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by: RobKosberg
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1. Have your credit checked early in the process. Most people do not know their credit scores or what really determines a good credit score. It is not enough to get a free credit report from a single credit reporting agency. It is important that you have a mortgage planner obtain a tri merge report. This will provide scores from all 3 reporting agencies. Typically the lender will take the middle of the three scores when qualifying an applicant. It's important to determine if there are credit issues early on. Many times they can be corrected in a matter of weeks and will raise your score. A low credit score can cost you many thousands of dollars in mortgage interest.

2. Do not use your credit to make new purchases prior to closing. As you get closer to buying your new home you will begin to picture all the new needs of that home. New furniture, appliances or maybe even how a new car will look in the driveway! Don't laugh, more than one of my past clients has done that. Be careful not to accumulate any new debt prior to closing. New debt lowers credit scores and makes qualifying more difficult.

3. Know the Lender's Track Record. It's important to rate your lenders reputation for speedy processing, knowledgeable loan service and meeting contract deadlines. You want to hire a mortgage planner who will treat you the way you want to be treated and has respect for your purchase. One with experience and knowledge of the Loan product that you are choosing. Be careful dealing with an inexperienced person just because they are a "friend or relative". Your lender will be dealing with your hard earned money and home purchase, so you want to be confident that you have made the correct decisions.

4. Thinking there are only 1 or 2 Loan Options. Many buyers assume that there are only a couple loan options available to them. Perhaps they are told by a bank that they need 10% - 20% as a down payment and so assume that they must continue renting until that have that money saved. Make sure that you speak to an experienced Mortgage Planner to determine ALL your options. Today, there are dozens of home loans available. Some that require no down payment at all.

5. Be aware of how subtle changes will affect your score. Show caution in having your credit checked. It is important to have it done by your Mortgage Planner for pre-approval but after that be careful. Lenders will view multiple credit checks as a sign that you are trying to obtain credit and will subsequently lower your score. Never close a credit account prior to obtaining your mortgage approval as this will lower scores also.

6. Do not Purposely leave out important credit details. Your Mortgage Planner is on your side. Past credit problems may be embarassing but they will show up somewhere down the road. Be sure to explain everything so you can have a plan of action ot overcome it. Give them the information so they can provide you with the best possible interest rate and service.

7. Be sure to get a Mortgage Pre-Approval. A mortgage pre-approval is a fast and simple process that cannot be overlooked. A seller will want to know that you haev preapproved prior to negotiating a price with you. The preapproval shows the seller that you are not wasting their time and are negotiating in good faith. It will also give you a great sense of security as you are shopping for your dream home.

About the Author

If you are looking to Buy a Home then check out Rob Kosbergs' Detailed FREE Guide on Buying your Dream Home with a Zero Down Mortgage or for up to date Mortgage info visit his Mortgage Blog

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