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.

If problems were found on the inspection...

« Back: Have the house inspected «

» Next: Negotiate new terms »


What do you do if the inspection turned up significant physical problems with the house? That depends on the contract, and whether you paid an Option Fee.

If you put down an Option Fee when you signed the contract, you have three choices:

(1) You can back out now and forfeit the Option Fee.

(2) Or, you can negotiate with the owner to see which items the owner is willing to remedy. Or see if the owner is willing to drop the price of the house a bit. (We'll cover these kinds of negotiations on the next page.)

(3) Or, you could accept the house as-is if the problems found on the inspection were minor, or if you enjoy fixing things yourself.

If you didn't put down an Option Fee, and you wrote into the contract that the seller has to fix problems that were found:

The seller has to fix the problems found in the inspection that the contract requires him/her to fix, and then you'll have to buy the house. (You can have the house re-inspected if you wish to make sure that the inspector agrees that the owner remedied the problems properly. A re-inspection costs a fraction of the original inspection.)

If you didn't put down an Option Fee, and you didn't write into the contract that the seller has to fix anything:

Now you have to buy the house no matter what problems were found. (Your only out is if the contract says you can walk if lender-required repairs exceed 5% of the purchase price.) You could ask the seller to fix the problems, or to drop the price of the house, but they're under absolutely no obligation to do so, and if they so no, there's nothing you can do. Don't get yourself into this position. Either pay an Option Fee when you sign the contract, or write into the contract that the seller will make any and all individual repairs which exceed $500 or so.

Note that if there are significant problems with the house (e.g., foundation, plumbing) your bank might not be willing to go through with the loan unless someone (you or the seller) puts the repair money into escrow to ensure that the repairs will be performed.

.

Amount spent so far.   Red items apply towards the purchase. Amounts are typical, not exact.

$40

Credit Check

To the Lender

$150

Option Fee

Paid to the Seller. Might apply towards purchase, depending on contract. Allows you to walk away for any reason.

$1000

Earnest Money

Held in Escrow, probably by the Title company

$400

Inspection

To private inspection company to find physical problems with house

$100

Termite inspection

To private company; required by your lender

($700)

Termite treament

(If necessary)

$1690 - $2390

Total

« Back: Have the house inspected «

» Next: Negotiate new terms »

  

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

Entire site ©2006 Michael Bluejay Inc. • All information is "use at your own risk"   Email me