My boyfriend and i make about 50,000/year together. Im 22 hes 26, i have good credit and his is poor but getting better. I dont know where to start, im tired of renting and feel like im throwing my money away! I think that if i go to a bank they will tell me im to young, dont make enough money or our combine credit isnt good enough and i dont want to pay alot. Ive heard about first time home buyers and programs like that, has anyone had a good experience with any brokers or programs?
2007-02-15 16:18:21 · 8 answers · asked by nicole l 2 in Business & Finance ➔ Renting & Real Estate
Go see a mortgage broker to see what you can qualify for. If your boyfriend's credit is poor you may have to go just on what you make. But that's the first step to find out what you might be able to afford. Since you are over 21 your age should not make a difference.
If you are only able to get the house in your name, consider an interest-only loan. That will allow you to qualify for a higher-priced home, and just make sure there is no prepayment penalty so you can still put additional money towards the principal each month just like you would with a conventional amortized loan.
For example, if you can only qualify on your own for a monthly payment of $700/month on your own but the two of you could realistically afford $1200, if you did an interest-only with a payment of $700/month you could voluntarily put an additional $500 toward the principal. You can always refinance later on when his credit score is better.
Go to a lender before you go to a Realtor. A good realtor will send you to one first anyway. I am a Realtor and always make my buyers get prequalified before I take them to look at homes, because there is nothing worse than showing people a bunch of great $200K homes when they can only qualify for $150K, you want to look at homes with a realistic view of what is available in your price range.
2007-02-16 18:40:07 · answer #1 · answered by Hamlette 6 · 0⤊ 0⤋
Real estate is the best market to gain wealth. You are on the right path when it comes to getting away from renting. Before you even consider a home you must honestly evaluate your relationship and how you both deal with money.
Once you've conquered that hurdle the next step is to save and work on building his credit. If your relationship is long term think about getting more than one home. If you do, the first house should go in the name of the person whose credit is best then the second home can go into the other. As you go back and forth you rent one live in the other. Every 2 years or so you can sell a home and this will increase your wealth. Plus you'll avoid capital gains.
First time home buyers do get breaks. check out http://www.YourGuideToCredit.com for more info. Vinny is a good person to contact
2007-02-16 00:43:16 · answer #2 · answered by Donald Martin 1 · 0⤊ 0⤋
Unless your credit is really good, I suggest starting with saving a down payment. I suggest about 20% of what you expect to pay for your home. As far as dealing with brokers and programs, always have more than one plan and let the others know it. I got burnt pretty bad on a refinance once because my loaner at the last minute done what they wanted too, inspite of what I said I wanted. Due to the fact that the refinance was paying off a loan that ballooned and an adjustable rate loan, I really had no choice but to take it in the rear. So always have a back up and don't let it go until the deal is done.
2007-02-16 00:36:53 · answer #3 · answered by jwplaster 4 · 0⤊ 0⤋
I would not suggest buying with someone if you are not married. The first step if you go ahead is to talk with a mortgage broker. There are alot of programs out there to get you into a house. Also check with local Real Estate agents to findd out about first time buyer programs.
I'm an agent in RI and we have a Quasi public company called Rhode Island Housing. Their objective is to help people get into a home, and they have many low interest rate programs for first time buyers.
2007-02-16 20:00:07 · answer #4 · answered by ENI 2 · 0⤊ 0⤋
You've been given some great advice already. Do your homework and be sure you can afford the home in question before signing on the dotted line.
Test things out by putting money away each month (over your rent amount) to be sure you can comfortably pay for the mortgage. Check out the tips below for more details.
Good luck!
2007-02-17 07:51:36 · answer #5 · answered by S C 3 · 0⤊ 0⤋
I first suggest you do not buy a home with your boyfriend. Do you read this forum often? Every day someone is asking how to get out of a home they bought with their boyfriend/girlfriend.
But, If you are insistent on doing so I suggest you go to WWW.REMAX.COM And search for a good buyers agent in your area.
Best of luck
RE Agent,
Remax
2007-02-16 08:44:54 · answer #6 · answered by frankie b 5 · 0⤊ 0⤋
I suggest speaking with a few Realtors and find someone that is ethical, has a sense of urgency and has good connections with a variety of lenders. Then, speak with his/her lender and find out what you're pre-approved for. You could estimate all you want but ultimitally, a lender has the knowledge of programs to really lead you to a loan that makes sense. Then, with a price in mind, work with your Realtor to find and see homes that match your price range and criteria. *Remember to be careful to only think of your monthly payment when thinking of the loan. A low interest rate will save you tens of thousands of dollars.
2007-02-16 02:46:30 · answer #7 · answered by monrovian21 2 · 1⤊ 0⤋
find a good realtor. they will be able to guide you through the processes invloved, including getting a loan. to get a good realtor, ask around from family and friends for a referral. if you can't find one, email me, i can find you someone in your area.
2007-02-16 00:24:16 · answer #8 · answered by daniel r 4 · 1⤊ 0⤋