How To Buy The BEST Home At The Lowest Total Cost,
Even If Your Credit Has Taken A Few Hits
Editor's Comments: Here is a different insight into borrowing, and a good primer on the lending business in general.
How To Buy The BEST Home At The Lowest Total Cost, Even If Your Credit
Has Taken A Few Hits
by: Bethany D'Souza
Buying a home can be one of the most
exciting purchases of your life. Real estate itself is a
great investment. When is it profitable? If it has the ability
to one day produce the buyer cash flow and if the mortgage is
handled well at the time of purchase. The purchase is very complex,
including Title insurance, inspections, negotiations and sorting
through various types of home loans.
Editor's Comments: The key is that you do not pay too much of a premium for your credit issues. If you are a B borrower, it would be a good deal for your lender to charge you C rates and profit at your expense.
If it is your first home
purchase, it can also end up being nerve racking, scary or even
overwhelming if you are not working with the right people. Don't
worry! Buying a home is the best decision you can ever make! If you
have a bankruptcy in your history or have ever been written off by a
credit card and taken to collection, you know that your credit is less
than perfect.
Many mortgage lenders play off of this bad experience
and make you feel as though you deserve less of a house than what
you are trying to purchase. This is because you are considered on
paper to be a larger risk to that company and if they can convince
you to feel guilty, you are less likely to do your own homework on
loans.
This allows the mortgage company to maximize their
commission when writing your loan. What many will not tell you is
there are 234 different types of Home loans. There is going to be
one that is right for you.
In fact, you may be able to buy more
home than you think! Only one day out of bankruptcy a person is
eligible for a home loan. A home purchase will only aid in faster
credit repair.
In today's market with still national historic low
interest rates, the most popular program educated buyers are
looking for is the Zero-Down or Pick and Pay options.
These are such simple concepts and to better understand them, let's look at
what it actually means to have a low interest rate and why a person
would not want to begin an investment with zero equity: When
comparing investments, equity in a home actually earns you 0% in
return.
If identical twins A and B were both to purchase a home for
$100,000 with person A on a 100% mortgage and person B has 100%
equity, who is living cheaper? It is actually person A because she
has her money invested at a higher return than the annual 3% raise
in property value in her area. On top of this, everything Person A
has paid in interest on the mortgage is a tax deduction that their
twin does not get to take advantage of.
Editor's Comments: I agree that home ownership is the fastest way to repair your credit. Your best friend is your mortgage lender, because she gets you the money! If you don't already know a good mortgage loan broker, find one fast.
