More Help Than The Average Mom And Dad Can Give
If you are not familiar with the ins-and-outs of real estate in its central role to the American Dream you could be forgiven for thinking that homeownership is out of reach of the average person.
Conventional practice without any help is to have a deposit of twenty percent, a host of professional services and agents as well as records and printouts of every detail of your life to date. It sounds exhausting and overwhelming. Fortunately there is a reason that homeownership is part of the American Dream. You will find it is actually still surprisingly accessible, once you start to dig into the details.
Homeownership Gets A Helping Hand
If you have never owned a home before but you have a job history, been renting your home and not too much debt, you can get into home ownership with the help of one of several government programs that are designed with the first time buyer in mind. You can call upon programs such as FHA form the Federal Housing Administration. If you have served honorably in the military the Veterans Administration has an excellent home loan program for veterans.
These programs are designed to get you into a home, even if you don’t have a huge pile of cash for the deposit. You can make a small down payment and just cover the costs of closing. This will save you thousands on what you might otherwise be expected to pay to get your hands on the door keys.
Low down payments on FHA loans are possible because of private mortgage insurance; VA loans have no such requirement (making them a great deal if you can qualify). PMI is an added cost. However, even including it, you may find that it is less expensive than renting an equivalent property.
Easy To Use Lending Practices
Your lender will also help to keep it organized by handling the PMI payments and property taxes as part of your monthly payment. PMI is due monthly but property taxes are normally due twice a year. Your lender sets aside the amount so that you don’t have to worry about calculating and saving the monthly share of a semi-annual payment.
When you start to look into the issues you will find that you need to get in good enough financial shape to make payments and clear off any excessive credit balances before you begin house hunting. You will need to get pre approved for finance and then find a realtor or broker that you want to work with to find your first home.
Once you are at that point the professionals will help to get you through the biggest purchase of your life to date. You don’t need to feel overwhelmed by the process because your agent and lender, as well as the government program that you join, will do all of the heavy lifting for you.
Dream The American Dream And Start Saving Up Today
Given and reasonable income stream and not too much personal debt it is still very possible to get your own piece of the American Dream. Government backed loan programs, private mortgage insurance and tax payments through your lender will take the burden off you as you become a new homeowner. Speak with your local real estate professional today and get ready to get enthusiastic about joining in the adventure of homeownership in America.