First time home buyer in need of help!?

Question

I need to know about the morgages, loans, down payments, closing costs, etc...

I dont really want to have to pay the downpayment... My fiance'e is the only one working right now. I am not sure what I am supposed to do here. I found a house i really like, now what? I have no agent or anything..

Answer 1

First, get a down payment.  If you don't have one DO NOT look at houses.  It's people who couldn't afford down payments who are causing this horrible crisis right now which is penalizing people who bought houses and could afford them.

Closing costs are usualy 3-5% of the purchase price.  So if the house you want is $100,000, expect to pay at least $3,000 in closing costs (my house was 100K and I owed 8K in closing costs).  It's dependent on your state and the transfer fees they charge.

Do you both have good credit?  You'll both need to be on the loan since you're not married (unless you want no rights to the house).  If you both don't have at least 730, you probably can't get a no-down-payment loan.  If you can, you must have found a sleazy broker or loan agent.

Bottom line is if you're buying a $100,000 house you need at least $15-20K in the bank to cover a 10% down payment and closing costs.  If you have bad credit (below 660) you'll need a lot more than that.

Answer 2

I would check with your states housing finance agency to see if they have any special first time buyer programs. They ones in Ohio are some of the best purchase programs out there as far as having a great rate and down payment assistance available and flexible underwriting.

Then, you contact a lender on their list in your area and get pre-approved for the home that you are interested in. Once you get pre-approved you can think about finding an agent to help you get a home under contract.

A loan officer is the first person to talk to. They can help you with the rest.

Good luck.

Answer 3

That is all dependent upon you or his credit score, how much he makes and how much he owes in debt. Here is a calculator that will help you determine how much you can actually afford.

http://cgi.money.cnn.com/tools/houseaffo...

I have found a loan officer that has been extremely helpful, personal and knowledgeable and quick to respond as I have recently started looking for a homestead, and am now in the process of putting it all together. Let me know if you would like the website. Yes reputable company, and his advice has been right on.

Answer 4

First, get an agent, it won't cost you anything - the agents are paid out of the commission paid by the seller.  Do not use the seller's agent - he/she works only for the seller.

To avoid a down payment look into an FHA loan.  There will be a good chance you will have to come up with a 3% down payment though as lending restrictions are getting tighter.

You will also have to come up with closing costs - for a buyer figure 3-5% of the value of the house.  You can, however, negotiate with the seller for the seller to help with down payments and closing.  Usually, this help will come out of any discount you could get on the house.

You will want to go to a mortgage lender to get pre-approved for a mortgage.  There are two reasons for this - one, it speeds up the process, and two, it tells you how much house you can afford (if you get pre-approved for $200,000, there i sno sense looking at $300,000 houses unless you can come up with the difference).

When you've done that, make a formal visit to the house you want to buy, inspect it, and t hen if you still like it, make an offer - your agent will help you with that.  You can offer lower than the asking price, but don't go too low - an offer that insults the seller may shut down negotiations before they begin.  Depending on your offer, you may get a counter-offer or you may get an acceptance.  When you make th eoffer, you will also be expected to place earnest money with your offer (usually $1,000 or more).  This money is the sellers if they accept the offer and you back out.  If they reject your offer, you get it back.

From there, you go through the approval and settlement process.  Keep in touch with your mortgage broker/lender/loan officer and make sure t hey get any information requested as soon as possible.

One last thing, since you don't seem like you will be putting down 20%, you will have to pay for private mortgage insurance (this protects the lender if you default).  If you buy the house and stay in it for a while, you may find your equity has risen to 20% - at this point, you can ask for the PMI to be cancelled, saving the monthly payments.