New Homes Purchasing a new home is a huge investment for a newlywed couple, but it is possible to save money if you are well informed about your credit.

It’s a very exciting time and is a decision that should be made together. This is the place that you will spend hours together, raise children together and grow old together, so make sure it’s perfect. When it comes to new homes, don’t participate in impulse buying.

Take your time and shop around so that you will have plenty of time to finalize the details of your new home. If you decide to apply for a joint loan to purchase your home, be sure that you both order a copy of your credit report. Look over every aspect of the report, including credit card balances and accurate reporting of each.

In addition, check for old accounts that should be closed - either by you or the credit grantor. Some credit card companies do not report timely to credit bureaus and some accounts may still appear to be open when, in fact, they are closed. Make sure that your previous and current addresses are correct on the credit report, as well.

When lenders check your credit and consider loan approval, they look at a variety of factors. These factors, among others, will be used to determine the amount of the loan that you are granted as well as the interest rate. How many times have you applied for credit within the past 6 months? How many open accounts do you currently have and what are the balances on these accounts? If you have a lot of accounts that appear to be open, potential lenders may consider you a credit risk as they wonder what you plan to do with all of this available credit.

FICO scores are what most lenders ultimately look at when considering a loan. Your FICO score will be available from all three major credit bureaus, which include Equifax, TransUnion and Experian. This score is calculated based on your credit history, number of years that you have had credit and available credit to debt ratio. The higher your FICO score, the lower your interest will be on a new loan. This may not seem like a big deal, but lower interest can actually save you hundreds of dollars every month on a new home loan. New homes are wonderful - they even smell new.

Now that you’re credit smart and ready to shop around, consider whether you want a custom stick built or modular home. If taken care of, both types of homes can and do appreciate in value. Custom stick built homes take longer to build, which means you will have to find an alternate place to stay while your new house is being constructed. Modular homes, on the other hand, can be completed in a matter of weeks.

If you’re in a hurry to move in, a modular home may be the ticket. As you’re browsing through a variety of choices for new homes, consider if you want to hire a contractor or do some of the work yourself. You may save money by finishing parts of the home, but it will not be an easy job. Always make sure that any contractor is licensed and acquires the proper building permits prior to beginning construction on your new home
 

Article by Cynthia - Wedding Party Help

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