With all the steps involved in choosing a house to buy and then finding a loan, the process can become overwhelming. This report was written to give you some tips about the process of acquiring a home. You will not likely ever again make such a large investment, so having a little information about the process can only help.
Before you start looking for a house, there is a little homework you need to do first. A little effort to acquire knowledge about home buying, will prevent some later frustration. A survey by the National Association of Realtors found that single woman looked for places near friends and family when looking for a house, while single men look for places that were near work or schools. Married men tend to defer to their wife’s taste when house hunting. The article did not say so, but lets be real. Married woman usually make the decisions when it comes to a place to live. With this in mind, let me point a few things to avoid.
Please, do not become one of those persons who find a house and fall in love with it. The mistake these people make is to attempt to buy the house without considering how the house will function for their family. Do not buy a house without being sure that it will meet your family’s needs. Also, do not buy a house without having it inspected. Many lenders require an inspection before making a loan. If your lender does not require an inspection, take it upon your self to do so. Inspection of a house will provide you with an evaluation of its true condition. Appraisals are similar to an inspection, but it is not the same thing. Make sure that the seller has a recent appraisal that you can access, if not this is something that you may also want to consider.
It is important to take your time when buying a house. Do not get in a hurry. Do not allow any kind of pressure to cause you to act too quickly. Remember the home work. You will have to decide whether you will buy a new house or a pre-existing home. Get an idea of the present interest rates and make sure you understand the difference between a fixed rate and an ARM mortgage. There many other types of mortgages, but you want to avoid most of them. For example, interest only mortgages were very popular with speculators during the housing bubble. Their intent was to flip the property as quickly as possible, so it made sense to get a mortgage that would give them the lowest payments. This also accounts for the popularity of mortgages with a pick your payment option. Avoid them if at all possible. The low payment is great in the beginning, but before you know it the payments will double or even triple. In the worse case situation you will not longer be able to afford your mortgage.
You will need to use a little patience when making a decision about the house you choose and with the mortgage you accept. This does not mean to wait on a better market or interest rate. Most of us do not have the incredible ability to see the future. Go ahead and act if you find a house that you like and you are sure it will fit your family’s needs. Remember you will be gettting the benefit of lowering your taxes and gaining yourself an appreciating asset . A couple more things before we get to mortgages. Make sure that you know the difference between fixed rate and ARM mortgages. Buying a home is the single largest investment most people will make. Do it right!
A large percentage of people purchased houses that turned out to be more house than they could afford during the housing bubble. House prices were sky rocketing and Sub-Prime Lenders would finance a home for anybody, regardless of their credit history. The bubble has now busted. An outrageous number of people found themselves in foreclosure and a number of Sub-Prime Lenders had to close their doors. In the so called “Hot Markets” speculators represented more that 25% of the buyers. But the big gains have disappeared and so have the speculators. Perhaps, this made it more difficult to get a mortgage. But, do not worry there are still plenty of mortgages available. Also, my guess is that there is a growing inventory of houses available. Find the right lender and I guarantee that you will be successful in getting a mortgage.
All mortgage lenders check your FICO score at the beginning of the process, but, your FICO score will not make or break you with all lenders. If you have good credit you have no need to worry about a FICO score. If your score is not very high it will probably help to try raising your score (any little bit can help) and attempt to make your Credit Report look a little better. If you have a little time (maybe six months) before you apply for a mortgage, start paying your bills on time. If you have a large number of credit cards, you can spread the debt out more evenly among them. Try not to have any card close to its limit.
You will need to use a little patience when making a decision about the house you choose and with the mortgage you accept. This does not mean to wait on a better market or interest rate. Most of us do not have the incredible ability to see the future. Go ahead and act if you find a house that you like and you are sure it will fit your family’s needs. Remember you will be gettting the benefit of lowering your taxes and gaining yourself an appreciating asset . A couple more things before we get to mortgages. Make sure that you know the difference between fixed rate and ARM mortgages. Buying a home is the single largest investment most people will make. Do it right!
A large percentage of people purchased houses that turned out to be more house than they could afford during the housing bubble. House prices were sky rocketing and Sub-Prime Lenders would finance a home for anybody, regardless of their credit history. The bubble has now busted. An outrageous number of people found themselves in foreclosure and a number of Sub-Prime Lenders had to close their doors. In the so called “Hot Markets” speculators represented more that 25% of the buyers. But the big gains have disappeared and so have the speculators. Perhaps, this made it more difficult to get a mortgage. But, do not worry there are still plenty of mortgages available. Also, my guess is that there is a growing inventory of houses available. Find the right lender and I guarantee that you will be successful in getting a mortgage.
All mortgage lenders check your FICO score at the beginning of the process, but, your FICO score will not make or break you with all lenders. If you have good credit you have no need to worry about a FICO score. If your score is not very high it will probably help to try raising your score (any little bit can help) and attempt to make your Credit Report look a little better. If you have a little time (maybe six months) before you apply for a mortgage, start paying your bills on time. If you have a large number of credit cards, you can spread the debt out more evenly among them. Try not to have any card close to its limit.
Again, let me point out that all lenders do not emphasize FICO scores. Companies such as American Mortgage Marketing Group offer 100% financing to people with defects on their credit. American Mortgage Marketing Group is a online company. You can reach them by simply going to the internet to get additional information. Click Here. They not only offer loans to home buyers. They offer:
• Purchasing Loans
• Home Equity Loans
• Home Equity Line of Credit
• Refinancing
Have a great day,
Herman Wheeler
American Mortgage Marketing Group
hermwheel@hotmail.com
Recently retired from AT&T as a technician. Began trying to make a go on the internet only a few months ago. Like most newbies, I had no idea what I was getting into. Now that the shock is over, I feel confident that I made the correct choice for an after-retirement profession.
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