In Texas, home loan borrowers have the option to opt for special bond programs, apart from the FHA, VA, USDA, and conventional home loan options. In many cases, a bond program can be the best option for the borrowers. Let us take a look at some of these programs: Texas First Time Home-buyer Bond Program For many home loan borrowers, the Bond Program 77 or the Texas First Time Home-buyer Program can be the most suitable loan program. Prominent features of this program are:
Texas Mortgage Program: TMP-79 Another bond program that you can apply for is the Texas Mortgage Program. The purpose of designing this program is to replace the single-family bond program. More than $600 million has been set aside for helping homebuyers under this program. Compared to the previous family bond program, the Texas Mortgage Program is known to help borrowers on down payments and closing costs. The additional elements of this program comprise up to 5 percent of the total home loan. An important feature of this loan program is that the income level eligibility of borrowers is based on the location of their home. In short, there are different maximum income requirements based on where the home is located. The above-mentioned bond programs are suitable for borrowers who cannot afford to make the required down payment for the home loan, but can pay a part of it. These programs can be combined with other programs, and borrowers can actually get the chance to own a home without any down payment. You need to consult an expert on these bond programs as they can help you decide whether you are eligible for such a loan program or not, or what is the best option for you based on your financial circumstances. Once you are aware of the best Texas Bond programs available to you, the next step is to begin the application process. Since these programs help you resolve your down payment and interest rate issues, the process involved can be quite complicated. Thus, in order to fulfill your dream of owning a home, you need to take help from the experts. During the loan approval process, there are other important aspects to be aware of such as the Good Faith Estimate (GFE) and the Truth-in-Lending disclosure worksheet. These are important to understand because they include the various costs involved in loan processing. You shouldn’t need to worry about these issues. Rather you can focus on hiring a specialist lending firm with comprehensive knowledge of mortgage processing. They will provide you with an array of options and help you make the right choice based on your requirements.
2 Comments
Are you looking to buy a home with simple but fascinating architecture in Texas? Or do you wish to buy a spacious and afford-ably priced home in a nice location? Properties of various kinds are waiting to change hands in this state, and which one you would eventually buy will depend on your preference, requirements, and of course affordability. You can find wonderful properties that can easily fulfill your long-cherished dream of buying your first home in Texas. However, if you are feeling the pinch of low cash reserves and a moderate monthly income, buying a home by making a large down payment can put you under serious financial stress. However, with the help of a lending firm, and by following some necessary steps, you can soon be holding the keys to your first home! Home Mortgage Process Applying for a new home is the first and the most important step that determines receiving a loan successfully. However, prior to this step, another key decision you need to make is to choose a lender that will take you through the entire process seamlessly. You need to find a lending firm that stands out from all other home mortgage lenders. You can do so based on their attitude towards your concern, and keenness to find a suitable solution regardless of your financial situation. A reputed and knowledgeable lender is always ready to put in their knowledge to fulfill your desire by suggesting a wide range of mortgage loan options. When you see a helpful loan officer that is happy to assist you with personalized solutions, then you will know that you have found an expert who can lead you in the best direction. The lending firm will first assign a loan officer to review your current financial situation. The assessment includes your current monthly income, credit history, the price range and the amount of down payment that is affordable to you. Once the application requirements are fulfilled, an underwriter will review it for approval. In order to increase the possibility of approval, an established lender will guide you through a faster and more accurate application process towards a successful closing. Things considered for mortgage loan approval Verifying the source of your income, ability to make down payments, assets, employment history, and debts are the factors considered for mortgage loan approval during the home loan application process. An underwriter evaluates the application considering each of these parameters to determine whether you qualify for a loan or not. Verifying Your Assets:
Debts The lender lists all of your current debts including car loan, credit card, personal loan, student loan, child support payments, etc. Your credit report will give a clear indication of your credit history. Your Debt-to-Income Ratio The debt-to-income ratio will be determined by the proportion of your gross monthly income and the amount you spend on debt. Your lender will consider this ratio to find your affordability to repay a loan amount, and the type of loan suitable for you. Employment Status You need to submit supporting documents as proof of your employment and your current gross income. Apart from the factors mentioned above, there are various other aspects such as, home warranty options and property insurance coverage that you need to consider before buying your first home. A dependable lender will assist you in every step to ensure that you move into your dream home in the shortest possible time. In March of 2013, www.dallasnews.com published an update on how various banks and mortgage companies are lining up in Texas due to the growth potential in home lending! Texas is one of the few states that are showing signs of recovery after the housing bubble burst in the US. The lending market is thriving, various mortgage companies are opening offices, and loan officers/underwriters are getting hired to create a new line of business to serve customers. Why the Lending Market in Texas is thriving The home mortgage market is showing encouraging trends in Texas because of low interest rates, reduced foreclosures, and increasing demand for new homes. Both lenders and borrowers want to take advantage of the situation; dealings in residential mortgage are showing an upward swing. The biggest reason for this upward trending in home mortgages is the buyers’ inability to pay cash for a home. A mortgage loan provides them the opportunity to own their dream home despite the restriction of having low cash reserves. Buyers can afford a home and pay monthly installments for the duration a loan is taken. The Texas lending market is competitive, and that makes things difficult for home buyers to choose the right lender that fulfills their requirements. Choosing a lender in Texas When potential home buyers look to buy their first home in Texas or in its surrounding regions, they need to make a wise decision to capitalize on the promising mortgage market. For this big investment, there are numerous factors that need to be considered including buyers’ budget, property price, interest rate, credit score, and feasibility to repay the loan. A reputed lending firm focuses first on the buyers’ needs and accordingly provides the right solution in terms of eligibility, suitable loan options, and the approval process. Understanding the basics of home mortgage loans Regardless of which lender you select for a home mortgage loan in Texas, you need to know some fundamentals of the mortgage process. Knowing these basics will always help you understand the required steps including the things-to-do in order to qualify for a loan. Principal Amount – It is the amount of money borrowed from a lender for a mortgage deal. This is the actual sum to be paid to the seller for a property. However, it may cover more if a loan includes the closing charges as well. The principal sum reduces as monthly payments are made. Loan Term - This is the time frame for which an entire mortgage loan needs to be paid. Depending on the affordability and convenience of borrowers, they can take out a loan on short-term (10 year term) or longer term (30 years) basis. One of the flip sides of short-term loans is that these loans have larger monthly payments. If a borrower is not in a good situation in terms of monthly income, then a lender may suggest a flexible loan program with low down payment and long-term loan repayment. Interest Rates - This is the interest a borrower needs to pay in addition to the principal amount. The rate depends on the type of loan (fixed or adjustable rate), and the current rate in the market. It is incorporated with the monthly installments a borrower pays. Closing charges – It’s a combination of fees and payments for services that borrowers need to incur to meet mortgage loan requirements. Typically, these costs are listed in the lender's Good Faith Estimate (GFE). Besides knowing the above terminologies, it is important to do some homework before choosing the right lending firm that can provide perfect solutions to financial woes with their market knowledge, flexibility and customer-centric approach. |
AuthorDarrick encourages readers to post issues that need immediate attention in terms of home buying; such interactions will enhance reader engagement and provide a road-map for others Archives
November 2017
Categories |