The biblical story of David and Goliath might be well known to most of you especially those who read the bible.The story is about two men, whom one is only a shepherd, strongly and confidently overthrow the gigantic rude fellow known to be the man of war and fully equipped with high powered weapons during that time. Because of the gigantic looks and being equipped with the latest weapons of their time, everyone consider it impossible and quite hard to resist him except for David.
Here are the 3 largest obstacles that face every potential first time home buyer.While they may seem impossible, in actuality, you can overcome them.
1. Saving for a down payment.
It is a common practice for almost all real estate brokers to require the buyer for a minimum of 20% downpayment while the remaining 80% is to be financed by a financing institution.For those low income families, it would already be a huge sum of money for a downpayment of $30,000 in a classy home amounting to $150,000.On the otherhand, husband and wife who both work on a daily basis or averagely receive a decent income just enough to cope up with their daily needs would find it hard to save an amount that corresponds to the said downpayment or if ever they can, it would absolutely take years.
Fortunately, you can still find solution to this.These first time home buyers were being given financial assistance by most states who are aware of the global economic crisis and understand the situation, formed some agencies to help these buyers appropriately .Almost all states accommodate those low to middle income people for an outright financial assistance.These grants provide them with the money they need for a down payment.There are states who provide a reasonable loan interest to at least give comfort to home buyers in acquiring a downpayment.It has also been observed that there are some states who excuse the buyers from the downpayment but with a corresponding deal to stay for a quite long period of time.
2. Develop a credit score of 580 or more.
Maybe you have a bad credit history, or none at all. Either way, this obstacle is not impossible to overcome.You could redeem improvement on your credit score for a quite number of months.A credit score of 580 represents the lower end of “fair” credit and is not very difficult to obtain. How to improve your credit score is beyond the scope of this article, but you can get much more detailed information by searching for “improve credit score” in your favorite search engine.
Stable job for 2 years in a single company
In order to attain good credit score, you may however, show loyalty and sincerity to every job you may land on to establish a very good employment record.While changing jobs once in a two-year period to obtain a better pay rate and more responsibility is acceptable to lenders, you’ll need to show evidence of a responsible work ethic.Even if you are self-employed, the lender is going to want to see your tax returns for the last 2 years.We may say then that the lender is just making an assurance that you are really aspiring to make a loan and matured enough to handle your finances.
While there are other obstacles that you’ll face in your quest to buy your first home, conquer these three, and you will be 95% of the way towards your goal.
