McAllen, TX

Friday, August 14, 2009

If you are a First Time Homebuyer and you are interested in the slightest about purchasing a home, NOW is the time. The clock is ticking down. The deadline is November 30, 2009 so that means you need to get in to see your lender TODAY and get pre-qualified, then go shopping for your home. Although the lending requirements have changed over the last 24 months, believe it or not banks are still lending money. FHA is still probably the most attractive program for someone purchasing a home for the first time who does not necessarily want to pay all of their down payment, pre-paids, and closing costs out of pocket.

Wells Fargo's First Time Homebuyer's Guide defines these as:

Down payment - Money paid to make up the difference
between the purchase price and the mortgage amount.

Prepaids - Closing costs related to the mortgage loan which
are collected at or before loan closing - including per diem
prepaid interest and initial deposits of monthly escrows of
taxes and insurance.

Closing costs - The costs paid by the mortgage borrower (and
sometimes the seller) in addition to the purchase price of the
property. These include the origination fee, discount points,
appraisal, credit report, title insurance, attorney's fees, survey,
and prepaid items such as tax and insurance escrow payments.

If you require additional information, check with your lender, getting a home loan is a process, however, it does not have to be a difficult process if you find the right guidance. Give me a call or visit my website if you would like me to assist you.

Thursday, August 20, 2009

I had an interesting conversation yesterday revolving around the First Time Homebuyer tax
credit. I would like to share that information. First of all we need to be on the same page about the tax credit itself. You cannot have had ownership interest in a property for the last 3 years to qualify and you will recieve a credit of 10% of your purchase price up to a maximum of $8000.00. Sounds great! You have until 11/30/2009 to close and fund to recieve your credit when you file your income taxes. GET SHOPPING. You will recieve your money after you close when you receive your tax refund.

There is also a program with the Texas Department of Housing and Community Affairs that will allow you to take an advance on your Tax Credit prior to closing and use that money for down payment or closing costs.

Check with your Mortgage lender to get specific details on these programs and to see if you qualify. There is a small window of opportunity so if you are interested in these programs, now is the time to ask.

Guess what I did this morning? I took a Wells Fargo Financial Hands on Banking Course for Adults.......For Free! Believe it or not it is available to the general public. I was surprised to find that it breaks down my initial interview with first time homebuyers. It shows you the actual pros and cons of homeownership. check it out.... http://www.handsonbanking.org/en/

My typical first interview is full of questions and answers. I try to ask as much information about my customer's current situation and what they expect for their future. This is how I can help them make the best decisions. Sometimes, I find that first time homeowners are often afraid to ask questions. If you find yourself in this category, check out this Hands on Banking Course, prior to the initial interview. This will help make you feel more comfortable with the material we will discuss. Do not be afraid to ask. Getting a mortgage is a very detailed process. I have been doing this for 10 years and I am still learning every day.

Another very important step in the home buying process is that you really want to make sure you are getting the best information. Consider your source. Is this person really interested in helping you make the best decision for your family? Do you feel comfortable? There is not just one Mortgage Officer out there. You are taking a very big step in your financial future and you will be spending a lot of time with this person. Make sure you feel comfortable with that person and that all your questions are being answered in a way that you understand and are comfortable with. If your loan officer seems hurried, slow them down. This is your time. Be sure you set an appointment and be prepared with the questions you want to ask and do not be afraid to take notes.

Okay, I strayed a bit, back to the Course. I took it in about 30 minutes, (of course I skimmed through some parts) However, it does have a pause button which would allow you to step away for a few minutes and get back to it when you have a little more time. Keep in mind; you spend a lot of time shopping for the perfect house. Don't you want to spend as much time making sure that the loan that you take out fits your needs?
If you know someone who is considering buying a house for the first time, have them check out my blog, or take the course, or call me!