0% Downpayment? Depending on the area in the Quad Cities, you may qualify for a 0% downpayment USDA mortgage loan program. Yes, that means ZERO downpayment. Click here to contact us to learn more.
For most people, buying a first home is an exciting time, but it can also introduce challenges and feelings of intimidation. In addition, you want to get out from under renting because when you rent a place to live, you're actually paying someone else's bills for them. The question is - can you afford to continue paying someone else's mortgage payment, property taxes, etc.?
- Property taxes
- Home owner's insurance
- Profit for the landlord to pocket
With some smart planning, you can start paying your own mortgage. If you work with a professional real estate agent who has your best interests in mind, it's not difficult.
The BONUS? You'll save A LOT of money buying your home, because you will begin adding to your own wealth, rather than enhancing your landlord's wealth!
How’s your credit?
This is the #1 step, becoming preapproved for a mortgage. In today's world, a seller won't accept your offer to purchase their home for sale IF you don't have a letter of mortgage preapproval from a reputable lender.
- Becoming preapproved is free and does NOT hurt your credit.
FACT Real estate agents know reputable and not so reputable mortgage lenders. Simply ask for their advice to ensure that you're in good hands.
WHAT WILL HAPPEN? A mortgage lender will run a credit check for you FREE of charge and this will be completed in a way as to not hurt your credit. If you don't qualify for a mortgage, the lender will advise you regarding the easiest and fastest way to raise your credit limit. Again there is no charge for this needed service.
Mortgage lenders are required to follow laws and regulations. Thus, they will need to to see your driver's license, social security card, recent pay stubs, the previous W-2s, tax returns, past bank statements, etc. Be prepared to provide what's needed in a timely manner.
How much of a mortgage will you qualify for?
The last thing that you will want to do is max out your mortgage loan, because you don't want to become house poor.
Of course you'll want money to go out to eat every now and then, buy things for your house, etc. That's why lenders will consider how much other debt you have, in addition to your monthly income.
Together, you will arrive at a comfortable monthly payment, which should include monthly mortgage payment, property taxes, property insurance, etc. all of which will determine how much house you can or want to afford.
How much downpayment will you need? 20% downpayment -NOT- required
Your mortgage lender will help you figure out which loan programs you qualify for and how much you will need for a down payment. You might qualify for 0%, 3%, 5%, or you might have the funds to put 20% down or more.
Find a real estate agent with YOUR interests in mind.
Your agent should help you find a home, complete all necessary paperwork for you when you make an offer, negotiate price and more. Count on your agent’s expertise as a valuable asset as you make your first home purchase.
Just a reminder, Pam Brammann and the Home Sale Power team NEVER charge home buyers for real estate agent services, because home sellers pay our commission.