CHAPTER 3
Shopping for a Home Loan The decision to buy a home puts you into a realm full of things you have not dealt with prior, especially if you used to rent your home. Owning a house brings a whole new experience. The first task you should work on before you begin looking for a house is organizing your credit issues. It’s important to ensure your credit is in order, because making any mistakes at this juncture can take months to correct and might even end up sinking your chances of owning a home. Go online and get your credit report. The purpose of getting your credit report is not just to give you a chance of getting the best bargaining terms, but it will help you know where you stand. It’s important because you might find that you aren’t creditworthy and that will torpedo the chance to buy. If you find yourself in that situation, it might be a good idea to use a credit repair company. Search for a reputable credit repair company. Some credit repair companies are either not good enough or charge too much. The company will help you repair your credit, as well as assist in correcting any mistakes that might be on the credit report. A powerful piece of information many homebuyers overlook is the effect of mortgage interest on their federal income tax payments. It’s important to understand what can be deducted and what can’t. For example, consider taxes and mortgage interests. Mortgage interest is deductible and a powerful financial planning tool. Calculate the amount of mortgage
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