How to Become A Homeowner
Ahhh, home ownership. The American Dream! Almost anyone can become a homeowner if they wish. Admittedly, there are more hurdles to cross and red tape to cut through these days, but we can help you through it. Some of these obstacles are out of your control, such as the appraisal of the house, interest rate changes, and survey issues. These are not the items that usually keep people from purchasing a home.
There are two things that often prevent people from owning their own home: credit and down payment. However, both of these problems can be solved with time and patience.
Your credit is not just a number score. However the score is very important. There are too many ways to increase your credit score to place in this forum. Primarily, pay your bills on time and don’t borrow more than you can afford. Some accounts are good to pay off and close; others are better left open.
Beyond your score are your lifestyle choices when it comes to your monthly responsibilities. Lenders ask your landlord for a Verification of Rental (VOR). This will be a form that asks things such as how much your rent is, how many times it has been late, does the tenant have an outstanding balance, etc. It is crucial to pay your rent on time in good funds. The same holds true with the utility companies.
It is very difficult to buy a home with no money down any more. If you are a veteran you may qualify for a VA Guaranteed loan that can finance more than 100% of the purchase. For the rest of us, we need a small down payment saved up. Saving a down payment is good. The more down payment you have, the easier you can qualify for your loan and the stronger an offer to a seller will be. To get in for as little as possible, plan on about 4% of the sale price to move in. This is possible with the right kind of financing and the seller helping with some of your expenses for obtaining the loan (closing cost).
There is a lot that goes into the home buying process. There are about 200 different things that happen from start to finish. Never fear, we have an excellent staff that can walk you through the entire process. For a free consultation with one of our trained professionals, Click Here or call us at 615-867-8282. We look forward to hearing from you.