Im 23 years old. My last credit score in February was 649. I want to apply for some money to build a house but i dont even know where to start. I have an acre that im paying for (almost $700/month x 5 years) i already completed 1 year. what is the first step that i have to take? do i go to the bank? do i need a contractor? is it possible that they can pay land off that way i will only have one payment? this is all new to me, please help. my income is $36,000/year.
2006-06-15 06:49:19 · 5 answers · asked by BeAuTiFuL 6 in Business & Finance ➔ Other - Business & Finance
Well, chances are you will end up with a second rate finance company. Your score is a little yet. Most majors banks are not gonna touch you unless you have @ least 10% cash down. Since you are paying on land; you may be @ an advantage if it is a loan thru a bank or finance company. If it was yours free and clear, that would be your collateral. You need to know what type of home (plans) and price to build---get an estimate for the entire project from start to finish. Most importantly make sure you are able to drill a well there; if not on city water & sewage. Your income may be sufficient---as long as your debt to income ratio is less than 50%. You should be able to call any finance company/bank and get information without doing a credit check. Research all sources and get all paperwork(proposals, plans, etc......) before going for financing. Remember each credit inquiry reduces your points. Be straight up, tell them what you have, what you can do and they usually will tell you what your chances of approval are before running your credit.
2006-06-15 07:00:32 · answer #1 · answered by IrishEyes 3 · 0⤊ 1⤋
My advice is to talk to your CPA and a licensed real estate agent. If you are looking for self-education, I recommend David Bach's "The Automatic Millionaire: Homerowner". There is a lot of good advice in there for first time homebuyers from calculating what you can afford, to how to select a good real estate agent and how to pick a good loan advisor. I hope that helps!
2006-06-15 13:55:34 · answer #2 · answered by Sugarbear 3 · 0⤊ 0⤋
First thing is to get pre-approved for a loan so you know how much house you can build. Then, start looking for a housing contractor.
2006-06-15 13:54:06 · answer #3 · answered by hoodlum1995 1 · 0⤊ 0⤋
Your best bet would be to contact a local real estate agent and go form there!
2006-06-15 13:54:21 · answer #4 · answered by zack_attack 1 · 0⤊ 0⤋
cut un-nessary payments, cableTV,ect, start saving like crazy, then take out a loan, AND MAKE SURE YOU PAY IT BAACK OR BAD THINGS WILL HAPPEN
2006-06-15 13:53:30 · answer #5 · answered by mcw7267 3 · 0⤊ 0⤋