First time home buyers! Advice is appreciated!!?

Question

I recently got engaged October 19, my finace and I started house looking, just to look around. We didnt think we would find anything or want anything so soon. (our Wedding is not until June) But we found a house what we absoltuely adore!! Both of us! We love everything about it! and the monthly payments will be within our budget! (Thank goodness!) My finaces mom is best friends with the owner of local banks, he has promised us a loan for the house, but we need $5000. down payment. Which would not take forever for us to save $5000. But we both love the house so much that we are afraid someone is going to have the chance to buy it before we do!!
Any advice at all is appreciated! we are in a pickle and not sure what to do about it!
here is the link to the beautiful house!

http://www.century21.com/buy/property_detail.aspx?teasers=property-detail-all+Property+Detail+with+Pictures+and+Tour&tr_key=33856677&bSite=N&City=Ashland&State=KY&PriceMin=100000&PriceMax=150000

Its not that we cannot get $5000. We would have no problem. But we also have bills right now and other obligations. We are not getting in over our head. We do not want to use money out of our savings, or our cd. We have had a bank account and sharing money for over a year. We want to take our time buying hte house but afraid someone will snatch it while we are waiting for something to happen/

Answer 1

Cute place and you are right to think it will be gone soon-it is darling. I would cash in those CDs and make it happen. Now is a great time to be a first time buyer with out a home to try to sell, don't look back and regret missing out on a place you like. I would use some savings or the CD's and go for it-a home is an investment and the reason you squirrel money away. If that isn't the time to cash in some of the rainy day money I don't know what is. And just cut back on the wedding and put that money back into savings. Trust me-a wedding is just one fairly unremarkable day in a lifetime of memories. Which is more important having everyithing just right for your guest that day or having a great place for your family now and 15 years from now. Good luck and congrats on the engagement.

Answer 2

Save up the money and then buy it. Houses are moving REALLY slowly right now. Its better if you buy it right as you get married anyway, just in case (yes yes, I know, nothing bad will ever happen to YOU, it always happens to someone else- famous last words). Plus- if you wait a while, the seller might drop the price even more fro you! Plus, its expected that interest rates are going to fall ove the next 6 or so months. Going too fast on this could cost you a lot of $$. Go sign a contract on the house 90 days before your wedding, to close right after you get married. 90 days isnt at all unusual. Dont rush too much! And keep looking, with the market the way it is, you might find an even better deal on place you like even more!

Answer 3

Go to your banker friend and offer to do an equity sharing arrangement - he gives you what you need to get the 5,000 and you give him his proportianate share of the profit when the home sells. You can add a provision to pay him off early with some kind of reward, like 10% interest, if you don't want to sell the home in a time frame like 5 years. Another idea is to ask the owner to offer financing and set up a schedule to put in the 5,000. Just be very sure that you are not getting in over your head - your banker should be able to tell you if you can afford the house.

Answer 4

There are lenders that will finance 100% of the purchase price. You would only need enough cash for closing costs. Perhaps the seller would be willing to pay some of the closing costs. He can probably pay up to 3% of the purchase price in closing costs, not to exceed the amount of the closing costs. In other words, you can't get any money from him except for closing costs.

State Farm Bank is one that does this. Contact your local State Farm Agent for more information.

Answer 5

One option, you could make a really good offer on the house and ask that the seller put $5,000 toward your down payment.

Whatever loan he is getting you into may not allow that, so you should check first.

Since this may not work out, you are going to have to face that this is not meant to be.

In the meantime, save save save in case it is there waiting for you when you are ready.

Answer 6

Holy cow, you guys can buy a house for 144K in wherever you live.

Geez, I need to move, houses in Minnesota where I am average in the 400's at least.

Yes, get the 5K from the seller. If you haven't already offered below the price of 144, I'd consider offering 140K plus 5K from the seller towards buyers closing costs.

that's a very reasonable 9k out of they're green, but if they want to sell, they'll do it.

Answer 7

You can make your purchase offer contingent on the seller contributing the $5000. Work with a Realtor and ask the lender. There are many ways around this.

Answer 8

Only $5,000 down? Try asking the lender if you both have great credit if they can just pay the closing cost, which is what the $5,000 sounds like to me. Especially with the market these days, it's more of a buyers market. If not, try a credit union or look for other lenders who can offer you to purchase that home.

Congrats and good luck!

Answer 9

First thing I would do is check your state for first time homebuyer programs.

If this home was in Arizona, and you qualified, you would NOT have to come up with $5,000.

In fact you would receive as a grant 5% of the purchase price for pre-paids and closing costs.

Here is the program for Arizona.
http://www.welcome2arizona.com/home/first_time_homebuyer/first_time_homebuyer.php

Good luck

Terry S.

http://www.Welcome2Arizona.com

Answer 10

found yourself a mortgage broker who can do Mycommunity mortgages. it's a zero down program with 620 middle credit score..and have the seller pay the closing costs.

everything else should be a breeze