Owning your first home can be exciting and scary. On one hand you want the American Dream to show off to your friends and family members that you are a responsible adult. On the other hand owning a home means you must be a responsible adult.
Today, in this article I will reveal to you 5 tips on how to buy your first home correctly, even if you are a little short on cash and your credit isn't the strongest.
TIP #1: Find a mortgage broker who knows about various loan programs
This is probable the BIGGEST tip I can give you. Don't just go to one mortgage broker who tells you that you can't qualify for a loan because your cash and/or credit light. Believe me, there are many mortgage programs out their even if you have no cash and your credit score is a 600. Realize that every mortgage broker can't know EVERY loan program.
Program come and program go. Some brokers research loan programs in your area to a greater degree than other brokers. So if one broker says they can't help you, go over to National Association of Mortgage Brokers website and find a mortgage broker in your area.Tip #2: Find a real estate agent who is a Buyers agent
Stay away from Listing Agents. Listing agents are agents who mostly list houses. They don't like the idea of driving you around in their car to show you homes to buy. Call a broker and ask, "Who is your best Buyer's agent in the office?"
They will point you in the right direction. Buyers agents like people. They are normally more "people oriented" than agents who mostly list homes.
TIP #3: Make sure you get a home warranty.
Look, home warranties are cheap insurance against anything going wrong in your new home in your first 12-months of ownership. Pay the extra $400 so you can sleep well at night so that if your furnance or A/C dies on you that you don't have to find $3,000 to replace it.
TIP #4: Ask the seller to finance at least 10% of the purchase
This means that if the house costs $100,000 - ask the seller to give you a note for $10,000. This means you only have to get your bank to finance $90,000. This should help you qualify more easily. Some seller's will not do this because they don't understand carrying notes. But, some sellers who need to sell pretty badly will go for it.
Tip #5: Check your state, county, and city's website for loan programs
You will be AMAZED at the financial assistance programs your state, county, or city has available to you. To find the programs your state may be offering, go to Google and type in "STATE home loan programs". Do the same for the name of your county and city to find their loan programs.
These are 5 good tips on how to buy your first home and not get brunt.
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