7 Steps to Home Financing

1. Credit Report - Contact a credit bureau and get a credit report on yourself, just to make sure your report is accurate. If you don't like what you see, it's time to try to clean up any problem items or clear up any mistakes. You may also want to consider contacting a consumer credit counselor for help.

2. Save Money - Skip a vacation, movie or dinner out to save money for a down payment and closing costs. Try not to buy anything on credit and if you do, pay it off quickly. Try to avoid taking on another large credit expense of evening applying for another credit card.

3. Get Pre-Approved for a Mortgage - It pays to get pre-approved for a mortgage early in the process. Some think pre-qualifying for a loan is enough, but it's not. Pre-approval gives you more power when you've found that perfect house.

4. Buying Power - Lets you know in advance how much you can afford to spend on a home.

5. More Control - You have the negotiating power of a "cash" buyer when you can prove that you have financing in place.

6. Faster Closing - You can close in as little as 15 days compared to the average 60 days for those that are not yet approved.

7. Saves Money - You can lock in an interest rate early for a faster closing and better rate. (Ask your lender about a 30-day rate lock instead of the normal 60 day.)