Six Steps to Help You to Buy a House With Low Income
Hello again and welcome to Houston First Time Home Buyers Edition. Most people think that buying a home with low income is not possible, but it is. There are low income home loans, down payment assistance and zero down options that can help first time home buyers with low income to become home owners now. Here are six steps you can take to help you to get the process started so you can qualify to purchase a home you can afford.
Review your credit report and scores - A minimum score of at least 620 will be required for FHA loan. For USDA loan, you will need a 640 credit score. Request a free copy of your credit report, once received, look for errors and take care of them.
Reduce your debt- too much debt can prevent you from getting the mortgage loan you need to purchase your first home. Think about refinancing high car and credit card interest rates. Start paying off or significantly paying down credit card balances and avoid large purchases in the process. Large purchase is $500 and above.
Down payment and closing cost source - ask your Realtor for lender referrals and speak with 2-3 different ones about various down payment assistance programs that will help to cover your down payment and closing cost.
Upfront home buying fees - that include but not limited to earnest money, inspection fee and appraisal fee are monies you will need to pay upfront out of pocket. For example, if you are purchasing a brand new home, the required earnest money amount may be $3,000. While your agent can negotiate this amount, having it ready to go will help to make your home buying process a pleasant experience.
Be realistic with your home buying budget - Looking a home that is outside your budget will not be productive. As a low income home buyer, it will be best to view homes that you will be able to affordable comfortably and without financial strain. Also, keep in mind that owning a home does come with ongoing expenses like annual HOA fee, property taxes, repair and maintenance costs.
Cosigner- a cosigner can help strengthen your mortgage application and make it a lot easier for you to qualify for a mortgage loan.
These steps will help you to plan a head so that when you begin your home buying process it will make it a lot easier for you to qualify for your mortgage loan. As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please give us a call 713.204.8013 or Email us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...
