Newlyweds Really Can Say “I Do” To Home Buying (NAPSA)—Experts say one of the best investments a newly married couple can make is buying a home. For couples planning to marry, making the purchase of a new home part of the long-term wedding plan can be an excellent way to get used to talking openly about money. Since you are already talking about wedding expenses, you can make a smooth transition into discussing * If you know of errors or past due accounts that have already been paid, contact the three major agencies to correct this on your report. It may be a time-consuming task, but in the end you'll be happy you took care of this before meeting with a mortgage lender. For additional tips regarding credit and the home-buying process, you can log on to your permanentfinances. “This is a great opportunity to speak candidly regarding finances, and deciding if, in preparation to buy a home, paying down debt and improving credit scores are a factor to consider,” said Ennio A. GarciaMiera, Vice President, GMAC Mortgage. “Start focusing on the first investment goal of owning a home by discussing your financial priorities with each other and seek the help of an experienced loan officer who can get you on the right track toward home buying.” Here are someother tips to help make homebuying easier: * Draft a budget of where you'd like to be in a year, five years or 10 years.It’s not even too early to start thinking about retirement. Review your plan regularly, possibly with a financial planner, and update it as necessary. * Commit to a realistic budget you both can afford and live by. You'll want to save enough for your closing costs, which vary depending on the financing you'll receive. Also consider saving for unexpected home repairs and maintenance. Lenders generally like to see about three to six months’ of living expensesin reserve to cover unexpected expenses. * Determine your monthly expenses and outline how to consistently save. Saving takes perseverance and discipline, especially when you are doing it together. Those who save the most are generally willing to give up minorpleasures and control spending. Start a “cappuccino fund.” If you and your spouse each spend $3 a day on cappuccinos and you divert that money to savings, you could easily and painlessly save $2,190 in a year. The most important factor on which a mortgage lender bases the terms of a mortgage is your credit score. A credit score of at least 700 is an indication of good credit and will allow you to secure a competitive interest rate. If you need to improve yourcredit score, consider the following steps: * If you havelittle or no credit, look for ways to improve your score, such as opening a secured credit card with your bank. *If you have “too much” credit, work on eliminating your credit card debt. Newlyweds can’t afford to fall deeper into debt than they already are. www.gmacmortgage.com. The online resource center offers a detailed section regarding your credit, a mortgage calculator and an A-Z buying guide. For Latino newlyweds, bilingual GMAC Mortgage loan officers are avail- able by calling (888) 330-4622. Reputable mortgage institutions can help you understandthedifferent products and loan options available to newlyweds purchasing their first home together. A mortgage lender can provide you with the most important step of the home-buying process, a preapproval letter. This gives you an idea of the value of the home you can afford to buy. Once you have the preapproval letter, you'll know the price range of homes you can consider, whether it’s a three-bedroom homein the suburbs or a trendy loft in thecity. Remember, you'll no longer be renting but making a monthly investment in owning your own home. Taking the necessary steps to assess your situation and prepare for the home-buying process will help you achieve your goals as a couple. With your spouse, you can make home buying a priority and be in your new home even sooner than you think.
