How can I buy a home is a very popular question that many people ask. There are many ways to buy a home. The reality of homeownership has increased among many Americans and grown at record highs over the past decade in particular. This is in part due to the record low mortgage interest rates we have experienced over the past number of years and partly due to all of the new mortgage programs that have become available. Most homeowners are now able to buy a home with little or no down payment. This is definitely helping to increase the number of people that are able to buy homes now. There are lenders out there for all credit types and all income types. So whether you have an 850 credit score or a 580 credit score obtaining a home loan with 0% down may still be a very realistic option for you. To buy a home you must first contact a mortgage advisor and find out what mortgage programs and size loan you can qualify for. This is your first step to realizing your dream of home ownership
Your second step will most likely by consulting with a trusted real estate agent or broker. Your agent or broker will be able to match your financial requirements to help you find your perfect home.
So you think your credit is too bad to qualify you for a loan? No matter what your situation is, bad credit, good credit, lots of collections there is a good chance that a mortgage consultant will be able to qualify you for a loan. With tens of thousands of lenders out there with thousands of different mortgage programs there is a good chance that a loan can be found for you.
If this is your first home especially, you should work with a real estate agent that also does a lot of transactions with first time home buyers and 100% financing borrowers. Your mortgage broker will be able to refer you to an agent that works in these types of transactions.
Even if you are considering buying a home with 100% financing you should plan on having at least two months of mortgage payments, plus closing costs (again another 3-6% of the purchase price) saved in savings, investments, or retirement accounts. Some programs will actually finance up to 103% of the purchase price to include the closing costs items too. Another way is to have the seller pay for the closing costs up to 6% of the purchase price. Your mortgage broker will be able to assist you in determining the best way to go about these important factors.
If you decide that you want a no closing cost mortgage you can either have your real estate agent write this into the offer to purchase or we can help you with a program that will allow for these closing costs to be added into the loan. In most cases it will be better for you to add it to the offer to purchase as there will be no adjustment to the rate.
One of the questions every potential home buyer has on their minds is how much home can they afford. The quest to the answer begins with what size home your family needs, and what the going home price in the neighborhood is. Once those two questions are answered, an experienced loan officer can calculate how much mortgage you can afford, base on your current income, future outlook, and amount of savings. In most cases, your mortgage professional can often find a loan program, whether it would be a 15-year fixed rate mortgage, an Option ARM, a 5/1 Hybrid, or a 80/20 Piggyback, to help put your family in your dream home.