10 Steps to stress free home purchase

2007-09-23T19:13:00.001-07:00

Step 2 Begin prequalifying process with several lenders. Consider FHA loan if you qualify.

2007-09-17T13:04:00.000-07:00

In step 1 you obtained a copy of your credit report and corrected incorrect entries. ( See my blog for full details).

Now that’s been completed it time to start looking for a lender. If you have prior relationship with someone then start there but I recommend but put in at least 3 preliminary applications.
One line services such as Lending Tree are any an ok place to start but I would recommend you make other applications as well.

Compare loans to find out true totally cost, there factor include rate, closing costs, ( if you are not coming out of pocket for costs are they actually be waived or are they being rolled into the loan?)

Don’t forget about FHA loans, because while they require far more paperwork they can often provide the best deal or agree to loans private companies may not. However in the state of Georgia the maximum loan for single family home is only about $250,000.00

FHA Home Loan Guarantee Program
FHA loans offer a loan guarantee for mortgage companies. If you acquire a FHA loan to purchase a home, the FHA is not actually lending money to you, the buyer; the FHA simply guarantees the lender in case you, the borrower, default on your mortgage payments.
You can pay as little as a 3% of the purchase price of your home for your down payment, and finance your closing costs with your mortgage loan. The FHA can guide you toward programs that require no down payment.

You can purchase a home in need of repairs and finance the repair costs with the mortgage. This way you can make the necessary repairs immediately without having to come up with the money yourself.
You can purchase manufactured homes and condominiums with a FHA loan.
You can finance the cost of energy-efficient repairs with the mortgage.

Step 1 Check Your Credit with all three credit agencies!

2007-09-17T12:39:00.000-07:00

Step 1 Check Your Credit with all three credit agencies!

Many home buyers are surprised when the purchase of their home is interrupted due to negative information from their credit report. Many times this information is old or incorrect but it can still cause delays and in some cases prevent a sale from closing altogether.

Obtain a free credit report from all three credit agencies now, and review for them carefully for mistakes, or outdated information ( See information on how to get reports below) . You have a right to dispute any mistakes and the creditor must respond within 30 days or the item must be removed. You can dispute mistakes online or through the mail. If you have documentation it's best to use the mail. You should receive a response in about 45 days.

As a consumer bankruptcy attorney for over 20 years I have vast experience in dealing with credit issues, so please feel free to e-mail should you have specific questions. at david@realtor-attorney.com.

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Are you getting all your free credit reports? Due to the passage of the 2003 Fair and Accurate Credit Transaction Act (FACTA), all Americans are entitled to one free credit report from each of the three major credit reporting agencies -- Equifax, Experian and TransUnion -- upon request every 12 months.

There are several ways you can request your free credit report:
•Online: Visit AnnualCreditReport.com
•Telephone: (877)-322-8228•Mail: Complete the Annual Credit Report Request form and mail it to the following address:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

The 2003 law did not eliminate the other ways to receive a free credit report. You're still entitled to a free credit report if you meet any of the following conditions:•You applied for a loan and were turned down. You can request a free credit report by writing the correct credit bureau within 30 days of your rejection.
Enclose a copy of the declined loan application with your request.

•You're unemployed and planning to apply for jobs in the next 60 days.
•You're receiving public assistance.
• You believe your credit file contains mistakes due to fraud.
•You currently reside in a state that offers an annual free credit report from each credit reporting agency by state law.

Residents of the following seven states are entitled to one free copy of their credit report each 12 months from each of the three main credit agencies per federal law and one free copy of their credit report each 12 months from each of the three main credit agencies to satisfy their state's law.

Colorado Georgia Maine Maryland Massachusetts New Jersey Vermont

The second free report can be obtained by directly calling each credit bureau:
Equifax: 1-800-685-1111Experian: 1-888-397-3742TransUnion: 1-800-916-8800

If you have any difficulty ordering this free report over the phone, you may also write to each bureau:
Equifax
P.O. Box 740256
Atlanta, GA 30374

Experian
P.O. Box 2002
Allen, TX 75013

TransUnion
P.O. Box 2000
Chester, PA 19022

Include the following info in your letter.
Be sure that each person requesting the report signs and dates the request.
•Your full name
•Date of birth
•Current and former address
•Social Security number
•Your spouse's name
•Your phone number

Sources: Bankrate.com and Privacy Rights Clearinghouse

For those who do not reside in the seven states where you are entitled to a second free credit report per agency per year, you may order a second or third report directly from the three agencies by mail. Include the same identifying information listed above and mail to the same addresses listed for each bureau.

Here is a breakdown of the charges:California residents: $8 per reportConnecticut residents: $5 per reportMinnesota residents: $3 per reportMontana residents: $8.50 per reportVirgin Island residents: $1 per reportResidents of all other states: $10 per reportIn addition, all Americans are entitled to one free credit report each 12 months from Innovis, considered to be the fourth major credit bureau.

You must write to the following address to obtain your free report:
Innovis Consumer Assistance
P.O. Box 1358
Columbus, Ohio 43216-1358
Include the following information with your Innovis request:
•Full name (include Jr., III, etc.)
•Full address
•Phone number
•Copy of your driver's license or utility bill at your current residence
•Previous addresses for the past five years
•Social Security number
•Date of birth•Current employer
•Your signature and the date

If you should need an additional Innovis report, prices for reports after the first free one are on their website: Innovis.com Specialty reports, such as the C.L.U.E. report from ChoiceTrust are also available.

For a list of such reports, see Privacy Rights Clearinghouse's list. Should you need your FICO score from Equifax, in addition to obtaining it when you are ordering your free credit report at AnnualCreditReport.com, you may call 1-877-SCORE-11 and obtain it for $7.95.

Realtor-Attorney: A Realtor + An Attorney

10 Steps to stress free home purchase

Step 2 Begin prequalifying process with several lenders. Consider FHA loan if you qualify.

Step 1 Check Your Credit with all three credit agencies!