How should I go about becoming a first time home owner?
Me, my boyfriend, and our 1 year old son are currently living in a rental. We want to upgrade soon by becoming home owners. He makes about 2,000 monthly and I will finish up school next summer and also get a job. Around that time is when we are hoping to buy. He however, does not have the best credit while my score is pretty good. Should we get married then buy is one of my questions but I'm also just looking for advice. We are tired of throwing our money away on something we will never own so what are some first steps we need to take? We have never done this before so any advice is welcome.
(0) | asked by: Britney West | share | 41 months ago | Report
Your first step should be to call a lender. They will be able to tell you what you are qualified to borrow based on your combined income, assets, and refit scores.
Talking with your banker and providing them with your financial picture is your first step in figuring out what mortgage product and how much you can qualify for, is your first step. Once you have a pre-qualification letter from your bank, you should contact a local REALTOR who knows your market and discuss what your preferences are and solicit their advice on areas and homes that will be a good fit for you.
This is just my opinion. $2,000 a month in D.C. is different than $2,000 a month in Booneville… Never feel like you must get married to survive in buying a home. Know that there are ways to improve credit, set money aside and get approved. If one of you has better credit than the other then I would check to see if you that person can be pre-approved. My rule of thumb is do not let your mortgage cost with escrow and tax go more than 40% above monthly income. If you are trying to boost your credit than take out a small personal loan and use the money borrowed to pay off the loan for more than 180 days. 180 days of on time loan payments is the length of time it take to better your credit score. In the end buy within your financial obligation and never beyond. A fixer upper means sometimes means potential. Your absolute dream home sometimes can mean debt for the first few years. I hope this helps. Very respectfully, Katrina Harvey
Getting pre qualified for loan is the first thing, that way you find out you affordability. Once your pre qualified your can pick your desired area. Find the right agent who will help you find your home.
The first is speak to a lender, they will be able to qualify you based on your income/debt ratios. It will be a great time to see if anything is needed to clear up on your credit.
Gosh,, I couldn't get past the should we get married first!. what a spiritual question!!! I think in today's liberal world the marriage part has less to do than it did in the past. Its simply two income s are better than one. Often times there are general positive things such as TWO years at the same job, . TWO Years at the same residence and in your case TWO incomes.. There are many options to help people, especially with first time home purchases. If you show stability and less of a risk the better your chances,, thus the magic 2 number as above. Obviously the more down payment you have the better everything is . the more down has a direct influence on the appeared risk. Depending on the exact location of the home there is an option under used called the USDA,, but this if for more of a rural setting which can go to zero down. Your biggest option is to find a local realtor and ask who they know that can help you. Realtors are here to help you negotiate a home and not do the loan,,they do however have many loan professionals that they do business with, each has vested interest in helping you. You would be wise to begin this conversation sooner rather than later as they can also put you on a fast track program to improve what banks perceive ,,which really is the goal to get the best terms possible. So First find a good realtor, 2nd ask for a loan officer in his referral system. Everything else will follow in place............Good Luck ,,,,,,,and Congratulations!
Pull a free credit report on each of you and make sure that there is nothing outstanding. If either credit is below 600 I would suggest taking out a small personal loan and use the money from it to make on time payments for a period over a 180 days this will boost your score. Having a higher score ensures that if and when you get qualified you will receive the lowest rate and be required to put less down. If you know you both have good credit than contact a local well know lender. Also consider your financial situation and consider a 15 year fixed mortgage. This will save you thousands on interest and allow you to see a quicker return on your investment because that is really what guying a home is. I hope this helps! Very respectfully, Katrina Harvey
Get pre approved first. Then interview protective agents.
The lender is going to give you the best idea of what you need to do. You are being very proactive and have not started too soon. Make sure you tell them what you want your payment to be verse them telling you what you can afford :) Good Luck and feel please to private message me to let me know if I can help in any other way!!
I would suggest speaking first with a loan officer. Often times if one party does not have great credit a loan officer can offer some helpful tips on how to get that credit score pumped up. Being able to buy your own home and put your money to your own mortgage as opposed to someone else's feels awesome and is something I highly recommend. When looking at loan officers to talk to stay away from the big banks like Citibank and BoA. Instead talk to a small local, community bank or credit union.
The first thing I would do it talk to a lender to see how much you can really afford. You also would need a good realtor in your area to help guide you through the process. This is a big step as well as the tax benefits of being married first vs. purchasing before you get married. Hope that helps. Best of Luck with your home hunting and coming nuptials!
One of the very first steps you should consider is planning out what your goals are. I strongly recommend that your goals include taking advantage of Down Payment Grants allowing you to purchase a home with as little as $1250 of your own funds. Creating a "Successful Plan" may take several different real estate professions. None the less its a critical step to complete, first!! Needless to say it should also include taking advantage of FREE Home Purchase Prep. Classes. Did I mention that they are free? Remember, first you plan for success, only then can you execute a "Successful Plan". Just keeping it real (excuse the pun) :)
Throwing money away is never a wise choice. What is needed is professional guidance to provide you with the information you need to make wise choices. The professionals you need are a knowledgeable Real Estate agent and a reputable Lender. They can guide you based on your particular situation so you will know exactly where you stand and what expectations you can have. They will be able to take a lot of the stress and guess out of the home ownership process. If you need suggestions for finding professionals in your area, I would be glad to make some suggestions, just contact me. Best wishes.
Since you are a first time home buyer, I would advocate contacting a Lender. During the pre-approval process, they can help determine amount of the loan available to you. Also, contact a Realtor to assist with all facets of the process. Look for one who is highly motivated with an excellent track record.
Step #1. Speak to a qualified lender who will prepare you for the purchase of your home. The worst thing that could ever happen is that you start shopping for your new home without speaking to a lender first, and you fall in love with a home that is beyond your budget. This has caused more arguments between couples than almost any other issue. A good lender will check your credit, present you the different programs you qualify for, and help you decide whether or not you are prepared to purchase a new home in your desired neighborhood. If you have no idea which lender to work with, go to step #2 and ask for some suggestions. Step #2. Find a local Realtor who is knowledgeable about the neighborhood you want to live in. Interview a couple of good Realtors. Choose the one that makes you feel the most comfortable. Remember this person will be in charge of helping you make the largest purchase you may ever make. Don't go about the selection process lightly. Step #3. Find a real estate attorney that is knowledgeable with the legal guidelines for the location you are purchasing in. Make sure the attorney knows the area well, especially since some slight variations in rules and regulations (city or town ordinances) may exist from location to location. Remember, you don't go to a dentist to work on your foot. The same "location" rule applies to your Realtor, your attorney and yes, even the mortgage professional. The best way to find all these professionals without having to spend weeks running around is to speak to your Realtor. Local attorneys and mortgage professionals work very closely with local Realtors, and working with professionals that have a history of working together may make your buying experience a less stressful one.
You will first need to speak with a lender. That lender can advise you of what information needs to be submitted in order to begin the qualification process.
It always start off with a self assessment of where you are credit wise. If your score is a 620 as a First Time home buyer you may very well be eligible to receive several thousand dollars of Down Payment Assistance. I suggest you inquire with our lender if they have grant funds. If not then consider a change. $5,000 is a pretty significant amount of money to leave on the table.
It is very important to speak with a knowledgeable mortgage loan officer early on to review your credit to see what steps to take in order to be ready to purchase. There are great mortgage products for first time buyers as well such as USDA which will lend 100% of the purchase price, down payment assistance products, and the MCC tax credit up to $2000 per year. You are doing the right thing by starting early and you will find out that it will pay great dividends for you when you do buy. I hope this helps.
The first thing to do is speak to a lender. They are a great resource for how much you can qualify for and what you need to do to help clean up your credit.
Another way is to attend a HUD approved first time home buyer workshop in your local area, usually conducted by HUD approved homebuyer's counselors and experts. HUD is the agency that regulates FHA loans and protects buyers from predatory lending by education and programs to help first time home buyers like both of you.
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