The death of 100% mortgages

We got an email today stating that after March 1, the PMI company will no longer insure over 97.01%.. What that means to the consumer is the only way you can get an 100% mortgage is if you can find a company to do a 80% first and a 20% second (80/20 loan). That is not likely in our market right now. Very few if any banks are doing a 100% loans any more. So if you are thinking of buying a home this year, start saving money. You will either need to borrow 3% from a relative or have 3% of the purchase price in your savings account. FHA loans may become very popular. For more on credit scores, mortgages, buying foreclosures, FSBO's, negotiating tips, and Michigan real estate go to my website www.RussRavary.com

First time home buyer

Buying your first home can be scary, but if you follow these tips, you will do just fine! Many young people do not realize that they can afford a home, they can get approved for a mortgage. Sometimes you need little or no money to buy a home. There are Government programs for first time homebuyers (FHA) and there are 100%, no money down programs.

The key is to plan ahead. You may need to repair your credit, save for a down payment, get more time on a job, save for closing costs. You need to know what you have to do to get started. You may be one of the "great buyers" and have everything you need to get started right now and not know it!Many times you do not need money. We can ask the seller to pay your closing costs. There are many programs that offer low rates and no money. 100% financing may be the way to go for you. But taking the first step and seeing what you need to do now is important. It will make the home buying process so easy. Call me to set up an appointment to go over your credit report, and credit scores.
You may have imperfect credit, have to much debt, or improve your credit scores. The key is to get started. Even though you may have bruised credit, or too much credit I have helped many people improve their credit. They then we able to buy homes.
Create Your "Wishlist"Make your wish list. Focus on the features you want in a home: 2 bedrooms or 3? 1 bath or 2? Garage or no garage? Knowing what you're looking for will help you focus your search. And it will help your local Wayne County real estate broker, too.

Search Michigan houses for sale. Think about where and why you want to buy in an area. How far to work? School? Family?Drive by, and look at many Wayne County homes (again we handle Oakland County houses for sale, Washtenaw county houses for sale, Livingston County houses for sales, as well as Wayne county houses for sale. We just use Wayne county as an example in this report). See as many possible to get a better feel for ones available in your price range. Visit my site often and search for homes. Keep track of what you like and dislike about each home that you visit by printing and using our Home Visits Worksheet.
Also consider the market value of the home, any special circumstances surrounding the sale of the home, how much you can afford to pay for the home, and the condition of the home when determining whether the home is right for you.
When you find a Wayne County home in your price range and you want to buy it, visit the Wayne County neighborhood at various times to get a more complete understanding of its activity. Talk with your prospective neighbors about what it's like to live in the area. Take a day and commute to your job from the area. And look at the home more critically -- you may discover flaws you hadn't noticed during your first visit.
Another aspect to consider is the financing you will use to purchase the home. For example, the seller may help pay closing costs such as transfer taxes or points on a mortgage. If this is the case, you may be more willing to accept the seller's asking price. Your local Wayne County real estate sales professional (Russ Ravary) can offer some assistance regarding how much you should offer, but the final decision is yours.

No Money Down Purchase

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