Posted by Maureen on January 05, 2003 at 11:47:00:
Tanisha,
When I purchased my home, my banker said that, yes, “ideally” I should have been in my job for 2 years, have excellent credit, make so much money… But, she also said that banks are VERY interested in mortgages, because they make their money at the front end of the loan, then sell the loan to another company to handle for the rest of the 29 odd years. So, they work with you to help you qualify. If you have excellent credit, but little job history, well, those things often balance out - especially if you are in a job that is “hot” and they know that you will likely be employed for a long time.
I would suggest contacting a bank or credit union and making an application (could cost up to $100 - shop around). The banker will tell you the best route to take. I do not recommend an on-line application for your first try. You get so much from working with a human rather than a machine. The only thing that you really have to be careful of is the credit check - you may already know this - but each time that they check your credit, it bumps down your credit rating a tiny bit. It doesn’t hurt to have your credit checked once or twice a year, but more than that and your ‘800’ rating drops by about 15 points each time. I had to write up a letter of explanation for each credit check over the last 3 years when I got my mortgage. Many of the checks were related to purchasing my home. I found out that I should have asked for my credit check from the first banker and taken it with me to each place following. They can tell you from looking at the one that you bring if you are likely to qualify.
I absolutely love having my own home and would recommend it to most. I bought in the “second best” neighborhood, love the neighbors (real people), and still smile each time I pay my mortgage and see my equity increase!
~Maureen
Posted by Tanisha on January 02, 2003 at 21:38:17:
Hi everyone…
I like everyone else in America has seen the infomercials and am very interested…I have always been very interested in real estate but I’m not a sales man…I don’t like twisting folks arms for a deal…I am 23 years old…finished with college…getting ready to start my first real job…My plan is to pay off student loan, car note, and credit card and then start saving for a home…I have excellent credit…According to Infiniti when I brought my car a year ago my FICO score was in the 800’s…My plan is to save about $20-$30k after paying off everything and buy a house…Can this course help me to get a good deal or get more house for my money or is it only for investing…I’m looking at something around the $120-150k price range…I am interested in real estate investing…but right now I don’t think that’s for me…I’d rather pay off everything and get a home of my own first which should take at least 2 years…and then think about investing…Any help would be appreciated…
One of the most difficult tasks for a person to do in life is to save that 20-30k for a downpayment on a home. If you hang around here and read enough, you will see that it doesn’t have to take a lot of time and money to get into your own house. With your credit, job and a little street smarts you can put yourself 5 -10 years ahead rathe easily. First you must analyze your current situation. I hope you either leased or bought a slightly used Infiniti. They depreciate PDQ (unlike most Real Estate). Then I figure you are currently renting someplace less than what you consider your dream home. I would propose that you might be better off financially owning a slightly less than perfect place than paying for your landlord’s future. (What am I saying!) In the current economic climate it should be fairly easy to locate a “motivated seller” that will sell you a home for 80% or so of current market value. That’s right, you can go right now and buy 100k for 80k. Of course it’s equity, which can be a bit more squirrely than cash. But if you understand the mechanics, it’s relatively simple. (compared to what it took to get your degree). Or you may decide to buy your dream home at 100% of value. With your credit, it should be a no brainer to get the seller to carry 20% or so on a second mortgage for a couple of years, so you can own now. I won’t bore you with specifics, they’re all over this forum, but hopefully I’ve answered your question. By the way, If you don’t like the first house, you can always sell it for a profit… It won’t be nearly as bad as when you trade in your car… in fact on the RE side you’ll propbably make money… Watch out though… if you make too much, you may turn out to be one o’ them thar investor people.
Tanisha, though I do agree with Kip’s logic that investment properties are an easy way to pay for your primary residence, I also understand your logic. To answer your question, yes, a real estate course would help you find and negotiate a better deal when buying your primary residence. As with anything else, the more knowledge you possess, the more power you have to control your options. My question is, if you are willing to learn about real estate to buy a primary residence, why not go ahead and use that knowledge to create a couple of investments to pay for your residence as well (and your car, and student loans, and whatever credit card debt you accumulated in school, etc…?) Get my point?
I would suggest that you start by reading whatever books you have access to, and browsing through this site. Maybe even purchasing a course that can teach you a specific strategy to buy your home. This will give you a working knowledge of the industry and a foundation to start from.
Good luck and good house hunting.
Rocky
Buy investment property first, then your primary residence. Why? COz there is alot properties out on and the wont be for long.
BUy a Duplex or fourplex. Live in one unit and let the other side pay your morgage so you can use your salary to pay off that car. That is what I did any way and I am leaving pretty after two years.
Posted by Tanisha on January 04, 2003 at 23:05:41:
Thanks for your advice…I did but a slighty used car…it was 4 years wold with 28k miles on it when I brought and I got a good deal on it because I knew the folks at the dealorship…I have an older Infiniti also which is paid for…secondly…I live at home with my parents still…so i’m not paying any rent…and my thing is…honestly…i’m living pretty good here at home…would prefer not to go down in the quality of my living if I don’t have to…but I do understand the investment side and what a good deal that is…my other question someone may can answer is…with most traditional home loans…you have to have been with your current employer for at least 2 years…Well I haven’t been with my current employer 2 years because I just graduated…if there another way around that…would my good credit help me in that situation…
Posted by Tanisha on January 04, 2003 at 21:07:02:
I agree with you both and understand where you’re coming from…my logic for paying off my car and student loans and all first was because…I would have more money to put towards a mortage…and I don’t want to go out a buy a 4 unit apartment that I know I can’t afford if for some reason the tenants don’t pay rent or all the units are filled etc…and I just graduated from college a year ago so i’m not exaclty making big bucks yet…and personally I don’t want to live in an apartment…If I did have some investment properties I would still need a house of my own or I would live with my parents rent free like I am now…but I do understand both of you and that is something worth considering…