What steps do I need to take in order to buy a house.?

Question

I have 5 months until I need to move out of my rental house and I hope to have bought a house by the end of the year. (Its July now)

I have no credit cards, do I need to establish credit now, would 5 months be enough time. Any help would be greatly appreciated and I would love to give out a best answer.

Answer 1

Look into FHA as it allows for 3% down (actually, I believe it is 3% vested, 2.25% has to be down, but the other .75% can go towards any buyer paid closing cost).

You need to go talk to a lender -- they'll be able to give you more specifics than this board on actual rates and stuff of that nature.

Answer 2

get a lot of money.

Answer 3

First you need to save some money, or get a loan

Answer 4

Go and talk to mortgage providers about how much they would be willing to give you. Shop around to find the best deal. Once you have found the most affordable deal for you, that is an amount that you can afford the monthly payments for, then you need to look at property. It would be an idea to consider what price property you would LIKE to be able to get before you go to the mortgage providers, because they are likely to ask. Do you have a deposit? If not, it will cost you more.

Answer 5

you can typically only get a loan for about 80% of the value of a home.  if it costs $100k & it's appraised at $100k, you'll need to come up with $20,000, unless you qualify for a special program through your bank, or government.

your credit rating will determine what kind of interest rate you will qualify for. if you have no credit, your rating is quite low.  get two credit cards and pay them off each month.  do not carry a balance if you don't have to.

contact your bank and ask them for a loan packet.  this will include a checklist of everything that bank will require.  if you want to own a home in 5 months, you better get started yesterday!

Answer 6

approach your bank about getting a Mortage in Principal as then you know how much you can borrow before you start looking, which you need to do NOW