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3 Personal Finance Hacks For Homebuyers
The most intimidating part of buying a house, especially for first-timers, is without a doubt the financing. For most of us, it’s the biggest purchase we are ever going to make in our lives, which adds a certain amount of pressure. What few people know is that there are several programs in place to help buyers with the finances — if you know where to look.
HUD homes are houses owned by the US Department of Housing and Urban Development. They are acquired by the government during the foreclosure of an FHA-backed mortgage and can thus be eligible for FHA financing, whose benefits include lower down payments and potential financing for home improvements.
HUD homes tend to be quite cheap, and they can also help you save in smaller ways. For instance, HUD pays up to 5 percent of closing costs and your real estate broker will not charge you for placing the offer. The main downside of buying a HUD home is that they can be in a state of disrepair, but this makes it perfect for a first-time buyer looking for a cheap fixer-upper.
This detailed guide by Home Advisor contains everything you need to know about how HUD Homes work and how you could benefit from buying one. You can find HUD homes in your area on their official website or by asking your local realtor.
FHA financing on a HUD house is just one of many special loans you can get to help you buy your house. Before you start shopping around for mortgages, check whether you are eligible for any of the following:
Credit Score Hacks
Your credit score makes a big difference in how much you will ultimately pay for your house. The better your score, the lower the down payment, the better the interest rate, and the more your bank is willing to lend you. For this reason, it is worth your time and some effort to boost your score as much as possible before applying for a loan.
To begin, you need to know your credit score (about one in three Americans don’t). You are entitled to a free credit report from all three credit report agencies every year: download them all to get yourself familiarized with the figures. Then, try some of the following techniques:
A little bit of research goes a long way when it comes to financial planning, so take your time finding out what options are available to you. Don’t assume you are tied to a classic 30-year mortgage with a 20 percent down payment or that your credit score is beyond your control. Help is available to you: you just have to know where to look.
auhtored by: brittany fisher <[email protected]>
Also Check out this link to improve your score: https://www.couponchief.com/how_to_improve_your_credit_score