I would love to buy right now....just don't think I could. I have some pretty bad credit leftover from a long time ago while in school.... You can pm me if you feel like it....so we don't hijack the thread any more.
Personally I don't think we are hi-jacking the thread... we are talking about a situation that many can benefit from... including the original poster... and posting keeps it on top of the pile too....
OK... here's what you do..
FIRST: Go to a MORTGAGE BROKER... DO NOT start with a RE agent! They will want you to use their own broker and this is NOT in your best interest. Ask around (older, experienced people like relatives, co-workers) for a reference. I got my first Broker through a stellar recommendation from an older co-worker. Best decision I ever made! My home was a small number in terms of loan ($135 K) and commission for him.... yet even after the closing he went through my paperwork again... and found $200 I shouldn't have paid for and made sure I got it back! That kind of service is INVALUABLE! He also called me every time the rate dropped enough for me to benefit and helped me refinance. I think I paid $500 each time. By the time I sold my house I had re-financed 3 times and was paying $300 LESS a month then when I bought it. That broker was AWESOME!!! (ANYONE in Placer County CA should PM me for his name!!!)
SECOND: Meet with the recommended broker in PERSON.... do NOT use an internet broker for your fist purchase... you need that personal contact for your first purchase... someone to hold your hand... be your advocate and attend your closing with you.
THIRD: Be prepared! Get your credit report ahead of time and prepare written & signed statements for ANYTHING bad on your credit report. Your broker will include your statements with a loan request. Being that you are using a person and not the internet... they WILL advocate for you. My credit now is STELLAR... but it wasn't good when I bought my first home... but my broker did a great job in getting me the best possible deal.
Do NOT attempt to hide shit from the broker.... even if you bring your own credit report they will run their own and will quickly find out if you are lying or trying to hide stuff. Be honest and humble... they have SEEN IT ALL! They are there to help you realize what you qualify for. They will dig deep and ask personal questions about your finances... it's their job... be prepared. Even if you have bad credit you may qualify... and they will tell you what you need to do to clean up any bad credit.
FORTH: Wear your thick skin! Do not be offended if they tell you that you don't qualify for what you THINK you should. Remember that these people crunch numbers all day long! It's their job to KNOW what people will get approved for and what they won't. Believe it or not a GOOD broker (again REFERENCES!!!! Don't just open the yellow pages!) will help you buy within your means. It's in their best interest to help you so you are a customer for life and give them references.
FIFTH: The Broker's referrals..... this one is tricky... my broker suggested a RE agent that he liked to work with. I hired her.... she took me to a few houses in my price range..... I made an offer on one...I offered $5K less then they had it listed for (it was an overpriced matchbox). She tried to talk me out of "low balling" them on the offer... but I had done my homework and knew they were asking too much. I was irritated that she tried to talk me out of offering lower money..... anyway... when she let me know the seller's decision she told me "they declined and they were OFFENDED by your offer". I FIRED HER ASS ON THE SPOT! A RE agent works for YOU! They should not insult you by telling you a seller is offended by your offer! She was an uppity bitch and was actually shocked that I fired her. I told my broker about her and he apologized for her actions. I got a referral for another agent from the same co-worker who recommended my broker.... this agent turned out to be FABULOUS!!!! We would go into a house together... walk out and before I would say anything she would say "oh no.... that's not your house for that price"..... she was a great agent!!! She showed my about 20 houses before I made my next offer... which I bought.... at $5K less then the list price... she fought for me!!! Remember this YOUR AGENT WORKS FOR YOU... NOT THE SELLER!
ALSO IMPORTANT: As a BUYER you DO NOT pay a fee! The seller pays the ENTIRE RE FEES!!!! My realtor dropped one percent of her fee to help me get the price I wanted.... realtors SHOULD be willing to negotiate to help you out... if they aren't then DITCH THEM FAST! The standard rate is 6% of sales price divided equally between the selling and buying agents (so each get 3%). Make SURE your RE agent is willing to negotiate their fee BEFORE you work with them! You don't need to get an exact number... just make sure they are open to it.... my RE agent told me UP FRONT she would if I found a house I loved and needed some wiggle room.
SIXTH: Be prepared to look at EVERYTHING.... and HAVE VISION!!! The house I ended up buying had been on the market 8 months.... no takers. It's no wonder... when I went in there were loaded guns on the dresser....dirty underwear on the floor, dried egg on the countertop and the house smelt "dirty". I didn't find the dried boogers on the walls until after I moved in (seller was a single dad with 12 yo son). Anyway... I knew all it needed was some good old TLC. I bought it! 5 years later I sold it for DOUBLE what I paid..... and all I did was re-carpet (cheap) repaint interior (mysleft - Cheap) rebuild one section of fence (Cheap), refinish cabinets and wood floors (myself... cheap). I sold it in 11 days MYSELF (using Help-U-Sell). So don't be afraid of a fixer upper. Just make sure A/C is good and roof is good.
SEVENTH: GET A HOME INSPECTION BEFORE BUYING! This is a must! It will save you BIG TIME in the long run and is worth every cent! I'd also recommend a MOLD inspection (which is more $$... not included in a standard home inspection). These costs are generally out of pocket .... but can be worked into the loan if you DO proceed and purchase the home.
To wrap this up... I bought my second home across country... in one day. I had done internet research on the homes I wanted to see... contacted an agent and flew out from CA to FL to look at them. I had one day with the agent and while not committed to making an offer that day.... I did... it was the last house I looked at... on the water.... beautiful!!!! No one wanted it because the staircase banister was painted black.... as was the fireplace mantle... ROFL!!! People sometimes can't see past bad paint! This time I used Ditech.com.... My credit was stellar and I really didn't need any extra help from a personalized broker. Got my loan in 2 hours.....and was packed up and moving across country within 30 days.
The moral of this long ass post is.... "Home Ownership is DEFINITELY within your reach" ... and you SHOULD reach for it! It builds credit, responsibility and most importantly... the security that your home is TRULY your very own castle
