DO I NEED MONEY TO BUY A HOME?

By
Real Estate Mortgage Broker with D A Griffin Financial.LLC NMLS 6380
http://actvra.in/Thy

DO I NEED MONEY TO BUY A HOME?

money

I get this a lot, as a loan originator a potential home buyer calls, especially a first time buyer and we discuss what is needed to buy a home. We cover the credit history, the job and income history, record two years of residence history, talk about debt to income ratio, then we get to the savings.

DO I NEED MONEY TO BUY A HOME?

There are several loan programs that do not require a down payment, or one can use a grant program in some cases. So, having a down payment saved is not always necessary, but the question is "Don't you want a safety net?". When you own a home things break once in a while,  having no funds to make repairs can make home ownership not so appealing. Or if you have no savings trading a rent payment for the exact house payment may be less than ideal. 

 

You  may not NEED money to buy a home, but you are going to find it much more comfortable to have a little pad. The best thing to do is when you first think of buying a home, hook up with a loan originator and work through the basics. Then make a plan to save for a down payment or a rainy day. In some instances having some reserves may be the difference between an automated underwriting program accepting the file. 

Everyone wants home buyers to be successful home owners, having some savings is a big part of that. Having some skin in the game is a term we hear a lot these days. Back in the day buying a home was much harder, you had to save for a down payment,  have reserves and perfect credit. We've come a long way to make home ownership more widely available, which is a good thing, don't overlook the value of savings. 

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Re-Bloggged 4 times:

Re-Blogged By Re-Blogged At
  1. Debbe Perry 04/10/2013 05:59 AM
  2. David & Lisa Webber 04/10/2013 07:20 AM
  3. Jose Gomes 04/10/2013 02:02 PM
  4. Winston Heverly 05/02/2013 06:23 PM
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Topic:
ActiveRain Community
Location:
Kentucky
Groups:
Mortgage Brokers
Realestateandfunding
Mortgages
Mortgage Professionals
Cincinnati Real Estate
Tags:
loan originator
savings
home buyer
do i need money to buy a home

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Rainmaker
115,968
Dora Griffin
NMLS 6380
D A Griffin Financial.LLC

You are right, Ric, lenders do look at savings among other things. FHA may say one can buy a home with a 580 credit score for instance, but not all lenders will do that. Often with lower scores come higher reserve requirements.

Dana they need to trust us to educate them about all aspects of home ownership. Being perpared for the XXX breaking is important! 

Thanks for your comments!

April 11, 2013 06:51 AM
Rainer
213,783
Lehel Szucs
REALTOR of choice
All Seasons Real Estate, Inc.

go VA and you need no money ... there are some other loans out there also with no need for money .... but you must have money to keep up the maintenance ... I do not like these no money down loans ...

April 12, 2013 10:49 AM
Rainmaker
842,308
Steve Loynd
800-926-5653, White Mountains NH
Alpine Lakes Real Estate Inc.,

Dora...like so many of the others who commented - it is harder to walk away when you have real money in the deal. One other point, "EQUITY" is staying power - I work in the vacation home business you "NEED" 20% down to buy...and after all the issues we saw in the last 6+ years - it's no surprise not many of my buyers walked from homes.

April 14, 2013 07:24 AM
Rainmaker
115,968
Dora Griffin
NMLS 6380
D A Griffin Financial.LLC

Steve, skin in the game should matter I think. With so much equity lost it seems it would just makes sense. Here's hoping we have better times ahead as to equity growth.

April 15, 2013 06:11 AM
Anonymous #84
Anonymous
CheliOS
Hi! #ajgoreigFARE
August 24, 2013 05:37 AM
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Rainmaker
115,968

Dora Griffin

NMLS 6380
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