i would like to buy a house any tips?

Question

I live in illinois ,right outside of chicago and I want to buy a house. I dont have the best credit but i also dont have the worst. I just want to buy a house near where i live now for my children. It doesnt make sense to rent for the rest of my life you know....

Answer 1

When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.


Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. This is not an advertisement - just helpful information for you...

A 100 percent loan - is not totally out of your reach - There are FHA programs, payment assistant programs to help you. Look at your middle credit score, if you do not know your credit scores - have your lender tell you, or pull your credit from the 3 credit reporting agencies - BUT the person you are working with should tell YOU.

Lenders look at the middle score to qualify a person - With a 580 or higher you can get a 100 percent loan. If your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo"s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. This is a estimate only - ok -


If you go with a FHA loan, FHA has MI included. (With a 580 + you will be going sub-prime the rates are higher by about a 1 percent, but you have no MI. (MI is mortgage insurance in case you default on the loan, it is a way for lenders to have added insurance. It is not the same as Home Owners insurance, ok)

Go to these websites

http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Home Values Just add 10-15 percent to the values on this site.


http://realestate.yahoo.com/Homevalues

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Welcome to the USDA Income and Property Eligibility Site
1. This site is used to determine eligibility for certain USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA.
To learn more about a USDA home loan program, click on the Loan Program Basics link on the left side of this screen and select one of USDA's home loan programs.
To determine if a property is located in an eligible rural area, click on the Property Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate property eligibility screen for the Rural Development loan program you selected.
To determine income eligibility of an applicant/household, click on the Income Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate income eligibility screen for the Rural Development loan program you selected.
To find out how to apply for a Rural Development Loan, click on the Contact Us link on the left side of the screen and then select a Rural Development Loan program.


Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.
2. Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. Elderly and disabled persons applying for the program may have incomes up to 80 percent of area median income (AMI).
Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.
Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.
Basic Instruction: 7 CFR Part 3550 and HB-1-3550

Section 502 Guaranteed Loan Program:
1. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility:
Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Approved lenders under the Single Family Housing Guaranteed Loan program include:
Any State housing agency;
Lenders approved by:
HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
the U.S. Veterans Administration as a qualified mortgagee;
Fannie Mae for participation in family mortgage loans;
Freddie Mac for participation in family mortgage loans;
Any FCS (Farm Credit System) institution with direct lending authority;
Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.
Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.
There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.
Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.
Basic Instruction:7 CFR Part 1980.

Answer 2

Buying a house is a great thing to do.

But:
1. I'd wait at least 6 months. The market is cooling, which means that you'll have more to choose from-- and it will be a buyers market. This will give you time to look around and educate yourself on what houses sell for, what mortgages are available, etc.

2. Buy the smallest house in the best neighborhood you can afford.

3. Don't let the real estate agent talk you into more house than you can afford. Ideally, decide what you can afford, and then subtract $50,000 when you're talking to the agent. That way, you'll see the properties in your price range.

4. Buy something you really love. It's a fantastic experience to drive home from work at the end of the day, pull in your driveway and say to yourself, "I OWN this!!!!!"

There are many people who are speculators who buy real estate as an investment. Personally, I don't have the risk tolerance for that. But, I've had a great deal of success in selling my homes and making a nice profit from them.

Good luck to you.

Oh --- one more thing: Get a fixed rate mortgage. It may cost you a little more in the beginning... but at least you'll always know what your payment will be.

And one final thought: Don't get caught up in the "frenzy" of house mania. You will get the house you're supposed to have. It's really that simple.

Answer 3

for starters, don't do any damage to your credit. save requests for extra credit, a car loan or an extra acct at macys until AFTER you have closed on your home. excessive inquiries and recent inquiries can affect a bank's decision so don't give them any leverage. what's an excessive inquiry? some banks say five some banks say ONE. so again, wait until after closing. even if you have been pre-approved...WAIT. banks will check your credit again right before closing so don't feed them any fishes to drown the deal.

don't worry about whether your credit is in tip top shape right now. you need to get to a loan officer and have him/her assess it and tell you for certain. right about now, anyone can purchase a home - its just those with worse credit pay higher interest rates.

if you haven't done so already...make a list of all that you would like in your new home. sit down and really analyze what you can do without (i.e. - a third bath) and things you can't do without.

get a good realtor. feel comfy with your realtor and stand firm. know your limits regarding what you want to spend and don't let anyone push you into more than you're comfy with.

get prequalified. it gives you more leverage when negotiating with sellers PLUS it provides you a good insight on what the bank has approved you for...therefore helping to eliminate eyeballing the 200K house when you've only been approved for 150K.

be honest with yourself and the loan officer about your finances. if you can't afford a $1500 per month mortgage than don't try to act as if you can. also don't be afraid to inquire about down payment assistance, zero down programs and grants. There are several options that assist home buyers in the home buying process and you don't have to pay the money back. take advantage if you can.

take your time. don't be afraid to look at a property a few times before submitting your contract. when browsing properties, ask any questions that come to mind, check everything - under the cabinets, inside cabinets - the working condition of appliances...etc. if something isn't working it's better to find out before submitting the contract hence the big surprise after you close. many sellers might be willing to repair a problem if they know that is the only thing keeping you from signing the dotted line.

if you absolutely do not like a property don't settle. if you can't stand a property for a simple 30 minutes, what makes you think you're going to like it for a 30 year term. again - don't settle.

if the seller promotes the house with additional perks such as a home warranty, garage door opener or carpet allowance -make sure your realtor also includes it in the contract that you submit. selling realtors are not above "promoting" a good deal such as a home warranty - and then after closing...when you ask about it they will say "oh you could have had it but you didn't request it in the contract."

get the home inspected. and before closing make sure your realtor gives you a walk thru of the property. this also eliminates the possibility of any 'surprises' after you make the first step into your new home.

also a good source is the internet. it gives you plenty of info about the home buying process. and remember, just because you have a realtor that doesn't mean you can't keep your eyes peeled to potential future homes as well. check out www.realtor.com, the local realtor association website for your area or any realtor company's website. if you find something that you like, tell your realtor and go check out the property.

good luck.

Answer 4

My first move would be get your Credit Report and clean up any inaccuracies..while your doing that try to make sure that you can pay bills on time and try to save as much as you can.....There also is programs out there for First time buyers get a real good real estate agents one thing before you buy don't let anyone tell you that you qualify for an outrageous amount remember only go for something that you can afford and feel comfortable with because sometimes unexpected things do come up and they will believe me.Good Luck

Answer 5

Here's what to do:

1.) Get pre-qualified. Figure out how much you feel comfortable spending on a monthly mortgage payment, as well as a down payment. Call a local mortgage company (get a reference from a trustworthy friend or family member). and they will tell you how much you qualify for.

2.) Get a rough idea of where you want to live. Find out if the amount you are pre-qualified for is enough to fit the area where you want to live. Contact a Realtor who is a "Buyer's Agent" (don't buy any of their listings!) a Buyer's Agent will exercize fiduciary duty in negotiating your best interest with the listing agent. Make certain to NEVER choose a Realtor who is a "Listing Agent". They don't have your best interest in mind, they have the seller's best interest in mind....

Try www.realtor.com to get an idea of how much properties cost in your area.

Good Luck!

Answer 6

i would not purchase a apartment proper now Market is happening, slowly. Interest premiums going up, slowly. House expenses have no longer corrected themselves in a LONG time, ten years now? If you are not able to placed down greater than 25 % now, I feel it could be wiser to hire, and store $500-800 a month alternatively of committing to a mtg. This approach... the fairness that you just feel you're lacking out on proper now. You might be making up for it in financial savings. And whilst the mkt takes a correction, then you'll be able to no longer most effective be capable to shop for the apartment you could have consistently desired, however you probably capable to shop for TWO! Rates are going up. So examine, what it could do for your per month price range if premiums went up 2 extra percentage within the subsequent 5 years. Probably $one hundred in line with percent factor on each one hundred thousand mtg. that is approximately 1200 greenbacks a 12 months further in curiosity in line with 12 months in line with one hundred 000 borrowed. What occurs if premiums cross up 5 percentage? and expenses drop 20% subsequent 12 months? Would you be receiving a cellphone name from the financial institution? Would you continue to have fairness within the apartment, such that financial institution could name you for your mtg? good what ever you do. Good success Hope for the first-rate. But be ready for the worst

Answer 7

Go to a broker like Lending Tree http://www.lendingtree.com they may be more willing to work with you than your local bank. And if you or someone in your family is very handy, buy a home that is cosmetically challenged AND that is located in a safe neighborhood.
You've picked a great time to buy. In most places it's a buyer's market, and the sellers may be more willing to lower the price and/or offer incentives.

Answer 8

Use a direct lender. You'll save money. This guy is great... does all of US.. Brent_Mohr@ countrywide.com. Fair and honest. I know a lot of investors use him as well as anyone who just needs honest answers and ideas and explanations for 1st time home buying. Has over a hundred and fifty different loan products available.

Answer 9

Well the number one thing to do before you buy a house is to get an inspector to check it out! Trust me, it may be a little expensive but it's well worth it. I mean, do you want to deal with the after affects? Probably not.

Answer 10

You are very right.
Buy a house that is undervalued and fix it up over time.
Make sure that the neighborhood will go up in value.

Answer 11

if the realator doesn't let you have the house...point and laugh at them every chance you get. tell people they make love to trees...and always tell others that you caught that person dancing along to Kenny G. they will give it to you. (little known secret!)