The fact that the US has 3.9 million homes for sale and most of them come from foreclosures means that newer and more efficient home loans must be offered. The truth is that getting a home loan is easier now than it was before the real estate boom, you just need to look in the right place. In the next article I will tell you where to look for the lowest interest rates, and also what banks will look for when qualifying you.
To resolve some of the mysticism and shed light on this murky subject, I advise my clients to specifically apply for government loans such as FHA or VA (Federal Housing Administration, Veterans Administration). I say this because the government has put money into these apartments and they are eager to generate income by lending them out on home loans. For example, the FHA offers first-time homebuyer programs, loans that allow 3 or more borrowers, down payment programs with little or no down payment, and offers the lowest interest rates in the country backed by the federal government. The FHA is a great place to look for financing as they are rewriting the book on stable and sustainable home financing now and for the future. You’ll stay ahead of the curve by empowering yourself with knowledge of specific programs and the constant changes being made to government lending. So now that you know where to look, what will determine whether or not you qualify?
The first place to start is to find a quality professional loan officer and real estate agent who specializes in government loans. What they will tell you is that banks are looking for credit, ability to pay, and collateral like 401k or cash on hand. I suggest using a local loan officer to help you establish your credit scores, obtain documents, and calculate payments. Since most loan officers work on commission only, they are free to get started and are usually very smart and enthusiastic professionals. (For a list of loan officers I work with and recommend, please contact me) These 3 C’s of Financing are the most widely accepted terms for financial professionals and speaking the same language as the professionals is the best way to ensure Gather all the right facts.
So now that you know where and what to look for, go out and see what’s for sale. I bet you will be surprised by the price, and it may even be cheaper than the rent you currently pay. Be sure to consult a professional, speak the same language, and apply for government-backed loans.