Home buying information please?

Question

I am a 31 year old single female with very good credit. I rent now but probably around the age of 35 if I am not married I will want to buy a house in either Maryland or Virginia. What do I need to start doing now to buy my own home? I don't know anything about mortgages or credit or that % stuff so please explain to me in very basic almost 1st grade details. Thanks so much in advance.

Answer 1

SAVE AS MUCH MONEY FOR A LARGE DOWN PAYMENT AS YOU CAN!!! There are countless First-time homeowners programs that can get you into a home "with little or no money down"--and you don't even have to have good credit!! My other half and I managed to get into a $135,000 2400sqft home using only a $400.00 deposit (which was credited to us at closing) at a 6.5% interest rate (decent rate!) and he didn't even have a credit score-and mine was less than 550! What we didn't know is costing us BIG now!!! If you put down 20% on your home, you do not have to pay Primary Mortgage Insurance (PMI), which does nothing but insure that the lender doesn't lose their money (basic PMI rate is 1.5% of the amount of the loan-upfront or financed in-added another 2k to my loan, plus a % each month until you've paid off 20%). The more money you have to put down, the less it will cost you in the long run! SAVE YOUR MONEY!!!

CHECK YOUR CREDIT REPORTS AND SCORES! Make sure that they have correct information and dispute any information that is incorrect, pay off any bad accounts, keep credit card balances low...for best scores. Equifax.com has several credit monitoring products (like Score Watch) that make checking and maintaining your scores easier.

With substantial down payments, high credit scores, and proof of income stability, lenders will compete for your business, so shop around before deciding on a lender. GET PREQUALIFIED for a mortgage through the lender you like best to let you know how much you qualify to borrow. Then you can start looking for a home- SHOP AROUND! Many sellers will be willing to negotiate prices and pay closing costs-which can get VERY expensive as well.

Check into local workshops and/or seminars for first time homebuyers. They are usually free or at low cost and tell you all the things the realtors, lenders, and sellers don't want you to know, so you can make an educated purchase. I sure wish I had!!!

Answer 2

Keep your good credit rating up. If possible, start putting money away for a downpayment. Lenders look at past work history also, so try to stay in one place unless the pay is better elsewhere. If they are still around when you decide to buy, don't get an A.R.M.. Rates can change quickly and run you out of a house you already have money into.

Answer 3

i would like to add to the information you have already received, which was great advice! you also need to make sure you don't have any outstanding debt. we were told that even if they are paid off and you aren't using them, that will affect how much the lender will qualify you for.......which can make the difference between a really great home, and an average home! when we bought our first house we checked with the bank to see if we would prequalify, and then we went from there. we found we wanted to save a bit more money for a bigger down payment, as it allowed us a bigger mortgage to 'play with.' good luck to you, i hope you find your dream home................and a hubbie!!!! :-)