When I started looking into real estate, I was somewhat confused.
I gathered all my important papers and marched to the first Real Estate Agent in town.
Boy was that a big mistake!That agent took me through hoops and I literally jumped over rope! I got frustrated and mad! I called the agent up and said, " I no longer need your services".
I had some experience since my father was in the military and he careless for the military quarters so he bought a house every time the military said go!Eventually, this was a hobby of my father, and being a daddy's little girl I got the itch.
Well, what I did was I started doing my own research in real estate.
I asked everyone that I know about his or her experience in real estate.
I called real estate investors who were friends of the family, local judges, and attorneys in the area.
What I found I compiled and started to implement what I learn from the Real Estate Experts.
I was determined not be made of a poo poo head by any Real Estate Agent that wanted me to do all the work and he/she takes all the money! I committed to make a real estate list, its sort of a " To do" list that works!Here are my four "To do" of what I needed.
You can modify it to meet your need, but the concept will always be the same! 1.
Know Your Income! This is where you gather all the income in your household or your income.
At the time is making only $43,000 as a Special Education Teacher.
Not bad earning, but that was it, an EARNING!I was tired of punching the clock! 2.
Know your Housing Market!I live in Hampton, Virginia.
The cost of living doesn't not equal to the real estate market.
For example, in Jackson, Mississippi I could qualify for a house of $200,000 based on my income and more, but in Hampton, Virginia I can only afford $122, 000 to $130,000 price range.
I would be pushing it, if I would say, $150,000.
The housing market is astonishing!And we are only talking about a standard 3bedroom/2bathroom.
This brings me to the third step.
Your debit to income ratio.
That's how much you owe and home much you take in.
Debit to Income Ratio! Where to start, if you have questions, you may email me at gwarren228@aol.
Please put into the subject line "3rd step" real estate! This would allow me to filter out the junk mail and immediately answer your questions.
I can better explain it by giving you an example.
My teacher's pay: A$ 43,000.
00:This is my annual and not my take home pay! b.
My Fico credit score:My credit score is considered low at the time.
It was 580, but it was enough to get 100% doc.
DOC means document of loan papers.
This credit score allow me not to fork over down payment to the loan company before I even start!The higher your score is the less you would have to pay in the end for your mortgage.
I am talking about the principal and interest of your mortgage payment.
You want to be fewer than 5 to 6% and not 8 to 10%.
You need at least $2,000 to $4,000 in the bank.
This is for your closing cost.
But it doesn't mean that you are going to use it! This money needs to be resting or breathing in the bank.
DO NOT TOUCH! d.
PRE-QUALIFED LETTER!You are now at the final section where you can TAKE ACTION!Using your total household income, and your credit score you can Run and not walk to your nearest loan company to start the process of getting your letter.
If you do not know what your credit score or what is on your credit report, the Federal Government allows you to get a one time "look see" at your report!Here is the website! http://annualcreditreport.
com this website will ask your question only you would know, like your last residents, or what bank your car is finance etc...
LET'S GO BACK!You income! Just in case you don't know and I am not stepping on your intelligent, you need your pay stubs, 1040's, proof of residents, proof of extra income like SSI, military retirement and so forth! Now here is where you Hit the ground running! You are now armed with your papers and confident in knowledge!There is a KICKER!!If your Fico credit score is 500 to 600, don't go to your local bank!! They will turn you down! Make you feel worthless and possibly will not give you a reference! Where to start! Let's try "Lending Tree".
Yes! I said Lending Tree; you want to get that pre-qualified paper so you can start negotiating or as I would say, "talk up" on a deal! After you have your pre-qualified paper, go to your local mortgage bank that is for the people and not their money! (If you have good credit, go to any bank you choose, just know that you might get better resource else where.
You want more then one option.
) You have your pre-qualified paper; you can either go to a Real Estate Agent or a For Sale by Owner! If you don't have your armor or a weapon, how are you going to win the BATTLE? Not only that, can you see the War! The answer to it my friend is "NO!" You would want to start looking at houses.
I suggest you go to http://Realtor.
Its very updated and most realtors/brokers use this for advertisement and you can get a snapshot of what houses are on the Real Estate market and want you want.
Before you talk with anyone.
Make sure you know what you want and what you don't want.
This leaves you in control and them asking questions.
You don't want the other way around.
Now, who has the ball! Trust me on this one! No one wants to be a Poo Poo head!