First-Time Homebuyers; Get Your Ducks in a Row!

It's a great time to buy a house. Sellers are pricing their homes competitively and mortgage rate rate are still at historic lows. But though it's a buyer's market, it doesn't mean you're finiacially prepared to leave renting behind.

Kara McGuire, writing for McClatchy Newspapers, gives these suggestions to help you get you "ducks in a row" before purchasing your first home.

• Save your documents. Keep your most recent pay stub, W-2 bank and retirement-account statements for the loan approval process. The mortgage company will run you latest credit report to provide a snapshot of you outstanding debts.


• Play house. Before searching for your new house, bank at least $2,000 per month to give you a taste of what the expenses of owning a home are.


• Don't buy too much house. First-time homebuyers can be tempted to take on a mortgage that's out of their reach and risk becoming stretched by a large obligation against the financial return of ownership.


• Be realistic about profit margin. No matter what you see on TV, don't expect to flip your house and make a substantial profit after owning it a short time.

As a real estate professional, it's my job to help you get your proverbial ducks in a row before buying a home. Call me any time at Heldt Realty.

Coping with a Lender's Rejection

This is a story about a young married couple; Dave and Ann. Like many young couples, they were excited about buying their first home, but their excitement soon turned to disappointment when their request for a loan was rejected by their lender.

The first thing they did was inquire why this happened, what the lender didn't like, and what they could do to remedy the situation. Dian Hymer, in her book, "Starting Out, The Complete Buyer's Guide", writes that often a simple letter of explanation to the lender is all it takes to get a problem loan approved. For example, if you were unable to work for several weeks due to an accident, a letter explaining why your credit report showed late payments would probably result in a loan approval.

Remember that adverse credit information is not supposed to be reported or included on your credit report after seven years. An exception to the seven-year rule is bankruptcy information, which can be reported for ten years. Lenders will want to see court-approved papers that confirm your past creditors are satisfied with your debt-restructuring. Lenders will also want to see that you have re-established credit and that you are making your payments on time.

As a real estate pro, I will be happy to work with your lender to ensure your loan will be approved on time for closing. Call me anytime.