How can I buy a house? I have a fairly good job and good credit but no money saved.?

Question

I feel like I am in a poor position to negotiate since I have no cash, plus, all of the homes I like are about 30k more than I have pre-qualified for on my mortgage loan -- Dave.

Answer 1

Talk to a realator and tell them that. They will refer you to a home lender who will run your credit...more than likely they will find a loan for you...depending on your credit...that will finance in the down payment and sometimes even the closing cost if you can't find a seller willing to pay them for you.

If I were you though I'd try to save up some money for a down payment because you'll be able to get a nicer house, buy things for it, assure that your payment won't be too high, and pay for the move.

Before we bought our house I took a second job for about 3 months working at one of the three major mail shipping facilities in the US and worked an early morning shift loading trucks...It wasn't beneath me but I was way over qualified...they did'nt care because they needed a warm body and I needed the money. I made enough to pay the down payment, pay for moving, and still have some leftover.

Don't rush into it or you'll regret it. Cut back on all of your expenses right now...all the extra stuff you don't NEED and put that money away...the more you pay down on the house the less you'll pay for it over the years....if they make a 2000 down payment for you....then you'll pay about 7000 in the long run for it...or you can save that much and pay the 2000 or even 3000.

just think...over 30 years every 1000 you spend on a house now...will end up costing you another 2000. It's crazy...but even with good credit...you'll make 360,000 in payments for a house listed at 124,000.....considering you are going to spend that make sure you get something you absolutely like....

I worked a little longer than I needed to in order to save a bit extra but it was worth it as we were in the same situation you are. everything we liked was a bit out of our price range...but when I came in with that down payment..we got what we wanted...

I wish I had worked even longer though because I'd rather drop a huge amount down and pay less later

Answer 2

If you have good credit with scores above 600 you can qualify for a 100% financing. Most lenders will allow a 3-6% seller assist that can help with closing costs. If your score is above 680 see if your mortgage broker can get you a loan program called the 103 or a 107. This will give you 100% financing on the home plus finance the closing costs. This program was easier to come by a few years ago then alot of the lenders dropped it recently. I only know of 1 lender that I deal with has that program. Programs come and go and underwriting guidelines change just as fast. You don't ever want to go to a realtor without a pre-approval from a mortgage broker. If you tell a realtor that you have no money saved they will not show you any homes or refer you to a mortgage person. They think that you are just simply wasting their time.

You will need some form of money to put down on a home just to show that you are serious. This is called earnest funds. Usually a seller will require you to put down at least $1,000 on the day the contract is signed then in 14 days another $3000-6000 will be required to be put down. sometimes you can negotiate that the 2nd down payment be less or not at all.

Today to many people who want to buy a home don't have enough savings. Just make sure you have at least 3 months worth of Principle, interest, taxes, and insurance (PITI) in the account. Lenders need to see that you can make the payment even if you lose your jobs. Most lenders require you have the money in your account at least 30 days.

Answer 3

You are not in as poor of a position as you may think. You could depending on credit obtain 100% financing. As far as little or no money for closing costs most lenders allow seller contributions to help you. Depending on credit you may even get approved for a stated loan which in turn would qualify you for a larger home but keep in mind that also means a higher mortgage payment. I hope this helps you but if you have any further questions or need any help feel free to contact me.

Answer 4

First things first, if you already prequalified for a loan see if the sellers will do a second mortgage on what you don't qualify for on the pre- qualified loan. Or look in to foreclosures. sometimes you can find some really good deals. if you live in Missouri feel free to cantact me. and maybe we can get you a loan there are wonderful programs for fist time home buyers. Tammy Flowers with Atlantic mortgage
my e-mail is [e-mail]

Answer 5

Usually places will want you to put down a deposit on the house, or closing costs. Some companies will allow those costs to be added to your loan amount. But without a job that you've been at for 2 years it will probably be hard to get a mortage loan for that amount. Good luck!

Answer 6

I'M NOT SURE WHERE YOU LIVE, BUT MY HUSBAND AND I LUCKED INTO A DEAL WHEN WE BOUGHT OURS. FIRST OF ALL, SEE IF YOU CAN FIND A SELLER WHO IS WILLING TO DO THEIR OWN FINANCING (SOME WILL TAKE PITY ON YOU!). MY HUSBAND AND I FOUND A HOUSE ON A REAL ESTATE CONTRACT WHICH ALLOWED US TO MAKE THE PAYMENTS ON THE HOUSE WHILE WE LIVED IN IT FOR A YEAR. AT THE END OF THAT YEAR WE HAD TO DECIDE IF WE WANTED IT OR NOT. WE DID, AND WE HAD TO PUT UP A FEW GRAND ON IT, BUT WE'D HAD A WHOLE YEAR TO SAVE THAT MONEY. LOTS OF PRIVATE SELLERS ARE MOTIVATED, ESPECIALLY IN THE CURRENT ECONOMY, SO KEEP TRYING!

Answer 7

You contact me. Im at 510-596-3526, My name is Sam Tokhi, and I work with Reliance Bay Funding.

Answer 8

paying for a automobile is easy, even for those with undesirable credit. the only element diverse is that below-average credit people gets severe intrest costs!! i comprehend, becuase I in simple terms did it final month. yet, you may "bit the bullet" take the severe intrest up the rear end. it quite is all approximately re-development your credit.

Answer 9

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 1 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.

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) VA loans do not have MI insurance.

Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are a lot of factors involved.

With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true....


Go to these websites

http://www.nehemiahcorp.org/

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

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

http://www.freddiemac.com/


ALSO -
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.


DAVE, OTHER HELPFUL INFORMATION FOR YOU

Cost associated with your loan. You will need to pay for the appraisal up front (when it being done). You will need to pay for The Home Owners Insurance Coverage for at least 6 months (ask your lender), if you are escrowing (where it is added into your mortgage payment, than lenders normally want to see 1 year paid).

The seller can help you with up to 6 percent of closing cost. So the title fee, lender fees, underwriting fees, flood cert, etc can be paid for my the seller. Check your good faith estimate that I mentioned above.

Research on the Internet. Look at the MultipleListing Service to find houses you like in neighborhoods you're eyeing. This will also give you an idea of how much sellers are asking for listed homes.

Start interviewing agents so you'll have a good one when the time comes to start looking. Get referrals and select someone who knows your market and the neighborhoods you prefer. A good agent will notify you as soon as a home that fits your criteria goes on the market and stays on top of the listings on a daily basis and calls you the minute a good match shows up, especially in communities where homes are listed and pending sale in the same week, or even same day.

Pin down the basics, specifically the neighborhoods you like that will accommodate your family's needs, including commute to work, schools, recreation, shopping, and, most importantly, are in a price range you can afford.

Have an open mind. It's easy to start looking at houses and get discouraged because you don't see anything that matches your vision of the perfect house. But be open to a home's potential. Remember carpet and flooring can be replaced, walls can be painted, and a dreadful kitchen can be updated. Think about whether the floor plan will work for your family.

Find a qualified inspector. You'll want to find a qualified professional affiliated with the American Society of Home Inspectors or American Association of Home Inspectors to examine your Heating and central air conditioning systems, interior plumbing, electrical systems, the roof, attic, visible insulation, walls, ceilings, floors, windows, foundations, and basements are among the key inspection points. Inspections may also include appliances and outdoor plumbing. The inspector will provide a report and if there are any major problems, they can be negotiated with the seller. Or you can back out of the deal altogether

Make a list of features that are important in your home

Write down desirable locations you would consider, an acceptable price range, number of bedrooms and bathrooms, and any other amenities. Be specific. It is unlikely that you will find a home that offers every feature you desire; however, without a wish list, it will be more difficult to recognize a home that meets your expectations.

Provide the information to your Realtor
Your Realtor will look for homes that match your criteria. This will save you time – you won’t need to look at homes that don’t fit your needs and desires. Choosing the wrong home can become a costly mistake – a home which is too large or too small for future needs; a fixer-upper when you are not handy; house that is too far from work or too close to traffic; home in the wrong price range.

A proper game plan will save you time and reduce the hassle of shopping for a home. Spend a little time in advance and save a lot of time and money in the future.

Thinking, “I can’t afford a home”

Many people feel they can’t afford a home, but affording a home has never been easier. Mortgage rates are more flexible today than ever, and the tax laws favor home ownership like no other tax shelter.

Home ownership is a durable (real) investment. Although no one can say if a specific home will appreciate in value, generally speaking, the odds favor the homeowner.

Numerous unique tax advantages are available to homeowners. The thousands of dollars you pay in mortgage interest is deductible. This tax deduction alone can sometimes make owning your own home cheaper than renting with “after tax” take home dollars.

Failing to properly “screen” your Realtor

It’s likely that you don’t often interview people. Yet, in order to find the Realtor who is right for you, you may need to interview several. The quality of your home buying experience is dependent upon your skill at selecting the best qualified person.

It’s interesting that in the real estate business someone with many successfully closed transactions usually costs the same as someone who is inexperienced. Bringing that experience to bear on your transaction could mean a lower price at the negotiating table, buying in less time, and experiencing a minimal number of hassles. Your agent should be a skilled, win-win negotiator!

You need to select an agent who guarantees his/her service. You should have the right to fire the agent if you are not satisfied – no questions asked.
Agents make it their business to provide every service connected with your home search, from expert advice in the early stages through careful monitoring of your settlement. The more closely you work with your agent, the better your needs are known and the more effectively you can be served.

Your agent should have access to the MLS system – a computerized system that will assist you in locating the home that fits your needs and desires.


The purchase of your home could well be the most important financial transaction you have ever made. The person you select can make it a satisfying and profitable activity or a terrible experience. It’s your home. It’s your money. Never hesitate to ask questions.

Failing to obtain a home inspection from a qualified inspector

The job of a professional home inspector is to look over every major part of a home and write a report that judges the home’s quality and condition.

A home inspector reports on the structural and mechanical condition of the home. After the inspection, you will have the facts you need to make a decision about buying your home.

A well-qualified inspector who has adhered to federal licensing standards can spot problems that you might not be able to see. Expect problems to be clearly explained, repair expenses closely calculated, maintenance costs estimated, and a written report delivered within a day or two.

Most contracts are written conditional on the outcome of several inspections. These inspections may include several items including inspection for wood-boring insects, excessive amount of radon gas, structural soundness, and the condition of the heating, wiring, and plumbing.

When the contract is written, it should specify who would be responsible if there is a problem with the results of any of these inspections.

If well written, home inspections can create a safety valve for both the buyer and seller. If poorly written, the result can be heartbreak or law suits.

Your Realtor should be very familiar with the laws regarding home inspections. Many people have lost the home of their choice because the agent failed to comprehend this crucial report.
Not knowing your rights and obligations

Real estate law is extensive and complex; the contract for sale and purchase is a legally binding document. An improperly written contract can cause the sale to fall through or cost you thousands of dollars for repairs, inspections, and remedies for title defects.

You must be certain which repairs and closing costs are your responsibility. You must know whether the property can legally be sold “as is” and how deed restrictions and local zoning will affect the transaction. If there are defects in the title, or if the property is in conflict with local restrictions, you or your Realtor must remedy them. Otherwise, you could lose thousands!

It is your Realtor’s job to know the laws governing real estate transactions. They are involved in an on-going training program to keep up-to-date with these laws.

You deserve to have an agent who is not only knowledgeable about the transaction, but is also willing to educate you throughout the process so you will feel more comfortable.

Failing to make your own inspection

You probably would not want to rely on the seller to point out defects in a house he is attempting to sell. There may even be hidden problems of which he is unaware.

Be sure your sales contract is worded so that any “earnest money deposit” must be returned in the event the house fails inspection. If a major defect is found, you have the option to cancel the contract and have your deposit returned, bargain for a lower price to compensate for the cost of repairing the problem, or have the owner make needed repairs before the sale.

Even before you get to the point of a contract and having a professional inspector look at the house, there are many items you can check yourself as you are shopping for a home.

Structure – Basement, check the foundation for cracks or water marks. Floors, are they level? Does the roof sag?

Water damage – Look for unevenly painted ceiling or wall; mildew odor in basement; signs of re-plastering or re-tiling in just one area of the room.

Water pressure – Flush toilet and turn on both hot and cold water faucets at the same time to test.

Plumbing – Ask what type pipes are installed and their age. If applicable, ask when the septic system was last inspected and cleaned. Stand near the tank to detect odor or soggy ground.

Wiring – A 100-amp system is typical in modern construction and uses a one-inch main line; this can be seen leading to the fuse box. Appliances such as dryer or range require a 220-amp line. Notice if lights flicker or don’t work. Check for electrical outlets . . . usually at least 2 in each room.
Energy efficiency – Ask to check last year’s heating and cooling bills. Determine if proper insulation has been used.

Pests – Be alert for small accumulation of sawdust in the basement. This might indicate an insect problem. Obtain date and results of the last wood-destroying pest inspection.