Seven Steps to Kissing Your Landlord Goodbye!

Getting that down payment is often the most difficult part of home ownership. There are two factors always working… There is never enough money left over each month to save for that down payment or the prices of homes continue to increase faster than you can save. You may not be aware of some opportunities available to help you purchase your first home. You should explore those avenues and make every effort to purchase a home sooner than later. Then, you can begin to enjoy building equity in your home and receiving the tax advantages of home ownership.

There are many state and federal government programs that have grants to help first time home buyers with little or no down payment. Two of these federal agencies are the Federal Housing Administration (FHA) and the Veteran’s Administration (VA). In addition to these government agencies, many states also have programs available to first time homebuyers. Thousands of people are realizing their dream of home ownership every year.

Here are a few things you need to be aware of when purchasing your first home:

1. Your down payment can be smaller than you think.

There are many state and national programs designed to help first time home buyers. As long as you’ve never had your name on a home loan, you can qualify… even if your spouse is a former homeowner. It’s is absolutely critical that you work with a professional real estate agent that is knowledgeable in this area. He/she can provide you some very relevant information for first time home buyers.

2.  Don’t be afraid to ask your lender about help with your down payment and closing costs.

Don’t assume you can’t get a loan. A good lender will help answer your questions and provide you will possible solutions. For example, if you own a car outright, your lender may be able to use that asset as a means for securing a loan for your down payment. Don’t be afraid to ask questions. A good lender will be glad to help you in any way he/she can.

3.  Don’t Forget about Seller Financing.

Many times the seller of the home may consider taking a second mortgage in what is called a seller take back. The seller is acting as the lender. Under this condition, you may make regular monthly payments to the owner instead of making a large down payment.

4.  Get a cash down payment without going into debt.

There are investments available that can generate tax refunds for you. In turn, this money can be used as a down payment for your new home. Generally, the amount you pay each month is small. This money and your home will be yours when everything is done.

5.  Good Credit is required… Perfect Credit is not.

If you can come up with the minimum down payment in cash or secure a loan to get the down payment, many lenders will find a way for you to get your mortgage. Keep in mind that finding a seller that will take back the mortgage can be very helpful as a first time home buyer.

6.  Always Get pre-approved for a Loan First.

It normally takes very little time to get pre-approved for a loan. Once you have this approval, you will know where you stand financially. This will let you know what type of home to search for and purchase. A major benefit of being pre-approved is that it will add clout to your offer to purchase a home. The seller will know that you are a serious buyer. If the seller receives another offer from someone not pre-approved you will be given a higher priority in the final consideration. Ask your real estate professional to assist you in finding a quality lender for your home mortgage.

7. Choose your agent wisely.
Always work with a full-time professional real estate agent. It will save you time, money and effort. A good agent will be knowledgeable about all of the areas discussed above. Don’t hesitate to ask your agent a lot of questions. This will help you evaluate his/her abilities to help you through the entire buying process.