I am 19 yrs old with a great amount of income and would like to move out on my own. I hate the idea of throwing money away on rent when I could use it to invest in a condo/house. I have good credit however I have only had credit for only a year and a half. I cannot turn to anyone in my family to help me with this. Where do I start? Would I qualify for a loan?
2007-02-28 12:46:52 · 8 answers · asked by Chula 1 in Business & Finance ➔ Renting & Real Estate
I already have credit cards which I've had for a year and a half an student loans that are being paid off. My fico score is 675 which is considered good however given the length of my credit history I don't know if I'll qualify for a loan. Thanks anyway for the advice :)
2007-02-28 14:49:45 · update #1
First of all I congratulate you on your wise choice to be a property owner! You are light years ahead of most of your peers! The first step you should take is to speak to a mortgage lender. There are two types: Mortgage brokers and mortgage bankers. Both can help you get a loan, though bankers are generally more experienced and cost less. Once you've spoken with the lender, contact a real estate agent in the area you wish to live. Many agents (myself included) truly enjoy working with first-time buyers and they will take the time to help you understand the process and find the right property for you. Finally, when you've built some equity (1-3 years in most markets), consider re-financing to use your equity to buy an income property. This is how wealth in real estate is created. Congratulations on being wiser than most other 19 year olds!
2007-03-05 09:56:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It depends on how much good credit you have established. If it is just a couple of credit cards with a small limit like $500 or so, that might make a difference, but in a bad way. If you have a lot for a down payment that might help, but I am talking about $5,000+. Renting is not all that bad in the long run. You don't have to pay for repairs, no yard work. You are young, too young to have such a big responsibility like owning a house. You might try going to one of the well-known real estate sites and learn more there. Good luck in your decision.
2007-02-28 13:02:54 · answer #2 · answered by foshizz 2 · 0⤊ 0⤋
If only other 19 year olds would think this way. Your long term goal should be having your money work for you instead of working for your money. Buying real estate is a tremendous way to build NET WORTH rather than a temporary bank account. Since you don't say if your income will be ongoing or that you have money it will be difficult to give you perfect advice. Good credit is "usually" not time limited and if you have a good credit score, it won't matter much when you mortgage shop. If you email me I can offer better advice and since Yahoo Answers won't allow links for more information, the email is the best way to handle things properly. Look forward to hearing from you.
2007-02-28 14:44:25 · answer #3 · answered by flip that house 1 · 1⤊ 0⤋
If you have good credit and good income yes you can buy a house Fannie Mae has some great programs for first time home buyers just like yourself. Fore get what the other people up there are saying, buying a home is great investment and if you can buy now at your age you will build equity and be able to buy and sell and upgrade years down the road. You can go to www.fanniemae.com and get all kinds of good information, the site will also have a list of approved Fannie Mae lenders in your area. Good luck!!!
2007-02-28 14:44:07 · answer #4 · answered by Paul 2 · 0⤊ 0⤋
start with NOT opening credit cards just yet...
check with a realtor in your area, he/she can sit you down with a broker & tell you exactly what you can afford - give you a ballpark on what your housing payments will be. And then at that point the broker will tell you what you need to do - if anything - with your brief credit history.
Yes, credit cards can and will help build your credit. But...
If you go after a mortgage loan shortly after opening a credit card (or two), it makes the lender nervous & makes it look like you are unstable and high risk. Follow the lender's lead, and if he/she suggests that you open a credit card to build more credit - then do it, but not before. You want to start with the cleanest record possible when you are asking someone to lend you hundreds of thousands of dollars!
Good luck, you're on the right track!!!
2007-02-28 14:22:50 · answer #5 · answered by P. K. 6 · 0⤊ 0⤋
Go to a mortgage broker, an ethical one and ask to be pre-approved. If you were in alberta canada I could get you a pre-approval back in about 5 mins. This will then give you an idea of how much you can qualify, and then you can start looking for a property.
http://albertamortgageguy.com
2007-03-06 06:30:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
stay the place your at with that Union interest for a minimum of five or greater years or till your vested, interior the U. S. it rather is a minimum of a minimum of five years with maximum none union organizations. one element you may desire to look out for is the undeniable fact that Canada is seeking to import a minimum of 300k a year in decrease priced exertions from Mexico.
2016-09-30 01:05:10 · answer #7 · answered by ? 4 · 0⤊ 0⤋
of course...speak to a mort. broker and also ask for any First Time Home Buyer Programs
2007-02-28 14:51:42 · answer #8 · answered by plasma71104 4 · 0⤊ 0⤋