Tax season is upon us, and we are seeing lots of new buyers enter the housing market. Since nobody wants to waste their money on rent, its important to understand the most basic criteria for purchasing a home. So how can you buy a home with only $1500?
Before you start looking at homes, you need to obtain a prequalification letter. This is something we can help you get from a mortgage lender after they have taken a look at your credit and income situation. Minimal job history and a 580 credit can be enough, but the key here is don't be afraid to find out. They will likely set you up with a USDA, VA or other 0% down loan type.
Once you have picked a home, we will craft an offer together that ensures we don't overstretch your budget. It is important to understand that EVERYTHING in a real estate deal is negotiable. There are homes you will absolutely have no chance of getting for $1500, and you may even find you can purchase something with a little less in your pocket. However, because the single family housing prices typically start between $150k-$200k in WNC, we like to use $1500 as a starting point.
Due Diligence Fee: $200
Take the house off the market with a modest due dilligence fee. This gives you the time you need to inspect the house and square away financing. The more you offer, the stronger the offer, but you can likely get away with a couple hundred dollars if the home is under $200k.
Earnest Money Deposit: $1000
This refundable deposit will show the sellers you fully intend to purchase the house, and if its not what it seems, you can get this money back as long as your due diligence period has not run out.
Home Inspection: $300
This is not something to skip, ESPECIALLY if you are a first time buyer with a modest budget. If you don't have your own inspector, we have an excellent resource for you.
Closing Costs Paid by Seller:
If you choose to work with one of our lender partners, or if you've got a good one, they will be able to tell us almost exactly how much your closing costs will be on move-in day. We will simply structure the deal so that this money comes out of the sellers proceeds.
So there you have it! You really don't need much to be a homeowner, just a little determination, focus, and a smaller amount of cash then you may have thought. If you are intetersted in buying a home this year, give us a call and we will help you get on the right path. (828) 707-5642.