Greg Roy asked:


When was the last time somebody credible offered you thousands of dollars in free money? For most of us, that just doesn’t happen every day, or ever at all, for that matter.

However, if you are considering purchasing your first home, there are very credible sources that genuinely do want to give you thousands of dollars in free money.

Those sources are state and federal agencies, and the thousands of dollars of free money available comes to you in the form of a cash grant to help you buy your first home.

It is no secret that saving for a down payment and closing costs is the largest obstacle that first time home buyers must conquer. For millions of Americans, this obstacle is one that is nearly impossible to over come. After paying monthly rent, utilities, food, insurance, car payments, (as well as the high price of gasoline), clothing, phone bills, day care for the children, and many more recurring monthly bills, there is virtually no money left to set aside to save for a down payment for a future first home.

The federal as well as state governments recognize this situation and have created special programs for the very purpose of giving away money to help people in need buy their first home.

A reasonable person might assume that as soon as the money is available at the respective agencies, it is completely given away within hours, if not, days. It seems entirely logical that on the day the money becomes available hundreds and hundreds of people would line up just as fans do on the day that U2 concert tickets go on sale.

A reasonable person would be wrong.

Each year, the majority of state agencies do not completely exhaust their funding. For fiscal year 2006, only two states had requests in excess of their budget and ran out of money in their programs. For the first time home buyer, this is very good news. It means that there is currently money available to help you buy your first home.

The primary reason that the funding isn’t exhausted every year is that the programs are not widely advertised. There are 3 ways you can learn about these programs: you can buy the information, you can contact your state representative, or you can go to a website that provides all the information for free.

Whatever method you choose, you stand to gain thousands of dollars in free cash assistance towards the purchase of your first home. Choose one method and take action. Today could be one of those very rare days that a credible source offers you thousands of dollars in free cash.



Jean

anonymous asked:


Not all that long ago I was a first time home buyer. Actually, it was a while ago, but that’s okay! I remember being very excited about owning my first home. I was also pretty naive and during the home buying process realized just how little I knew about real estate and how difficult it was trying to navigate the murky waters and not get eaten up by folk looking to take advantage of me.

It was easy to make mistakes back then, and is even easier nowadays to turn a pleasant dream of owning a home into a nightmare. But if you’re able to avoid the 7 common mistakes that home buyers make it could help you achieve a safer and smoother transaction.

First, changing jobs during the home buying process is a definite no-no! Lenders like to see employment stability and job tenure, and as a general rule will hold job hopping against you. So, unless you just can’t stomach your job another minute tough it out until you close on the sale of your home.

Second, never give earnest money deposits directly to For Sale by Owners. If the deal falls through you won’t have any leverage to get it back. Instead, put the deposit into a trust account until the transaction is finalized – title companies, attorneys and closing agents can help you with this. In any regard your contract needs to specifically state what will happen to the deposit in the event that the transaction falls through.

Third, stay practical and realistic during the home buying process and understand that while some sellers are willing to fix their homes to sell them others aren’t. So, don’t let a refusal to make repairs close the door on your dream home. However, at the same time don’t let your desire for a particular home blind you to costly repairs down the road.

Fourth, arrange in advance to have the utilities turned on in your new home. The utility companies usually need at least a few days to switch the service. Also, don’t forget to cancel the service at your old residence. This seems simple enough, but there are so many things to remember that this one is often overlooked.

Fifth, be sure to get hazard insurance for your new home and be able to show proof of purchase prior to closing. Failure to have insurance at the time of closing may delay the closing, which could result in all kinds of unforeseen complications; angry sellers, you’ve already given notice to move out of your old place and have no place to go, etc.

Sixth, purchasing a home is a business deal, so treat it that way. Don’t get too close and personal with the seller, as it could unexpectedly lead to hurt feelings and/or deal breaking situations. For example, you could make a seemingly harmless comment about how you dislike like the decorations in the mother in law suite, only to have the seller get upset because they have great sentimental value attached to it.

Finally, use an agent, unless you’re well schooled in real estate transactions. It’s most buyer’s fantasy to save money by cutting out a Realtor. However, it’s a full time job keeping up with all of the daily details of a contract, including the lender, the seller, and the seller’s agent. It’ll be your agent’s responsibility to do all of this; as well as disclose any information that they are aware of that you might otherwise be unaware of.

In closing, buying a home is a business transaction and may be one of the largest transactions you’ll ever make. By treating it that way and surrounding yourself with knowledgeable professionals you can have smooth, safe transactions. Anything less becomes risky business, at least until you know what you’re doing.



Leo

Greg Roy asked:


In our modern world credit cards have become virtually a necessity. Consumers cannot book an airline flight without a credit card. Nor can they rent a vehicle without one. And while it is possible to make purchases online without a credit card, it is time-consuming and a hassle.

While the vast majority of the population has at least one credit card, it certainly is not the vast majority that use credit cards to their advantage. Like prescription medication, credit cards can be very beneficial. But also like prescription drugs, credit cards can bring great harm to the user when abused.

There are many predatory sharks swimming in the credit card oceans. It is critical for first time home buyers to apply sound, savvy financial management skills in their use of credit card accounts. Your very ability to qualify for a mortgage on your first home will depend upon it.

Here are some simple-to-understand but difficult-to-follow guidelines for the best use of credit cards. The word best in this instance means most financially prudent, or the most beneficial to your overall financial health in the short, medium and long term.

1. Don’t use credit cards to finance the purchase of consumer toys. While some credit cards provide an interest rate that is reasonable, most don’t. Interest can be very, very costly. The bottom line is that if you don’t have the money to purchase that latest electronic device that you want, you shouldn’t charge it on your credit card. Doing so can be very habit forming, and will burden you with excessive debt. The process of qualifying for a home mortgage involves meeting certain debt to income ratios. The less credit card debt that you have, the more easily you will be able to meet those ratios.

2. Pay off your entire credit card balance every month. This is so important and so beneficial, yet so few people do it. The ones that do are the ones that have mastered financial self-discipline and reap a lifetime of rewards. Have you ever seen car dealerships advertise zero-interest loans on certain vehicles. While the offers are valid, most people don’t have a credit score high enough to qualify for the teaser rates. And that’s what they are: teaser rates. You may not qualify for the zero-interest deal, but even if you don’t, the dealer got you into the showroom to find out. And that is the biggest hurdle in selling you a new car. However, if you do pay off your credit card balances every month, you will likely develop that very high credit score. Not only will you qualify for the best rates on your car financing, you’ll also qualify for the best rates on your home financing. It’s win/win in all cases.

3. Get your credit card portfolio established, then leave it be. There are very good reasons for this. Your credit score will be negatively impacted by constantly changing credit card accounts. Long-term stability is rewarded by the credit risk formulas. Who would you rather lend to, a person who has had the same credit card account for the past 10 years and has always made payments on time, or a person who opens and closes a different credit card account every month? Which person do you think is more likely to pay you back?

Additionally, the credit risk formulas penalize people for too many credit checks in their file. A person who is applying for a lot of credit is seen as desperate for credit. That is not helpful. When banks loan money, it is like loaning an umbrella on a sunny day. When it clouds up and begins to look like rain, banks will ask for their umbrella back. That’s just the way it is. Banks are most eager to make safe loans, and those loans would go to people who are flush with cash and don’t need a loan. The people who could be considered “dirt-poor” and penniless are the ones least likely to be able to obtain a loan. To develop a high credit score, you don’t want to be projecting the image you are desperate for credit. And you’ll need a high credit score to help you qualify for that mortgage on your first home.

The bottom line: use credit cards wisely. If you want to qualify for a mortgage to buy your first home, don’t use credit cards to buy things that you cannot afford to buy. Learn to make credit cards a tool for furthering you towards your financial goals. Fail to do that and you’ll likely end up a tool for the credit card companies to make outrageous profits for their upcoming quarterly report.



Javier