Before you go looking for a home, you should determine how much home you can afford. Most lenders will pre-qualify you to borrow up to a certain amount. Pre-qualification allows you to focus in on a realistic price range and makes you a more attractive buyer. Whether or not you want to pre-qualify, eventually you’ll need to complete a loan application and it may take some time to gather and assemble the required information.
It’s also a good idea to review your credit report. Contact the credit bureaus and request a copy of your credit report (in most states, credit bureaus are required to provide individuals with a free copy of their report) or you can go online and receive a copy of your free credit report there are many websites that offer the report. It is a good idea to get your credit score (FICO score) and report at least once a year to monitor your credit and address any errors promptly. This will also help you to know where you stand in the eyes of your creditors. Review your report to ensure that all information is correct. If you have past credit problems, that doesn’t automatically mean that you cannot get financing but you should be prepared to present a explanation for each issue, and demonstrate an improvement in your ability to pay bills on time.
