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