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How to own a house without money!

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arianna_7
Guest

Subject: How to own a house without money!

Tue Nov 20, 2007 1:51 pm

I am planning to buy my first house but I do not have that much of money. Are there any alternates and what should I be careful about while negotiating such a deal? I do not mind going in for a Mobile / Manufactured Home. Help!!

Laura

Joined: 21 Jun 2007
Laura's page
Posts: 1407

34536 Magic Points

Wed Nov 21, 2007 8:23 am

Hello Arianna,

Home is a dream for every individual. Thus you have to keep all caution. Determine your credit score. First you need to know whether you are eligible to get a loan or not. Above a 530 you will get a home loan at a determinable rate.
_________________
Regards,
Laura.

mathew_jade
Guest

Subject: Re:How to own a house without money!

Wed Nov 21, 2007 11:18 am

It is indeed a great idea to own a house without money yet it is not difficult! I have done so and the main building blocks I found were at nice try-Morningstar.
And sure it’s a clever world so you should be careful. Please also go through the article
TOS vio... which will give you an insight of what all can happen while going through such a deal. All the best!

debtstinker

Joined: 03 Nov 2007
debtstinker's page
Posts: 303

113 Magic Points

Wed Nov 21, 2007 3:03 pm

Laura, I didn't know that your score has to be over 530...that's interesting! determining your credit score will be the first thing every potential homeowner needs to do and in our case we'll both have to do it as the home will be in both of our names. and if that doesn't work out then we'll have to put it in hubby's name as his credit is better than mine by far. good luck to you arianna, have you spoken and compared all possible lenders in your area? that was the first piece of advice given to us and while its some legwork and take some time, it's minimal compared the time and investments that you'll make into your own home,e specially if you plan on living there for any length of time. please keep us posted!

Dadummy

Joined: 15 Nov 2007
Dadummy's page
Posts: 638

104 Magic Points

Thu Nov 22, 2007 12:13 pm

Good points from all of you, seems like if you have a good employment history and your are presently working, can afford the payments and your credit score is at that 530, you should not have a problem. Just heed the warnings, there are some sharks out there, I would warn you to be careful with the type of rate, variable vs fixed, fixed you know what your payment is each month. Variable can jump very high, very quickly, this is something that I would definately pay atteniton to, try to go fixed so you can budget in the same amount each month.

diem

Joined: 20 Feb 2008
diem's page
Posts: 97

222 Magic Points

Wed Feb 20, 2008 9:03 pm

General consensus says to save 10% of the actual cost of the home for the down payment, plus closing costs and such. I wish you luck and with determination I'm sure you can own your own home! Keep working and working on your credit. Your scores will determine your interest rate which is very important.

goodnatured

Joined: 03 Nov 2007
goodnatured's page
Posts: 3133

5262 Magic Points

Wed Sep 17, 2008 1:29 am

What all is factored into closing costs?
_________________
Goodnatured,

Trying to become and stay debt free, thank you for all your help and support!

fireyone

Joined: 26 Feb 2008
fireyone's page
Posts: 2856

1907 Magic Points

Thu Sep 18, 2008 1:23 am

That a good question GN. I wondered that myself. When we went to the bank they said the fees were lower on a home equity and much higher on a mortgage loan because of closing cost.I never really asked I just took the best route for the least number of years that we could afford.

debtinfo

Joined: 19 Nov 2008
debtinfo's page
Posts: 2

68 Magic Points

Wed Nov 19, 2008 9:41 am

It is a good idea to have a deposit before you take out a loan, getting yourself into a loan that you find hard to pay off if at all will have bad consequences. You really need to asses your financial situation and see how much you can borrow without going broke and move from there.
_________________

fireyone

Joined: 26 Feb 2008
fireyone's page
Posts: 2856

1907 Magic Points

Wed Nov 19, 2008 5:44 pm

Homeownership is really a big step. Dinfo has it correct when saying that you should have the depostit before taking out the loan and also being sure you can unkeep the payments. Along wiht that are also taxes and repairs. Home ownership has a lot of responsibilty and you have to be prepared to take them all on. If you do not feel your ready or think their is even a slight chance that you will not be a ble to afford it I would hold off and wait. If you default on a home loan you are not ready for it will mess up your chances for future home loans when you may be in better financial shape to handle this responsibility.


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