First-time Home Buyer Programs Texas
Regardless of the reasons that you may have for wanting to purchase a home of your own, there are all sorts of useful steps that you should consider making note of in order to ensure that you are successful in making your purchase, especially if it will be your first one.
Here are three useful tips that all first-time home buyers should make note of.
*First and foremost, perhaps one of the most important tips for first-time home buyers is to always maintain your credit. This means that no matter what, don’t make the decision to open a new line of credit for any reason, as whenever you apply for preapproval for a mortgage, lenders will always pull your credit report and will also do it again prior to you closing on both the home and the mortgage itself. If lenders discover that you’ve taken out an additional mortgage or credit line, or if they see that your credit balance has increased, your final approval could be placed at risk. The bottom line is that you should always make sure that you pay all of your bills on time.
*Another important tip for first-time home buyers is to make sure that you’re actually ready to commit to a loan. On average, a mortgage loan term lasts for approximately between 15 and 30 years, and even though you don’t actually have to remain in your home for that exact amount of time, purchasing a home is still a big commitment. Ask yourself questions such as if you’re ready to commit to a home and city for at least five years, if you have an emergency fund that can cover expenses for at least three months, and whether or not you have a stable enough income. If the answer to any of these questions is negative, you will need to keep saving money, as well as doing as much research as possible.
*One other important tip for first-time home buyers is to save enough money for a down payment, which typically is around 20%, as this will enable you to avoid mortgage insurance on conventional loans. One of the most important priorities of the Federal Housing Administration is assisting home buyers with being able to successfully purchase their first home. If you end up qualifying as a first-time home buyer, this means that you could end up having access to options such as an FHA loan, state programs, and tax breaks. Furthermore, you may also be able to benefit from multiple types of assistance programs, such as down payment assistance grants and loans. In order to qualify as a first-time home buyer, you must meet criteria such as having no prior ownership in a principal residence during a three-year period ending on the property purchase date, being a single parent who has owned only with a previous spouse while married, only owning a principal residence that is not permanently affixed to a more permanent foundation in accordance with applicable regulations, and more.