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Big Bear Real EstateFirst time homeowner Real Estate info. We put together a list of tops that you may be interested in. If you are looking to buy real estate in Big Bear and this is your first time, then some of the articles below might be of interest to you.
10 Tips for first time home buyers 10 Tips to prepare for homeownership 8 steps to getting your finances in order Final Walk-thourgh. What not to overlook 7 Reasons to own your own home 5 common first-time homebuyer mistakes 10 Tips for first time home buyers Tips
on buying in a tight market 5 Things to understand about homeowner insurance 10 Questions to ask a home inspector when buying Big Bear real estate Hidden home defects to watch for Common Closing Cost for Real Estate Buyers Buying your Big Bear Lake home with no money down If the only thing standing between you and homeownership is a downpayment, consider your options. By Sarah Max, CNN/Money Staff Writer BEND, Ore. (CNN/Money) – Up until a year ago, photographer Melissa Jansson, 30, planned to rent for the foreseeable future. At that point, the few hundred dollars she had in savings wouldn't even cover her closing costs. In November, Jansson closed on a $150,000 home of her own with a 3 percent downpayment she scored through a grant from the state of Oregon for qualified first-time homebuyers. Even better, she found a seller willing to pay all but $12 of her closing costs. "Until I heard about the grant program buying a house was a fantasy," said Jansson, who shares her two-bedroom, two-bathroom home with a roommate and ultimately pays only $40 a month more to own than she did to rent. Very
little down In general, the less you put down, the better your credit needs to be. Also, smaller downpayments typically mean slightly higher interest rates, not to mention private mortgage insurance (PMI). While small downpayments are common, private lenders still require that borrowers who put down less than 20 percent pay PMI, which protects them if you default on your loan. Depending on how much you put down, the size of the loan and the type of loan, this could easily add a couple hundred dollars to your monthly payment. "If the prospects that your home will appreciate in value are good, paying PMI is not the end of the world," said Greg McBride, a senior financial analyst for Bankrate.com. After two years, PMI is automatically cancelled if your home's increased value brings your share of equity to 22 percent, said Gumbinger. If you don't want to wait that long, you can request that your lender drop PMI when your equity reaches 20 percent or refinance at that point. Piggyback
loans One advantage of this route is that you can deduct the interest you pay on a second loan. And, depending on how aggressively you pay off the second loan, a portion of your payments will go toward building equity. The disadvantage of a piggyback loan is that it could take as long as 10 years to pay off your second loan, while appreciation of your home's value may get you out of paying PMI in just a couple of years, said McBride, noting that interest rates on second loans are typically higher than rates on first loans. Downpayment
programs Such programs vary greatly and are available to all sorts of buyers. One of the largest is geared toward active and retired military personnel through the Department of Veterans Affairs. More than 29 million veterans and service personnel are eligible for VA loans, which are often made without any downpayment and frequently carry lower-than-average interest rates. In and around Boston, meanwhile, people who buy a home near public transportation and can prove they are regular patrons of public transportation may qualify for the "Take the 'T' Home Mortgage Program" and borrow 100 percent of the price of a home without paying PMI. Like most such programs, there is an income cap. In this case it's 135 percent of the area's median income, or $109,000 in Boston. Under HUD's Teacher Next Door and Officer Next Door programs, teachers and police officers in some communities can buy HUD-owned homes for half of the list price, typically with very little down. And, depending on where you live, you may qualify for grants or loans for buying in HUD revitalization areas regardless of your profession. To find out about programs in your area, contact your state or local housing agency. A local housing counselor may also be able to point you toward such programs, noted Sullivan. (See HUD's list of housing counselors by state.)
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