After 15 year in the Mortgage Business and 1000’s of loan closings, here are the basics to preparing your finances for purchasing a home. If you are getting a loan that is…..
Here’s the Prescription:
1. Continue to pay your car payments, credit cards, rent, etc. on time. No 30 day lates
2. Make sure you have at least 3 credit Tradelines. These tradelines should be a car installment loan, or Revolving Credit cards(Visa, Mastercard, Discover, Amex). Loans with Finance companies or Departments store credit cards do not increase your score as well
3. Work with your loan officer to determine the best price home to fit your budget, then Save 6% minimum of the price of the home for a down payment
4. Make sure your work history is consistent and there are no job gaps. If you are self employed or paid commission, make sure you have 2 years job history reported on your tax returns.
I believe that most people can achieve the above in 6-12 months and be ready to purchase a home of their own.
Managing Partner, Options Mortgage Services of Alpharetta