financially...what is the best way to buy my first home ?

Question

the only credit card i have is a gas card ..have always paid cash for everything...not bad credit just no credit history. what about bank forclosed homes? i live in pinellas county florida..

Answer 1

Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment or good credit.

Would you consider delaying your plan? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.html

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Different perspective:

It is a myth that renting is always worst off than buying.

Rent vs. Buy as Housing Market Continues to Slump

As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.

Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.

If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.

For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.

Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.

And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.

Answer 2

Thats the best option for you. All though the best way to do this, like I did, grab the yellow book and call bank directly. Tell them what county you live and if they have foreclosure propertys in your area. You will have tons of equity but it might be a fixer upper, which can sometimes be more expensive than one that is not in foreclosure. Just do some research first. Then get ahold of a loan officer that knows what he is doing. Avoid newbies. Then go the 100% combo loan, usually called the 80/20

Answer 3

Financing your first home is generally pretty easy..

You will need several items to give to a lender.

1. Pay Stubs
2. two years of tax returns.
Many lenders do conventional or FHA loans.

With FHA loans you can purchase the house with as little as 3% down payment.
I've bought houses with no morning down by having the seller contribute up to the legal amount for closing costs.

Closing costs include, appraisal, inspection, insurance,

General insurance, taxes items that are attached to the loan, and as part of the payment you pay into an escrow account to cover insurance and taxes.


Depending on your market, start with a low price and negotiate up. It's a game. I've been on both sides, I've bought low, below the appraised value, and have sold for above and below value several times.

If the market is a "buyers" market you should be able to find a real value, if it is a "sellers" market you may pay a premium to purchase.

If your credit is good rates for homes are in the 5.5 to 6.5% range. You can look at a "New home builder" and sometimes these people have financing deals as well, It may be wise to look into one.

Answer 4

Buy a small place first. Fix it up and resell it for a nice profit. Reinvest the money into a larger place. Repeat.

Foreclosed homes are tricky. Watch your newspapers for Legal Notices and properties coming up for auction. Usually, the winner at such auctions is expected to pay CASH for the property, or to present a letter of credit from a lending institution. If you intend to buy foreclosed properties, be sure you have them thoroughly inspected by a licensed Inspector, for wiring, plumbing, roof, termites, etc., since people who are about to lose their homes do not take care of them and may even have done some deliberate damage (once they know that the bank is going to take it from them).

Answer 5

up your credit score. no credit is just as bad as bad credit. even though you pay things on time and assume you don't pay things late, there is no record of this. with no record of your financial transactions the banks will not be able to gauge your credit worthiness. most lenders, nearly all lenders reuiqre a certain amount of tradelines. you, only having a gas card, are significantly devoid of tradelines. usually things like credit cards, auto loans, cell phones, etc. pretty much anything that reports to the bureaus is your friend right now. some lenders will allow you to use alternate credit like phone bills, utility bills, and even car insurance bills, but only if you pay them monthly, not annually.

yoru credit is your main focus as of now since that is what they will be looking for. that or if you happen to have at least 20% down for a down payment then that;s your only real choice of action here. not saying to go out and splurge on things or rack up 20 credit cards but you need to increase your tradelines greatly and hopefully boost your credit score in the process. your main focus is to build your credit up now.

Answer 6

confident :) it seems acceptable yet i might in all probability construct yet another homestead on the valuables to hire to human beings as a holiday homestead or something like that :) gotta make constructive i will keep the valuables continuously :) identity actually love an island and eire is acceptable and im very lots into vacationing! extremely you know what identity keep the vast homestead do away with the others and make a small citadel inspired homestead and in simple terms make it a small impressive oasis :P

Answer 7

get a mortgage