| By :
Molly Wider
With so many new rules in place this year, qualifying for a mortgage can be more difficult than ever but that does not mean it's impossible. If you are serious about buying a home, there are some things you should start doing now that will benefit you later when it comes time to visit the bank. Even if you have had a bad run with credit in the past, these tips can get you on the road to approval. The very first thing you need to do is clean up your credit. By getting a copy of your credit history, you can go through each item and see what is legitimate and what is not. The details of your history can also let you know if anything is outstanding that you may have been forgotten about. This is a great opportunity for you to fix any wrongs, pay off outstanding debts or correct misinformation. Once you have corrected your credit history, making an appointment with a lender to get pre-qualified should be your next step. Being pre-qualified is not the same thing as being pre-approved. Having a lender pre-qualify you simply means that he or she will gather your information, go through your liabilities and assets and calculate approximately what you can borrow. This is an informal process and is free. There is no guarantee of a loan, only a base-line of financial information for you to work with. If nothing else, it will outline your chances of actually qualifying as well as provide a guide of how much you may qualify for so you can begin shopping within your new price range. Getting pre-approved is generally the next step. This is a much more formal process where the lender verifies your employment, ensures your financial status and checks your credit rating. This is the process that will let you know if you qualify for a mortgage or not. The benefits to being pre-approved for a loan is the buying power you have when shopping for a house. Sellers are more likely to take your offer seriously and accept a pre-approved buyer than someone who has not been pre-approved. Choosing a lender can be a little tricky these days with so many options. The decision to use a traditional bank, a mortgage broker or to go through your real estate agent are all common choices. This is where it is a good idea to do your homework and research which source will benefit you the most. One can even shop for online loans as well. No matter which route you chose, the first step would be getting your credit back in order.
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