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First Time Home Buyers Tips

Home Buyers

First Time Home Buyers Tips

I am asked all the time what the benefits are to being a first time home buyer. Many people are suprised to learn that you can be eligible for  first time home buyers benefits even if you have purchased a home in the past. Below are a number of tips to help guide you through being a first time home buyer. Many of these tips apply to any buyer.

Figure out how much can you really can afford

As a First Time Home Buyers, before you begin searching for the home of your dreams, you should know what’s really in your cost range. Make use of this home affordability calculator to find out what you can securely manage to spend.
Be sure to look at your credit and pause any new activity
when trying to get a home loan, your credit will be among the most crucial thing factors in whether you’re approved, and it’ll help determine your rate of interest and perhaps the borrowed funds terms.
Also, check your credit before beginning the home buying process. Dispute any errors that may be dragging lower your credit rating to check out possibilities to improve your credit rating, for example creating a dent in almost any outstanding financial obligations.

Related: Buying Homes Tips and Tricks

First Time Home Buyers Should avoid opening new credit accounts

To maintain your score from dipping once you obtain a mortgage, avoid opening any new credit accounts, just like a charge card or car loan, until your house loan closes.
It is smart to compare home loan rates.
Many house buyers obtain a rate quote from just one loan provider. However, this frequently leaves money up for grabs. Evaluating home loan rates from a minimum of three lenders can help you save greater than $3,500 within the first 5 years of the loan, based on the Consumer Financial Protection Bureau. Receive at least three quotes and compare both rates and charges.

Can I buy discount points?

As you’re evaluating quotes, ask whether the lenders would permit you to buy discount points, meaning you’d prepay interest in advance to have a lower rate of interest in your loan. How lengthy you intend in which to stay the house and regardless of whether you have the cash to buy what exactly are a couple of essential aspects in figuring out whether buying points is sensible.

First Time Home Buyers should start saving early

Make sure to begin saving for a down payment long before your purchase.It’s normal to put 20% down or lower. However, many lenders now permit significantly less, and first-time buyer programs allow less than 3% lower. But putting lower than 20% may mean greater costs and having to pay for pmi, or even a small lower payment can nonetheless be hefty. For instance, a 5% lower payment on the $200,000 house is $10,000.Some suggestions to save for any lower payment include putting aside tax refunds and work bonuses, establishing a computerized savings plan and taking advantage of an application to track how well you’re progressing.

Related: First Time Home Buyers Tips

First time home buyers need to explore your lower payment and mortgage options

There are numerous mortgage options available, having its mixture of benefits and drawbacks. If you are battling to generate a lower payment, take a look at these financing options:

1. Conventional mortgages

They comply with standards set through the government-backed entities Fannie Mae and Freddie Mac, and with less than 3% lower.

2. FHA (Federal housing administration loans)

Loans insured through the FHA allow lower payments as little as 3.5%.

3. VA (Veterans administration loans)

Loans guaranteed through the Department of Veterans Matters sometimes require no lower payment whatsoever.

A higher down payment means getting a lesser monthly loan payment.

If you would like the tiniest loan payment possible, choose a 30-year fixed mortgage. However if you simply are able to afford a bigger monthly obligation, you can aquire a lower rate of interest having a 20-year or 15-year fixed loan. Or else you may prefer a variable-rate mortgage, that is riskier but guarantees low-interest rate for that first couple of many years of your mortgage.

Research State and Local assistance programs

Always remember to Research State and Local assistance programs

Additionally, to federal programs, many states offer assistance programs for first-time house buyers with perks, for example, lower payment assistance, closing cost assistance, tax credits and discounted rates of interest. Your county or town might also have first-time buyer programs.

Obtain a pre-approval letter

You will get pre-qualified for any mortgage, that provides you with approximately just how much a loan provider might be prepared to lend according to your earnings and financial obligations. But as you become nearer to purchasing a home, it’s smart to obtain a pre-approval, in which the loan provider thoroughly examines your money and confirms on paper just how much it’s prepared to lend you. It will also give you defined terms. Getting a preapproval letter in hands enables you to look more dangerous to some seller and can provide you with a maximum give clients who haven’t taken this task.

» MORE: Get pre-approved for any mortgage

 

About the Author

Being a Top South Texas real estate agent, Mr. Ross with Mission Real Estate Group regularly gives update notifications regarding real estate in Corpus Christi, McAllen,  San Antonio and South Texas in general.

 Benjamin started working for a private Real Estate investment company on May 31, 2003. Ben dealt exclusively with Investment and REO properties.

He also specialized in owner finance, hard money lending as well as managing mortgage assets. Ben has acquired and sold many residential properties throughout his career for himself and the private sector.

   “With certain probable housing shortages coming, you never know how long these conditions can last.” According to Benjamin Ross Realtor, Corpus Christi real estate agent.

Contact Benjamin Ross Realtor for all of your south Texas real estate needs. Follow him on facebook and Instagram!

 

First Time Home Buyers

 

 

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Benjamin Ross is a realtor with Exit Realty Bay Area in Corpus Christi, Texas. Benjamin started working for a private Real Estate investment company on May 31, 2003. Ben dealt exclusively with Investment and REO properties. He also specialized in owner finance, hard money lending as well as managing mortgage assets. Ben has acquired and sold many residential properties throughout his career for himself and the private sector. In 2006, Ben decided to move from Arizona (which had an extremely volatile real estate market) and relocate his family to the DFW, Dallas Fort Worth area where the market was far more stable. After the real estate and market crash of 2008, Ben decided to become a full-time landlord holding his property as long term investments. Ben focused on investing in affordable housing with nice curb appeal, providing people with a nice home so that they could raise their family. Throughout his career, Ben has been a success in all types of market weather. He entered into business at the beginning of a heated market frenzy that eventually cost millions of people their homes. Ben decided at the end of 2006, that it was only a matter of time before the “housing bubble” would burst. After the crash, Ben was able to acquire residential property at very low cost which enabled him to provide housing with affordable rent to the public. Working from the ground up and starting with nothing, Ben surrounded himself with the wise counsel of experienced real estate investors and attorneys. Ben has successfully navigated tumultuous markets and not only survived the great recession but thrived in it. At the age of 38, Ben became a self-made millionaire and was able to retire from the real estate industry. Ben has since decided he wanted to work again, but this time, not for private companies but for the public, helping people realize the American dream of home ownership. He now works today to serve you.

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