How to Buy a House home

Learn the basics

1.

The Basics

2.

How much home can you afford?

3.

The Down Payment

4.

The Loan

-

Assuming a Loan

-

Owner Financing

5.

Qualifying for a loan

6.

Understand Closing Costs

Do the groundwork

7.

Get your finances in order

8.

Clean Up Your Credit Record

9.

Establish Credit if you don't have any

The Process

10.

Find a Lender

11.

Evaluate the bank's offer

12.

Start looking at houses

13.

Get the Disclosure

14.

Make an offer / Sign a Contract

15.

Have the House Inspected

16.

Problems on the Inspection?

17.

Renegotiate the terms

18.

Appraisal, Survey, & Insurance

19.

Appraisal went through?

20.

Closing!

After the purchase
Avoding scams
More about Mortgages
How much loan can you get?
Figuring your monthly pmt.
15- vs. 30-year loans
Prepaying your mortgage
Understand Compound Interest
Private Mortgage Insurance
If you won't live long enough to pay off the mortgage
Other Topics
Renting vs. Buying: Which is better?
Paying cash vs. getting a loan
The Debt Ratio
Tax breaks are actually welfare for the rich
Other
Links to helpful sites
Fan Mail
Michael Bluejay's home page
Email Me

How to Buy a House

Easy-Qualify loan in Austin

0% down

Michael Bluejay (the author of the website) is offering loans to homebuyers in Austin, Texas. Here are the terms:

  • Your credit does not matter, but your ability to pay does.
  • No down payment is required, though you can make a down payment if you like, in order to lower your monthly payments.
  • Your monthly payment will be about 1.15% of the purchase price, including closing costs, taxes, insurance. (e.g., on a $100,000 home, the payments would be about $100,000 x 0.0115 = $1150/mo.).
  • The interest rate is 10%, and I do not require private mortgage insurance. We'll roll most of the closing costs into the mortgage, so they'll be part of your monthly payment, and you won't have to come up with a bunch of closing cost money at the time of the sale.
  • If you already have a high-interest mortgage and would like to refinance at 10% for 30 years, I can do that too.
  • These loans are available for homes in Austin, Texas only.

If you're able to get a bank loan you should do so, because the interest rate will be lower. My program is intended for people who cannot get a loan from a bank.

Note that you're not married to the higher interest rate forever. If you start fixing your credit with my credit repair instructions, you should have good enough credit to move your loan to a bank in two years -- and get a lower interest rate.

Contact me at
(512) 322-0638

or use the form below.

Get your finances in order

« Back: Understand closing costs «

» Next: Clean up your credit record »

At this point you've learned what it takes to buy a house. Now it's time to get prepared to do so. Here's your financial checklist:

  1. Pay down your debt. The bank wants your total debt to be no more than about 38% of your income. If your income is $3000/mo. then the bank figures your total debt can be $1140/mo. But if you already have $1000/mo. in debt, then you have only $140/mo. left for mortgage payments. Pay down your debt as much as possible to increase your borrowing power. Pay down the highest-interest debt first (credit cards) before lower interest debt (car loans, student loans).

    Once you pay off your credit cards get in the habit of paying them off every month and never carry a balance. Few things can kill dreams of home ownership better than credit card debt. Pay down that debt! If you have a hard time paying down your debt then use the technique advocated by Charles Givens: Pay Yourself First. Every time you get a paycheck, take a portion of that paycheck and apply it towards your goal of paying down your debt first. If you wait to take care of everything else first you may never have anything left over to pay down your debt with.

    There's more about how debt holds you back in our sections on the Debt Ratio and How Much Loan Can You Get?.

  2. Get the down payment together. If you don't already have a down payment saved, start saving now. If you have a hard time saving then use the Pay Yourself First technique mentioned above: Every time you get a paycheck, put a portion in your savings account first. Pay yourself first so that money is definitely saved. It may help to have a separate account for your down payment, so it's easy to see its size completely separate from any other savings you may have. Remember, having a sizable down payment is the #1 factor in being able to qualify for a loan -- especially being able to qualify for a bigger loan.

  3. Clean up your credit report. Good credit not only helps you qualify for a loan in the first place, it helps you get a better deal when you do get a loan. This is a big topic so we cover it on its own page, next....

 

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« Back: Understand closing costs «

» Next: Clean up your credit record »

 

If you liked this site then you might like some of my other sites:

How to Find Cheap Airfare     How to Save Electricity     How to get listed & ranked well in Google

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