Home Buying Questions: Low-Income Home Buying Programs

Continuing our list of questions to ask when buying a home, we come to another common question among home buyers:

"What are low-income home buying programs?"

In general terms, a low-income home buying program is any program designed to assist home buyers who may not otherwise qualify for a mortgage loan.

Normally, when you talk about low-income home buying program, you're talking about programs that have some form of government backing. In other words, the government backs or guarantees a loan on behalf of the home buyer.

Low-income home buying programs work by making mortgage lenders more inclined to loan money to a borrower who might not otherwise be qualified for the loan. The lender is comfortable doing this, because in the event that the borrower / home buyer defaults on the loan, the government has backed it. So the lender will be taken care of either way.

Learn More
We have a helpful tutorial on the subject of low-income home buying programs.

Happy home buying!

~Brandon

Home Buying Questions - Which Type of Home Loan?

Continuing our series on home buying questions, we come to a common question among first-time home buyers: "Which type of home loan should I choose?"

I avoid answering this question with any finality. I'm happy to teach people about the different types of mortgage loans, but only the home buyer can make that final decision. The best thing you can do is learn the pros and cons of each type of mortgage, try to determine how long you'll be in the home, and make your decision based on that.

Often, the decision comes down to two factors: (1) how long you'll be in the home, and (2) how comfortable you are with the uncertainty of changing interest rates.

Here's some information to help:
Types of Home Loans - A Home Buyer's Guide

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This blog post is part of an ongoing series of home buying Q&A.

~Brandon

Credit Score Tips - How to Increase Your Credit Score

Credit scores and mortgage loans go hand in hand. Or as Forest Gump would have put it, "Credit scores and and mortgage loans are like carrots and peas."

However you say it, one thing is for sure. Mortgage lenders will put your credit report / credit score under a microscope. Your credit score will also have a lot to do with whether or not you get approved for a mortgage loan, and to what amount you get approved.

With credit scores, and ounce of prevention is truly worth a pound of cure. It's much easier to maintain good credit than it is to repair bad credit. And when it comes to buying a home, good credit is your strongest ally!

Okay, so good credit is the goal. Pretty obvious, right? But less obvious is how you go about increasing your credit score. And that's just the kind of advice I have for you today:

• How to Increase Your Credit Score
• 5 Steps to a Higher Credit Score
• All About Your Credit Score
• Your Credit Report - Tips for Home Buyers

I hope you find this tutorial helpful toward increasing your credit score. And remember, an ounce of prevention is worth a pound of cure. So even if you think you're a few years away from buying a home, don't wait ... now is the time to start increasing your credit score!

Happy home buying,

~Brandon

Types of Home Loans - New Tutorial Posted!

We're pleased to announce the latest addition to Home Buying Institute -- a comprehensive tutorial on the basic types of home loans.

Choosing a mortgage type is one of the most important decisions you'll make during the home buying process. After all, that mortgage loan is going to be with you for a while ... until you (A) sell the home, (B) refinance the loan, or (C) pay the loan off. So it's critical that you learn the pros and cons of each type of home loan before selecting one.

One of the biggest criteria in choosing a home loan is the length of time you think you'll be in the home. For instance, if you only plan to stay in the home for two or three years, and adjustable-rate mortgage can save you money in lower interest rates. But if you think you'll be in the home for many years, a fixed-rate mortgage will help you avoid the uncertainty of long-term economic changes.

But you'll learn about all this and more in our latest tutorial:
Types of Home Loans - A Home Buyer's Guide

Happy home buying!

~Brandon

Scottsdale Real Estate - New Resource Posted

We've added another city to our growing list of hot real estate markets.

This time it's Scottsdale, Arizona, described by the New York Times as "the Beverly Hills of the Desert." With its posh lifestyle and world-class golfing, Scottsdale draws luxury home buyers from all over the country. It truly is a desert oasis of a city.

Learn more about Scottsdale real estate.

Happy home buying!

~Brandon

Shopping for a Mortgage Online - Tips & Advice

The Internet has changed everything about the way be buy homes, and this applies equally to the mortgage industry.

These days, you can shop for a mortgage online, obtain a mortgage quote online, and even get approved for a mortgage ... you guessed it, online!

But as with any other financial matter, you need to do your homework and be a smart consumer. Before shopping for a mortgage online, find out how the process works. Education is the first step to protection.

Some resources to get you started:
Online Mortgage Advice

Happy home buying!

~Brandon

Home Buying Question: How Do I Find an Agent?

Continuing our series on home buying questions, we come to the question: "How do I find a real estate agent?"

This is an important decision to make, and not something you should rush through. By choosing the right real estate agent, you can enjoy a much smoother home buying process. This is especially important if you're a first-time home buyer.

But how do you find a real estate agent? There are a lot of real estate agents out there, and they all have different specialties and skill levels.

Here's some information to help:
How to Find a Real Estate Agent

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This blog post is part of an ongoing series of home buying Q&A.

~Brandon

Home Buying Question: How Much Can I Afford?

Continuing our series on home buying questions, you must ask the next logical question: "How much house can I afford?"

Your mortgage lender will help you answer this question, because they won't let you take out a loan they don't think you can handle. But it's best to determine your budget before you even approach a lender.

Mortgage calulators are a great place to start. Using a mortgage calculator, you can divide a mortgage amount into monthly payments. This will help you determine where you comfort zone lies.

Here's an article that will help:
Home Buying - What Can You Afford?

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This blog post is part of an ongoing series of home buying questions and answers.

~Brandon

Home Buying Question: How do I check my credit?

Reviewing your credit report is one of the first steps you should take during the home buying process.

It's easy to obtain copies of your credit report. Yes, I said "copies" ... plural. There are three credit-reporting agencies (Equifax, Experian and Trans Union), so you should request your credit report from all three.

By law, you are entitled to one free credit report per year. You can request a copy from all three companies at once by visiting their joint website: AnnualCreditReport.com.

Once you've received your credit reports, you should go over them with a fine-tooth comb to look for errors or inaccuracies. Here's more info on that.

Learn More
This post is part of an ongoing blog series listing the most common (and most important) questions to ask when buying a home.

Happy home buying!

~Brandon

Home Buying Question - Where Do I Begin?

So let's assume you've answered the previous home buying question (Am I ready to buy?) with a resounding "Yes." So now what? You're ready to buy a home, but where do you get started?

A home buying profile is a great place to start. This is simply a list of home buying criteria to help you narrow your home search. Whether you work with a real estate agent (recommended) or decide to go it alone, a home buying profile will be a big help.

Here are some of the items to put on your home buying profile:

1. Target monthly mortgage.
2. Maximum price range.
3. Number of rooms needed.
4. Neighborhood or part of town (first priority).
5. Neighborhood or part of town (second priority).
6. Type of house desired.

Obviously, these are just some of the basics. But if you can fill in the blanks for each of these items, you'll be off to a good start. And don't worry ... we will fill in more of the blanks as we continue in this blog series of home buying questions.

Learn More
This is part of an ongoing blog series listing the most common (and most important) questions to ask when buying a home. Read more here

Happy home buying!

~Brandon

Home Buying Questions - Am I Ready to Buy?

For obvious reasons, this should be the first home buying question you ask yourself. After all, if you're not ready to buy a home, there's no point in asking all the other home buying questions.

This is a question that only the home buyer (or potential home buyer) can answer. Buying a home is one of the biggest financial decisions you will ever make, so you need to weigh the facts carefully and be honest with yourself.

Helpful Resources
Here are some resources to help you answer this all-important home buying question, "Am I ready to buy a home?"

• Are You Ready to Buy a Home?
• How Much Can You Afford?
• Buying vs. Renting Calculator
• The Buying vs. Renting Decision

Learn More
This is part of an ongoing blog series listing the most common (and most important) questions to ask when buying a home. Read more here

Real Estate Investing - New Section Open

We are pleased to announce the latest addition to our home buying website -- a new section dedicated to real estate investing.

Any time you buy a home, you're making a real estate investment. So in essence, our entire website relates to real estate investing. But the new section provides advice specifically for real estate investors -- those people who buy one or more properties solely for investment purposes.

The new section is in its first stages and will continue to grow in size over the next few weeks. We hope you find it useful.

Go there now:
Real Estate Investing Advice

Happy home buying!

~Brandon

101 Steps to Buying a Home

A few days ago, I blogged about a new resource on the website that listed the typical home buying steps.

I forgot to mention that we also have an extended version of that concept, this one offering "101 Steps to a Smoother Home Buying Process." Both contain similar home buying information, just in different formats.

• Read the 10-step version
• Read the 101-step version

How are we doing?
If you find the above-mentioned tutorials helpful, we would love to hear from you. If you think we need to add something to the tutorials, we'd love to hear that too.

Happy home buying!

~Brandon