TIPS FOR MAKING THE AMERICAN DREAM OF HOME OWNERSHIP COME TRUE:

We have compiled this list of tips for you:

Saving
Saving is essential when buying a home in the current market.  Most lenders will require a down payment, which demonstrates your ability to manage money.  Banks are committed to helping consumers save. Many offer savings plans that automatically transfer funds from checking to a savings account, mutual fund or other savings plan.

Managing Credit
Because of the current economic climate lenders have put more emphasis on credit history, generally requiring consumers to have credit scores 700 or better to qualify for the best rates.  To improve their credit scores, consumers should pay all bills on time, avoid closing old or paid-off accounts which can lower credit scores, pay down debt, check credit reports annually and talk to creditors when in trouble. Consumers can receive a free credit report from all three credit reporting agencies annually at www.annualcreditreport.com. 

Lowering Debt
Debt constitutes 30 percent of your credit score, and lenders consider your debt-to-income ratio -- your monthly income compared to your monthly debt payments-- in making financing decisions.  To the lender, the lower the ratio the better. Bank @LANTEC recommends that consumers pay more than the minimum due and always pay on time. Pay off debt with higher interest rates first, transfer high-rate balances to credit cards with lower interest rates, and limit long-term debt to purchases that will appreciate in value, such as a home.

Budgeting
Developing a financial plan helps to keep your finances in order.  It’s important to avoid overextending finances and reaching credit limits or “maxing out” credit cards.  Budgeting allows you to pay down debt and save while meeting other financial goals.

IF YOU ARE LOOKING TO PURCHASE YOUR HOME OR REFINANCE YOUR HOME, PLEASE CALL US AT (757)671-7900 AND WE CAN HELP YOU WITH THE PROCESS! OR YOU CAN APPLY RIGHT HERE ONLINE 24/7.