Wednesday, October 16, 2013

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

By Fernando Ketter


In addition to the standard mortgage options, Houston first time home buyer lenders have a lot to offer new buyers. The right lender will provide guidance about assistance programs that make the whole process easier and more affordable. It's possible to reduce closing costs, the initial down payment and the monthly mortgage payments that follow.

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 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.

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 3% is very low compared to the usual 30% or 40% that others pay. Such high amounts are impossible unless buyers save up for a decade or more. The government offers housing assistance programs to get rid of these high 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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