Calculate Your Net Worth:
Assets - Liabilities = Net Worth:
This is the primary item lenders consider when deciding on
a home loan you can afford. Knowing your net worth before you
shop for a home will save you a lot of time and energy enabling
you to focus on the homes priced in a range you can afford,
and will help you to get the best interest rate.
Use MsFinancialSavvy's Net
Worth Calculator.
Get a Copy of Your Credit Report, and Verify it for accuracy:
Make corrections with the credit reporting agencies, and
be prepared to explain a negative on your credit report if
you cannot have it removed.
Order a free copy of your credit report
from experian.com. You get a free copy once a yea,r or if
you have been denied
credit.
Pay Off Excessive Bills:
This may take a year or two, but you can do it!
Use MsFinancialsavvy's Accelerated
Debt Pay-Off Calculators.
Decide What You Feel is Reasonable For Monthly Mortgage
Payments:
Try 30% of your take home pay as a reasonable monthly mortgage
payment, this is all-inclusive. Using a level of 30% will
assist you in maintaining a low debt profile.
Use MsFinancialsavvy's Mortgage
Qualification Calculator,
and Budget Percentage Calculator
Know Your Credit Score
Do You Know the Score When It Comes to Your Credit?
Get a grip on your credit position with your credit report & credit
score! With personalized analysis and tips, you'll know what
factors are influencing your credit rating and what you can
do to improve it!
Know The Current Mortgage Rates Available:
There are a wide variety of mortgage
loans available at any given time. Knowing the current
mortgage rates available
will allow you to shop for a mortgage that is “best
for you.” The right mortgage can save you a few hundred
dollars a month, to thousands of dollars over the life
of your mortgage loan. The facts you need to know are; - the best
interest rate available
- the lowest points available
- the lowest or best available down payment
- mortgage fees you are required to pay
- escrow and closing cost for a given loan
- know the maximum loan you can afford
- know your estimated monthly principle and interest payment.
Then add the estimated tax and insurance payment. It
will appear as estimated P+I+T+I=total monthly mortgage
payment.
- loan cost to compare with multiple lenders
Research several mortgage companies,
make a chart of the “facts
you need to know” stated in the preceding “list
of facts”. Leave columns avalible to research at least
four loan companies, choose the loan with the lowest overall
costs. Visit www.fdic.gov, “looking for the best mortgage.” Also
read information on your rights as a buyer.
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