does anyone know of any organizations that help 1st time home buyers. I need help with down payment and pretty lenient mortage holders. I am new to this and need to buy a home, but dont know where to start, I have fair credit.
2007-09-24 04:10:57 · 7 answers · asked by Leeanne 4 in Business & Finance ➔ Renting & Real Estate
Please don't go to those in here spamming for business.
Next, avoid internet lenders because they will not know about local programs you can qualify for.
With that being said, I recommend that you go to 3 local lenders in your area. Ask all kinds of questions about interest rate (make sure it is a fixed rate), pre-payment penalties, fees, closing costs, anything that is going to cost you money. You want to pick the best package for you, don't stop the comparison short.
Some loans will allow the seller to contribute to closing costs. This means the seller of the home helps you purchase it by paying your closing costs. This comes off the seller's bottom line, so bear that in mind when you are making an offer.
There are plenty of first time home buyer programs out there with attractive terms. Once you get an idea of what you are pre-qualified for, know your finances. You may be able to pre-qualify for much more than you can comfortably afford. So don't get stars in your eyes about a big house that will cause you financial hardship down the road. Know what you can pay each month - comfortably.
Good luck to you!
2007-09-24 05:45:28 · answer #1 · answered by godged 7 · 1⤊ 0⤋
One of the best things you can do is get a referral from a friend. That'll be your best bet at getting a great deal. You can also shop around and compare offers.
For comparisons, you can try http://finfo.com . They've partnered with some great mortgage brokers who can walk you through the whole process of 1st time home buying. If you decide to apply they'll work with several banks to find you the best deal.
Things to keep in mind when applying for a home loan:
-Get a fixed rate. Even though the fed recently lowered their rate, it's too much of a risk to get a variable interest rate which could go up and increase your payments significantly.
-Read the fine print! If you've been keeping up with the news, you've heard about problems in the sub-prime market. One of the main problems was that people did not understand what they were signing. Many people got an interest only mortgage with temporarily low monthly payments that were set to increase drastically within a year or two. Suddenly they get the bill in the mail and realized they can't afford the payments. If there is something you don't understand in the contract, ask!
Good luck!
2007-09-24 05:26:38 · answer #2 · answered by curious george 3 · 0⤊ 0⤋
I'm not sure what state you're in, myself Maine. I do know of one or two organizations that help with that however I don't remember the names. If you don't find an answer go to my profile & I'll be more than willing to check into it & find the names for you. Also another possibility is Farmers Home. I'm not to sure what the criteria is though if you need to have a child and be on some type of state assistance. I have a friend that had gone through that program and got a beautiful house. It's a loan the only difference is that I believe they figure the monthly payments according to what your income is, for instance the more you make the higher your payment will be. I do believe that they do have a cap on the payments though that way it can't exceed a certain amount per month. The family I know that got into that program & got a house on payments & yes to own not rent like I said did have a child & was getting some help from the state. That being said, obviously to find out more check with the Department of Human Services (D.H.S.). If that isn't for you and you don't get an answer got to my profile where you'll find my e-mail address at the bottom & simply let me know & I'll do what I can.
Best of Wishes!!!!!!!
2007-09-24 05:36:36 · answer #3 · answered by BigJ 2 · 0⤊ 0⤋
The first step is finding a good realtor. They can help you understand the process. They can also suggest lenders/brokers that can get you the best deal.
DO NOT accept an ARM or interest only loan for any reason. You'll wind up foreclosing in a few years, just like everyone else who falls for the thoughts of this being "too good to be true"
2007-09-24 04:18:22 · answer #4 · answered by Roland'sMommy 6 · 0⤊ 0⤋
Many cities/counties/states have programs designed for first time homebuyers.
They educate you on your credit score, money needed for closing and direct you towards programs that may give money to help out.
As stated, a good real estate agent can guide you also.
Don't fall for online ads or junk mail for information - most likely, those people are only looking to help themselves.
Good luck.
2007-09-24 04:22:23 · answer #5 · answered by MARY N 4 · 0⤊ 0⤋
Any lender can provide you with the products they offer.
Some good products to look for are MyCommunity & HomePossible. They are zero down...and great payments with a 620 middle credit score.
FHA requires a 2.25% down payment.
Remember that you can negotiate for the seller to pay your closing costs. You will need to find a good realtor who can help you out with this.
2007-09-24 04:35:56 · answer #6 · answered by Anonymous · 0⤊ 1⤋
NO FIRST THING MAKE SURE YOU CLEAN YOUR CREDIT! I AM A MORTGAGE LOAN PROCESSOR!
2007-09-24 07:47:28 · answer #7 · answered by SUPER WOMAN! 2 · 0⤊ 0⤋