If you have been dreaming of living in your own home, this is the right time to buy. The biggest challenge that you might be facing right now is certainly saving money for a down payment. The good news is there are various financing options in the market that can give you access to as much as 97 percent of a property's value. The downside is being saddled with higher interest rates in addition to buying private mortgage insurance to cover against defaulting in the future. There are several strategies you can capitalize on as a first time buyer.
Do Not Accumulate Unpaid Debt
This is a cardinal rule every first time home buyer should sing to bed every night. The rule of thumb is to pay off your debt before saving for a down payment. To begin with credit card debt will determine how much you can borrow. The majority of lenders will not be comfortable dealing with you if credit card payments exceed 40 percent of your gross income. This is because paying of credit card debt is expensive with rates now at 13.8 percent.
A Less Than Perfect Credit Score Is Not A Death Knell
If your credit score is not perfect, you can approach Fannie Mae or the Federal Housing Authority. The expanded approval program at Fannie Mae is a gateway you can use to qualify for a mortgage if your credit is a little bit blemished. If you still cannot make the cut at Fannie Mae, the FHA offers mortgages insured by the government with less stricter conditions. The good thing with these loans is you will probably get lower rates than what traditional lenders charge.
Be Realistic About How Much You Can Afford
This boils down to two factors, your down payment and how much a lender can let you borrow. To be on the safe side, mortgage costs should never be more than 28 percent of your gross income.
Assistance Programs For Making Down Payments
You can make use of a program that is run by the Department คอนโด ราคาถูก of Housing and Urban Development to supplement your down payment. You might be able to qualify for a grant of $3,000 to $5,000. Enquire from your state housing finance authority to find out how much you qualify for.
A Wide Range Of Loans
There is a wide range of loans available from government sponsored to private lender backed mortgages. The best way to find information is by making use of online information resources provided by almost all lenders.
You need not be overwhelmed when a professional like Orit Gadish is only a call away. With a reliable team of real estate experts, Gadish Properties will guide you to become a home owner. You can also improve the profitability of your property by using Gadish Properties to manage everything.
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