Thinking about buying a home in the near future? If you are, you probably have lots of questions about the process. Even if you’ve purchased a home before, the real estate market is always changing and home buyers need to be up to date on all the information they need to purchase their home.
Are you a first time buyer? Sounds like an easy question, but there are actually surprising answers. A first time homebuyer is anyone that hasn’t owned a home in the past three years. So if you’ve never purchased a home, or you bought a home years ago but have been renting for the last three years, you are considered a first time buyer. Why is this an important distinction? Because there are all kinds of home buying opportunities that are available to first time buyers. If you can take advantage of these home programs, you should embrace them.
Home much do you need for a down payment? This question simply doesn’t have one answer. There are all kinds of home buying programs, some that require no down payment, and others that require 3% or 5% down. The most traditional lending option was to put down 20% of the home purchase price, but almost no one uses this option anymore. It’s just too expensive to put that kind of money down on a property.
Do credit scores really matter? You bet. Your credit score is one of the most important parts of your overall financial picture. Borrowers with good credit scores (620 and better) are able to qualify for different loan programs than those with lower credit scores. You can save a lot of money on interest rates by knowing your credit score before you shop for a home, and you can even take steps to improve your credit score by a few points.
Can you buy a home if you have credit problems? Absolutely. Many lending experts can help you polish up your credit score, but even if you have a tarnished score, you can still find lending programs to help you buy your home. It may take a little bit of time to find the right loan program, to repair your credit score as much as possible, but you can buy a home.
Becoming a home owner is an important step in your financial growth and stability. Take the time to find out about your mortgage options and your personal financial position before you begin shopping and you’ll find the home buying easy and a painless process.Immobilienmakler Heidelberg Makler Heidelberg
Source by Steve Essington