Too many times new home buyers are looking for the quickest and easiest way to get a homeowner loan to buy their first home. What they end up with, if they are lucking enough to qualify, is a high interest rate with many add on expenses. None of this would be necessary if they would have waited a little bit longer and worked harder at preparing their own personal finances so that they were attractive to the lending institutions.
Although you’re credit score is not the only area that you can clean up, it is probably the most important one to start with. Almost all lenders that offer homeowner loans use what they call the middle credit score from the three major credit reporting agencies (TransUnion, Experian, and Equifax). If you have a bankruptcy or foreclosure, you will have no choice but to wait at least two years for the bankruptcy and three for the foreclosure. Hopefully, you don’t have either of these negative items on your credit report. The best advice would be to ask several lenders what they look at and then work on that. (103)
Another important area to focus on is your employment history. Have you gone from job to job over the last few years? If this is the case for you have you stayed in the same type of work and did you receive an increase in pay when you made the switch? Banks that offer homeowner loans are looking at your earning potential closely. If they see you changing jobs a lot they want to know why. For instance if you were working as a mechanic and then switched over to a retail job for less money they will conclude that you were probably terminated. They may consider you a bad risk! Make sure you have steady employment of at least two years prior to trying to buy a house.
Another good idea to helping you get a good package on your homeowner loan is to have an established checking and savings account. On the other hand if your accounts show overdrafts you better be prepared to explain since this will not look good. If you have your paychecks direct deposited into your account they should match what you stated on your income information. Any large deposits or withdrawals will need to be explained in detail to justify why. Learn all about what is involved in a homeowner loan on my blog listed below.
Always keep in mind that the trail you are blazing today will decide tomorrow’s outcome! Everything you do either has a negative or positive impact on your future! Knowing this you must take the bull by the horns and take control of your own destiny!
Learn more about Homeowner Loans. Stop by Gregory Covey’s Blog where you can find out all about Homeowner Loans.
