Buying a home is not so easy as it once was, and in the past few years since the recovery it has even gotten more expensive. The thing is every one wants the 100 % financing deal as if they were buying a car. Yes there are loans out there with only 1/2 % down. But you still have closing costs. Yes there are some sellers that will pay for most if not close to all your closing costs.
But here is the thing those scenarios are not always typical but if you have to stick to that scenario that you want a house with putting little to nothing in the process you will have to be very, very , very patient.
Because most sellers to not want to pay for all of your closings costs unless they are selling the house at a premium, but even then the house has still has to appraise in value. Not to mention the loan that you may be trying to get is basically going to be govt. sponsored so an FHA loan or VA loan. Sometimes the house may be in need of repairs and, so that home you want may not qualify for that loan. Or someone may have to do the repairs and the seller may not want to so you may have to do the repairs on a home that is not even yours, and you are not guaranteed to close on the deal. But the lender wants those repairs done period.
Bottom line is just be as prepared as possible, its better to have some funds so that you can negotiate. Best case scenario unless you are doing a VA loan or USDA loan have 5% for the down payment. So you can get rid of PMI anything less than that you will get with mortgage insurance. That is as long as we talking about buying this house as your primary. If you are doing a VA Loan or USDA loan you are in luck they do not have any PMI and which can be several hundred dollars on top of your regular mortgage payment limiting you on how much house you can qualify for.
But you should at least have 3.5 % saved up of whatever you are trying to buy, so you have some room to bargain and negotiate. Lets say you cannot get the seller to pay for any of the closings costs or repairs. Then apply for a FHA home loan with down payment assistant and use some of the 3.5% that you have saved up to pay for those closing costs. The point is, save up money, I know we all like free stuff but the idea of buying a home with nothing down and no costs should not be one of them. If you would like to see what kind of loans you can qualify for let me know.
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