Why should I make the leap from renting to owning?
- Your monthly rent check may not be that much less than your monthly mortgage bill would be. If you can comfortably afford to pay your rent each month, look into buying a home.
- You will build equity. Equity is a valuable financial tool that renters simply don’t have. Equity can help you get other loans, including the Home Equity Line of Credit.
- Homeowners have more opportunities for tax write-offs.
- Down payments are not longer the roadblock they used to be. Instead of the traditional 20% down payment lenders used to require, many now accept anywhere from 2% to 10% down. There are even mortgage plans that include the down payment in the loan. If you have good credit and are certain you would be able to make mortgage payments, but don’t have the savings for a down payment, you can still become a homeowner.
What are some programs that can help me make this transition
There are many programs that can provide you with the financial assistance you need to become a homeowner. Many states have such programs, check to see if your state does. There are also programs that assist doctors and teachers in becoming homeowners.
What are some loans that I would be interested in as a First Time Homebuyer?
No Down Payment Plans:
Other Popular Mortgages:
How can my Credit Score affect my mortgage rates
While there are mortgage programs for people with low credit scores, generally lenders look for borrowers with high credit scores. Check to see which profile fits you best:
- You have had only late payment reported to the credit bureau within the last seven years, and none within the last year.
- You have note been reported to a collection agency within the last ten years.
- You have established a credit history with auto loans, mortgages, and/or credit cards.
- None of your payments were more than thirty days late.
- You have not missed a single payment in the last twelve months, but may have missed a few over the past seven years.
“Needs Improvement” Credit
- You are over eighteen and have little credit history.
- You have a past record of payments made sixty days late.
- You are over eighteen years old and have no credit history.
- You have had been reported to a collection agency within the last ten years.
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.