10th Mar 2010
First Time Home Buyers – Steps To Handle Mortgage Crisis!
First time home buyers, take these 6 steps to aid you during this mortgage crisis! The mortgage crisis doesn’t have to prevent you from buying a home. There could never be a better time to buy. Follow these steps to navigate the crisis and succeed in purchasing that first home.
Purchasing a new home during the time when most people are scared and find themselves holding back may seem like a bad idea. I know, you’re saying “Wait a minute, we have a credit crisis how am I supposed to buy a house?” Relax….No doubt, this country is in a mortgage crisis. But YOU are not. Why do I say this? Because you do not have a mortgage that has gone into default, or an adjustable interest rate that adjusted etc….etc….etc.You have nothing to worry about since this mortgage mess does not really affect you.
Let’s look at the bright side of this. With all the foreclosures, bank failures and credit squeezing going on, you, the first time home buyer are in the perfect storm!! How can you take advantage of this mortgage crisis? Read on and I’ll explain.
The very thing the US government wants banks to do is lend money to home owners. They even have loan programs where they guarantee the banks against defaults. Yes FHA has been around for many years. Congress created the Federal Housing Administration (FHA) in 1934. The FHA became a part of the Department of Housing and Urban Development’s (HUD) Office of Housing in 1965.
The problem is, the banks seem to feel differently about lending money. The lenders are hoarding cash like there’s no tomorrow. But, that does not have to stop you. Don’t worry, I’ll show you what I mean. If you qualify, you can get an FHA home loan.
WHO CAN QUALIFY FOR AN FHA HOME LOAN?
They can be first time home buyers or it may be their second home or whatever. It really does matter. All you need to do is meet the FHA guidelines as a home buyer. I once thought FHA loans were only for first time home buyers. That simply is not the case.
Now you may wonder how I can say this with such confidence. I’ve been around for some time now. I’ve watched markets rise, then sink and rise again. I’m not some spring chicken here. Mortgage interest rates are now at all time lows. Housing prices are the lowest they have been in decades. There can be no better time to buy a house!!! Besides, why not do your part to jump start the USA economy.
So how do you get started? Here’s 6 things to do:
Know your credit score
Repair your credit if needed
Find a good FHA lender
Get pre-approved for an FHA mortgage
Locate a good realtor
Buy your first (second, third, etc) home
I know that all sounds easy. After all, can you really do it in just 6 simple steps? Yes, but there are some important details you need to know before taking each one of those steps. Let’s briefly talk about them one at a time.
KNOW YOUR CREDIT SCORE
This is not all that hard. Did you know you can find out your credit score for FREE? One time a year you can request your own personal credit report. You must do this first!! Once you have that report in hand, you might discover a few things you did not know or like seeing on there. Thus you may find yourself in need of credit repair which is a whole other topic I’ll write to you later. This is where you start no matter what.
REPAIR YOUR CREDIT IF NEEDED
Ok, perhaps you learn you need help with your credit. Maybe things in past have not gone so well for you. Don’t worry, you can do credit repair by yourself if you have the right information. I’m happy to help you here if this is the case for you. This can be a rather daunting project, but because you’re determined to become a first time home buyer you’re up to the task right? OK then, let’s move on.
FIND A GOOD FHA LENDER
Now you’re credit is in decent shape, we need a good FHA lender. Remember earlier how I said the US Government wants people to buy houses? Well, after all the bank failures in 2008, there is still one good loan program out there for first time home buyers. The FHA loan has been around for over 74 years now. Heck, I bought my first home using an FHA home loan in 1978. It was great!! The house I bought was a foreclosed home in bad need of repair. I was fortunate enough to have a builder/realtor that got me qualified for an FHA mortgage, then I purchased the home and he repaired to brand new conditions. Now you can do the same thing. I can show you.
GET PRE-APPROVED FOR AN FHA MORTGAGE
Once we have our credit in shape, we have found a good FHA lender, now we need to get pre-approved for that FHA home loan. This is a rather simple process that can be handled over the phone, e-mail and overnight package deliver. Forget DHL, I guess they’re out of business!! This current economy stinks, but we still have Federal Express and UPS. Oh yes, don’t forget the US Postal system! (Not recommended) Don’t worry, since I can help you find a good FHA lender, we can do this together. Once you complete the mortgage application process you’re on to the next step.
LOCATE A GOOD REAL ESTATE AGENT
During this mortgage meltdown, many real estate agents have left the trade and gone looking for other income. Guess whose left?? Only the good ones!! Yes any real estate agent left standing during this financial disaster we find ourselves in, is bound to be strong. So how can you pick one that is REALLY GOOD? Since only the cream of the crop is left over you can have your pick!! Again, I’m happy to help you know what to do here also. You can interview them as candidates for a job since they will be working for you. Please visit my site to learn more.
BUY YOUR FIRST HOME
Now we get to the good part. As a first time home buyer, you’re ready to own a home. The selection process is a stressful thing. However, with the right kind of help you can know how to tell a good home from a bad one, a good deal from a bad deal etc. Once again you need someone on your side in this area also. Since I have experienced buying several homes, perhaps I can help you. Since I’m also a builder, I understand home construction. Also I was once a loan officer working for a great FHA lender, so I know mortgages. Especially the FHA mortgage since I closed millions of dollars in FHA loans across the USA. I’m now retired!
So who am I now? Someone that can help you understand the language, the mortgage process and such. If you need further information I put together a website loaded with details on all 6 steps. I offer tons of free reports etc. to help you make an educated decision. There has never been a better time for first time home buyers. Everything is in your favor. Take advantage of the mortgage crisis and purchase your first home now.
Jeff Ragan wants you to help you learn more about the first time home buyers home buying process and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.
For over two decades now Mr. Ragan has helped people reach their goals. With his years of experience in construction, real estate investing, mortgages, credit repair and more, he can help you find the home of your dreams. By teaching others how to make educated decisions based on accurate knowledge, many have found him to be a good source of information.
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