You will need to bring a Legal description of the property....
the Contract to purchase the property....
supply your Choice of closing attornies....
Address of employers....
Previous landlord's name and address....
*** if you lived there 2 years....
Previous employer's name and address....
*** if you have been employed by your current employer less than two years....
All of your checking account numbers....
All of your savings account numbers....
All of money market account numbers....
Loan numbers for all loans, you may bring name and address of lenders
and Monthly payments & balances on all loans....
Bring all credit card account numbers, balance, and monthly payments....
Any Monthly payments on real estate debt.... Monthly income on investment property
Copy of divorce....
Two years taxes if self employed....
Year-to-date taxes if self employed....
Two years' tax returns if self employed or also if 5% or more of your income is received from investments.
W-2 and current paystub.... W-2 and current paystub if self-employed
What is the Price you are already
paying for Bad Credit?
If you are
making payments on a car, you are probably paying between $5,000
and $9,000 more in interest just for having bad credit. This
added interest shows up every month in a higher payment.
Credit Status
Rate
Payment
Over 5 years
Monthly Cost of
Bad Credit
Perfect
10%
$424.94
$0.00
$0.00
Mildly damaged
14%
$465.37
$4,722.54
$76.17
Damaged
20%
$529.88
$8,593.30
$138.60
Bad credit in auto
financing can really hurt, but it is nothing compared to the cost of
bad credit when a home is involved. A typical home can cost between
$50,000 and $130,000 more in interest if you are buying the
home with bad credit, as indicated below.
Credit Status
Rate
Payment
Over 30 years
Monthly Cost of
Bad Credit
Perfect
7%
$655.30
$0.00
$0.00
Mildly damaged
9%
$804.62
$50,155.24
$139.31
Damaged
12%
$1,028.61
$130,791.63
$363.30
If you are looking
to make a major purchase in the next 6 to 12 months you should
obtain copies of your credit reports from all three credit agencies
ASAP. You can learn more about obtaining and reading your reports as
well as a variety of ways to dispute negative information by
ordering your copy of "Give Yourself Credit".
Applying for a Loan? Start by Checking Your Credit Report
If you are considering applying for a loan, ordering a copy of your credit report may well be the best place to start. Why? Because it’s also the first thing a potential creditor will be looking at, and even if you pay your bills on time, you will want to ensure that all the information in your credit file is up-to-date and accurate.
Studies have shown that many credit files contain inaccuracies that could affect your credit rating, and even lead to the rejection of a loan application. That’s why reviewing your credit report beforehand may be a good idea, giving you time to dispute any items that may be the result of simple human error or a technical glitch.
And depending on whether you are applying for an auto loan, a mortgage loan, or a loan for business or personal use, different lenders may apply different standards in rating your credit worthiness. For this reason, reading your credit report and understanding how your credit data might be interpreted may give you a chance to improve your credit worthiness from the point of view of a lender. If you would like to get a free copy of your credit report right now, click here.
Before you begin the application process, check your credit report for the following items:
Clerical Inaccuracies
Sometimes credit reports contain inaccuracies that are the result of a computer glitch or a clerical error. These may include payments not credited, late payments, or data mixed in from a credit file of someone with a name similar to yours. Ordering your credit report will quickly show you what the lender will see--then it’s up to you to dispute any information that you consider inaccurate. If you would like to get a free copy of your credit report right now, click here.
Excess Unused Credit
To make your credit more attractive to a potential lender, you may wish to consider reducing the number of revolving charge accounts that are listed as active on your credit report. Lenders will sometimes view too much revolving debt as a negative when considering a loan application.
In situations where you have stopped using a credit account, it is often a good idea to close the account if you don’t plan to use it anymore. Make sure your creditor notates the account “closed at consumer’s request”--otherwise, a prospective lender might assume the creditor closed the account for other reasons.
A few credit cards managed well may improve your chances for a loan--particularly a mortgage loan, where lenders use stricter qualifying guidelines. Another rule of thumb is to keep balances on credit cards around 75% of the available credit limit. Ironically, credit cards that have lots of room on them may be viewed as potential debt, while maxed-out cards make you a less desirable credit risk--both of these situations could compromise your ability to obtain a loan.
If you would like to get a free copy of your credit report right now, click here.
30-day and 60-day Late Payments
Even if your credit report contains a couple of 30-day late payment entries that are accurate, many lenders will overlook the occasional late payment if you explain the situation and your credit is otherwise good. Try to avoid any payment being 60 days late however, as this may be a red flag for some lenders--even if they do grant you the loan, it may come at a higher rate of interest and with less favorable terms.
The primary period lenders are interested in on a credit report is the last two years, so try to maintain on time payments, and verify that the payments are being credited properly by checking your credit report regularly. If you would like to get a free copy of your credit report right now, click here.
Avoid Unnecessary Inquiries
Each time a prospective creditor looks at your credit report, an inquiry notation is added to your file, and most inquiries stay on your credit report for up to two years. Inquiries you make yourself, inquiries made during screening for a pre-approved offer of credit, or an inquiry that is part of a background check for employment purposes are not reported to potential credit grantors.)
It is best to avoid over-applying for credit and running up excessive inquiries, for the simple reason that lenders of creditors may think you’re trying to get credit due to financial difficulty, or taking on more debt than you can repay.
Lenders do of course realize that some inquiries are a result of shopping around for the best rates on a loan, and so they will often overlook a block of inquiries within a very recent period. It may help if you explain the inquiries in the application process. If you would like to get a free copy of your credit report right now, click here.
Understanding how your credit report affects your financial future is the key to smart credit management. Incorporating a review of your credit report into your financial planning is also one of the best ways to make sure you meet your goals--especially when those goals involve major purchases, and you’re shopping for a loan with the most favorable terms possible. So get a free copy of your credit report right now, by clicking here.
