I am not an expert in this subject, I’m still trying to figure this all out. I figured I could write about what I do understand so far and I will post more on the subject as I learn more on the subject.
I was looking into getting a house because renting isn’t always the best option since you are depending on the person who owns the property. I don’t have the money to buy a house right now for sure, but the first thing I would have to understand is, how does someone even buy a house.
Let’s start with what I do know. Houses are expensive and I am not going to have the full amount in cash so that means I need to get a mortgage for the house I want. So before even looking for a house I need to look at what mortgages I would qualify for.
I spoke to a realtor and apparently you can’t even make an offer unless you are pre-approved for a mortgage. Not necessarily approved but you have to have a pre-approval. So I spoke to a financial specialist they recommended to see if I have all the things that they look for to pre-approve someone for a mortgage.
There are several things they look into:
- Debt to income ratio
- At least two years working in the same field of work
- Credit score
- How much of a down payment you can make
- 3 months of bank statements (to ensure you can consistently make the payments)
When buying property if someone was helping you out with the payment and are not going to be owning the place as well they have to be a close family relation in order to lend you the money. For example, a friend can’t give you $30,000 to help you with your down payment. They do a trace of large sums of money into you account.
Once you can get pre-approved for a mortgage you know what your price range is on the property you can start to look for. That is when you want to contact a realtor about finding something in your range that has the things you want.
This is as far as I’ve gotten with my research and experience into the subject. But as I look into other options and get more information I’ll post again on the subject! If anyone has helpful information on the subject feel free to leave a comment or contact me.
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