How can I buy a house? I have a fairly good job and good credit but no money saved?
I feel like I am in a poor position to negotiate since I have no cash, plus, all of the homes I like are about 30k more than I have pre-qualified for on my mortgage loan — Dave.
October 12th, 2008 at 8:02 pm
Usually places will want you to put down a deposit on the house, or closing costs. Some companies will allow those costs to be added to your loan amount. But without a job that you’ve been at for 2 years it will probably be hard to get a mortage loan for that amount. Good luck!
October 15th, 2008 at 10:49 am
Talk to a realator and tell them that. They will refer you to a home lender who will run your credit…more than likely they will find a loan for you…depending on your credit…that will finance in the down payment and sometimes even the closing cost if you can’t find a seller willing to pay them for you.
If I were you though I’d try to save up some money for a down payment because you’ll be able to get a nicer house, buy things for it, assure that your payment won’t be too high, and pay for the move.
Before we bought our house I took a second job for about 3 months working at one of the three major mail shipping facilities in the US and worked an early morning shift loading trucks…It wasn’t beneath me but I was way over qualified…they did’nt care because they needed a warm body and I needed the money. I made enough to pay the down payment, pay for moving, and still have some leftover.
Don’t rush into it or you’ll regret it. Cut back on all of your expenses right now…all the extra stuff you don’t NEED and put that money away…the more you pay down on the house the less you’ll pay for it over the years….if they make a 2000 down payment for you….then you’ll pay about 7000 in the long run for it…or you can save that much and pay the 2000 or even 3000.
just think…over 30 years every 1000 you spend on a house now…will end up costing you another 2000. It’s crazy…but even with good credit…you’ll make 360,000 in payments for a house listed at 124,000…..considering you are going to spend that make sure you get something you absolutely like….
I worked a little longer than I needed to in order to save a bit extra but it was worth it as we were in the same situation you are. everything we liked was a bit out of our price range…but when I came in with that down payment..we got what we wanted…
I wish I had worked even longer though because I’d rather drop a huge amount down and pay less later
October 17th, 2008 at 8:00 pm
I’M NOT SURE WHERE YOU LIVE, BUT MY HUSBAND AND I LUCKED INTO A DEAL WHEN WE BOUGHT OURS. FIRST OF ALL, SEE IF YOU CAN FIND A SELLER WHO IS WILLING TO DO THEIR OWN FINANCING (SOME WILL TAKE PITY ON YOU!). MY HUSBAND AND I FOUND A HOUSE ON A REAL ESTATE CONTRACT WHICH ALLOWED US TO MAKE THE PAYMENTS ON THE HOUSE WHILE WE LIVED IN IT FOR A YEAR. AT THE END OF THAT YEAR WE HAD TO DECIDE IF WE WANTED IT OR NOT. WE DID, AND WE HAD TO PUT UP A FEW GRAND ON IT, BUT WE’D HAD A WHOLE YEAR TO SAVE THAT MONEY. LOTS OF PRIVATE SELLERS ARE MOTIVATED, ESPECIALLY IN THE CURRENT ECONOMY, SO KEEP TRYING!
October 20th, 2008 at 9:58 am
If you have good credit with scores above 600 you can qualify for a 100% financing. Most lenders will allow a 3-6% seller assist that can help with closing costs. If your score is above 680 see if your mortgage broker can get you a loan program called the 103 or a 107. This will give you 100% financing on the home plus finance the closing costs. This program was easier to come by a few years ago then alot of the lenders dropped it recently. I only know of 1 lender that I deal with has that program. Programs come and go and underwriting guidelines change just as fast. You don’t ever want to go to a realtor without a pre-approval from a mortgage broker. If you tell a realtor that you have no money saved they will not show you any homes or refer you to a mortgage person. They think that you are just simply wasting their time.
You will need some form of money to put down on a home just to show that you are serious. This is called earnest funds. Usually a seller will require you to put down at least $1,000 on the day the contract is signed then in 14 days another $3000-6000 will be required to be put down. sometimes you can negotiate that the 2nd down payment be less or not at all.
Today to many people who want to buy a home don’t have enough savings. Just make sure you have at least 3 months worth of Principle, interest, taxes, and insurance (PITI) in the account. Lenders need to see that you can make the payment even if you lose your jobs. Most lenders require you have the money in your account at least 30 days.
October 23rd, 2008 at 8:25 am
You are not in as poor of a position as you may think. You could depending on credit obtain 100% financing. As far as little or no money for closing costs most lenders allow seller contributions to help you. Depending on credit you may even get approved for a stated loan which in turn would qualify you for a larger home but keep in mind that also means a higher mortgage payment. I hope this helps you but if you have any further questions or need any help feel free to contact me.
October 26th, 2008 at 4:02 am
First things first, if you already prequalified for a loan see if the sellers will do a second mortgage on what you don’t qualify for on the pre- qualified loan. Or look in to foreclosures. sometimes you can find some really good deals. if you live in Missouri feel free to cantact me. and maybe we can get you a loan there are wonderful programs for fist time home buyers. Tammy Flowers with Atlantic mortgage
my e-mail is
October 27th, 2008 at 4:08 am
You contact me. Im at 510-596-3526, My name is Sam Tokhi, and I work with Reliance Bay Funding.