INFORMED HOME BUYERS ARE HAPPY HOME
OWNERS
~ American Bankers
Association provides tips on choosing a home loan and
avoiding foreclosure in today's market ~
June 2008
Washington, D.C. - These are
troubled times in the housing market and in the economy
in general, but historically low interest rates mean
that buying a home continues to be a smart investment.
Throughout National Homeownership
Month in June, the American Bankers Association will
provide consumers with information on how to gauge whether
the time is right to buy a home, what they need to know
to select a reputable lender, how to obtain the best
loan to meet their needs, and how to keep their home
in these uneven times.
Buying a home is a long-term
investment and it's important that consumers understand
the home-buying process, the role that credit scores
play in loan decisions, and the need to deal with a
reputable lender.
Before buying a home, consumers
should consider the following:
-
Figure out how much money you can afford to borrow,
which in turn decides how much you can realistically
afford to spend on a home;
-
Research options which will help you to discover
the type of loan that works best for you;
-
Check your credit score and credit;
-
Organize your finances before seeking a loan from
the bank; and § Come prepared with different types
of documentation.
The once largely
ignored government subsidized loans, such as FHA, are
one of the many government sponsored programs available
to homebuyers with little money to put down on a home.
With the number of foreclosures growing, consumers need
to know that they can protect themselves if they are
at risk.
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