My husband and I have been thinking about starting a family in the next 2 years. Currently we are in a apartment and we have started cleaning up our credit. What else should we do to begin this home buying process?? Is there a homebuying timeline with step by step methods???
Thank you!!
2007-01-29 08:27:38 · 7 answers · asked by **What??** 4 in Business & Finance ➔ Renting & Real Estate
Pay off all your debt. Go and get a letter of Pre-approval from a mortgage company so you know what you can purchase. Get all your financial docs in order (w-2's, taxes, bank statements, pay stubs). Interview realtors until you find one you are comfortable. There is no set timeline per say, if you have a good realtor and mortgage lender they will help you through this large task.
2007-01-29 08:37:09 · answer #1 · answered by 2littleiggies 4 · 1⤊ 0⤋
Since buying a home is beyond most peoples cash abilities, it involves a loan.
There are a number of kinds but only 15, 20 or 30 yr fixed should be used. ARMs are the fast track to bankruptcy (as manyyyy people are starting to learn).
When you get the loan, if you put less than 20% down you will have to pay a large PMI (private mortgage insurance) fee every month. Try all you can to avoid this as the PMI is NOT tax deductible, nor does it count towards your principal payment. You should also get a better % rate if you have an 80/20 loan.
Do not forget to factor maintenance into your future budget unless you are buying a new home (but those warranties are usually just a year)
Initially the mortgage (PITI - principal, interest, taxes, home owners insurance & PMI if <20%) is often more than people were paying for rent BUT, where rent goes up and you NEVER own it, your mortgage will be stable and you will own it .
2007-01-29 08:40:19 · answer #2 · answered by kate 7 · 0⤊ 0⤋
Buy a duplex if you can afford it and live in one side. Rent the other one out and learn property management. You will learn an important skill as well as reducing your mortgage payment. When you are ready to move on, keep the duplex and rent both sides. Repeat process over and over.
If you are going to live in one unit of a 2-4 unit property getting the loan is no different than a single family house and you might as well have your neighbors paying off part of your loan.
And the most important thing.... After you get your home or duplex or whatever you decide on. Don't let some slick loan officer talk you into refinancing to get cash out. You WILL be sorry you did down the line. You will have a higher payment and will not be able to sell the house if you really need to because you will have borrowed more than you can sell it for. Pay as much down as you can and pay the loan off as fast as you can.
2007-01-29 08:39:05 · answer #3 · answered by nemesis_318 2 · 0⤊ 0⤋
There are tons of websites that are helpful for first time home buyers, also there are discounts out there to make buying your first home cheaper.
I think buying our home was the single most complicated thing I've ever done. Not that it's hard, but there are alot of things you need, and should be prepared for, that we weren't.
Get ALL if your paperwork together before hand. Know where all of your recent tax returns, bills, credit card statements, etc...are. I would create a file just for them to keep them organized.
Get pre-approved so you know how much you spend before you start looking.
Be realistic when home shopping, you don't want to buy a house that you may have been approved for but making the monthly payments forces you and your family to eat Peanut Butter Sandwiches for the next 10 years! You can always buy a nicer home later!
Get a good Realtor who can help you along the way.
Good Luck!
2007-01-29 08:39:49 · answer #4 · answered by Nichole D 2 · 0⤊ 0⤋
Having been in the business for some time, I always tell people in your situation to start by talking to lenders about what your price range may be. They can pre-approve you. You then know what may realistic. From that point, you can look at homes that you are able to afford.
2007-01-29 08:33:20 · answer #5 · answered by bpl 5 · 1⤊ 0⤋
Forget that Ramsey crap...
Go to www.hud.gov. Fantastic home-buying info from the government.
2007-01-29 08:38:46 · answer #6 · answered by KL 5 · 0⤊ 0⤋
visit daveramsey.com to learn what bankers pray you never ever learn and apply it.
save money. learn what you want and NEED there is a difference.
read home buying for dummies. save cash save cash.
buy with your mind not your ego or the realators dreams. it is ahouse not a home there is a difference.
2007-01-29 08:34:41 · answer #7 · answered by Anonymous · 0⤊ 1⤋