I want to buy a house I dont know the first steps.Ive been on my job for a lil over a year.I make about 31,000

Question

I have a credit score of 564 i want to buy a house a lease by 2009

Answer 1

I would recommend talking to a local lender (bank or mortgage company) first. Your credit score is somewhat low and they can pull your credit report and make suggestions on how to improve the score. (Existing debts and too many open lines of credit are common problems) There are many loan programs geared toward first time home buyers that may not require perfect credit or large downpayments (FHA loans for example normally need around 3%). But in general, the better your credit and/or the larger your downpayment, the better an interest rate you can get.

I'd be very cautious with internet lenders. I was a realtor for three years and never heard positive things about them - mostly complaints about loans not closing on time. You can meet one-on-one with a local lender and it's easier to complete paperwork, in my opinion. It's still smart to shop around, just don't let every lender pull your credit - the number of times your credit is pulled shows up on the credit report, too!

Once you get preapproved for a loan, you'll also know how much you house you can afford. There are a lot of mortgage payment calculators online that you can play with to give you a ballpark figure for monthly payments. Don't forget to include property tax and homeowner's insurance, too.

Your timeframe is great - you've given yourself a lot of time to get ready! In general, save money, pay your bills on time, pay off any old bills, and don't create any new debts.

Answer 2

First go to few banks and get a loan approved. Then you will know your budget. For example lets say $ 100,000. Then pick a location and go on-line and look at the houses for sale. This will give you an idea of what kind of house you can afford for 100,000 (ex. 2 bed rooms or 3 bedrooms). Next, you should go to some open houses. Finally, if you are a first time house buyer, you should hire a real estate agent when you are ready to buy the house.

Answer 3

Step one is to pull your credit report. Pull one from all three bureaus (TransUnion, Equifax and Experian). If there are open collections, judgments or liens, take care of them ASAP. If you have a log of credit card debt, pay it down as much as possible.
The next step is to seek a pre-approval. Go to a bank or credit union and see if you qualify for one of their loans. They will pull your credit, so if you skip step one and your credit is bad, they will let you know what's wrong and will not give you a loan until it's done. If you do step one yourself, you will save yourself some time and some surprises. Any-who, they will tell you roughly how much of a home you'd be able to afford as well as what the monthly payments would be. Ask if your taxes and insurance are included in the payment. The word to use is "escrowed". Also ask about pre-payment penalties and PMI (private mortgage insurance).
Most lenders want to see a credit score of 620 in order to qualify you for a good rate...
I would recommend taking a first-time homebuyer education course. They are usually short, sweet and FREE. You can learn a lot about the process that way.
If you have any other specific questions about the process, mail me. This is my line of work. :-D

Answer 4

Well first of all.. you are going to have to get that score up. Some lenders will approve people with scores like that, but they charge terrible rates. So work on geting score over 600 and you should be ok.

2nd, determine how much you can afford. Rule of thumb is no more then 4 times your income. So looks for homes between 3 and 4 times your income. And you should be able to get a min of 10% --plus closing costs down.

Then.. just cal a reator and let them talk you through it. You will be able to them your price range and they will send you MLS sheets. A good realtor should be able to talk you throught the entire process from begining to end.

Answer 5

Let's eliminate all speculation. You want to buy a house you make descent money and you're credit score is low but workable.Knowledge is all you need and Knowledge on what to do and how to do it is what you're Finally going to get .

Simply go to www.ktloans.net
click on free reports
watch the free online seminar
and you're done

If what you wanted to know wasn't answered in the seminar
email me at [e-mail]

Hope I've been of some assistance.

Answer 6

would you park two bently's a rolls and your super car in manchester or london city centre,Plus they only train 2 hours a day and they get picked up and dropped of if they require it, and when they are not getting paid as much a big house could be a retirement plan! what would Posh and colleen rooney do, lounge around by the bath! Training grounds are also out of the cities and they travel every other week (away games) anyway!

Answer 7

First I would go to your local bank and see if they will pre-approve you. The main thing is to have at least 20% of the homes down payment in cash. If not might be harder then I would try like Ditech.com.

Answer 8

You need to contact a Real Estate agent. Most of them are nice enough to help you for free. They can eve hook you up with the name of a lender to try and get you approved for loans and things that you might need.