Your own house as new year’s resolution
I remember when I wanted to buy my first house, I had just moved to USA in November 1999 I was 24. As a resolution for the new year I set the goal of buy a home within 2 years. I quickly started researching on how to prepare. Here is the awesome advice I got and up until this day I am appreciative for it, I became a homeowner in June 2001.
1. Start your credit as soon as possible but don’t open more than 3 lines of credit, that’s all you need, in case you only have one, alternative credit can be use too. Examples of alternative credit; apartment lease, utility bills and other payments where you make monthly payments but not necessarily appear on your credit. Traditional credit which is the one that appears in your credit is mostly revolving credit or credit cards, also car payments but the problem with a car payment is that takes away a substantial amount of buying power of your home if your income is not high enough to cover home and car payment them you won’t be able to reach the goal until your income is higher due to the car payment. Back then I was being guided by a lady real estate agent who was patient and very helpful.
2. Work history is a must, you need 2 years with less than 2 months space between jobs. The more consistency in a job the better, lenders like to see consistency but if you switched jobs 2 or 3 times during those 2 years it may still be possible.
3. Savings, 401K, retirement plans or other forms of savings are needed and beneficial. Even If you qualify for help with funds for the down payment you need between 6 to 9 thousand dollars to cover lending closing costs. There is no commission on the real estate part as is customary in Colorado the seller pays for it. Sometimes we can find lending programs that reduce or cover with grants half of the closing costs, also in some cases we can have the seller contribute with the rest of your closing costs and at that point you can buy with a minimum contribution of 1,000 or 500 dollars.
Those 3 components well managed will get you where you need to be at to start the process and buy your house. I became an agent soon after buying my first home inspired in the agent that helped me. My team and I would love to guide you from A through Z and hold your hand until you achieve the goal of homeownership. Hablemos claro con Diana & Team Altitude Denver Colorado 720-297-1368.