Wednesday, March 23, 2011

Are you ready to buy a home?

You've decided that you would like to buy a home....where do you go from there?!
*You'll need a source of funds for a down payment (which will run anywhere from 0%-10% of the purchase price), and closing costs (which will run anywhere from 2%-4% of the purchase price). Many loans will allow these funds to come from any "interested party" (meaning...from a relative, friend, or even the seller)
*You will need an income. Your lender will require your most recent 2-3 W2's. (Lenders used to be able to lend on "stated income" meaning that a buyer could say, "I make $100,000 per year" and that's what the lender would base the loan amount on. That's a big reason why banks got into trouble....they don't lend on stated income anymore!
*You will need a decent credit score. The lower limits of lending now are 620 for FHA.

Once those ducks are in a row, you know you are in a good financial position to buy!!!

Happy house hunting :)

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