When you’re looking to buy your first home, especially if you have a limited budget, it can seem impossible to buy something without coming up with some kind of down payment first. Fortunately, there are options available that make it possible to purchase your home with zero money down in Houston! Here are the steps you need to take to get started.
Buying A Home In Houston TX
You’ll need three things to buy a home in Houston: money, patience, and a qualified realtor. First, you’ll need some money for closing cost. You may also need some patience if you find yourself house hunting during one of our state’s many busy seasons—summer is a high season for buyers and tends to bring sellers into the market who may have been sitting on their homes waiting for higher prices. Third, you’ll need a qualified realtor who has experience helping first-time homebuyers or buyers relocating to Houston to navigate an often-confusing process. Your Realtor will know what lenders are available to help buyers like you and how much they typically require as down payments or credit scores. Many of our preferred lenders also have $0 down loans they can explore with you.
Why Realtors Are Important
Going about purchasing such a big investment on your own is a big mistake. Many home buyers are of the opinion that they need to pay a buyer’s agent to help them find a home and that’s not the case. The seller of the home through a written agreement with their agent along with cooperating MLS rules provides compensation to the buyer’s agent.
A good Realtor not only opens doors to show you homes but a good realtor will provide you with tremendous value before and along the way of your home purchase. When you work with Houston Premium Homes Realty Group, our clients are our extended family and we continue to service your needs after you buy or sell your home with us. A list of homes that are coming soon to the market that the general public doesn’t yet have access to so you can be one of the first to see the property. Negotiating your home purchase or your home sale is where we shine as a team. Once we secure you a home our transparency in our processes to get you through a smooth process is crucial.
What Is A Good Credit Score?
When you’re trying to buy a house, having good credit is absolutely essential. The better your score, generally speaking, the easier it will be for you to secure financing and obtain lower interest rates. Your credit score can also impact closing costs and even insurance costs when you purchase property. In general, there are two ways of approaching credit scores: You can aim for high-end marketability—740 or above; or you can aim for affordability—650 or below. There’s no right answer here; it all depends on what your financial goals are as well as how big of an investment property is for you at that point in time.
Conventional vs FHA loans
Many buyers today still believe 20% downpayment is required – this is not the case! Conventional loans require down payments of at least 5% and higher credit scores from 620, compared to FHA, which requires just 3.5% down and lower credit requirements starting at 580. It’s worth noting that despite requiring less money down and lower credit requirements, FHA loans are not risk-free; they carry mortgage insurance premiums that must be paid as long as you have your loan.
Buying your first home is one of life’s biggest and most exciting milestones, but it can also be downright scary when you consider how much money you’ll need to save up for a down payment. Saving up enough cash may seem impossible when you start seriously looking at homes and adding up all of their many fees: taxes, insurance, private mortgage insurance (PMI), appraisals and more. But there are some things you can do right now to get yourself ready for that first home purchase. Our team at Houston Premium Homes Realty Group will pair you with a lender who will set you on the right path.
Steps To Buying Your First Home In Houston, TX
The process of buying a home is not always easy and there are many aspects that can make it stressful. To avoid unnecessary stress, we want to give you an idea of what to expect during each step of your journey. There are different types of loans that are available to assist buyers depending on their credit history and down payment amount. The best way to begin is by meeting with one of our qualified agents and preferred lenders who will explain all available options before helping you choose which loan type works best for you! While getting pre-approved for a mortgage is important in order to determine what price range will work best for your budget, it does not guarantee that you will qualify for a loan at closing but you will receive a conditional approal to begin shopping for your dream home.
Connet with A Top Houston Realtor Contact one of Our realtors will guide you on the steps you’ll need to take to purchase your home whether you’re a first time home buyer or an experienced home buyer. Home prices have been increasing along with interest rates but rental increases have also been steady. Owning your own home has lots of benefits including tax advantages so trust us to get you on the right path whether you’re upsizing, downsizing, relocating to the Houston TX area or you’re a first-time homebuyer. If you’re looking for information about how to buy a house in Houston Texas, contact us today! We’ll be happy to answer any questions you may have! Our team provides Premium Service at every price point. Search for a beautiful Houston home here.