First Time Home
Buyers
Many first time home
buyers shop for a home or condo and they get excited about
a property that they would like to purchase but discover
later that they may not be qualified. A first time home
buyer can avoid being disappointed by getting pre-approved
not pre-qualified. With pre-qualification, a lender tells
you "how much you can qualify for" based upon information
you provide but they don't commit to making you a loan.
On the other hand,
a pre-approval involves filling out an application, submitting
documentation, and obtaining a formal pre-approval letter.
The letter will give you greater negotiating power and let
sellers know that you are a no problem buyer.
How to buy a home with
no money down! Many first time home buyer programs offer
0-3% down payment options with approved credit. Some zero
down first home buyer programs allow you to roll in closing
costs so that you can go to the closing table without writing
a check! Most 3% down programs allow the down payment to
be in the form of a 100% gift. Many people believe that
you need very low income to qualify for these programs.
Not true! For example,
there are programs which target areas of Los Angeles such
as Santa Monica and you can have unlimited income to qualify.
Don't put off buying
due to a lack of funds since there are many flexible loan
programs to meet your financial situation.
How to buy a Home with
damaged credit! You should not pass up the opportunity to
own because you feel that your credit is not good enough
to qualify for a loan. Today, most lenders understand that
there are circumstances in people's lives such as unemployment,
medical, etc., which lead to slow pay to creditors and they
offer programs for the credit challenged. You should consult
a mortgage professional before closing the door on home
ownership. He will pre-qualify you and run a credit report
to see what credit issues you have and the reasons for the
credit delinquencies should be explained to him.
Also, there are programs
which allow no credit history. If you do not qualify for
a loan now, you should work on improving your credit over
the next 6 months to 1 year and then decide to buy.
