Before You Check Into Home Loans

By Eddie Sexton


You found the perfect house and now it is time to shop for home loans. Before making one of the most important decisions in your life, there are a few things to consider. Here are some suggestions that can save money and simply the process.

Shopping for houses is an exciting experience and you may be tempted to rush out and get started. However, you should think about checking into your credit rating first. If you have not already checked your credit, now is the time to do so.

It is easy to check credit ratings and you only need to contact the three reporting agencies. The entire process can be taken care of online for maximum convenience. In many states you are allowed to receive a free credit report from each service once per year.

Although one may get a free report this does not include a credit score number. Agencies charge for this service but you might be able to obtain it for very little money. With some agencies you may sign up for a service that monitors your credit and informs you of changes. However, you may cancel this service after receiving your score and not pay monthly fees.

If you are sure of your creditworthiness, you can check out lenders locally and online. When one applies for financing before house shopping it removes the mystery of mortgage approval. This can prevent problems when you shop.

Perhaps you own your house already and are thinking about a second mortgage or refinance. It is still a good idea to obtain your credit information and check it out. You might have to pay higher interest on your loan if there is info on your report (that can be corrected) that is negative. Just a small increase in interest on home loans can be a substantial amount of money over the years.




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