Wednesday, October 9, 2013

Houston First Time Home Buyer Lenders Offer Mortgage Options For New Buyers In Texas

By Fernando Ketter


Houston first time home buyer lenders don't just offer mortgage options for new buyers. They also guide people through the process and point out ways in which it can be made easier. There are several programs available that can reduce the burden of down payments, closing costs and the subsequent monthly mortgage payments.

A first-timer in this reference is someone who hasn't been the owner of a residential property in the three years prior to this proposal. Many buyers typically wait until they find the right property before getting in touch with a lender. It works for investors or those who already have one or more homes, but not for someone who has never been through the process before.

It would be a lot more beneficial to be prequalified. Also check for eligibility for one or more government aid programs, and sign up where possible. The choice of lender has to be made with special consideration for those offering low-interest mortgages for new homebuyers.

There are community programs which help reduce the upfront costs. One such scheme requires buyers to take a class about owning homes and get certified. For those who do get the certification, the down payment and closing costs are brought down to just three percent of the sale price.

It is much lower than the usual 30 or 40 percent that a homebuyer has to shell out these days. These extremely high upfront costs make it hard to purchase homes without saving up money for decades. The point behind assistance schemes is to encourage residents to become homeowners by lowering the entry barriers.

Over the long term, programs such as mortgage credit certificate or MCC help by making federal tax credits available. Proposals that are otherwise unfeasible become possible because the tax credits free up money for mortgage payments. Houston first time home buyer lenders are able to help homebuyers with housing assistance, low-interest loans and other guidance as required.




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