After months, or even years, of working toward your goal of buying a home in Keene or the surrounding towns of Cheshire County, NH, the time has come!
You've sacrificed and saved, carefully built and maintained your credit and collected countless recipes for budget-friendly meals built around ramen noodles.
At last, you are ready to begin the process...
Being the financially responsible person that you are, you've already researched and discussed various loan products with a mortgage professional. You've kept abreast of current interest rates, down payment requirements, etc. and are finally ready to reap the reward of your careful planning and preparation.
While your favorite real estate pro is working on compiling a list of potential properties that meet your needs, you sit down with your favorite mortgage expert to take the plunge and begin the application process.
You've done your homework, and you know that in order to be in a position of strength when you are ready to make an offer on your dream home, you need that pre-approval from your lender. The document that tells the sellers that you are worthy! You can and will put your money where your mouth is.
The Golden Ticket to gain admission into the Wonderful World of Homeownership.
Having submitted the necessary information and documentation to your loan officer, you are confident in your credit-worthiness. You didn't scrimp and save and forego vacations, dining out and that incredible flat-screen TV for nothing! Pull that credit report, Mr. Mortgage Pro...and let's get this show on the road....
~~~~<RECORD SCRATCH>~~~~
"I'm sorry, Mr. and Ms. Pennywise...your credit score is considerably below our guidelines. The maxed-out, past-due credit cards are a real problem. There are some serious blemishes on the report which need to be cleared up before we can consider offering you a loan..."
"SAY WHAT???"
Turns out that while you were busy living a life of frugality, Joe Slime has gotten ahold of enough of your personal information to have himself a major shopping spree. He's racked up all kinds of debt, courtesy of your identity, which he has absolutely no intention of paying.
So what's a financially responsible, frugality-embracing, ramen-noodle gourmand to do in order to avoid becoming a victim of Joe Slime?
Proactivity is the name of the game! Here, courtesy of fellow Active Rainer Nevin Williams, a mortgage broker with First Priority Financial, are some links and suggestions for keeping tabs on what's going on with your credit while you chow down on your 14th variation of Ramen Noodle Cassoulet:
COMMIT TO CONDUCTING A REGULAR CREDIT REVIEW
You can pull 3 credit reports a year at no cost. (One from each of the major credit reporting agencies.)
Where: www.annualcreditreport.com
Instead of pulling all three at once, consider pulling one from each credit bureau every four months.
Set up a FRAUD ALERT with the credit bureaus. (click on the link for details on how to initiate this and for information regarding any charges for this service.)
YOU MAY WANT TO REQUEST A CREDIT FREEZE
Where: Experian Transunion Equifax
(Click on the individual credit reporting agency links for details pertaining to each agency's requirements and any fees involved.)
These suggestions are for those who prefer the Do-It-Yourself approach to monitoring credit activity.
There are companies who will, for a monthly fee, monitor your credit for you.
However, it's important to remember that the cost of this service can be about $30 per month.
That's $360 a year. And $360 buys a lot of ramen noodles! ;-)
Don't bury your head in the sand...Joe Slime counts on the ostriches to maintain his luxurious lifestyle.
Stay alert, stay informed, and stay on track.
While Joe is busy working his way toward the Big House, you can be creating another ramen noodle delight for your in-laws in your Dream House!
