First Time Homebuyers are Better off in Texas

According to research by the National Association of Realtors (NAR), first time homebuyers have not been contributing much to the recovery of the housing market in the U.S. However, certain areas of the West and Midwest are likely to witness a rise in home purchases by the millennial generation. The research conducted by NAR considered the population and job trends in the metropolitan areas across the country to arrive at this conclusion.

The purpose of the research was to determine the most suitable markets for these young homebuyers. The finding of the research is good news if you belong to the millennial generation and are looking to buy your first home in Texas. Among other property markets, Austin is found to be one of the best Texas cities where these potential buyers are likely to purchase their first home. This region is in a better economic state, offers high job growth rates and affordable home prices compared to other metropolitan centers.

This optimism is in sharp contrast to the plight of millennial homebuyers in the other top US cities such as San Francisco and New York. The young populations in these cities are reeling under student debt, limited job prospects, restricted wage growth and tight credit conditions. Anyone looking to buy their first home in Texas needs to know all of their options before taking out a home loan.

Despite Texas being better off than other housing markets in the country, homebuyers need to ensure that they fulfill all the conditions in order to get all of the mortgage benefits. In this way, buyers could become eligible for several convenient loan options and downpayment assistance programs.

Easy loan options for first time homebuyers in Texas
Even first time homebuyers who belong to the low income bracket can buy a home in Texas. They can apply for a Federal Housing Administration (FHA) loan and qualify for a loan with as low as 3.5% down payment. If coming up with this amount of down payment becomes difficult for homebuyers, they can apply for one of the down payment assistance programs that have specifically been designed for Texans.

To learn more about these loan options, contact a credible mortgage firm today. Use any popular web search engine to look for one that offers the assistance of expert loan officers on all kinds of specialty mortgages.

Things you need to know about FHA loans

June brought some good news for the real estate sector in Texas. The sales of pre-owned homes in North Texas had seen the biggest year-over-year gain in 2014. In June of 2014, 9,481 houses were sold in this state, which were the largest single monthly sales ever recorded. Such a thriving housing market is creating a lack of inventory. Hence, home buyers may have to shell out more money to get their desired home due to the increase in property prices. As the market is full of new buyers who want to take advantage of this optimistic trend, the mortgage market is also witnessing a lot of activities. For these buyers, there is a wide variety of home mortgage options available. One of the most popular mortgage options for the first home buyers is an FHA loan.

The Federal Housing Administration or FHA loan program has specifically been designed for home buyers with low to moderate income. This loan is more lenient in terms of eligibility criteria such as credit score, borrowers’ income and outstanding debt. This program also allows a down payment of 3.5 percent, which seems generous considering the larger down payment requirement for conventional mortgages. In those mortgages, customers are expected to pay a significant amount of an upfront fee in addition to the monthly premium, which poses challenges to many borrowers.

FHA loans provide relief to home buyers who do not meet the typical eligibility criteria for traditional mortgages. With such benefits of this mortgage program, even the home mortgage lenders in Texas are ready to provide financing to buy a property.

Here are some of the features of an FHA loan:
Easier to get: In earlier times going for a home loan caused home buyers to go through confusion and taxing paperwork. However, things have changed now, and with a more streamlined application process and underwriting, mortgages get approved with quick turnaround time.

Limits of the loan: There is no specific maximum limit for an FHA loan. Instead, it is set according to different states, and it is based on the specific market condition.

Credit Score: FHA loans work in a different way than a traditional loan works when it comes to credit score requirements. There is no minimum requirement for the loan, and a homebuyer can still be eligible even if he has faced bankruptcy.

Available for all income groups: Though FHA loans are mainly sought by lower and medium income groups, there is no such restriction. If borrowers can prove their ability to pay, they can apply for this loan even if they belong to the high income bracket.

Mortgage processes can be complex and buyers better seek assistance from mortgage experts. They may need the services of a reputed home mortgage company to know more about FHA loans or any other suitable loan option. Such a company not only makes your work easier by finding the best mortgage option for you, it also provides assistance for a hassle-free loan application process.

Home Mortgage Lenders: How to Make the Best Choice?

In the current market scenario, you can get a lot of options to obtain mortgage loans as a home buyer. Other than the conventional ways of taking out loans from banks and other financial institutes, you can also select a reputed lending firm. In fact, hiring a lending firm will be much more convenient for you. A firm can provide customized solutions to your financial requirements, based on your affordability. You can look out for the right home mortgage lender in Texas when you decide to buy a home there.

What are the different sources available for mortgage loans?

Lender: A lender usually assigns a loan officer who works as a mediator between borrowers and the lending firm. These officers act as the sales person who helps understanding the terms and conditions of various loan programs

Banks/Financial institutes: These are traditional financial institutions that offer mortgage loans on the similar ground as a lender. However, their lending rules are much stringent, and thus loan rejection is much higher. Real estate agency: A real estate agency offers various property options to homebuyers. It works as an intermediary between buyers and sellers. Though their main objective is to assist sellers in selling their properties at the highest possible prices.

In terms of a mortgage, with so many options available, it becomes confusing for homebuyers to make the best choice.

Depending upon your needs and affordability, a lender can help you get an ideal loan option that is likely to be satisfactory.

Tips to find a knowledgeable and trustworthy mortgage lender

• Get recommendations from the people you trust: You can always ask friends and relatives for suggestions, especially from those who have recently obtained a loan. However, you need to cross-check the references to ensure selecting the best lender that matches with your need.

• Observe the first-time response of lenders: You may get to know a lot from the initial response of a lender. The traits of a professional lender are prompt responses, friendly and courteous behavior, keenness to educate and explain processes to borrowers and answering all the queries.

• Check out reviews and credentials: Online reviews are good indicators of the customer experiences of working with a lender. You can also check the lender’s credentials to ensure it possess the required experience and skills.

• Do your homework: Do a thorough online research to avoid being misled by non-reliable sources.

The steps mentioned above can help you get a suitable lender that can help you find an ideal home mortgage loan.

Are you a first time home buyer?

Most people dream of owning a home of their own and spent years saving in order to do so. If you have a similar dream, then you should consider various factors including your monthly income, savings, and budgeting before purchasing a new home. If you are serious about buying your first home, start your process by exploring financing options such a mortgage rates and programs. Buying a new home requires research, guidance and adherence to guidelines and rules.

Mortgage rules vary from one state to another across the United States. Some states even offer specific mortgage programs for home buyers in those states. For example, a first time home buyer in Texas can get financing through Texas Bond Programs.

Apart from opting for the right mortgage program, by chalking out a plan, potential home buyers can accomplish their dream to become homeowners.

Work to Improving Your Credit Score
When you contact a mortgage company for mortgage loan approval, your credit score will be checked at first. In fact, your credit score plays a vital role in determining if you are eligible for the loan or not, what type of loan, and rates. Hence, before you talk with a lender, it’s better to check your credit score by getting the credit report yourself. You can order credit reports from AnnualCreditReport.com. It is a free service, authorized by the federal government. After you know your status, you can then work to clarify any errors or can pay off any outstanding debts negatively affecting your score.

Save well in advance
Typically, you need to pay between 5% and 30% as down payment to get competitive rates on mortgage loan. For this, you may have to work towards building up your savings. To do this, you may need to cut out all unnecessary expenses from your monthly budget.

Finding a reputed real estate agent
This step takes time as finding a reputed real estate agent can be difficult. Ask friends, family members, research references for a reputed real estate agent. A good way to verify the credibility about the agent is to explore the internet.

Secure a pre-approved loan
Once you know how much loan you can afford, only then you can begin to research and shop for a home that fits your requirements. You will need to thoroughly understand the types of loan options available to you, and compare rates and other aspects conventional and non-conventional loans.

Find the Home of Your Dreams
You can take the onus of looking around and finding a home yourself, but that could be a difficult task. It is advised to read and research online about a house by checking reliable databases.

Once you find a dream home, talk with a reputed mortgage company that can provide flexibility in terms of mortgage options and loan processing assistance.

Home buying requires discipline and patience. A reputed mortgage company can assist you with guidance on mortgage programs, application, and securing a loan, making the home owning process easier for you.

Know your options amidst the Boom in the Texas housing market

The home buying market in many parts of Texas is booming, limiting options for first time home buyers. Home prices rose by nearly 10% in 2013 in Texas, and the trend continues today. Properties are selling very quickly, many over the asking price with multiple bids driving prices even further upwards.

In the current scenario, home buyers have to make buying decisions quickly, while some others are left too afraid to take the risk. The last recession left such an impact on buyers that many have become tentative to invest in home buying, despite good credit scores. These buyers could benefit from learning about the various state and federal home loan assistance programs. In fact, there is more assistance available now than ever before.

Home finance options for first time home buyers in Texas
Some home loan programs make home buying easy for the Texas first time home buyer include:

Texas First Time Home buyer Program or Bond Program – This program gives a home mortgage to a qualified borrower at a competitive interest rate. Assistance for down payments and closing costs are also a part of this program. A person with low or moderate income can apply for this program.

Texas Mortgage Program or TMP-79 – This program offers home loan mortgages to Texas home buyers at a lower interest rate than other programs, as well as lower down payment and closing cost assistance.

Texas Department of Housing and Community Affairs (TDHCA) – If making a down payment is a problem, the “My First Texas Home” program can help you with down payment assistance. Borrowers with a credit score of 640 or higher with a total debt-to-income ratio of less than 45%, and a price which falls under the stipulated income and purchase price limit (county wise) are eligible for this program.

Assistance by the Texas State Affordable Housing Corporation (TSAHC) – The assistance from TSAHC for home buyers in Texas also aims at lowering their down payment and closing cost burden. However, interest rates offered by them are on the higher side.

To make sure that there are no regrets after you buy your first home in Texas, you need to consult a reputed mortgage company. In this way, the market conditions, pressure sales tactics or other reasons won’t affect your home buying process. Find a reliable mortgage company that will guide you in every step. Such a company can advise you on the most favorable government assistance options.

Loan Assistance Programs for the First Time Home Buyer in Texas

When you are a first time home buyer, various loan assistance programs are available that can enable you to afford your dream home. It can be difficult for potential homebuyers to find out various loan programs available. Even when a suitable loan program is identified, knowing the eligibility criteria and following the procedure can be difficult. That is why it is always a good idea to hire a reputed lending firm. Consulting with a loan officer can resolve many doubts and you get a loan that is best to fulfill your financial needs.

A highly experienced loan officer not only helps you find the ideal loan assistance program, he/she will also ensure that the processing of your loan is expedited. Some loan assistance programs include annual tax credits and down payment assistance programs for first time home buyers.

Annual tax credit for eligible home buyers in Texas
You can reduce your federal tax liability by $2000 per year with a Texas Mortgage Credit Certificate. This is an annual tax credit program designed for home loan borrowers in Texas. If you fulfill certain income, home mortgage loan criteria, you can get up to a $2000 tax credit annually. However, the condition is that the home you bought should be your primary residence.

This mortgage credit program is meant for veterans, first time home buyers and low income home buyers. If you fulfill all the criteria mentioned above, a Mortgage Credit Certificate will be given that entitles you for tax relief. The certificate can get 40% off for you on the annual interest that you pay on mortgage as a tax credit on Federal Tax return. This relief is available for your mortgage term or as long as the home is not your primary residence. Down payment assistance programs for Texas

Homebuyers can get down payment assistance and closing cost assistance for buying an existing home in Dallas, Texas. It is offered by the City of Dallas Housing Department. Eligible borrowers can get a down payment assistance of $8500 in the form of a loan, but without any obligation to pay interest. The loan balance needs to be repaid only in the case of the following three situations:

1. When you sell the home
2. If you transfer the deed
3. When you stop using the home as your primary residence

Besides using the funds for down payment, you can also use up to $4000 towards closing costs. Alternatively, $1500 of the loan can be used for minor repairs by complying with the City’s Minimum Housing Standards.

The loan assistance programs mentioned above are not easy to obtain as there are several procedures to follow that frustrate homebuyers. You need services of a capable lending firm to expedite the loan processing for you. At the beginning, they will tell you about all the financing options available, and the one that suits you best after assessing your current financial condition and affordability. Their expert guidance can surely help you get a loan approved in a hassle-free way.