The right lender can help you achieve your goal of homeownership. Here are a few things you should know:
*Your monthly cost for owning a home can be the same, or at times less than the cost you pay in rent. (Especially when you take into consideration the tax advantage and principal payments that you don't have in your rent check)
*Financing is available with as little as 2.25% down, and there are some special concessions that may drop that down payment to "0" and allow 100% financing.
*VA loans are still "0" down payment, and are a great way to buy if you are a veteran.
Take the step of talking to a trusted lender FIRST, before you go out looking at homes. The worst thing you can do is look at a home you cant afford, or make an offer on a home and then not be able to get a loan. A good mortgage person will ask you all the right questions to determine the right price range for you, and will even help guide you to buy in the future if you are not quite ready right now.
You could even go as far as getting a full blown approval prior to shopping for a home. In some areas, and with some agents this is almost a requirement. Personally I thing a strong pre-approval is just as good as an approval, unless there are extenuating circumstances that require a little extra work upfront. Once again, this is the reason to have the right Loan Officer, Mortgage guy or gal, on your side to help tailor a program to fit your financial needs.
A little planning upfront can make the buying process a pleasant and rewarding experience, I truly believe that we will be looking back at 2008 in a few years and will say: "I wish I purchased that house back then!"
Have a great weekend!
Rob
Robert L. Rauf
Countrywide Bank FSB
(732)505-2470 office
(732)740-0175 Cell
Building financial Security, one buyer at a time
One of the greatest compliments I can receive from a satisfied customer is a referral, do you know anyone with a real estate lending need?
Robert,
Here is an awesome calculator for selling home the benefits of home ownership to a renter in a visual and tangible way, http://www.needanotary.net/financial_rentvsown.html.
Problem today is that most borrowers (especially in California) have affordability issues as home prices have had such a large run up in prices relative to income that many are priced out of the market.
We're dealing with a smaller pool of qualified borrowers, that why subprime lending was so attractive, irrespective of the expense involved loose underwriting standards.
Robert:
Thanks for the great information. They are all excellent points.
Lisa
Actually, as far as I can tell, the 80/20's are gone.. "elvis has left the building!"
There is very little secondary financing available, especially at high LTV's. PMI is back, and fortunately there are many options that make it more affordable.
Mostly, FHA is back! no credit score worries, (if you did not know Fannie has significant add ons for credit starting with scores below 720 now), and still a very low down payment that will probably drop even further with the FHA modernization bill that is due out soon.
Don't shy away from FHA loans/buyers. It is one of the best ways and most affordable ways for buyers today.