Wealth-Coaching

Most of the time buying a home is a wise investment. Taking that step of home
ownership is a big one but one that truly pays off in the long run.

When
you are looking to purchase a home the first step after discovering a house is
to normally get qualified for a loan amount and locked in on an interest
rate.

Interest rates over the last few years have been superb and owning
a home has never cost less in terms of the cost of purchase. Energy costs are
slightly higher than normal right now.

With a good credit rating and
enough of a down payment you can usually look to receive an interest rate
anywhere from 4.5% to 6% on a 30 year fixed mortgage.

Once you get your
qualification and interest nailed down you are own your way to shop or close a
deal on a new house; or so you thought.

Many potential home owners have
gone to the closing table and found that they no longer qualify for the home
they just signed a contract on because they applied for a new credit
account.

Applying for credit can negatively affect you credit rating and
score that is used by mortgage lenders to calculate your interest rate.

Your approval could be cancelled or your interest rate could gain two or
three points that calculate into hundreds of dollars per month of tens of
thousands of dollars over 30 years.

Be smart. DO NOT open or even apply
for a new credit account during a mortgage loan process. Many retailers will
give you free merchandise or half off items if you just fill out an application
so fight the temptation to take this bait.