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Re: buying a house Tips!
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Posted by Freedom Financial Flyer
(24.26.132.55) on September 13, 2003 at 09:03:16:
In Reply to: buying a house posted by survivor on September 12, 2003 at 19:52:17:
Yes, there are many lenders out there willing to loan money, even if you don’t have A1 credit or even if you are self-employed. Tips:
1. Find a mortgage BROKER. This is a little different than walking into a local bank and them only offering you what they have. A mortgage broker will search out and “shop” the very best deals for you from many different sources and present you with several plans, all with different options. He will also guide you as to which one might be the best for you, both in the short and long term of things, depending on your financial goals. The more resources and companies a mortgage broker has, the better he will be able to shop around for the best deal for you. Make sure you find this out during the interview process.
2. In addition to mortgage brokers, there are services on the Internet that offer essentially the same services. I do not know much about them, and depending on your situation, it might be better to work with someone face to face who can sit down with you, asses your financial goals, and guide you as to the best deal for YOU.
3. Another resource if you can’t find conventional or non-conventional lending, is to opt for a private investor, or buy a rehab property to fix up. There are private investors who will loan 100% of a properties fixed up value, if you can do rehab work. There are private lenders who are willing to lend on these there own terms – they just aren’t mainstream. Sometimes their paperwork can be more intense than regular lender, since they basically do their own underwriting, and if you do rehab, you may even have to do due diligence, or create a business plan. Needless to say, this can be a good resource, and may work for you. You can find many of them through your local Real Estate Investment Clubs or REIA.
4. It is great that you can afford that much of down payment. This will be an even bigger advantage on your part, as the financing company will own a bigger equity in your property, possibly making you a little less risky, depending on the underwriter. Additionally, you will not have to pay mortgage insurance, as the amount of the loan will be less than 80%; another savings to you.
5. Make sure you get a TRUTH IN LENDING statement before you close the deal. This will tell you exactly how much in interest you are paying, and exactly what your terms are. It should be presented in a way that a 5th grader could understand. Don’t sign anything until you have a full understanding of all the terms, points, interest, etc. I hope this helps you in your dream in owning your own piece of heaven.
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