Contrary to popular belief, buying a home should never be complicated, confusing, stressful, or frustrating, and if your Realtor is doing their job, it won’t be. With the proper systems in place your transaction can be smooth, exciting and even fun. There really are lenders who won’t lecture you, home inspectors who won’t alarm you, and closing agents or Title Companies who are so practiced and smooth that you’ll wonder what you were worried about.
This video offers some great tips to begin the ‘keep it simple’ method of buying a home. And one last reminder… our current low interest rates make it easier than ever to get into a home of your own, and they’re not going to last forever, so my advice is “get off the fence now!”
Video: How to Buy a House, the k.i.s.s. method
For your convenience there is a transcript located directly below the video.
Video Transcript: How to Buy a House, the k.i.s.s. method
Welcome to Today’s Home Update, I’m Carrie.
When many people start the process of buying a house, they assume 20% down is required. However, this is not always the case. Don Frommeyer, President of the Association of Mortgage Professionals, shares advice for getting a mortgage with less than 20% downpayment.
Start with a strong credit score, one of the first things lenders look at. Make payments on time. Even small mistakes may take time to clear from credit scores.
Look beyond local banks. There are many option available outside the traditional bank mortgages such as VA Loans for Veterans, and FHA loans for as little as 3.5% down. In rural areas, the US Department of Agriculture offers low down payment options with financing up to 100%.
Be sure to document income and assets. Have all account statements ready to establish proof of funds. Lenders look for savings accounts that indicate the borrower will be able to cover a few months payments.
Hold jobs for at least 2 years or in the same industry to demonstrate stability.
Last, be prepared to pay more monthly. When you do loans with limited funds down, most will require some sort of mortgage insurance to complete the loan. Conventional loans require private mortgage insurance (PMI) on loan to value above 80%.
Thanks for watching today’s home update. See you next time.
Ever wonder what Closing Costs you’ll be responsible for when you buy or sell a home? Check out our infographic and article:
Who Pays for What?
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What is standard and legal procedure in a Real Estate transaction?
Offers and Agreements 101
Additional Helpful Information for Home Buyers
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Help for Home Sellers
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