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Traditional Mortgages

Helpful Steps to Take Before Buying a Home

• Check your credit status. You have the right to receive a free credit report once a year from each of the three major credit bureaus—Equifax, Experian, and TransUnion. For completeness, it is best to review the report from each one of them. Contact information is included under “Additional Resources” below.
• Work with your REALTOR® and lender to determine how much you can afford to pay for a home.
• Ask your lender for your credit score. This score, which is calculated based on your credit history and other factors, determines how lenders view your credit-worthiness and the loan terms they offer. Scoring rules vary widely, but generally a score of 650 or higher means that you qualify for the most favorable loan terms.
  Shop around. Different lenders charge different rates and fees and have different options. Be sure to compare to get the best deal.
• Be sure you understand the risks of your mortgage and know whether you can handle possible payment increases.