Mortgage rates are hovering near yearlong lows and rental rates continue to skyrocket, so why isn’t everyone buying a home right now? The truth is, one of the biggest challenges renters face is saving for a down payment, especially renters that are burdened with astronomical leases and student debt payments.
Studies have shown that a lot of renters aren’t buying homes simply because they are misinformed or unaware of what it actually takes to get a mortgage. You don’t need a 20 percent down payment or an 800 credit score, but there are some things you do need to be eligible for financing. Here are five things to keep in mind when you decide you want to buy a home.
A major hurdle for some first-time homebuyers is coming up with the funds for a down payment or closing costs on their home purchase. According to a recent Bankrate.com survey non-homeowners were asked what percentage of the total cost they would need to contribute as a down payment on a potential home purchase. Nearly 2 in 10 said somewhere between 11% and 20%, while another 17% said between 6% and 10% down.
Even more notable, almost a quarter of non-homeowners said they had no idea how much they would need for a down payment to buy a home. Here are 7 loan options for eligible homebuyers who wish to buy with little to no money down.
Down payment requirements, carrying other monthly debt and building mortgage-ready credit are common hurdles for today’s homebuyers. A new mortgage product addresses these issues and makes home financing accessible to creditworthy low- to moderate-income homebuyers through Fannie Mae’s new HomeReady™ program.
Making the decision to buy a home isn’t one to be taken lightly. Homebuyers have a lot to think about from deciding when to buy and what home style fits their needs to saving for a down payment and keeping their credit in check. Here are some of the biggest pitfalls to avoid when buying your first home.
Buying a home requires more than signing on the dotted line. From preparing to buy a home to waiting for closing day, there are several things you have to keep in mind to keep your home financing on track and your homebuying experience a positive one.
Service men and women and their families make many sacrifices to keep our country safe. As a token of appreciation, the United State Department of Veterans Affairs provides a loan program with a mission to help servicemen, servicewomen, veterans and eligible surviving spouses become homeowners.
As existing home sales increased in September, inventory remained tight. A 6 month supply is an indicator of a balanced housing market, but September's inventory dropped to a 4.8-month supply, paving the way for competition among fall homebuyers. Here are some tips for buying in a low-inventory, competitive housing market.
Many potential homebuyers cite existing debt or saving funds for a down payment as hurdles in their homebuying journey. But what if you have existing debt and a low balance in your savings account? Where do you start?
The first step in homebuying should have little to do with scouting potential homes to purchase and everything to do with making sure you are eligible for a home loan. Meeting with a lender for a pre-approval or loan commitment should be your top priority prior to your home search, so you can determine mortgage eligibility and home affordability.