A number of new, innovative loan programs have been made available, particularly for first­time buyers. But, even with a minimal down payment loan, you will still need cash for earnest money deposits and closing costs. If you have a decent amount of down payment money, you are in a better position as a buyer and as a borrower. Interest rates and other mortgage loan terms are based on risk. The greater the risk the lender takes in making the loan, the higher the interest rate they charge is. Also, the more money you put down, and the less you borrow, the lower, and more manageable your monthly mortgage payments will be.

Perhaps the most important thing you need to look after in getting your financial house in order is your credit. Your credit score will greatly impact your ability to borrow and the rates you will pay. Three credit agencies, Equifax, Transunion and Experian, monitor the quality of your credit or FICO (credit) scores, and supply this information to mortgage companies. Check with each to confirm your scores. Loans get more difficult (although not impossible) in the 550­600 range. From 600­680 is decent, but you may pay a premium in your interest rate. Above 6 80, you should be able to qualify for the best rates available. Ideally you want your scores over 700 and there are ways to improve your credit scores by challenging information on your credit report. This takes time ­ sometimes as long as 90 days ­ before you see adjustments to your score, but it is really worth doing if you're planning to apply for a mortgage. We recommend checking out www.truecredit.com.

Once your financial house is in order, before you do anything else you should get yourself pre-approved for a mortgage. Mortgage pre­approval is an important time­saving step in the process of acquiring your new home. It will enable you to have a clear understanding of your purchasing power, and ultimately make it easier for your real estate agent to assist you. We have strong, longstanding relationships with a number of Indianapolis area and nationwide mortgage lending institutions. For fast and easy mortgage pre­approval, as well as outstanding service we can recommend one of our preferred lenders to you.