Buying a house and financing
Basically this comes down to how much can I afford? What is the down payment and where can I afford to buy? The sliding scale between how much you can afford really means finding ALL the hidden or unexpected costs (and there will be many) VS how much I REALLY make.
Getting into property valuation and home searches is fun to look at but when you are serious about buying a house you need to know what you can really afford. Taking into account the extra closing costs, fees, commissions, ancillary costs, attorney fees, county assessor fees, home inspection costs, property report costs, property taxes, other taxes, government fees, title insurance, rehab or rehabilitation costs, moving costs, and the list goes on and on. Can you afford what the true monthly and yearly cost of not only the mortgage payment but all of the other fees, interest rates, utilities, upkeep, etc.
For a first time home buyer this stuff looks daunting however, it is good to remember ” If everyone on this street can do it, why cant I buy a home here too!”
You can with some planning, aforethought and research. You might not get into the home tonight or even this year, but you can get there.
Saving Cash
And now we come to the hard part, saving money, its either in your blood or you need to learn how to save, fast! Saving money does not come easy to everyone looking into how to buy a house. Many people might be looking for a “quick fix” 100% financing, no down payment, no job, no credit OK kind of thing.
100% Financing, no credit check. no money down…
It does not exist, sure there are some great HUD and governmental real estate buying programs for seniors and military veterans, but these still come with a caveat. Namely, you still need to make the payments, have an income and some form of “down payment equity”. This means you will still need to save money! Going back to saving money and the average borrower looking to buy a house, you will basically need 20% down.
Stated Income Loans
We could get into the history of the stated income financing less than 20% down stuff but that is all long gone after the market crash. Sure, there are stated income loans for self employed but these are now credit based loans many on investment properties only. There are different state requirements for home owner stated income loans but expect to pay more for these that the typical mortgage loan rates posted today.
Home Mortgage Loans
This is what 98% of the people looking for home financing will need. You will need to talk to a local lender or someone recommended to you by a real estate professional. You can also look up the typical review Yelp, Google+ reviews, and other review websites for anyone you are thinking of using for the home financing, home inspection, property reports, real estate attorneys, estimators, etc. Sit down with a qualified loan officer at a bank or mortgage loan company and find out all you can. Your situation may be different in qualifying for a home loan buy every lending scenario and home is different. The experienced mortgage loan officer will have all the information they have mortgaged every type of home buying transaction.