Thursday, October 17, 2013

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

By Fernando Ketter


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.

For the record, first-timers in this reference are people haven't owned homes in the past three years. Many such people interested in becoming homeowners wait until they find a property they like before approaching lenders. This may be acceptable for investors and others who already own other properties, but it's not the ideal method for those who don't know much about the process.

It helps to get prequalified by a lender before starting the search for a suitable property. Find out about government housing aid, and apply where eligible. The chosen lender must have special low-interest programs available only for people who are not property owners and are in the market for buying their primary residence.

There are community programs which help reduce the upfront costs. One such scheme requires buyers to take a class about owning homes and get certified. For those who do get the certification, the down payment and closing costs are brought down to just three percent of the 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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