Jul 20, 2011

Home Mortgage

Planning a wedding is very stressful but I think purchasing a home beat it by a long shot. Buying a home is one of the most exciting objective in a person's life. I remember when I purchase my first condo and I could not believe that it's mine. In fact, I had trouble sleeping for few days thinking about my first real estate property. It is like a wedding which is a very emotional experience and very personal. Anyway, if you are planning to buy a home, make sure that your credit history is good.

A person with a good FICO score will naturally have less stress than one with poor credit. If you have a credit score of 700 or over you could encounter some problems but only minor ones that could be resolved quickly as this is an excellent credit rating. But, if your credit is bad, put aside your fears. Even if you have a poor credit rating, filed bankruptcy or gone through a foreclosure, it does not mean you cannot buy a home. You most certainly can buy a home with bad credit but you will be paying more than a person who has an excellent credit.

If you have poor credit, you must do your homework when purchasing a home. You must do research on lender companies which are known as hard money lenders. They may require you to put down between 20 and 35% of the selling price. Another avenue would be to check out the guidelines for an FHA loan. If you qualify, you could put down as little as 3.5% . Some lender's interest rate will be very high and the loan terms are not as favorable because they could contain a pre-payment penalty and could be adjustable. Just make sure that you know your financial responsibility when you purchase a house. In that way, you will not be pinned in a money pit.

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