Are you thinking of buying a home but you have no money to put down? There are still no money down mortgages. What that means to you is that you can actually still buy a home and not have any money in the bank or need money for closing. And it is perfectly legal!!! The banks will lend you the money at a higher interest rate (not much higher than normal).
The banks categorize you, the new home buyer as a higher risk since you do not have money, so they charge a little more. You will have to have good credit in this market to get a 100% financing loan.
Do you know what closing costs are? There are fees associated with closing on a home. You have to pay the seller of the home back for taxes he paid in advance, you have to pay for an appraisal, bank fees, and title costs. Depending what state you are closing in those costs can range from $1500 -$3000. But don't worry those costs can be covered too if you have a good real estate agent. Your real estate agent can put in the purchase agreement that the seller will pay 3% of the selling price towards your closing costs. You can actually buy a home with no money what so ever!!!
However it is better to put money down to buy a house. You will get a better rate, and most of all you will truly feel home ownership because you have something invested. You can get an FHA mortgage with only 3% down! I will go into that in my next blog.
If you are interested in finding out whether you qualify to buy a home, go to my web site on Oakland County Homes www.russravary.com You can email me from the site or fill out one of the many forms for information.
Also if you want to Search for Michigan homes free go to the site. Or click on search for Michigan homes free.
Drive safely and if you break a traffic law by accident may there be no policeman around to give you a ticket! Russ Ravary
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