So if you have been watching the news you know that interest rates are extremely low right now. You might also know that home prices are low as well. If you are thinking of buying a home, there are a few things you should do first.
First, make sure you are saving money. You will need to have a minimum of 7 to 10 percent of the purchase price in savings. Second, know your credit score. Visit www.AnnualCreditReport.com and pull a free copy of your credit history. Verify the information is correct, contact any companies that have reported false information and ask them to remove it. Then go to www.MyFico.com and order a copy of your scores.
With your finances in order, contact a local lender -- get recommendations from your Realtor. The mortgage lender will be able to answer questions you may have. You will be asked to provide some important info and in turn-you will receive info about the cost out of pocket, your monthly costs and the total purchase you are approved for. With your pre-approval letter in hand you can head out to find your dream home