First Time Home Buyer
There is NO reason for you to continue to rent!
Absolutely NO REASON!
NO DOWN PAYMENT REQUIRED! - First time home buyers have SO MANY options available to them, not to mention FREE MONEY! Regardless of your income, regardless of your good or bad credit, you can soon be on your way to staking your claim to the American Dream - if you know exactly where you stand now and exactly what you need to do next.
NOTE: Even if you are not a first time home buyer, you can benefit greatly from reading this page. There is a wealth of information to help even seasoned buyers in any homebuying situation. Please stay for awhile.
Buying a home is an important step in building a secure financial future. But because of some common misconceptions, many people believe homeownership is out of their reach. Don't let these misconceptions keep you from the personal and financial rewards of homeownership.
"I can't afford the down payment and closing costs." -
In the past, buying a home may have required a 20% down payment. Today, most first-time homebuyers make a down payment of 10% or less. There are many loan programs that can help you buy a home without a lot of cash out of pocket, some without any at all. In addition, there are many government and non-profit assistance programs designed to help people get into homes. That's FREE MONEY! Take advantage of it. We can help you find the program that best fits your situation."I have bad credit, so I can't get a mortgage." -
A less-than-perfect credit history doesn't have to stand in your way of reaching your goals. Our goal is to help you move past credit problems and into a home of your own. In fact, we can help you get into a great home even if your credit is downright ugly! We can also show you all the tricks and methods used to unlock hidden credit score secrets. That way, you can soon enjoy all the benefits of having great credit again."It's less expensive to rent." -
Your monthly mortgage payments might be lower than they are right now. And unlike rental costs, your monthly principal and interest payments will stay the same for the life of a fixed-rate mortgage. Moreover, as a homeowner, you'll be building equity in your home, which can be converted to wealth that you can use to achieve your financial goals, even saving for retirement. As an added bonus, you may also enjoy some income tax relief."The whole mortgage process is just a pain." -
This can be very true, but we want to make buying your first home as easy as possible. The information at this site and our consultants are here to give you the free information you need to help you through each step of the financing process, so you'll never have to go it alone. We're not here to give you a thumbs up or thumbs down. We're here to help you structure your file to get a thumbs up! If you start off on the right foot, things go so much smoother."I don't think I can afford the payments." -
Our goal is to help you succeed financially, so we’ll carefully review your loan options with you and help you choose the loan that’s right for you. With a loan that fits your budget and your financial goals, your home will be a powerful tool in building a secure future for you and your family. In addition, we can show you how to find the best real estate values, so you can get the most for your money.DID YOU KNOW?
The average renter has a net worth of approximately $1,800.00.
The average homeowner has a net worth of approximately $63,000.00?
That's a HUGE difference!
The numbers don't lie. Which side of the fence do you want to be on?
Some have lost their desire to buy because they simply think they can't make it happen. In fact, today's market offers a great opportunity:
- Many properties are available below the average market price
- Mortgage rates are still available at their lowest in years
- There has never been a greater selection of loan programs for buyers
Only buyers who are willing to take action now can take advantage of this incredible market, and reap the rewards of homeownership and the wealth it can create!
There are several ways owning your own home can help you build and protect wealth, which, of course, is the way to financial freedom.
Building Equity -
You are building equity when you own a home that is appreciating in value. You are also saving even more money if it is purchased and financed correctly. You need to be wary though, not all homes are appreciating in today's market. You must have the discipline and the knowledge to buy and finance wisely. That's why gathering the information you need and putting our knowledgeable professionals to work for you from the beginning will put you way ahead of other home buyers.Leverage -
"Leverage" is a term for using borrowed money to control and receive the maximum return on your money from real estate. For example, suppose you acquire a property for $100,000 with only $10,000 down. Let's say the property appreciates 5% each year for the first two years and is now worth $110,000. You have just made $10,000 on your $10,000 investment. That's equivalent to a 50% annual return on your money! Try to do that with your mutual fund. Now imagine the return if you only put 5% down, or better yet 0% down!Tax Savings -
You gain some great tax relief and incentives as a homeowner. Typically, your taxable income is reduced by any mortgage interest, discount points, or real estate taxes you pay during the course of each year. If you sell your home, you pay no federal income tax on profits of up to $500,000 per couple. That's FREE MONEY! The only requirement is that you have live in the house for at least 2 of the last 5 years before you sell.Pride of Ownership -
Your home is much more than just a place to hang your hat. Most homeowners find the pride of ownership very rewarding. In fact, many homeowners actually enjoy most of the maintenance and upkeep work. Not to mention making the home and yard their own. Home improvements can also add great value to your home. But again, talk to a real estate professional, some improvements have a much greater return on investment than others. Homeowners are generally more involved in their community, are more likely to build lasting relationships, and develop stronger family bonds. This is true wealth.I know you are at the edge of your seat now, ready to get into the car and find a house. But make sure you have all of your ducks in a row first.
FIRST - Get Pre-Approved.
"Pre-Qualified" and "Pre-Approved" are two different things. Typically, lenders are happy to get you "pre-qualified". They simply glance at your credit and income, and give you a letter something like, "Based on the information you provided, it appears that you meet the criteria for a loan of x amount. Of course all of the information you provided must be verified. This is not a loan commitment." We recommend you get "Pre-Approved", which means that all of your personal information has been underwritten, verified, and approved. Any glitches on your end are rectified before contracting your property. That way, only property information such as a title commitment, appraisal, and survey need to be obtained to close on your new home. The pressure is off of you, and on the seller. A full "Pre-Approval" can be a strong bargaining chip when a seller is considering your offer, or comparing your offer to one or more other offers. If your lender is unable to secure a "Pre-Approval", you still have options to get into a great home quickly. Be sure and ask!SECOND - Check out Different Financing Packages.
Chances are, your parents put down a large down payment, and may have had a 15, 20, or 30-year fixed rate mortgage on their home. Times were different then, people stayed in one place and at one job for much longer periods of time. Today, there are many financing options that require little or nothing down. Also, a fixed rate mortgage may not be the best choice for you. In fact, if you are planning on moving again in less than 10 years, you can save a great deal of money with an adjustable rate. Don't be fooled by the name though, most adjustable rate mortgages nowadays can be fixed for a certain period of time - often up to 10 years! Your parents may have also made extra house payments when they could afford it. We say don't do it! In most cases, this saves you absolutely nothing! This is called the BANKER'S SECRET. To learn more about it, subscribe to our Mortgage Tips Newsletter and we'll send you a free report on how the BANKER'S SECRET works.THIRD - Be Realistic with Your Expectations.
Just because you can afford a particular payment, doesn't mean you need to take on the whole amount. Be sure and take into consideration what your overall financial goals are. Start with a modest property and make improvements to it so you can resell it at a profit. Don't expect to move into the most expensive part of town right away. Take your time, do your research, and climb the property ladder. As the self-improvement guru, Tony Robbins, said, (paraphrase) "Most people overestimate what can be done in a year, and underestimate what can be done in ten years."FOURTH - Work with a Real Estate Professional.
Finding the right home takes a lot of time and effort. It also takes a lot of experience to find the right deal. It's not worth going alone. There are some great buyer's agents that can help you find the right home, in the right area, at the right price. A good buyer's agent can also help you negotiate, inspect, and finalize your deal. We can help you find a well-qualified agent if you are not already working with someone.FIFTH - Look for FREE MONEY!
The are many down payment assistance programs available for qualified applicants and/or properties. We can help you find any that you, or the property, may qualify for. In addition, if haven't been able to save up the amount that you may need for a down payment or closing costs, consider some of the following options:- Seller concessions - often, a substantial amount of closing costs can be paid by the seller and rolled into your loan.
- Gifts, loans - talk to parents or relatives.
- Investors, partners - if the property is an exceptional deal, work out a shared-equity agreement with an investor, find a partner, or check out one of our great investment property loans.
- Retirement programs - some retirement programs allow you to withdraw money for a down-payment without penalty.
- Sell some stuff - do you have anything laying around you could sell for a profit?
Obviously, some of these have to be paid back, so be sure to look at the return on your investment before proceeding.