How much can I borrow based on my salary?
This will all be based on the current interest rates, taxes and insurance, purchase price, condo fees (if applicable), etc. There are various mortgage calculators out there, including the one you can find here. The best way to find a solid estimate of how much you can afford, check with your mortgage officer or mortgage lender. They will be able to factor in majority of items that are needed to provide a solid estimate of how much you would be able to borrow.
How can I buy a house with bad/no credit and no money?
Well unfortunately, this is how our economy got into trouble in 2008. If you don’t have a healthy financial standing, then it will be best to take the time to rebuild your credit and save up for a down payment. Engaging in home ownership is a major financial obligation and should be viewed with the proper attitude. You can have your mortgage lender evaluate your financial standing and procure a plan to get you “mortgage ready.”
How long does it usually take to close on a home?
This question will vary from transaction to transaction. Typically, when purchasing a move-in ready home with financing, the process will take about 45-60 days. Transactions that are paid for by cash are able to close a lot quicker – as little as 2 weeks. With that said, other transactions can take up to 90 days with some transactions dealing with short sales taking up to a full year to close. Again, it is heavily dependent on the type of transaction you are dealing with.
What if I’m looking to buy a property that is a short sale or foreclosure?
Buying a foreclosure or short sale can be a best way to purchase a home at a discounted price. There are some things you want to keep in mind however. When buying a foreclosed property, the process is generally the same. The condition of the property is often very sub par compared to move-in ready homes so you’ll have to have the cash ready to make the renovations you want. The utilities are usually off so it may make it a bit more difficult during the inspection phase and you may see bidding wars against cash-handling investors which may put the odds out of your favor if you’re looking to finance your purchase. The thing to keep in mind when purchasing a short sale is to realize that the mortgage lender of the property you are looking to purchase will have the final say in the purchase price of the home. For example, the seller could have an asking price of $200k; you offer $200k; yet the bank states that they will take nothing less than $240k.
When does the home inspection occur? What if they miss something?
The home inspection period usually begins right after the buyer’s and seller’s attorneys have reviewed and approved the terms and conditions of the contract. This occurs right after your offer has been submitted and the seller accepts. You will hire a professional to inspect your new home and provide you with a comprehensive report of their findings throughout the home. Some findings can be minute and worry-free and other may require more attention to. Of course the home inspector can’t see through the walls and under the floors. Usually home inspectors limit their liabilities to the amount they originally charged for their services. Therefore, if they miss a $10,000 problem, they may only refund you their original $450-$600 fee. It is important to get a very experienced home inspector to begin with to avoid these problems.