lender.  Choose one with whom you feel comfortable.  (Ask your real estate agent for suggestions.)

Once you have your lender, get pre-approved, NOT pre-qualified.  Pre-qualified means telling the lender income and expenses, and the lender saying if everything checks out and there are no setbacks, the will offer "x" amount of money.  When it comes time to get the loan, they do the actual checking, and that can take weeks or longer.

For pre-approval, the lender checks all of those things, such as work history and credit history, everything except the value of the property for purchase.  The lender then provides a letter saying they will approve a loan for "x" amount contingent on an appraisal of the property for purchase.

Some real estate agents won't even deal with customers who don't have a pre-approval letter.  The letter lets agents know they are dealing with serious buyers and how much house they can afford.  That letter also lets everyone else involved in the process know that once the house has been chosen, and the price agreed upon, closing the deal will probably be relatively quick and easy.

THAT'S WHEN TO START LOOKING FOR A HOUSE!

**NOTE: Stef Doney is a Southern California freelancer who writes for Interest.com and has been covering the mortgage industry and other consumer finance issues for nearly a decade.  Interest.com is a national publisher of mortgage rates and information.

NOTE:  This article if furnished for informational purposes only and has not been verified or endorsed by www.firsttimehomebuyerlv.com, Bill Smith-REALTOR® or his real estate Broker's office.

HOME  CONTACT US  Home Buying Tips  Steps to Home Ownership  Buyer Information Reports  Credit Report Information  Mortgage Calculators  Get Pre-Approved for a Loan  Do's & Don'ts During the Loan Process  Terrific Tips for First Time Home Buyers  How to Save for Your First Home  Search Starts With Lender Las Vegas Home Search  

Las Vegas Real Estate Las Vegas Homes Las Vegas Condos Henderson Homes
This site designed and maintained by Bill Smith, webmaster
www.firsttimehomebuyerlv.com

Equal Housing Opportunity - Las Vegas Nevada real estate: homes, condos, highrise condos, homes for rent, property management.

Bill Smith and Prudential Americana Group, REALTORS® do not discriminate in the renting, leasing, or selling of housing or otherwise make housing unavailable because of race, color, religion, sex, handicap, familial status, or national origin.

Realtor Logo - Henderson Nevada Real Estate: Homes,Condos, Highrise Condos,The Lakes, Seven Hills, Green Valley,Homes For Sale,Homes For Rent,Property Management

If your property is currently being managed by a licensed professional, we are not suggesting that you dissolve your present agreement.