Buying a house with no money down

January 29, 2009 | In Buy Home, Tips |

One of the things that potential home buyers find difficult is that they have trouble saving up the money to put down on their new house. In this type of situation, they should consider looking into buying a house with no money down.

The first thing that needs to be done is to find a mortgage company that offers programs for 100% loans for homes. Because it finances your whole house, you don’t have to put any money down. Something to remember about these programs is that even though you don’t have to put any money down, you may still need to pay closing costs because are separate from the down payment. If closing costs are a problem, let the loan officer know because there may be other programs that will cover the closing cost of a house as well.

Before you meet with the loan officer, you might want to do some research and see what the status of your credit score and report are. This is something that the loan officer is going to look at as well, and you don’t want to have to worry about any unpleasant surprises.

When you meet with the mortgage loan officer about buying a house with no money down, talk to them about your credit. It may be that your credit won’t let you qualify for a no money down program. If that is the case, ask the loan officer what you can do to help get your credit score where it needs to be.
If your credit is good, you can proceed with looking for a house to buy.

The next step will be to find a real estate agent and start looking for a house. You should let them know exactly how much you are looking to spend on a house, and they will give you some suggestions on houses in your price range.

Once you have decided on a house, you should have the real estate agent write up a contract and see if the current homeowner is willing to pay for the closing cost. Once the contract is accepted by the homeowner, closing should be no longer than 45 days. There are, however, five items that you should expect to have to pay as the buyer. There is the cost of the inspection, the cost of the appraisal, the earnest money that takes the house off of the market, and the homeowner’s insurance, which is something you will need to have before closing.

Remember that there are two very important things that should be done before you sign the final contract – the inspection and the appraisal. These two things are done to make sure that the house that you are buying is sound, and that you are not being overcharged. This is to protect both you and the seller of the house.

Home ownership is something that most everyone strives towards, because the thought of owning your own home is something that you can be proud of.

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