Since times untold, people have strived to have a better living space. Types of homes have evolved over the years; however, what remains constant are the desires and dreams of people wanting to have a home of their own. For those entering the market for the first time, this is a critical decision.
Millions of Americans turn towards home mortgage loans to make their dream a reality. For buyers, it is very important to understand the way mortgages work. For example, if you are looking for a property in Texas, it is ideal to seek the services of a reputed mortgage company in your area. So, as a first time home buyer in Texas, getting the assistance of a mortgage specialist can pave the way towards your dream home. Let us now talk about the benefits of home-ownership. Buying a home is one of the most important financial investments that one can make. Whatever amount you pay to your lender every month gradually adds to the “equity” of your property. Once your property value increases, it is as good as having money in your bank account. In some cases, homeowners may also receive federal or state income tax benefits. For most of us, buying a home through a mortgage is a long-term financial commitment. From the down payment and loan closing costs to monthly payments, home buyers need to prepare well and in advance to incur the costs over time. Also, insurance premiums, taxes and maintenance charges must be met in the long term. Hence, home buyers in Texas should consult a mortgage expert to understand the challenges involved in the process of buying a home. A mortgage expert can provide you with helpful information on flexible mortgage programs such as the Federal Housing Administration (FHA), Veteran Affairs (VA) or Fixed Rate Mortgages. Some of these programs have unique features like low or zero downpayment and attractive interest rates. With the help of such programs along with expert mortgage services, potential homebuyers can move into their homes faster and take possession of their property without any hassle.
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Before you consider applying for any of the government-sponsored mortgages, such as an FHA loan, you need to learn about the details of the program. FHA loans are the most popular home loans that are insured by the federal government. If borrowers are not eligible for conventional mortgages, they can apply for an FHA, USDA or any other flexible loan programs. In order to qualify for these loan programs, borrowers need to meet some important criteria. Although this criterion may be somewhat strict, the conditions are much more lenient as compared to traditional loans. Fixed or Adjustable Rate Mortgage - Which One to Choose Considering the frequent changes in home loan interest rates, industry experts suggest that you lock-in your interest rate as soon as you find that your monthly payments are affordable. Hence, you may want to consider a fixed rate option in such a scenario. If you don’t lock in your rate, you may have to consider taking a loan with an adjustable interest rate. Let’s take a look at the benefits of taking out a fixed rate mortgage:
Now, let us consider situations in which taking an adjustable rate mortgage (ARM) could be a better option:
Some adjustable rate mortgage plans allow borrowers to start with a low initial monthly payment. However, the rates are adjusted every year. The low rate in an ARM remains fixed for an introductory period of time. This period can last from 3-10 years. Due to the uncertainty of an adjustable rate mortgage, fixed interest rate home loans are considered more popular among home buyers. However, before making your decision, you should consult a loan officer from a reputable mortgage company for more details. Many first time home buyers in Texas may find it difficult to buy a home, despite the thriving housing market there. These difficulties are not because of high monthly payments, but the required down payment and the closing cost. Many first time buyers struggle to come up with 5-10% of the purchase price in advance. In order to afford such expenditure, they need mortgage assistance programs offered by the US government. These programs are intended to help any first time home buyer the hurdles of a lump sum down payment and monthly payments to own a home. In the first quarter of 2014, the housing market in Texas did not pick up as expected. Although real estate agents, economists and home experts cite various reasons for the sluggish market, a lack of information about mortgage assistance programs is another major factor. Need for Texas mortgage assistance programs According to the Wall Street Journal (WSJ) the entry-level homebuyers in the U.S. have been going through a rough phase due to the tight lending standards, high prices and the slow economy. All of these reasons are creating a major hurdle in the loan approval process. The stringency to have a good credit score, and requirement to submit various supporting documents can be overwhelming, especially to those who are buying their first home. Thus, knowing about various loan programs and down payment assistance programs offered by the state can be helpful. One such program is called “My First Texas Home” that is available for first time buyers as well as those who have not bought a home within the last three years. Apart from these qualifying conditions, some others include:
In order to realize your dream of owning a home in Texas, you can hire an expert lending firm. Such a firm can provide you with complete information about various types of mortgage assistance programs, which one is suitable for you considering your current financial condition. Teachers, peace officers, firefighters, veterans, and low to moderate income home-buyers can get down payment assistance for buying a home. Loan programs such as the ‘Homes for Texas Heroes’ and ‘Home Sweet Texas Home Loan Programs’ are intended to provide the much needed assistance to various home-buyers as mentioned above. A network of lenders across the state helps borrowers get the benefits of these programs. The benefits are as given below:
1. Borrower gets a fixed rate for 30 years payable at 4.75% interest on a VA, USDA-RHS, or FHA mortgage loan. The approved assistance for paying closing cost or down payment in this program is 5% of the mortgage. 2. Borrowers get a fixed rate for their mortgage at 4.25% spanning a 30-year period on a FHA, VA or USDA-RHS mortgage loan. The assistance for payment of closing cost or down payment for this program equals 3% of the mortgage. Thus, the down payment assistance comes with a lesser interest obligation for veterans, low income persons and others mentioned above who are looking to buy homes. Dallas County Down Payment Assistance Program If you are a first time home buyer looking to buy one in unincorporated Dallas County or one of the thirteen participating cities, you can get down payment assistance in the form of a $7500 loan. The best part about the loan is that it does not put you under any obligation of paying interest and closing costs. However, if you transfer the deed, don’t use the home as your primary residence or sell it, payment of the balance loan amount becomes due. In order to get this loan, you need to prove your eligibility on the parameters of purchase price, income, and home location. If you find difficulties in understanding various loan programs and loan procedures, down payment assistance programs, a reputed lending firm can assist you at every step including the paperwork and loan processing. Look for an expert lender that can help borrowers buy their dream home. |
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
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