| You have made that all-important decision to buy a | | | | payment will allow you to see what you are |
| house. Your dream is finally close to becoming a | | | | accumulating toward your dream of homeownership. |
| reality. Once the decision is made, the real work begins. | | | | You will be surprised at how fast the balance grows if |
| It is imperative to get your finances in order. | | | | you pay yourself from every pay check. |
| Pay Down Your Debt | | | | A large down payment is the key to loan qualification, |
| When you begin the process of looking for a lender, | | | | especially if you want to qualify for a larger home loan. |
| you will find that most want your total debt to be no | | | | Clean Up Your Credit Report |
| more than 38% to 40% of your gross income. | | | | Good credit not only helps you qualify for a loan to |
| For example, is your income is $3000 a month, and | | | | begin with, you get a better deal when you do get the |
| then the bank figures your total debt can be $1240 a | | | | loan. |
| month. If you already have $1000 in debt, you will only | | | | Lenders will look at your credit report.Bad credit |
| have $240 left over for mortgage payments. By | | | | doesn't mean you will not get the loan, it just means |
| paying off credit cards and car loans, you will greatly | | | | you will have a much higher interest rate and you will |
| reduce this number an increase your borrowing power. | | | | be required to pay a much larger down payment than |
| Begin with the highest interest items first, normally | | | | someone with a good credit score. |
| credit cards. Then move onto car loans and lastly, | | | | Credit Report vs. Credit Score |
| student loans. | | | | Did you know that your credit report and your credit |
| It is always a good idea to get into the habit of paying | | | | score are two different things? Your credit report is a |
| off your credit cards completely each month and | | | | list of thing like your credit card and bank accounts, |
| never carry a balance. Few things can kill the dream | | | | outstanding loans and you payment history. Your credit |
| of homeownership quicker than credit card debt. | | | | score is a rating of how good your credit is, based on |
| If you are finding this difficult to do, then follow the rule | | | | your report. In other words, your credit report is a |
| of pay yourself first. That means, take 20% of your | | | | bunch of pages and your credit score is a number |
| pay check to pay for something you really want or to | | | | from 300 to 850. |
| put into savings. In this case, it is making a credit card | | | | Taking a few months or even a couple of years to |
| payment. | | | | get your finances in order will help you get your dream |
| If you take care of everything else first, you may | | | | home. The folks at Nancy Chandler Associates can |
| never have enough to pay down your credit card | | | | give you some ideas about preparing for your home |
| debt. | | | | purchase. The agents at Nancy Chandler Associates |
| Get the Down Payment Together | | | | are among the best in the Hampton Roads and |
| If you don't already have a savings account, get one | | | | Tidewater area of Virginia. Whether you are buying a |
| now. If you find it hard to save money, use the | | | | home or selling, the agents in this firm put you first. |
| pay-yourself-first technique. Every time you get a | | | | These professionals listen when you speak and will not |
| paycheck, put a pre-established percentage into your | | | | steer you wrong. Contact Nancy Chandler Associates |
| savings account and then make certain you leave it | | | | at (757) 436-5500. Nancy Chandler serves Norfolk, |
| alone while your down payment accumulates. | | | | Chesapeake, Virginia Beach, Suffolk and Portsmouth in |
| Even have a separate savings account for your down | | | | the Hampton Roads and Tidewater areas of Virginia. |