Welcome to Part One of a Two Part Article On Affording Your Dream House. We here at Palm State Mortgage want you to approach buying your home realistically. We hope to guide you into a mortgage situation that will be wonderful for your life and comfortable for your budget.

Many people do not understand how “much” of their “dream” house they can afford. Today we present the first of four tools in the Tool Box we call the Palm State Mortgage Company Toolbox:

Your Number One Mortgage Tool:  The Palm State Hammer. Use it  “Hammer Out” A Great Credit Score.  Your good credit report will be reflected in your lender’s lower rates.  BREAKING NEWS IN THIS MATTER:  As of April 1, 2012, your good credit has become even more important.This week, the FHA has tightened restrictions on loans given to people with outstanding, disputed debts of as little as $1,000.00.

Tiffany Thomas Smith, deputy press secretary for the U.S. Department of Housing and Urban Development, FHA’s parent agency said, “It’s a way of protecting consumers from getting into loans they ultimately can’t afford.”

At Palm State Mortgage, we agree with famed newscaster, Paul Harvey who said you need “the rest of the story.” Thus, we strongly suggest you read the details of this new rule at this CNN Money Market resource.  According to the new rule, if you are a borrower with any loan in collection, a disputed loan,  of $1,000.00 minimum, you will have three recourses:

1.  You could pay it off.

2.  You could prove you are making regular payments.

3.  You might explain and heavily document why the disputed debt is incorrect.

You will need to take one of these actions concerning that debt before you can close on an FHA loan. There would be no sense in a lender clearing your loan, only to have it denied by the FHA.

Experts say, “The better your credit, the lower your rate.” As you prepare to hunt for your house, we suggest you research your rating and make certain that there have not been any inaccurate entries recorded on it.

Next week, Palm State Mortgage Company will bring you three more valuable tools For your Mortgage Toolbox.   If you are just beginning your search for the perfect house and the perfect mortgage payment, we suggest you begin with some financial budget planning background such as Dave Ramsey’s famous Baby Steps. Click here to take a clear look!

Palm State Mortgage believes that the keys of financial preparation and planning, might unlock your dream home. On the other hand, we also believe that the home that fits your budget just might transform itself into the REAL home of your dreams.