Considering Buying or Refinancing a Home and Concerned about a Loan?

If buying a home in this market of fantastic opportunity is in your plans or refinancing your current home makes sense, you are naturally concerned about obtaing financing in this tight credit market.

Be assured that money is still available and for most people an unblemished credit score and a steady paycheck will make a loan no more difficult to land than in years past. Lenders say you need to be financially fit and have the documents to prove it. In other words, we are back to a more normal credit environment.

To prepare for a lender's scrutiny:

• Check your credit report. The quality of your credit report and FICO credit score help determine the terms of a loan. Go to the officiial web site for getting your free credit report, www.annualcreditreport.com or call 877-322-8228.
• Fix errors in your report. It can take six months or more to get an error fixed. Consumer reporting groups must investigate legitimate disputes and respond within 30 days.
• Improve your score. Boost your score as quickly as possible by reducing what you owe and never making late payments. Do not appy for credit that you do not need.
• Monitor bills carefully. Eliminate credit card debt. Stay well below your limit, pay at least the minimum due and pay on time.
• Gather records. Lenders will want pay stubs, bank statements, tax returns, proof of mortgage or rent payments and other documents.
• Save up. To accumulate the serious down payments required now (conventional loans require 10-20% and FHA loans 3.5%), live below your means and save.