I get asked just about every single day how to buy real estate with no money and today I’m gonna show you exactly what to do.
Now if you want to buy a house and you don’t have that much money you can always go to a bank and the bank will loan you the money. They call that loan a mortgage. Now in order for a bank to give you a mortgage so that you can buy the house, the bank will ask you for three things. Let me show you exactly what those things are.
The first of the three things that you’re going to need is a job. Now I don’t care how younger how old you are you gonna land a job and you should land the best job that you possibly can. I mean get a job that’ll pay you as much as possible that’ll help. The whole point here is you got to have a job and you got to be in the same industry for at least two years. So technically you could move from one job to the next but if you do you don’t want to move from like dentistry to accounting.t You want to stay in the same line of work for two years that’s really important to banks.
Okay so the first thing the bank needs from you to qualify for mortgage is a two year work history at the same job or in the same industry.
The second thing they’re going to need for you to have is good credit. This shows them that they can trust. It also shows them that you’re responsible and that you can handle having a mortgage. So how do you get good credit? Well you need three credit cards. You need to be careful here if you use the credit cards the wrong way it could backfire on you and can make it harder for you to get the house. So here’s the right way to use the credit cards. First you need to get three of them, go to banks like this or you can go online and you can apply for very basic credit cards. It’s okay to tell them that you’re using them to develop good credit. Now this part is really important. Do not use them to buy stuff, you don’t have the money for. Only use them to pay for things that you already have the money to buy anyway. Let’s say you have a hundred dollars and you’re going to buy some new clothes use the credit card and by the close immediately make a hundred dollar payment to the credit card so that you have a paid off every time you use a credit card to buy something. You need to quickly turn around and keep it paid off if you do this with these three credit cards you’ll develop a good credit score in time.
Okay are you ready for the third thing that the bank needs to give you a mortgage? The next thing that the bank is going to ask for is that how much of a down payment are you gonna need?
For just a moment let’s just say that it is worth a hundred and fifty thousand but that you can get it for a hundred and twenty thousand dollars so you’re getting it at a discount thirty thousand dollars equity position.
That you get to have a few ever sell the house so banks will often require three percent down payment. Three percent on a hundred and twenty thousand dollars is roughly four thousand dollars. So four thousand dollars plus maybe a little extra savings as what the bank’s going to ask for you to have when it comes time to actually buy the house. So just imagine for a moment that you are delaying gratification on some of the nicer things you’d like to happen. You’re saving five hundred dollars a month well if you did that for two years you’d actually save twelve thousand dollars more than what you actually need to make this whole deal. Okay so now you know what to do to qualify for the mortgage.