First time buyer looking for help

**Durendal** · 07-11-2011, 11:36 AM

Hi everyone,

I'm wanting to purchase a home and thought I'd come to the experts here to seek some advice on how to get the ball rolling. So far I have not contacted an agent or gotten pre-qualified for a loan, before doing these things I want to see if there are any government assistance/grant programs for first time home buyers that I may qualify for. I've looked into the HUD website some but they seem to be more for organizations than individuals. I know of FHA loans where there are very small down payment percentages but I'm hoping to find something more along the line of down payment/closing cost assistance.

A little bit about my situation in case it's relevant. I've been out of college and in the working world for 6 months now making 45k a year and have 6k saved up for a down payment and 4k for other expenses. I know this isn't much but I'm looking for a home in the 100-150k range in Illinois so it's not a terrible position either. Any help you guys can provide will be appreciated, either in directing me towards government assistance programs or general real estate advice. This is a pretty daunting process at the start.

Thanks in advance.

**Greg** · 07-12-2011, 09:17 AM

With only 6 months working history behind you the first thing you need to do is see if you qualify for a loan. Usually they require 2 years work history before they lend any money.

Even with an assistance program you will have to get a loan.

**maui** · 07-12-2011, 02:57 PM

Due to your short work history, it may be problematic to secure financing. I'd suggest speaking to a local mortgage broker who would be in a better position to advise you on your options (if any). I know here in Hawaii there are many first-time homebuyer programs/grants, but obviously that's location-specific. Best of luck.

**jumpingspidermedia** · 07-12-2011, 09:06 PM

Originally Posted by maui

Due to your short work history, it may be problematic to secure financing. I'd suggest speaking to a local mortgage broker who would be in a better position to advise you on your options (if any). I know here in Hawaii there are many first-time homebuyer programs/grants, but obviously that's location-specific. Best of luck.

I'll suggest you'll take maui's advice! Good Luck!

**fcdls305** · 07-13-2011, 12:01 PM

Financing may definitely be an issue, but see if you qualify for a loan regardless. You've said that you checked with HUD, try the USDA or VA (if you've served in the military) -- you could find a government foreclosed home... sometimes significantly below fair market value or list price.

**Durendal** · 07-13-2011, 07:05 PM

Thanks for the all the help so far everyone. I realize getting financing may be tricky due to my short work history and was hoping that if I could show lenders assistance/grant programs I qualified for that could help with securing financing. I'll talk to some lenders and see what, if anything, I can qualify for now.

If you know of any other government agencies I can look into for assistance I would appreciate it, either specific agencies or just resources that guide people to the right place. Then even if I don't qualify for a loan I can start a list of programs that could help me out in a year when I do have an established work history.

Again thanks for all your help everyone.

**MarticiaLancaster** · 07-13-2011, 07:35 PM

Best wishes for your home buying.. This is the perfect time to buy a house since properties nowadays are undervalued, the market is down and financing are still willing..

**Destin2008** · 07-27-2011, 11:28 AM

Maybe you have a relative,parent who could step in as a co-signer to help you in your situation. Having cosigner may also result in a lower interest rates.
Then after while you could just refinance and sign it all under your name.

**tmhayes95** · 08-11-2011, 04:17 PM

Are you a first time home buyer? Here are some helpful tips to get you started on the right path.

1. The first step before you do anything is to find out how much money you can borrow from a bank/mortgage company. Check with different lenders to see who can get you the best deal. Once you know what you can afford, then you can begin to plan.

2. Determine what you need in a home, not necessarily what you want in a home. Make a list of those needs to give to your Realtor. When you are searching for homes you will find that it is very rare to find a home that has absolutely everything you are looking for. If you stick to what you actually need, you will have better success in your search.

3. Research areas/communities that are of interest to you. Determine what things are important such as schools, proximity to shopping, restaurants, and local activities. Drive through the communities to get a feel for what they are like.

4. Learn as much as you can about the process of buying a home. Some local Realtors or lenders will offer first time home buying seminars. If you can find one in your local area it would be helpful to attend. If you cannot attend a seminar, look on the Internet for a home buyers guide.

5. Select a local Realtor to help you begin your search for a home. They can provide you with information on the home, the area and answer any questions you may have. A Realtor can show you properties of interest.

6. Learn about the contract and what is involved. Your Realtor can take you through step by step the process of a contract. After it is signed by buyer and seller, it is called an executed contract. Then you would want to get a home inspection. If everything is fine with the inspection, then you can go forward towards closing.

7. Know what happens at closing. Again, a Realtor can walk you through what to expect at closing. You will need to have money for closing costs such as title search, processing fees, taxes, and insurance.

Buying your first home is an exciting and overwhelming experience. So make sure you are prepared.

**expo09** · 08-15-2011, 03:34 AM

Firstly I think you need a bigger down payment, and as others have said, you'll need a longer working history to get a decent mortgage. You're earning a good amount considering you've just started your career, I'd wait a couple of years. This will give you more time to save and put you in a better position to get a mortgage.