It’s a personal choice as to whether or not we stay in our homes when retirement comes, or move somewhere else specifically to enjoy these years.

Some people dream of moving abroad, others like to begin afresh in a new location. But whatever we choose to do the same considerations come into play as buying any other property at any time.

Let us guide you and give you some great advice on the topic. But first you need to ask yourself a few questions?

What will you plan on doing in retirement?

• By this we mean will grandchildren come to visit?
• Will you be taking up a specific hobby or occupation?
• Do you have adequate healthcare nearby?

You really must take all of these things into consideration before making a decision.

So what do we have available?

Well let’s begin with what we call vacation homes as these can be altered slightly to become the primary home of the retiree. Quite a lot of people will have a vacation home and wish they could live there all the time! Well of course this is very possible in retirement for sure!

No-one can predict what will happen in the future so we can’t be certain of values in this area. Some Americans will be lucky enough to purchase both a retirement property and a vacation home!

And there’s the good old condominium!

These are extremely popular with retirees and of course they are great for downsizing. Those able to live in a condominium community will find a range of facilities and a wonderful opportunity to add to their social lives. Perhaps the greatest attraction here is the fact maintenance costs are suddenly reduced. This can have a big effect on your cash flow!

The downside is it can be a bit more difficult finding a condominium, but the process is very similar. You need to qualify for a loan and your credit history must be good – and of course you still need a regular income. Some lenders may even require you to make a 25 per cent down payment, so be aware of this! The crux seems to be that unlike mortgages the condo association has to qualify in order for the mortgage to be rubber stamped!

In truth the borrower doesn’t have much control over this area of the process. These lenders are following new guidelines from the Federal Housing Association or FHA. According to Fannie Mae – these requirements must be met:

• No single investor can own more than 10 per cent of the units.
• More than 50 per cent of the units must be owner-occupied
• All planned amenities must be completed if the development is more than a year old.
• No more than 15 per cent of owners can be classed as delinquent on monthly fees.
• Those borrowers who make a downpayment of less than 25 per cent will pay either an extra 0.75 per cent of the loan at closing, or a rate of interest 0.25 per cent higher!

Check this out:

So what about retiring overseas?

For many this is the dream situation – living in a paradise or gorgeous place – retiring and simply enjoying life. And it can be done big time! Low living costs and small property taxes make this sound very appealing. You can find some of the best housing markets in the world close to the United States, if not in it! There are a number of destinations overseas attracting complete communities of expatriates!

The benefits can be fantastic but you need to do your research and plan well. Some nations will have their own rules and regulations regarding how the property can be used so you must take good advice on this. Talk with a real estate professional who is experienced in the field to determine whether such a move would be practical for you in the long run.

We’ve already taken you through some very important stages of the process and now you should be ready to move on.

The next step can make the whole difference to your mission:

Finding A Real Esate Agent

It’s amazing how many people find a real estate agent through word of mouth. This could be through family, colleagues or friends.

But what you really require is an in-person meeting with an agent as this will tell you if they can meet your needs.

It also means you can ask any questions and make yourself aware of the next stage and what’s involved! You may be required to sign an agreement but make sure you understand fully what you’re signing up to.

Once this has been done then it start’s to get really exciting in real terms as now you can begin looking for your home!

Your agent might ask for a wish list so they can help you along the way. This is where the needs and wants we talked about in part one come into their own. The agent will probbaly use the multiple listing service (MLS). This will give them a run down of all properties listed by brokers and agents!

The agent will be able to work their way to a handy list by narrowing down the property type. All the usual things come in here such as the number of bedrooms, bathrooms, age of property, floorspace etc. It will also enable the agent to filter everything down further and quite quickly!

Things To Consider At This Stage!

You must consider the resale potential of any property you buy just to be on the safe side. There are appraisals carried out to substantiate the purchase price in the form of home inspections, pest inspections and even through a preliminary title report. Your agent can give you some good and thorough advice on all of this. When this is completed then you need to gather yourself together ready to make an offer!

The Offer

Unless you are very fortunate you aren’t going to find your perfect home right away. You may need to look around lots of them and keep going over your wants and needs. There will come a time however when you need to make a decision. The home will obviously have to be in your price range, and if it is you can make an offer!

The agent will help you with this also bringing all offers to the seller who will either accept it or make a counter offer! Be patient as this might involve going backwards and forwards a number of times before falling on the right deal.

So what happens next?

You will find a number of contract contingencies enabling buyers to cancel the contract without any penalty under certain conditions. Buyers will have 10 days to inspect the property for things like lead-based paint as a great many homes may have this if they were built before 1978. Make sure you are completely happy before getting ready to close.

The big sigh!

The big sigh will come freely once you’ve closed the deal and you’ve bought your first home. Closing of course transfers ownership between two parties.

The house will be recorded in the name of the buyer and the city or county will be told of the transaction, and record the buyer as the new owner!

Well done – you’ve just bought your first home – Good luck!

Every American will know buying your first home can be the most important financial decision of your life. It can be emotional and take quite a bit of time. And of course it can be difficult financially. Help however, is at hand.

So let’s take you through the complete process in the hope you will be very clear about what’s involved.

First things first!

Before we can even begin to move forward we need to ensure our finances are sorted and in complete order! Failure to do this will mean we can’t buy our first home – simple as that!

Sit down with a drink and look at your budget – your income and expenditure – then you’ll be in a position to know if you can afford your first home. Don’t estimate anything and get it in black and white. You must also get a copy of your free credit report, if this is very good then you may even get better terms on the mortgage? Do this as professionally as you can – it’s absolutely vital to get things in order at this stage!

Research And More Research About Lenders And Mortgages

Take a look at the internet and the shops in the mall, and make yourself aware of the types of mortgage lenders around you. Read up as much as you can on the mortgage process and get used to the terms and the steps involved. If you’ve done plenty of research then you’ll have the best advice and this means you can make better decisions.

You may even in certain circumstances be able to negotiate a better deal! The more you do the better it will be. Then take a deep breath and move onto the next stage and get pre-approved for a mortgage!

Pre-approval simply means working out how much a buyer can afford to borrow from the lender. It may not always be set in stone so be aware of this. Any lender involved can work out this figure by reviewing the financial records of the borrower – debt-to-income ratio, credit score and general outgoings all come into this process.

Becoming pre-approved for a mortgage is a very big step as it gives you the rubber stamp ready to make an offer for a home. The fact is sellers are more likely to listen to an offer from a pre-approved-buyer then anyone who hasn’t fully gone through the process. Now you should smiling – but there’s something very important you need to do at this stage!

Hone Your Needs!

It’s so important to work out what you really need and what you don’t, doing away with the latter, as this can help you financially. This will enable you to get the home you need for practical terms and not the home we all dream of having but can’t afford! You have to be realistic. Do you need somewhere in the city, near a school or on the city outskirts. Do you need a garage or a garden etc. All of these things are vital to the process and you’ll be glad you carried them through!

In part 2 we’ll take a look at the remainder of this lengthy process and give you great advice along the way.

Check out this: homebuying.about.com/od/buyingahome/qt/0307Buyinghome.htm

Dreams are the fuel of life and every American is proud to hold this sentiment dear. So being in the lower income bracket won’t necessarily end the dream of purchasing your own home. An FHA loan is the answer!

What is an FHA Loan?

An FHA loan or Federal Housing Administration Mortgage Insurance Loan is a kind of federal assistance offered traditionally to those Americans on a lower income. It helps them both to borrow money and enables them to buy a home they would not normally be able to afford. The actual loan itself is provided by an FHA approved lender, and there are many of those on the market. In simple terms the FHA insures those loans given by private lenders, thus lowering the costs of a mortgage. The scheme has proved greatly popular across America in recent years, though they’ve been helping people in the housing market since 1934!

SO What are FHA Loan Requirements?

First of all you need to demonstrate two successive years of employment preferably with the same company so there’s a consistency there. Secondly you need to know the payments on the house you purchase will amount to 28 per cent of less of your monthly income. Some lenders will ask for evidence that you’ve saved up for a down payment, and your credit report should show there are no more than two payments more than 30 days late. Those who have lower credit scores are eligible but the FHA will also consider some individuals who do not qualify for other types of loan. The good news for bankrupts is you can still be considered for an FHA loan if you’ve had a break of two years. But you really need to have had a good credit score before the bankruptcy! It’s also important to note a mortgage insurance premium or MIP for short, equal to one per cent of the total loan amount is needed. This is paid by the lender to the FHA on behalf of the client. Oh and you’ll need to submit two years’ worth of tax returns!

What Features Does an FHA Loan Have?

 

The great thing is these loans make life much easier for first-time buyers. A relatively low down payment is required and they provide flexible credit guidelines. Any potential lender will assess potential home-buyers for risk. They come up with what is called the debt-to-income-ratio, and depending on its size a monthly premium might also need to be paid. The home you can buy will also rest on monthly income and expenditure! FHA loans can also be very competitive and more often than not carry great rates.

What If I Have Very Little or No Credit History?

This can happen to a great many individuals through no fault of their own, and so there are provisions for this also. The FHA will let a blood relative co-sign for the loan without the relative needing to live in that same home with the first-time-buyer. We call this a person Non-Owner-Occupied Co-Borrower and depending on what American state you reside in, a discount in your state transfer taxes could be forthcoming.

Note: you may find interest rates increasing or decreasing over time. This helps individuals to either buy or refinance their home at a much lower rate of interest initially!

‘The FHA asks that ex servicemen submit the DD Form 214-or official Armed Forces discharge paperwork-along with the FHA loan application paperwork. You can ask the Department of Defense for the form.’

So How Do I Apply for an FHA Loan?

 

You’ll firstly need to gather all the required paperwork together before applying. This will make life much easier during the process. You can formally apply either online, over the telephone or in person if you so wish. You’ll also need evidence of a social security number. There are also several FHA loan plans and their website carries all the necessary information. Make a note:

http://www.fha-home-loans.com/apply_fha_loan.htm

Important Things to Note:

The FHA scheme is also there to encourage any lenders to avail these loans to more credit worthy applicants and project borrowers not able to meet more conventional requirements of underwriting. You’ll also find very few lenders willing to provide the money for FHA Loans to potential purchasers who have a FICO credit score below 640, so it’s advisable to double check your credit report before embarking on the process. And don’t forget to make a list and go through your income and expenditure – have all the facts at your fingertips!

If the dream burns brightly enough then it’s always possible to make it come true. Owning your own home even if your income is at the lower end can become a heart warming reality thanks to a very special FHA Loan!