Why are you waiting to buy?
If you’re one of the many people out there who are looking to buy their first home, you probably have some ideas about what you need in order to make your purchase. But is your information accurate? At the Matin Real Estate Group, we work with buyers everyday who are unfortunately misinformed when it comes to buying a home. Maybe they think they need to keep saving for their down payment, or that they need a pay raise? Or maybe they’re trying to pay down debt or build up a work history? Well, the fact of the matter is, some of these factors matter and some just plain don’t.
First of all, let’s talk about work history. Let’s say that you’re in a nursing program, or some sort of vocational training program. If you get a job in your field of study after you’ve completed your program, you can apply those years of study to your work history. A lender will recognize your qualifications and that your earning potential is relatively high so they’ll be willing to work with you and get you in to a home. If a bank is willing to make that investment into you, why wouldn’t you be willing to do the same? If you’re going to be making good money, why not take advantage of the tax savings and start growing your equity?
Next let’s talk about down payments. The common misconception here, is that people think they need at least 20% down. This just isn’t true! I personally bought my house with less than 4% down and it continues to be a great investment. There are even some programs that allow for as little as 0% down! My advice is to always reach out to a lender so they can walk you through all your different options. Whether you qualify for a V.A. loan, or a USDA loan, or a 5% loan, I’m confident that there is a program out there that will work for you. Now, with that said, it’s always a good idea to have a little bit of money in the bank. You just may not need as much as you thought.
Now let’s talk about your credit score. Obviously it would be ideal if you had a high credit score, like say something above 800. Often times however, that just isn’t realistic. I myself struggled with poor credit when I was younger and I was still able to get myself into a great home. In fact, I’ve seen people get approved for a loan with a credit score as low as 580! Typically, lenders don’t like to approve anyone with a score lower than about 600 but, it certainly isn’t impossible. Furthermore, there are things we can do to help you build up your score quickly. Maybe we can pay something off, or re-allocate some of your funds to areas that will help your score jump quicker than you thought possible. It’s not always as simple as just paying off your debts so again, I recommend working with your lender to make sure you’re paying off your debts most effectively.
So if you’re considering buying a home, but you’re not quite sure if you’ll be able to, please reach out to us. We’ll give you the guidance that you’ll need to start taking advantage of the many benefits of home ownership.
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