how to own a home - The first step to home ownership is to become pre qualified for home financing. The easiest way to do this is to contact a mortgage broker.
Once you are prequalified, you should talk to a real estate agent. The real estate agent is the person that will show you the homes in your price range, as well as write the offer to purchase for you. If you do not know a real estate professional, then you can ask your mortgage broker for a list of people that they have done business with in the past.
It is important to buy a home with payments that you will be able to comfortably afford. Let your mortgage professional know how much you wish to pay each month, and they will tell you what amount of home you can afford with that payment. Then your real estate agent will be able to find you a home in that price range.
In 2005, nearly 45% of all first time home buyers purchased their homes with 100% financing. In some cases, they accomplished this with 2 loans, such as one for 80% of the total amount and a second for 20%. In other cases, the 100% financing was with a single loan for the full amount. I can help you determine if one of these programs is right for you.
If you can not find a home you like in the price range you worked out with your mortgage professional you may want to consider some other types of loans. Other types of loans such as Interest Only, 40 year terms, and a variety of ARMs will allow you to afford higher priced home while keeping you payments lower.
If you plan on buying a home in a year or so, you should make it your goal to save as large of a downpayment as you can afford. The easiest way to get the best deal on your mortgage may be making a down payment. As little as 5% down can make a big difference in your interest rate and monthly payment.
Zero money down home loan - Buying a home with no money down is becoming much easier to do and very popular among Americas homeowners. For the year of 2005 almost 50% of first time homebuyers obtained mortgage financing putting no money down on their home for a down payment. This number truly is remarkable and helps explain why the percentage of Americans buying homes vs. renting continues to grow each year. There are many advantages to buying a home so please contact your WI mortgage company immediately to see if you are eligible to buy a home with putting zero money down. Call 415-617-5448 now.
It is even possible for you to buy a home with zero money out of pocket. A popular way to do this is to have the home seller pay your closing costs for you. Most lenders allow the seller to contribute at least 3% of the purchase price toward your closing costs.
A common way to structure Zero Money Down Home Loans is the 80/20 Piggyback. The 80/20 is a combination of two mortgages, with the first mortgage financing 80% of the purchase and a second mortgage of the remaining 20%.
If you are buying a home with nothing down, your interest rate will be higher than if you have a down payment. Traditionally, 20% was a typical down payment. So for most lenders 20% or more down will get you the best rate for your situation. The lower your down payment drops below 20%, the higher your interest rate will be.
There are also 103% loan programs where the additional 3% of the purchase price can be used to pay for closing costs. If you don't have the money for closing costs and/or the seller will not agree to a "seller assist" this may be a great option for you.
Not all 100% Financing can be accomplished with no money out of pocket. There are some costs to buying a home not incurred from the mortgage, such as home owner's insurance and property taxes which may need to be paid a year in advance.
Buying a home has become much easier because mortgages with no down payment required have become much more available in the mortgage market.
Lenders have increased the loan amounts they are willing to lend with no down payment. Some lenders have reduced the credit score required. In addition, some lenders are offering interest-only payments to make qualifying easier.
We offer loans with no down payment required up to $1,400,000 with a credit score as low as 620. We also offer loans with no down payment required up to $700,000 with a credit score as low as 580. Full documentation and stated income loans are available.
Generally speaking the better your credit the better your chances of getting Zero Money Down Home Loan. However, Zero Money Down Home Loans are available to homebuyers who have less than perfect credit too.
Even if you are planning on utilizing 100% financing, you will need to submit an earnest money check when you submit an offer on a house. The amount of the check will vary depending on your market, and the price of the home you are looking at. Plan on giving the seller at least $500-$1,000, and possibly more if you are looking at a higher end home.