We have to decided to look into buying our first house! I want to know all the facts before we actually do it, so where should I start? I just looked at my credit score, now what? Any info would be great!Answer Question
Asked by Anonymous at 8:50 AM on Dec. 5, 2009 in Money & Work
Answer by Anonymous at 8:56 AM on Dec. 5, 2009
One thing for sure if you live paycheck by paycheck it's not a good idea to buy a home. Make sure you have at least 8 months of savings in the bank on what you live by month to month now.
Go to the library they have a books on the subject. One is Home Buying for Dummies
Answer by Anonymous at 8:57 AM on Dec. 5, 2009
Answer by angevil53 at 8:59 AM on Dec. 5, 2009
Go to a lender/bank and get them to make you a letter stating how big of a loan they can give you. Then find an agent. Make sure you get your own real estate agent and not just call the one listed at each house. You will get a lower interest rate offered on a loan to you thru a mortgage broker than you would at a bank. All of that of course depends on your credit score. Interest rates were as low as 4.75% last week. Find a lender and get one locked in. Also, lenders will want you to take out a PMI which is basically insurance for them in case you can't make your payment. And of course that makes your mortgage higher with out paying any towards the actual house. You can avoid this by taking out a small second mortgage to go towards the principal on the house rather than the back. Avoid loans that have arms and will balloon. Basically they have super low interest rates for a few years then balloon to something huge.
Answer by momjoy1027 at 9:00 AM on Dec. 5, 2009
Answer by louise2 at 9:24 AM on Dec. 5, 2009
Answer by Anonymous at 9:33 AM on Dec. 5, 2009
Answer by LisaLulu at 10:45 AM on Dec. 5, 2009
Answer by Lindalu2 at 10:48 AM on Dec. 5, 2009