Are you thinking about buying a second home? If your purchase is for investment purposes you need to learn how to buy a second home to rent. While the process is the same for the most part, the qualifications are somewhat more stringent. You don’t want to make the mistake many people do (myself included) and think just because the home will secure the loan that you are guaranteed approval. It’s much easier to buy a home in which you are going to live with bad credit than one for investment purposes.
Your First Home and Credit Score
It’s exciting to think about buying your first home, but before you make that step you need to think about your credit and how it might affect your dreams. No, this doesn’t mean buying your first home with bad credit is impossible, but it does mean you will have to find a lender who is willing to work with you in order to make your dream of home ownership come true. You can find a great deal of information on the Real-Estate-Yogi.com website, but some of the things you can learn from Real Estate Yogi include:
- How to find lenders willing to work with buyers with less than perfect credit
- Learning what interest rate you can expect to pay based on your credit score
- Researching lenders within the market to locate the best terms
- Becoming pre-approved when you have bad credit
- Cleaning up your credit report in order to obtain a better interest rate
Another thing you should do and something I learned the hard way is to know what is on your credit report before you begin applying for a home. This gives you an idea what to expect, and you won’t be shocked. Take some time to fill out the online contact information form so you can speak with one of the Real-Estate-Yogi consultants before you begin looking. Once you fill out the form someone will contact you immediately.
Following the Right Steps
There are specific steps to buying first home that you should expect. What I did was put together a list for myself so I wouldn’t forget anything. I also obtained a copy of my credit report and viewed it for accuracy; I even found a couple of things I didn’t know were there and cleared those up since they were small balances. You have to assess your own situation and do what you can afford, but trust me, having this information at my disposal made the process a whole lot easier.
Second Home Purchases
One of the hardest steps to follow when you purchase a second home is making sure your first home sells prior to the sale of your second home. Sometimes this can be difficult especially in the current economy. My brother actually ended up renting his primary residence in order to move to his second home because it didn’t sell. Fortunately for him he had the income to support the decision because the bank wouldn’t accept the rental income as part of his total gross income even with a lease on the house.
Buying a first home can be a scary process, and many young people and even those in their 30s buying for the first time can become frustrated. Take a minute to visit www.real-estate-yogi.com and take advantage of the wealth of information that appears on the website. Another resource you will find extremely helpful is the free database of over 200,000 lawyers and financial experts located all across the country. Do you have questions you would like to ask? Just pick up the phone and call 1-800-987-1397 to schedule a free consultation with one of the thousands of experts.
