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.
The official definition of a first-timer is someone who hasn't owned any residential property in the prior three years. It's natural to want to find a suitable property before contacting a lender. This approach works for regular investors and those who own other homes, but it is not ideal for new buyers.
It's better to get prequalification for the proposal from a lender. Find out about eligibility for government assistance programs, and fill in applications where allowed. Also take the trouble to find lenders offering special loans at low interest rates for new homebuyers.
A major part of the upfront costs may be eliminated by signing up for one or more aid programs. One such scheme makes buyers take a certificate course on homeownership. Getting this certification reduces the down payment and closing costs to about 3% of the total sale price.
This is a far cry from the 30-40 percent that is usually required nowadays. Such high entry barriers make it virtually impossible for an ordinary person unless they have been saving up a decade or more. The whole point of all the assistance schemes is to encourage more people to buy homes by making it a lot easier to do so.
Another scheme called MCC (mortgage credit certificate) makes federal tax credits available. Monthly mortgage payments are easier to meet since money is freed up through tax credits. It opens up the proposal to prospective homebuyers who would otherwise find it unfeasible. Get in touch with Houston first time home buyer lenders to find out more about these and other ways in which property purchase transactions can be completed quickly and at a lower cost.
The official definition of a first-timer is someone who hasn't owned any residential property in the prior three years. It's natural to want to find a suitable property before contacting a lender. This approach works for regular investors and those who own other homes, but it is not ideal for new buyers.
It's better to get prequalification for the proposal from a lender. Find out about eligibility for government assistance programs, and fill in applications where allowed. Also take the trouble to find lenders offering special loans at low interest rates for new homebuyers.
A major part of the upfront costs may be eliminated by signing up for one or more aid programs. One such scheme makes buyers take a certificate course on homeownership. Getting this certification reduces the down payment and closing costs to about 3% of the total sale price.
This is a far cry from the 30-40 percent that is usually required nowadays. Such high entry barriers make it virtually impossible for an ordinary person unless they have been saving up a decade or more. The whole point of all the assistance schemes is to encourage more people to buy homes by making it a lot easier to do so.
Another scheme called MCC (mortgage credit certificate) makes federal tax credits available. Monthly mortgage payments are easier to meet since money is freed up through tax credits. It opens up the proposal to prospective homebuyers who would otherwise find it unfeasible. Get in touch with Houston first time home buyer lenders to find out more about these and other ways in which property purchase transactions can be completed quickly and at a lower cost.
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