Buying a home is a milestone event in the life of any person. It signifies that the buyer is ready to put down roots in a community and start growing their wealth. Some studies have indicated that for every two homes that are purchased, one job is created. What can a prospective home-buyer do if he or she is ready to buy one of many homes for sale on the market? Visit online https://www.wfcu.ca
Do You Have Money for a Down Payment?
One of the hardest things for a first-time buyer to do is put money down to purchase a home. In addition to the down payment, a buyer also needs to be aware of closing costs in addition to the down payment. On a conventional loan, this could equal 25 percent of the purchase price of the house. However, there are loan programs that allow borrowers to put as little as 5 percent of the purchase price and some of that money can be in the form of a gift.
Work to Improve a Home’s Value
Many lenders will allow buyers to increase the amount of their down payment through sweat equity. For example, if a house is worth $100,000 and a buyer has $3,000 to put down, that is only 3 percent of the purchase price. By improving the kitchen or finishing a basement, the amount of the home could increase to $110,000. This would be the equivalent of putting $13,000 down on your home and would enable you to meet the terms set forth by a lender.
What About the Self-Employed?
Self-employed individuals have a harder time getting loans because their income may not be as consistent as those who are employed elsewhere. The good news is that there are lenders who are willing to overlook the fact that an applicant is self-employed as long as that person has a verified income stream and can prove that the income should be stable over the next year. As long as the borrower also has a good credit score, there should be no problem getting a loan as long as the lender is willing to work with those who are self-employed.
Can I Apply After Filing for Bankruptcy?
It may be possible to get a mortgage even if you have filed for bankruptcy. The best thing to do is to contact a mortgage consultant who can review your situation to determine if you qualify.
Getting a mortgage is not as easy as acquire a car or going to the store to buy a loaf of bread. Fortunately, getting a mortgage is possible even if you work for yourself, have filed for bankruptcy recently or don’t necessarily have the money needed to make a sufficient down payment on your own.