How to become a homeowner in Baltimore
Owning a home is the American dream which seems out of reach to many of the residents of Baltimore due to the unavoidable multitude of lenders going bankrupt and stiffer requirements for first-time home buyers.
Yes, you can own home. There are some tips a potential home buyers need to be aware about before considering a purchase of a home. Precision Funding and Pillar Property Group would like to share with readers some of these tips.
“There are many licensed bankers who do not work in per say banks that will spend the time to find lending options for first-time home buyers,” said TJ Noye, Precision Funding.
In today’s real estate market, traditional lenders are becoming more nervous in approving home loans than they have in the past other decades. Even those with an extremely high credit scores will find that obtaining a home loan is not an easy task. Do you give up on the idea of owning the American dream.
“We have worked with Precision Funding to obtain home financing for many first time home buyers who did not think they had a chance to own a home,” said Ian Johnson, Pillar Property Group.
You should consider these steps to help you achieve the dream of owning a home with that picket fence:
Look beyond traditional lenders
• There is no doubt when you go to the bank you are dealing with a licensed professional when discussing financing options for your first home. Yet, they are only limited to the programs they may offer the consumer.
• Licensed banking professionals do not need to be in a banking setting to provide you with a home loan. They tend have more latitude than those in a traditional setting.
• Also, those licensed professionals outside the realm of the banking industry will give you that personal touch meaning they will sit down and discuss your options based on your credit.
Check your credit and have it explained to you
• Any of us can check our credit score via online. But, have you had anyone sit down with you to discuss the significance of each of the three reports. If you have the time to research online, it still seems baffling for the average consumer.
• Many independent licensed banking professionals, such as those at Precision Funding will spend the time to speak with consumer about the importance of each of those scores and how they weigh on lending options.
• The credit score rating system ranges between 300 being the worst and 850 being excellent. These scores will determine your interest rate for that home loan. If you don’t have perfect credit, there are other options to consider such as rent to own from Pillar Property Group, while debt settling services from Precision Funding can address the issues on your credit report.
Showing your financially mature
• You will need to have both a checking and savings account in this current real estate market when going to a lender whether traditional or independent. Having these two accounts will show you have moved into adulthood like your parents.
• Lenders are observing from your banking information on whether you have consistently overdrawn your account and whether you have made conservative efforts to increase the funds in your account.
• Keep in mind there is a possibility you might have to put 10 percent down payment of the purchase price of the home. This down payment means you are showing your sincerity towards the purchase, so start saving now to avoid disappointment of being denied a loan because you do not have the funds available for a down payment. Again you could a rent to own option where you pay as you go.
Job history plays a factor
• It is not just enough you have strong credit score. You need a stable work history for lenders to take you serious. If the see an erratic employment history, you most likely will not be approved for the loan.
• You need to have a minimum 6 months of full time employment before any consideration would be made for a home loan from a lender is the rule of thumb.
• You need to inform the lender of your expenses. Credit card debt, student loans, and auto loans all count against your overall income when it comes to considering how much of a mortgage you can afford.
• These items will be taken into consideration by any reputable lender so get as much of your outstanding debt paid off as possible before even considering applying for a mortgage.
“There are many different avenues I can examine for the first-time home buyers who wish to purchase their first home,” said Noye.
For more information on these programs, contact http:www.precisionfundingamerica.com