There has never been a better time for many people to try their hand at securing a mortgage to get into the real estate game. When housing prices are down it becomes much easier for first-time buyers to break into the market and start building their equity. Whether you’re looking for a home for your own family or real estate that you can rent out to potentially turn a profit, you won’t get anywhere until you’re sure you can get a home loan, and to get a home loan, you’ll have to be smart with your money.
Classic Mortgage Approval 
Most people are at least a little familiar with the classic method of obtaining financing for a home, which includes traditional lenders like banks and credit unions or specialized mortgage companies. This is still a convenient and generally trustworthy place to put your money and your faith, even today. The thing about traditional lenders is that they’ve got tough criteria for you to qualify for approval. Your credit score needs to be stellar, and you need to be able to present a down payment of at least 10%, preferably more.
Carry Back
Once in a while, a buyer can get very lucky and find a seller who will agree to carry the note for the purchase you’re looking to make. This is only possible when the seller owns the home outright; they can’t still have a mortgage on it. The seller will agree to make a monthly payment from you towards the price of the home, and these deals usually come with a time limit. But beware! You will have to refinance your purchase at a later date.
Subject-To
The subject-to method is designed to allow you to buy a property on the same terms that it was originally financed for. You will have the title to the home transferred, but the home loan stays in the name of the seller while you make the payments. This is a great way to get started on buying a home if you haven’t got the means to come up with a down payment, but it is only a very short-term solution to home buying. Most sellers who are willing to take on this method of selling a house do so because they are facing financial difficulties, so make sure that you make your payments on time to avoid making their situation worse.
Lease Options
A lease option is another great way for someone who hasn’t got the means to put money down right off the bat, but who may be able to in the not-so-distant future. A lease option allows you to put money down on a home without a huge down payment and leaves you the right at the end of your lease to buy the house. Make sure that your payments, or at least a portion of them, are going towards the eventual sale of the home, though, otherwise you’re, in effect, throwing your money away.
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