Buying a House, by the Numbers
There's more to buying a house than mortgage loans and lenders. Sure, the financing is a big part of it. But there's also the house-hunting process, the offer, the negotiations, the inspections, and the closing process. You'll find plenty of information about these topics on our website. In fact, the Home Buying Institute is one of the largest libraries of advice for home buyers.
If this is your first time buying a home, you might want to peruse this list of FAQs. The responses are organized by topic, which makes it easy to find the information you need. You'll learn how to buy a house by reading questions from other home buyers (along with our responses). It's a great way to begin your research!
How to Buy a Home in 2011
From a housing perspective, a lot has happened over the last few years. We have seen a housing crash, an economic recession, and a complete shuffling of the mortgage industry. What does it all mean to you, as a home buyer? It means that if you want to buy a home in 2011, you need to be better prepared than ever before. You need a good credit score, a down payment, and steady employment. You also need to be realistic with the amount of home you want to buy.
We work hard to keep our website current, so that it reflects current trends in the lending industry. As a result, you'll find plenty of up-to-date information about buying a house. Type a query into the search box at the top of this page, and see for yourself. You can also subscribe to our housing news blog to keep yourself up to speed.
FAQs About the Home Buying Process
Our readers email us frequently to ask about buying a home, getting a mortgage loan, and similar topics. Here are three of the most frequently asked questions about buying a house:
1. How do I get approved for a mortgage loan?
This is an excellent question for a first-time home buyer to ask. A better question would be: How do I get pre-approved for a loan? When buying a house, it's wise to speak with a lender before you start the house-hunting process. The lender will review your financial situation and tell you how much they're willing to lend you. This is valuable information. It helps you shop within a realistic price range. It also makes the seller more inclined to take you seriously. Best of all, the pre-approval process doesn't cost you anything (aside from an application fee, in some cases). So if you plan to buy a home soon, do yourself a favor and get pre-approved by a lender.
2. What credit score do I need to buy a house?
It depends on the type of loan you are using, as well as the lender you choose. With that being said, you'll have a better chance of getting a mortgage in 2011 if your credit score is north of 620. That's not to say you can't buy a home (and qualify for a loan) with a score below 620. It just means that a higher FICO score opens up more doors for you. Learn more here.
3. What type of mortgage loan should I choose?
More than anything else, this will depend on your long-term plans. A mortgage broker might tell you otherwise. They might say it depends on the amount of money you have to put down, and what you can afford to pay each month. This is only part of the equation. Your long-term plans are the most import important factor. So, when buying a home, you need to think down the road a ways.
If you're planning to stay in the home for many years, you're probably better of with a fixed-rate loan. We only recommend ARM loans for home buyers who expect a short stay in the house, like three to five years. And even then, you must do plenty of research and ask a lot of questions about how the AMR loan will work.
Before you try to buy a house, you should also look into FHA loans. These loans are insured by the federal government, through the Department of Housing and Urban Development. With an FHA loan, the lender is insured against losses from borrower default. So they are more likely to qualify people who might not qualify otherwise.
You can research all of these things right here on our website, by the way. That's the whole point of the Home Buying Institute -- to help you educate yourself before you try to buy a home.
No comments:
Post a Comment