Home Buying Process
Credit Card Payoff
Are you Ready to purchase? Let me show you how!
There are some great deals on the market if you are seriously looking to buy a home. I would recommend hiring a real estate agent who knows the market and can do a comparative market analysis of the area you're interested in buying or selling a home. If you are new to real estate, then I'd recommend reading some good real estate books such as real estate investing for dummies. Purchasing a home is a big investment. It is wise to know what's on your credit report in advance before finding your dream home to purchase. There is nothing like finding a home to buy and having someone else credit on your report.
Be consistent and persistent
Real Estate is not a get rich quick scheme. In Real Estate you get wealthy over time and put some quick cash in your pocket today. You've got to follow your plan and stick with it to see real results in real estate. You also have to continue to increase your education and your experience. Use the tool to the right to calculate how you can payoff debt faster. The less debt you have, the more house you can purchase.
Down Payment for a home
Every payday, try and save as much as possible. For instance, let's say your net (bring home pay) $2,000 per month. Call you employer's credit union or your bank and sign up for automatic payments deduction taken out of your check of at least 20 percent. Ok, that's $400 per month put away into your account. Now, if you add up $400 per month times 12 months, you will have saved up $4,800 per year. Every time you get a raise on your paycheck, increase this amount to your savings account along with any additional extra money you make.
Let's say you find a house, condo or townhouse to purchase for $150,000. If you qualify for the FHA program, your down payment is 3.5% which is $5,250 ($150,000 times 3.5%). The difference between $5,250 and the $4,800 you saved is only $450. You could easily come up with the extra $450 needed.
There are closing cost involved in purchasing, in addition, property insurance, taxes and PMI, title fees, escrow fees, recording, etc. So talk to your loan officer who will calculate the fees involved to fit your needs. Sometimes the seller of a property will help with a credit towards your closing cost. Check to see if your city has any first time home buying programs. The beauty and benefit of a city program is that they will help you with the down payment and you don't have to make any monthly payments unless you sell the home. You must occupy the home for a certain length of time. This is a sample application that your loan officer will have you complete in order to apply for a loan.
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What will it take to pay-off my credit card?
Get a Home Inspection
It's so important to get a home inspection. Your real estate agent should be able to help you find a reputable inspector. Just because a home exterior looks good, there could be unseen rotten wood, termite problems, structural and roof damage that only a professional inspector can find. Home inspections can cost $400 or more, but at least you'll know what you're getting into. If you find major repairs needed, you can always ask the seller to help with the cost as a credit in escrow or make repairs before close of escrow. Homes that are sold as a short sale (meaning the seller is selling the home for less that the mortgage balance) are sold as-is. The seller won't receive any cash from closing, therefore, are not willing to help with repairs out of pocket.