Buying a Home in NJ: Part Three

Prepare Yourself Financially

• Frequently, we hear of good intentioned buyers who learn they have a low credit score only after getting a mortgage pre-approval. Once you begin your home search, whether this is your first or move-up home, run your credit. This can be done online for free or you can go to any of the three nationwide consumer reporting agencies, Equifax, Experian and TransUnion, who will provide you with a report once a year at no cost. The reason for this is to verify that there is no erroneous or incorrectly reported information. By doing this early on, one has time to remediate the finding before applying for a mortgage or homeowners' insurance.
• Put your credit cards away and do not buy any big ticket items with a revolving payment (automobile). Check out www.credit.com. They have a lot of do-it-yourself tips on how to improve your credit score. Remember, the higher your score, the better your mortgage rate and cheaper homeowners' insurance.
• Cash is STILL king! Put down 20% on a conventional loan and 30% on a jumbo. You are highly likely to get a competitive (under what you see published) mortgage rate from any established national lender.