Our local credit union puts on home ownership clinics every so often. See if any banks in your area offer this. You can get an idea of what is required, what amount you may be prequalified for and the meanings of the terms used. I am also looking for a house within the next year.

 

I will have to look into this. Thanks Jumbo.

 

Also, some of the banks around us have listings of properties they have for sale. I also think maybe look for a fixer upper. And if you need furniture PM me. I have some cable spools and milk crates I will let go cheap. I have been finding furniture on Craigs list resonably priced.

 

I am a licensed Ca real estate agent with a good knowledge of loans and credit.

In CA there are lots of first time buyer programs that will get you in a home for 3% down. You should be able to get an FHA loan with3 1/2% down anywhere in the country. Google FHA home loans or something like that to get more info.

You sound like an excellent candidate, from a credit standpoint, to buy a home. Your first action should be to contact a local loan agent (preferably check with more than one) to determine the amount of loan you will qualify for.

When comparing loan programs make sure you compare all costs. Somebody might offer you a better interest rate, but load the loan up with so many fees & points that it ends up costing you more.

Interview multiple loan agents & Realtors to find one that you can communicate well with, one that can explain EVERYTHING to your satisfaction, one that is wiling too invest as much time as it takes and show you as many homes as it takes to get you in a good home and a good loan at a fair price.

Make sure you figure out the total monthly cost of the home you are purchasing- PITI- prnciple, interest, taxes & insurance- and be certain that you are comfortable with that number. Don't get the most expensive house & biggest loan you qualify for unless you are really comfy with the numbers.

IT HAS TO BE A FIXED RATE LOAN!

Also, all real estate is local. I am still telling people not to buy around here because I don't think the market is near a bottom yet. I am telling people that I would rather drive a truck for a living than lie and say now is a good time to buy. I have no knowledge of your market.

I could offer a bunch more advice, but I've got freight to haul. If you have any questions, feel free to ask.

 

Whatever you do Mack, do not go with anything other than a Fixed Rate like the above post just stated. They will throw out a bunch of fancy numbers to try and wrangle you into an ARM or anything other than a Fixed Rate. Think along the lines of what CR England does and says for that BS, don't listen to it becuase it will come back to bite you down the road.

I didn't have to put any money down on my place nearly 2 years ago when we signed the papers but that was because I was gifted the land from my parents. Because of the value of the land, that sufficed in place of money down.

 

as golfhobo says, don't be so quick to assume your credit is spotless, get a free report NOW to see what's there.

free credit report it will give you time to clean anything up.

also, as much as it might seem like a good idea to wait until next year, factor in an up to $8,000.00 tax credit if you buy this year. i believe the purchase has to be completed by dec. 1st.

irs details

 

IMO, ignore the $8K tax credit...my understanding is that it's a loan and has to be repaid (I could be wrong, though...).

When figuring payments, don't forget the taxes and insurance...$650 sounds like principal and interest only.

Personal recommendation...try to save up at least 10% for a down payment. Then have some set aside for emergencies. Do not use all available savings for the DP, because there will be things you either have to change or just want to.

And by all means....FIXED RATE ONLY. (I know it's been stated...just wanted to chime in on that specifically as well.)

Lots of great advice here. Home buying is a very emotional issue, even for those of my age group (48). Wife and I bought a house a year ago when she landed a job close to her mom and her kids, who are college age. So you can bet it was emotional for her especially.

Good luck!!

 

There are also other expenses associated with home ownership. You will need to either mow the lawn yourself or find someone who can do it for you while you are on the road. If you have a plumbing or electrical problem you will need to either do it yourself or hire a plumber or electrician rather than calling the landlord. There are also painting and other maintenance that must be done on most homes from time to time. I mention this because you don't want to over spend on a house. Others mentioned taxes and insurance costs which may not be included in the payment they quote you. I would also suggest paying your own insurance if possible rather than having the mortgage company pay it for you. It could save money for you to do it yourself. I think it is great that someone your age is seriously considering purchasing a home. It is a good way to build equity in something. You will either pay house payments or rent. At least when you are buying a house you are putting money into something that will give something of a return and you will also have a tax deduction on the interest and closing costs. When you rent you have nothing to show for the money you spend. I would suggest getting your own financing and take your time. You may find a repo or new home for a very good buy.

By the way, I saw something about financing a home the other day on Fox News. This individual suggested doing a home equity loan rather than conventional financing. You can pay your loan off early without penalities. With most conventional loans there are penalties for paying down your loan early. I don't think you will have closing costs with a home equity loan, either.

 

Well it wasn't free to get my Score. You get a free credit report it doesn't tell you your score. It cost me 7.95 to get the score. I got my Score from Equifax Credit File. It says my Fico Score is 762 Excellent. I didn't bother paying to get it from other places.

 

Dude, 760 is real good. I think I had a 780 and my wife had a 500 something when we signed for our house, my 780 carried us to a great rate at the time(they are much lower now but at the time our rate was real low) even though she had 2 CC's that she had defaulted on before we were married.