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Home Buyers
If you’re thinking of buying a home, you probably have a million thoughts running through your head, and I’ll be at least a few have to do with credit. With our current gutter economy, the more information you have, the better off you’ll be. So let us then examine just how your credit can affect your home purchasing power.
If You’ve Got It, Flaunt It
If you’ve been a responsible person up till now, and find that you have good credit, you want to make sure that you’re recognized for your fiscal efforts. The high FICO score you’ve obtained will play a huge role in what sorts of interest rates you’ll be offered during the home mortgage loan process. If you’re unsure of your credit score, you can get a copy of your credit report free (once yearly) from all three of our major credit reporting agencies (Experian, Equifax, and Trans-Union).
Scores of 619 or are listed as “Poor”, whilst the average American will have a credit score of between 620 and 659. Good credit scores range from 660 to 749, and if you have a credit score of 750 or above…you can be sure that you’re entitled to the best financing offers out there.
How Do Lenders Decide How Much Money to Lend?
Debt to income ratio is the first thing that most lenders will look at. They compare the amount of your gross income (that is before tax) with the amount of your Housing vs. Non-housing expenditures. Non-housing expenditures include those long-term debts such as a car or student loan, alimony or child support, or credit card balances. The FHA states that a mortgage payment should not be more than 29% of your gross income and that the Mortgage payment, when combined with your non-housing expenditures, should not exceed 41% of your overall income. Of course things like down payment, closing costs, credit history, and a slew of other factors will be considered by the lender when deciding the maximum amount that they would be willing to lend.
Of course the old adage is still true that “Location, location, location” plays an important role in your ability to sell AND PURCHASE a home. Believe it or not, though the lending standards are considered equal across this nation, some areas have suffered a great deal more from the current economic turmoil, and taking this into consideration, you might find you stand a better chance of being financed for a home in a different location. It pays to shop around…literally!
Breaking It Down
If you don’t have the best credit, it may seem a bit cumbersome to get an unsecured personal loan, but it’s not impossible. Besides what we’ve mentioned so far, there are other things that can affect your credit score such as the amount of time you’ve lived your current residence or the amount of time you’ve worked for your current employer. Sometimes all that’s needed to raise your credit score is time.
Buying a home can be a stressful, and at times, terrifying experience, especially with the current economic uncertainties, and if you’re not sure if you’ll have a job tomorrow, that can add to the pressures you’re feeling, but it is not impossible to get into the home of your dreams. You simply need to be aware of how your credit score plays a role in the process of buying a home, and then have patience as you work through the process of finding what sort of financing option will work best for you.
Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate
Posted: August 20th, 2009 at 2:33 pm
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Posted in
Home Buyers
Wouldn’t it be nice to have a little bit of help when you really need it most from the United States in the form of a government grant? If you know where to look and you have the patience, you, too, can help yourself to a really sweet deal, courtesy of good ‘ole Uncle Sam.
Grants from the government come in all shapes and sizes. If you think you do not qualify, you may be pleasantly surprised at what just a little bit of effort might turn up.
Before You Start Your Search
As a first time homebuyer, not only will you get a handsome tax break at the end of the year, you may be partially funded by Uncle Sam to help you buy that house you have always dreamed of. Yes Gertrude, our government really does want to see you succeed, and they are willing to help you, too.
The first thing that you need to do is sit down with a pencil and piece of paper and figure out exactly what you make yearly, both before, and after taxes. Get your last year’s tax return and look it over very carefully. If you had it professionally prepared at one of the hundreds of income tax preparation services nationwide, chances are you are at less risk of having it questioned.
After you have finished figuring out what you bring in, the next step is just the opposite. Gather up all your bills and figure out what your expenditures are each month. Multiply that by twelve, and there you have a good idea of your yearly expenses.
Finally, check your credit score with one of the big three credit agencies. You are allowed one free credit report from each per year. Take advantage of them.
Searching For That Government Funding
So, now that you are armed with your basic financial information, where do you start looking? Fire up that computer and point your browser to www.usa.gov. That is the United States Government official information website. Here, you can search for many programs that are geared exclusively for first time homebuyers. There you will find information about the HUD homebuyer assistance program, as well as state sponsored program information specific to your locale.
Down Payment Assistance Grants
Just about every down payment assistance program, tax credit, and housing grant program offered to first time homebuyers runs under an F.H.A. loan. The first step is to use all that information about your finances that is sitting in front of you to help you prequalify into a program. Look for a grant that is related either to H.R.3221, which is going to be the program that will help you get a grant, or as a first time homebuyer, a government down payment assistance grant.
Many local and state agencies run what is known as bond programs, which generate funds to help many individuals, and families with a down payment in getting into that new home you’ve been dreaming of.
The current Presidential Administration wants to see you succeed in being a first time homebuyer and owner. To that end, they are happy to provide you with a huge tax credit, and with government grants geared exclusively to the first time homebuyer.
Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate
Posted: July 13th, 2009 at 7:42 pm
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Posted in
Home Buyers,
Home Sellers,
Real Estate Investment
MDJustListed is now on Twitter.com. You can follow us here and get the latest news, updates, and videos about everything MDJustListed. Once you start following us here, you will get updates about the latest blog postings, helpful tips, and plenty more resources that will help you become a great home buyer, home seller, and real estate investor. Come and join us today to start receiving MDJustListed updates.
Posted: June 10th, 2009 at 9:28 am
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Posted in
Home Buyers
If you are not presently a home owner and have been thinking about purchasing your first home in Maryland, but do not understand the first time home buyers tax credit available to most new home buyers then this seminar is for you. MDjustlisted.com would like to invite you to a informative Home Buying Seminar in which we will discuss in detail the First Time Home Buyers Tax Credit. The seminar will be presented by a local Real Estate Professional and will cover the following topics:
* First time home buyers tax credit
* How to buy short sales and foreclosures
* Renting vs. Buying
* Where to begin
* Low money down loan programs for First Time Buyers
* Home buying Tips
* The Settlement Process
Date: Saturday April 25, 2009
Time: 11:00am - 12:30pm
Location:
Kahler Hall (Harper’s Choice Community Center)
5440 Old Tucker Row
Columbia, MD 21044
** Meetings are open to First Time Home Buyers only, No Realtors please.
PLEASE RSVP Today, Seating is limited to the first 100 to RSVP:
http://www.mdjustlisted.com/seminar
Posted: April 11th, 2009 at 9:51 am
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