My fiance and I our going to try and purchase a house within the next year hopefully. I am completely clueless about buying a house. How big of a down payment do I need, do you always need a down payment, interest rates...and many many more question. If you have any pointers please fill me in. Thanks!
2006-12-31 03:22:57 · 7 answers · asked by Heart 1 in Business & Finance ➔ Renting & Real Estate
A downpayment will help you afford more house, but is not always necessary. Start by browsing through your local paper and online home sites (Realtor.com is a good one) to get an idea of home prices in your area. Since you have time on your side, start saving! Even without a downpayment, you'll probably still have closing costs (around 3%, depending on your area and loan program) and little fix-ups once you purchase the home.
About 3-6mos. before you are ready to buy, contact a Realtor and they can go through the whole process with you, and refer you to a good lender. You'll have to get pre-approved for a loan before you start looking (hint: you can shop around with as many lenders as you want within a 2 week period, and it only counts as one ding against you credit score). Once you've done that, you're ready to start house shopping!
Good luck!
2006-12-31 03:59:44 · answer #1 · answered by Mary 3 · 0⤊ 0⤋
Find a realtor you trust, have them help you get prequalified for a loan so you know what range of house prices you should be looking at.
You don't necessarily need a down payment, but will need money for closing costs, probably a few thousand dollars. A down payment of 10% is pretty common though, and you'll still need the closing cost money. Sometimes you can negotiate with the seller to have them pay some of the closing costs.
Interest rate will depend on your credit rating, and also on the size of your down payment - if you don't have one, you'll probably pay a higher rate. And not all lending institutions have the same rates, so check around. Be sure to include looking at closing costs and at fees associated with the mortgage - these too can differ by lender.
The price you see listed for a house is very rarely firm - most of the time, houses sell for somewhat less. In an area where houses are moving really fast, this might not be the case. When you find a house you hope to buy, your realtor can help you make an "offer" on the house that shows the price you're offering to pay, and any conditions. Be sure that your offer includes an "out" for you if you can't get acceptable financing, and requires passing home inspection. Your realtor will help you with all this. Just remember that the realtor works for the seller, not the buyer, although most will try to guide you.
Be sure to have a home inspection. A licensed inspector will go through the house and check out major items (e.g. roof, furnace) and give you a written report noting any big problems found. It'll cost a few hundred dollars, but could save you thousands so isn't something to skip.
Don't buy the absolutely most expensive house that you qualify for, especially if you don't have a lot of easily accessible savings to carry you through any tough financial times. And with a house, there WILL be unexpected expenses, so be sure you can handle them.
There are many kinds of mortgages. The major types are fixed rate and adjustable rate. With an adjustable, your initial rate is probably lower, but your rate can be raised, usually in a couple years and maybe every year thereafter, so your payment could go up a lot without much warning. With a fixed rate, you know what the interest is for the whole 30 years or however long your mortgage is for.
Good luck.
2006-12-31 04:04:35 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Depends on
1> Credit Score
2> Income
3> Appraisal value of the house.
The interest rates vary depending on the credit . So it is ofcourse better to apply a loan for the one of you or your fiance whoever has beter credit .
Write in details at kishaloy_bhowmick@yahoo.com and will provide you with the options
regards,
kish
Loan Officer
480.751.4125
2006-12-31 09:21:46 · answer #3 · answered by kishaloy_bhowmick 2 · 0⤊ 1⤋
I got real lucky on buying my first house. I was in the military so I qualified for a VA loan. I got mine at 5.5 % interest. Be sure to check out all your options and don't be to quick to jump into the first deal that comes along. Unless it's good for you. But sometimes anther deal comes along that is better than the first.
2006-12-31 03:37:00 · answer #4 · answered by ybmad2087 1 · 0⤊ 0⤋
How much down and interest rates are specific to your credit ratings.
Get preapproved first, so you know what you can afford.
Other then that ask for specific advice when you are ready. Good advice today will change, the market is presently fluxing.
2006-12-31 03:28:34 · answer #5 · answered by Landlord 7 · 3⤊ 0⤋
Make sure your sales contract is contingent on the home inspection.
2006-12-31 07:10:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
lots of good tips on my website. www.danroemer.com
best advice is get a realtor you can trust
2006-12-31 03:31:38 · answer #7 · answered by daniel r 4 · 0⤊ 1⤋