Right now is a favorable time for home buyers. Interest rates are still low, sub-prime loans have been minimized, and sellers are motivated to sell so that they too can purchase a new home!
I specialize in working with first time home buyers. I advise you to first settle in your heart, mind and spirit that you deserve to own your own home. I often encourage my first time home buyers to increase their faith levels, prepare and educate themselves about the home buying process and then MOVE FORWARD!
People who are renters, are afraid to move forward and become homeowners because they listen to the media and other external noise. But, think for a moment...no matter if the market goes up or down "YOU DON'T BENEFIT EITHER WAY" because, you are renting without any return on your money.
If you purchase NOW, and get a good, fixed interest rate mortgage you will be SAFE regardless of what happens in the market. My advice is to make sure that you choose a home that you can comfortably afford with minimal repairs (something updated would be nice). Choose an area that is clean, safe, with good schools and the possibility for good re-sale value (should you decide to sell one day).
The key to being a smart and successful home buyer is to prepare (which you have) and educate yourself about the home buying process. You have good credit and should qualify for a good interest rate. There are so many programs that will help you with your down payment and/or closing costs. VISIT: FHA.com for (down payment grants) available.
Don't be afraid, and if you do become afraid..."Do It AFRAID." - Joyce Meyer
You can do it! I believe in you!
The only thing that is hindering you is fear, not the market. Noone can 100% predict what's going to happen with the market in the next 3 months. All you can do is make a good, wise decision based on the facts and good information that you have RIGHT NOW - things are favorable for you NOW. Live in the NOW and trust God's provision for you and your child's future.
CHECK OUT THIS LOAN PROGRAM:
Please visit: http://www.naca.com. This loan program is 100% legit. I refer my buyers to this program here in Little Rock, AR all the time! I believe in the product they offer and it is amazing!
No closing costs
No down payment
No perfect credit
Lowest, fixed interest rate for 30 years
Use the closing costs you receive from the seller to buy down your interest rate
Take out extra money to remodel a home, buy new appliances and more by having it added to your loan
My sister purchased a home with the NACA program in December of 2007. I promise that they delivered everything they promised with their loan product. Their funding comes from Bank of America.
My sisters interest rate is 3.8% fixed for 30 years. My client last week closed on a home at 1.6% fixed!!! She did put additional money down.
I am purchasing my next home with a NACA loan and I have excellent credit!
I would love to hear from you or answer any additional questions that you might have. I have created an excellent first time home buyer website with tons of valuable "how to" information on the home buying process plus, motivation and inspiration for your home buying journey.
Promise me you will at least check in to it! It will be a blessing to you!
I wish you much success and blessings in your new home!
Once you know your status, I would be happy to recommend some local lenders who specialize in just your situation. Avoid predatory lenders at all costs- the credit counsel can explain more about that to you.
Sorry, rules are, you and or your partner will need 2 years work history, credit score high 6s to low 7s, 5% down
Ask yourself, do you really want to take on a loan when you admit you have problems repaying money you have already borrowed form others??
These folks have raised credit scores the right way! They are a trustworthy and well know company in the Memphis area. They will shoot you straight
Now, I empathize with your situation, and I really hope I don't sound preachy -- I'm just a regular guy, but do you have a budget? Are you spending more than you take in? What interest rate are your credit cards -- 21%?
I applaud you for wanting to be a homeowner, but I hope your financial house is in order. There are many places where you can get financial counseling, I hope you take advantage of them.
Bibi, depending on how bad your credit is going to determine what avenue you need to go. Contact a reputable lending institute LOCALLY!! They can instruct you on what needs to be done to remedy your situation. Also, depending on your degree - there are some awesome programs out there (teacher, law inforcement, doctor or medical fields, fireman, engineering, etc.).
Is your husband's credit in the sewer also? He could qualify by himself. Remember, in our state, even if your husband is the only one on the loan you still have martial rights to the property (in case of the unspeakable).
Let me know if you would like any references to start on your homebuying path.