Buying my first home

Question

my husband and i want to buy our first home we want 4 bed 2 bath other then that anything would be nice we both have bad credit we are trying to fix it it just doesnt happen as fast as we would like however with bad credit no down payment and an ok monthly income how should we do this and what are the first steps we should take i dont really know anything about buying a house thank you

Answer 1

Be sure the mortgage doesn't have a pre-payment penalty so you can more easily refinance as your credit score gets better and better.

Answer 2

First you need to know what is on your credit report and what your fico score is.  Everyone is entitle to a free report once a year from one of the 3 credit bureaus.  Trans Union, Experian or Equifax. Then work to bring your dept down, then contact a mortgage Company.  A Realtor may suggest a few that you can choose from, pick one, go to them and tell them what you want.  They will in turn let you know if your are qualified and for how much in order to purchase a house.  Take a look at this website http://www.thehomesteadgallery.com.  Click on 'For Buyers', scroll down to 'Home Buyers Reoprt' and read the information presented.  It's good information for first time home buyers everywhere.

Answer 3

You probably are a little ahead of time in buying.  Use the next year to practice good financial habits, including saving for a down payment.  It is better to wait than to have the purchase be a burden or even lose the house.

Another thought:  you may want to adjust your expectations.  Unless you have more than four in your family you should be able to get by just fine with a 3BR house.  Sure, bigger is nicer--but not with the payments.  Try to find a smaller house that has room to add on as you can afford it.

Answer 4

Those days of bad credit and no down payment have come and gone.  

You may be able to find a lender...but your interest rate will be through the roof.