How to Buy a Home With Zero Down

How to Buy Your First Home With No Downpayment

As a result of all the hype surrounding changes in the mortgage industry, there’s been a lot of confusion regarding zero down and first time homebuyer loans.

The news isn’t so bleak as you’ve been led to believe. There are still loans for first time homebuyers and zero down loans are still available.

The changes relate primarily to minimum credit scores required. Those changes likely won’t affect most first time buyers provided they pay their bills on time. You’ll need to consult a mortgage professional for details on this as it may affect your personal situation.

Regardless of whether you’re a first time buyer or an old pro, it’s an excellent idea to find out how much you qualify to borrow prior to beginning your home search.

Armed with this information, and a pre-approval letter from your lender, you’re ready to begin your search.

Having a loan pre-approval letter in your pocket when you make an offer on a home places you in a very strong bargaining position. The seller, knowing that you’re a capable buyer will weigh your offer carefully in light of this information. This often results in a more favorable outcome for you. Sellers are much more likely to accept a lower offer when they know that you have the power to purchase their home.

In order to obtain a loan pre-approval (as opposed to a pre-qualification) you’ll need to meet with your mortgage professional and provide the needed documentation. This usually requires that you physically meet, and go over the information together.

Prior to your meeting, it’s also a good idea to have gone over your credit report and resolved any errors or surprises. You may obtain a free copy of your credit report by going to http://www.freecreditreport.com/ or http://www.annualcreditreport.com/

Please let us know if you have any questions, or need clarification of any of the information above. Our contact information is available at: http://www.themesarosteam.com/