Section Subtopics Before You Apply 6 Months 3 Months 1 Week Do's Don'ts 10 Questions For Your Lender

6 Months

  If you're six months away from your home purchase date and

  just beginning your mortgage research don't despair. It's not

  absolutely critical that you begin educating yourself a year in

  advance -- it just helps.  But this advice is helpful anywhere in

  the timeline. Just make the most of this guidance in the time

  you have remaining.

 

  Review Your Credit

  Take this opportunity to review your credit report once again.

  Ensure that any errors that you disputed with the credit bureaus

  have been corrected.  If not, you will have been informed as to

  why.  Is there anything else you can do correct it at this

  point?  Additionally, make sure that the debt balances that you

  have been paying down report these new lower amounts.

  Again, if not, speak up -- contact the creditor to find out why

  the account is not updated.   Remember that the labor intensity

  of this process may be unpleasant, but ultimately will prove to

  be worth it when your home dreams are realized.  

  Your FICO score should have risen (how much will depend on

  your specific credit situation) as a result of these efforts.  It is

  important not to open any new credit lines at this point and for

  the duration until your purchase.  Doing so could lower your

  score and raise your expense ratio, effectively undoing all the

  hard work of the last six months. 

  Review What You Can Afford

  Take this opportunity to align your goal from six months ago

  with your current standing: has your income changed at all; has

  your reduced monthly expenses freed up any income that can

  be put toward a mortgage payment; has the market shifted

  toward or away from your favor?   Ensure that everything is on

  track or adjust accordingly.   At this point if you haven't been

  looking it would be a good idea to start visiting open houses

  and talking to realtors.  The 100-10-3-1 rule dictates that you

  need to look at one hundred houses to make ten offers where

  three are accepted allowing you to decide on one.  That's quite

  a few weekends if you want to make the most knowledgeable

  decision you can. 

  Review Your Savings

  Take this opportunity to ensure that your savings are on target

  with the goals you set six months ago.  Will your plan put you

  at your goal in enough time or do you need to cut spending

  further?  This is also a chance early enough in the process to

  assess whether you've followed your own plans or if you need

  to recommit yourself to the goal.  Also be sure to align this goal

  with any new changes you've made to your other goals as a

  result of the issues above. 

1 Year | 6 Months | 3 Months | 1 Week | Do's | Don't's | 10 Questions