Q: What do I need to do in order to buy a house?
A: There are two ways to buy a house;
- You can buy a house with cash.
- You can get a home loan to buy a house.
Q: Where do I start if I need a home loan?
A: You need to consult with a home loan specialist in order to start the home mortgage pre qualification process.
Q: What do I need in order to get a home loan?
A. Pre-qualification process is simple, you will need to gather a few items before meeting with the Mortgage lender:
- Last two years tax returns including W2’s
- Last two month’s bank statements
- Last four paycheck stubs
- Additional information may be requested once the Mortgage lender reviews initial items
Q: Are there any first time home buyer programs?
There are several programs that can assist with down payment assistance:
- CalHFA is one program used for qualifying borrowers. Consult with a mortgage professional on income limits and other requirements.
- National Homebuyers Fund is another program. These programs are available to home buyers purchasing a primary residence home. Consult with a mortgage consultant for income limits and other requirements.
Q: What if I don’t have any money saved?
Down payment assistance programs can help with down payment. Other assets that can be used are 401k and Gift funds. Consult with a mortgage lender for details and questions. Your Realtor can also negotiate with the seller of the home you are purchasing to give you a credit to be applied towards your closing costs through the escrow.
Q: What if my credit isn’t good enough?
Understanding credit is very important. Consulting with a Mortgage lender will help you understand the current mortgage credit guidelines. We can also refer you to a credit specialist to help if needed.
Q: When is a good time to buy?
A. In October of 2016, Housing guru Ivy Zelman told CNBC’s “Fast Money Halftime Report” that “now” is the best time to buy a house. “It’s the best time in the history of our country with mortgage rates that are below 4 percent that [renters] can actually lock in their fixed cost and create wealth for themselves,” she said.
The truth is that we all have to live somewhere. So, if you’re not buying, you’re renting (or living with your parents). What you want to look at is interest rates, affordability and your own personal situation. If you can afford to rent then you probably can afford to buy.