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I'm a First Time home Buyer who needs all the info I can get.

I am 23 and I would like to purchase a home in the near future but currently don't have anything saved for a house. I just got a second job that I will be starting January 2014 working part time. They pay for my full-time job isn't that great and same with my new part-time job. My 2 jobs are in Cranston and Warwick, RI and I currently live in MA. I would like to purchase a home rather than renting. I am looking for a fixer upper something cheap but doable. 

anyways, I have so many questions about purchasing a home. How much should I be expecting to put in as a down payment and what is the price range of homes I should be pursuing. Monthly I estimate my net pay will be roughly $2,000 a month so 24,000 a year. any and all info is much appreciated. thank you. 
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December 30 2013 - US
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Go visit a couple loan officers or mortgage brokers and ask them these questions. This is what they do so they can answer your questions quickly and with accuracy. Ask about FHA loans and other loans that you qualify for. BTW, first time home buyer loans just mean the borrower has not had a home mortgage for the last 2 years. It's free - sign nothing, just ask questions. Go see 2 or 3 and see how they compare. You can't do this too early in the process. It's good to have a road map before you start the journey !!!


tim
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December 30 2013
The down payments can depend on the type of loan you choose or qualify for. For example, conventional loans need 5%-20% down, FHA loans need 3.5% down, and VA loans need 0% down, but you must be a veteran for a VA loan. Either way, the best thing for you to do right now is to speak with a lender to see if you can get started on financing a new home. There are lenders like myself that would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any further questions or if you would like a loan, feel free to contact me!

Good Luck!
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December 30 2013
Hello,
  
There are many mortgage lenders out there who will blindly tell you the max loan amount they can approve you for (roughly 43% of your gross income with all debts) but they don't take the time to talk about what you can comfortably afford for a monthly payment.  when you start thinking of purchasing a home you need to do a budget for yourself so you know how much you can afford (make sure you leave room to save for retirement) then you need to talk to your lender about what that payment translates to for a loan amount, making sure to include mortgage insurance, taxes, and property insurance.  make sure you take into account in your budget utilities, and maintenance to the property.  Too often over the years people are approved for loans they can not truly afford.

I am a lender licenced in MA, and do a great deal of work with first time home buyers.  Please feel free to contact me and ask of me all the questions you have.  There is too much info to give you to write here, as a start though:

In regards to down payment, there are still a couple loans out there which would potentially allow you to purchase a home with no money down (USDA and VA)  however if you don't qualify for those then you would need a minimum of 3.5% down for FHA (all gift is okay) and 5% for conventional (not a gift).If you want a fairly thorough preview to the home buying process

I have a PDF brochure i put together that i would be happy to share with you, just email me through my contact info.Good Luck!
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December 30 2013
I would definitely start by talking to a mortgage broker (not a bank).  They can verify your income, credit, taxes, debt, etc. and not only tell you what you would qualify for loan wise, but also what you need to do to improve your financial situation.  There are numerous factors that go into getting a loan approval and since the process is so complex you need an expert to analyze your situation and advise you before you do anything else.  For example, not all of your income will necessarily be used to qualify for a loan.  you might be surprised at how a lender will view your income.  It is not uncommon for people who have a new job or multiple sources of income to have a tougher time of qualifying for a loan.  You may find that saving money, improving your credit score, and paying down debt could significantly improve your loan situation. If you have even a slightly higher down payment or a slightly higher credit score you can save tens of thousands over the life of your loan.
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December 30 2013
You definitely want to talk to a few lenders or mortgage brokers. Each has different loan programs they can offer you. In rural areas there are USDA loans with 0% down payment, you have FHA loans and conventional. Find a lender who will assist you on your journey and makes a plan together with you to establish your goals.  

This is the first step I recommend and gives you an good idea what is in the mortgage market available to you. I agree with Tim and Rachel, sign nothing, just shop around.

Good luck to you and happy New Year!

Annett T. Block
Florida Connects Inc.
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December 30 2013
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Here's a link to Zillow's home buyer's road map.    It is very useful at breaking down the extensive process.

Thumbs up to you for educating yourself about the process and approaching it systematically.
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December 30 2013
 
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