Article: You’ll need a good credit score to qualify for a conventional mortgage—usually around 620. To get the best interest rates, you’ll need a score around 740 or better.  Check your credit score and get copies of your credit report. Go through your credit report to see if there are any errors. For example, someone else’s debts might be listed on your report because they have a similar name or Social Security number. Dispute any wrong information. The best way to improve your credit is to pay down debt. Consider whether you need to delay buying your townhouse until you improve your credit score. You’ll be in a stronger bargaining position if a lender pre-approves you for a mortgage. The process is easy. Gather financial documents, such as your paystubs, bank statements, and tax returns. You can complete an application either online or by visiting the lender.  Work only with lenders who have experience underwriting loans for townhouses. Some lenders don’t know how to classify townhouses and consider them condos. However, the difference between a townhouse and a condo is that a condo has no land attached to it, whereas a townhouse includes the land under and around it as specific in the lot map. A townhouse includes the land in its value, but a condo has no land as part of its value. If you’re approved, you’ll receive an approval letter which is good for only 90 days. Plan your house hunting accordingly. In a hot market, sellers can usually get their asking price (or more) because there are multiple bidders on the same house. However, in a cold market, buyers have more power. Look at how long the townhouse has been on the market. Also check how much comparable homes have sold for. If you have a real estate agent, they can do a Comparative Market Analysis. However, you can also check websites such as Zillow and Trulia yourself to see what similar townhouses have fetched. Bid appropriately, based on the market. If it’s cold, then come in a little under the asking price, e.g., 5% below. If you think the home is wildly overpriced, then make an appropriate bid based on your market research and be prepared to justify your offer.  In a hot market, make your first offer your best one. You probably won’t have a chance to negotiate. Don’t forget you’ll need to give the seller earnest money, which is around 1-2% of the purchase price. This money shows that you are serious about buying the house. Agents typically have forms they use. If you don’t have an agent, you might be able to find a form online or by contacting your state’s Department of Real Estate. In some states, only a lawyer can draft a purchase offer.  A purchase offer is legally binding if accepted, so be sure it includes all necessary information. Even if you don’t have a lawyer draft it, ask one to review it.  If you need to sell your home to buy the townhouse, include a contingency to that effect. A letter of interest can give you an edge in a hot housing market. You should describe your family and why you love the townhouse. Try to find a connection with the seller, e.g., you both attended the same college or you both have children. You should give the seller’s agent your purchase offer, your earnest money, and any letter of interest. If your bid is lower than the asking price, you can include a list of comps you used to calculate what is a fair market price.

What is a summary?
Improve your credit, if necessary. Get pre-approved for a mortgage. Analyze the market. Set an opening bid. Draft a purchase offer. Write a letter of interest. Submit your offer.