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| *Ostroff, Fair and Company>>>Renting & Real Estate |
I live in california and want to buy a home a small house but prefrebly a duplex.. but I have no idea how....? |
I dont have any money saved... and I dont have any credit... I have been hearing that for the same I am paying in rent I can start paying on a home, I havent the slightest Idea where to start...does anyone know where I can find out how in laymans terms step by step the things I need to do??? Talk to a buyers agent. Look under realtors in the phone book or ask a friend to recommend someone. 1.) Open up a savings account. 2.) Open up a checking account. 3.) Save every penny you can. 4.) Get a debit card. 5.) Do not buy crap. 6.) Save all your loose change and turn it in everyone to your savings account. Save 20% of the total of what you want to buy, then call the buyers agent back. Well, no credit and no money saved usually means you're a dead beat. I'd say give up. I also live in California. The easiest way to do it would be to talk to a real estate agent. That is what we did. They will be able to refer you to a loan specialist (although some real estate agents are also loan specialists so they can do both). They will run the numbers and see what you qualify for and what you will have to pay. That is your first step. Then the loan specialist will prequalify you. That is when the real estate agent will take back over and help you find the house of your dreams. That is it. No huge steps. Don't be afraid to look into an adjustable loan. They have adjustable loans that can cost as low as $400 a month and have negative amortization. That is what we had when we first bought our condo. Having the $400 loan cut our cost in almost a 1/3 and we were able to take the left over money and save to buy a house. Then we had that saved up money plus the money we made on our condo (because they do go up in value) we were able to buy our house about two years after the condo. You need to also keep in mind that you will pay 1-3% of the cost of the house every year in taxes. I did not realize that at first. We bought a $500,000 house and we pay about 6,600 a year in taxes. The first bill was a shock to us. If you buy a condo you will not only have the taxes to pay but you will also have to pay their condo fee. All condo fees are different. P.S. If you get an adjustable rate, be prepared to refi it in a few years. The adjustable rate allows you time to get on your feet before your mortgage goes up but in that time you take the chance that the interest rate could go up causing you to have to pay more than you would have if you just got a fixed rate in the beginning. Do you have any money saved? Some loan specialists like to see 3%. Also, you will need something to put down as escrow. I think our escrow was 2%, but I can't remember. We got a brand new credit card and pulled the 2% out of that. It was a real B!+<H to pay that off though. Good luck. I love being a homeowner. You are about 1-2 years too late. The day of the 20/80 loans are over. Even now the 100% loans require a 750 FICO score or at the very least 10% down. Duplexs' start out at 300K or so, in the crappiest neighborhoods or forclosures. So you will need to save 30K with a 700 FICO score or 60K with a 650 FICO. OR have your parents or anyone else with money sign with you, they can later sign the property over to you. |
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