Now is the time to buy the home of your dreams.  Make sure your finances are in order.

 

 

 

Clean up and understand your credit report.
Your credit report is a list of your bank accounts, credit card account, loans that you are still paying on, and your payment history which show if you pay your bills on time. Your credit score is the accumulative rating which is a number, between 0 - 800 or more, that is based on the information in your credit report. Lenders will check you credit report and score to determine, first, if they are willing to lend you the money for your new home, what interest rate to charge you, and how large of a down payment will you need.

The things on your credit report that hurt you the most are:
*late payments
*credit card balances near or at their credit limit
*unpaid bills
*bankruptcy
*liens, paid or unpaid

To improve your credit score, make sure you start paying your bills on time, pay off delinquent accounts, pay down loans, pay credit card balances down, and make sure everything on your credit report is correct.

2. Debt is something you owe or something you are obligated to pay. Pay down your debt. Start with the credit cards or loans with the highest interest rate and work your way to the debt with the lowest interest rate. Once you have paid off all of your credit cards, get in the practice of paying them off every time you use them. The banks wants your total debt to be no more than 38% of your total income. If you are not able to pay them off, pay them at least half way. If your credit limit is $1000 and you owe $1000, pay off $500.

3. How much do you have in savings? $10,000, $25,000, $50,000? Start saving for your down payment. Your down payment will help you qualify for a loan. The larger your down payment, means more money the lender will be willing to lend you. Depending on the type of loan. There are still some 100% loans out there. Talk to your lender about your options.

4. Get you financial paperwork in order. Here is a list of some of the important documents you will need.

*recent pay stubs, at least the last 2-4 months
*bank statements, at least the last 6 months, savings, checking, and investment
*copy of drivers license and social security card
*tax returns, at least the last 2-5 years
*insurance policies
*investment statements
*retirement statements
*proof of added income

Be patient with yourself. Your hard work will pay off.

Here are a few of the local lenders that can help you become a ready buyer and answer any questions you may have.

Liberty Bank, Dan Rightmire, 501-279-2789                      Simmons First Bank, Deana Powell, 501-268-LOAN

Regions Bank, Gentry Tomlinson, 501-230-5389             First State Bank, Lisa Lunceford, 501-207-4400

First Security Bank, Lisa Short, Vickie Bates, Glenda Hare, Lisa Ponson, 501-279-3461

First Community Bank, Jayme Tengler or Amy Hamilton, 501-207-6000