These home buying tips are for people who have or are considering buying a home, or were stopped in the middle of the process of purchasing a house for one reason or another.
Many people are unable to buy a house because they either lack the cash for a down payment, or their credit score isn't high enough, or they are unable to qualify for a loan, or they just have been laid off or downsized from their job. Any of the above financial roadblocks are enough to stop anyone from buying a house the traditional old fashion way.
Well, here are some traditional and non-traditional home purchasing tips to help you overcome these obstacles when buying a house.
Home Buying Obstacle #1: No Available Cash for a Down Payment
Traditional Home Buying Tip: Get a part time or 2nd job to supplement income for a down payment to buy a house.
Non-Traditional Home Buying Tip: Look over your budget to find out where your money is being spent.
Comment: Taking on a part time or 2nd job may be the answer to raising some additional capital for a down payment to buying a house. However, taking a closer look at your budget by tracking your expenses may reveal some unexpected expenses, which could also possible free up some extra cash and restructure your finances.
Raising extra cash for a down payment to buy a house is almost impossible when the budget is lock down tight because your paycheck is already spent before you get paid. Many people try to borrow the money for a down payment from someone, usually a close relative, or they wait until they receive a lump sum of money like their income tax refund.
You can also earn some extra cash or even buy a house without using any of your own money by becoming a birddog. In any event, regardless of how you raise money for buying a house, just make sure you hang in there long enough to see the change. Here is a 10 minute video on where to find the homeownership money you need.
Home Buying Obstacle #2: Bad or Low Credit Score
Traditional Home Buying Tip: Start paying all your bills on time
Non-Traditional Home Buying Tip: Obtain a copy of your credit report
Comment: The first step to increasing your credit score is to start paying all your bills on time. Many people's low or bad credit score is due to their inability to pay their creditors in a timely fashion. Obtaining a copy of your credit report will allow you to do two important things. First to find out who is reporting to the credit bureau, and second to check if your credit report has any errors and if it has been updated.
Knowing which companies are reporting to the major credit bureaus can help you when you need to prioritize your bill payments. Keep in mind, there will be much less damage to your credit score if you are late paying a bill that is not being reported to the major credit bureaus. You can order a free credit report from the three major credit reporting agencies, Transunion, Experian, and Equifax.
Despite your credit score you can still buy a house regardless of your bad or low credit score by becoming a birddog. Anyway, just remember, improving your credit score takes time so be patience. If you need to, you can also hiring someone to repair your credit for you. Here is a 13 minute video on elevating your credit.
Home Buying Obstacle #3: Unable to Qualify for a Loan
Traditional Home Buying Tip: Pay down or pay off your credit cardsand any other outstanding debts or loans.
Non-Traditional Home Buying Tip: Don't charge another thing or make any other large purchases before applying for a loan to buy a house.
Comment: Paying down or paying off any of your debts or loans will lower your debt and help you to qualify for buying a house. To qualify for a home loan your total debt must be lower than a certain percentage of your income. This percentage is referred to as the debt ratio. That's why it is important to not make any additional purchases on credit, so you won't exceed your debt ratio limit. When your debt goes over the limit you won't qualify for the loan.
Even though your credit cards may be maxed out you can still buy a house without qualifying for a loan by becoming a birddog. Paying off those loans and credit will take forever if you just pay the minimum amount due. Therefore, you may want to pay a little extra if and when you can. Here is a 14 minute easy to understand video on mortgage programs
Home Buying Obstacle #4: Don't have a job or worked on a job for less than a year
Traditional Home Buying Tip: Get or continue to work on the same job for at least 18 - 24 months.
Non-Traditional Home Buying Tip: Become a birddog
Comment: Showing gainful employment for about two years shows stability. Stability is important because if you are not gainfully employed then you are unable to pay back a loan used for buying a house. On the other hand, you can buy a house without even having a job if you become a birddog.
Even if you just started working a few months ago, or you currently are unemployed, you can still buy a house without a job by becoming a birddog. Becoming a part time or full time birddog can start you earning cash to buy a house. The best part is, you don't need a job to buy properties. For more buying information view related articles below.