What's the smallest denomination and with whome do I need to begiin to purchase a home?

Question

I'm hoping to aquire at least $5000.00 cash in two weeks and need a place to live. I turn 38 one day before on 11/13 and would like to make my first major investment.

Answer 1

If you are seeking to purchase a home, your first step is to speak with a lender who is licensed in your state. They can give you a general idea of what you qualify for (based on your FICO score and income). $5000. is enough in some situations to get into a home. You will need to pay for closing costs and it is generally 3% of the purchase price of a home (in California anyway) but since it is a buyer's market, you can request these funds from the seller. To qualify for 100% financing, you typically need a FICO score 620 or better, full documentation (bank statements, W-2s, pay stubs) for as many as 2 years (some even more). Speak to a lender to get a better idea of what you will be able to qualify for and they can tell you what your payments will be on the home (remember to take into consideration taxes (1.25-1.75% in CA), home owners fees, and any miscellaneous fees that the lender himself may charge.) Good luck!

Answer 2

First you need to pre-qualify for a home loan so you know how much home you can afford to buy. Then you need to start looking at homes you can afford to buy IF you have the down payment and closing costs in the bank already.

Because of the subprime loan stupidity of past years 100% mortgages are fairly much a thing of the past and you need 10-20% down payment.

You can check into HUD loans and other programs for first time or low income home buyers. Fed and states all have programs. Also some banks and credit unions offer deals too.

Depending on the price of the home you want to buy, $5000 might not be enough for closing costs and fees.

And the money outlay doesn't stop once the closing is over. You pretty much bleed money for the first year with all the things you didn't realize came with owning a home.

Good luck.

Answer 3

A house (especially one you intend to live in) is not an investment. It is a liability. An investment puts money into your pocket (Positive cash flow) A house does not do this, even after it is paid off.

Save up at least 10% of the value of the home. Go to any bank and start shopping around for loans. It is best to get pre-approved for what you can afford, then go look. Try to extend yourself beyond 60% debt to income level. This is even stretching it.40% is better.

Answer 4

One of the big financial decision you are going to make my friend. Dont delay it, if you have confidence and self discipline you can do it. I bought my first home in 2 years after I came to US. Everybody scared me but by Almighty grace I could do it and you can do it too. Do your home work and make the moves in a right way. To gain complete knowledge visit the best real estate websites @ www.studytronics.com

Answer 5

Be careful to research carefully a home will probably be your second biggest investment after your retirement funds so you want to research before plunging in. Happy birthday and good shopping.