From mortgages, interest rates and rising foreclosure numbers, a first-time home buyer has a lot more to think about than simply choosing a house he or she loves. Two of the biggest challenges – where to buy and how to get help for your mortgage – are covered in this article. Getting tips and strategies to jump over these initial hurdles can help to ensure that the first-time home buyer not only gets what he or she wants, but also ensures that they can hold onto it for years to come.
The first hurdle to tackle will be the mortgage. Before looking for a new home, the savvy first-time home buyer knows to get pre-approved for a mortgage and fully assess their financial situation. After all, you can fall in love with the most wonderful house on the block, but if you can’t afford it, you will either be financially vulnerable or facing a foreclosure in the near future – a fate no first-time home buyer wants to consider!
For the first time in quite a few years, government assistance is becoming popular with first-time home buyers. Many first-time home buyers snubbed or ignored government assistance during the real estate boom, preferring to look at a subprime mortgage for their financial needs. Alt-A and piggyback mortgages were also considered from private mortgage lenders who didn’t require a great deal of money for a down payment, nor did these lenders pay much attention to a credit score.
Just as the saying goes, however, if the deal seems to be too good to be true, it probably is. In the case of these subprime mortgage, when the real estate boom deflated, first-time home buyers who had been so appreciative of the subprime rates and loose regulations were now facing serious financial troubles. All the easy money dried up and in many cases, the homes went along with it.
Nowadays, first-time home buyers with little cash for a down payment or a short or poor credit history have nowhere to turn for mortgage assistance. The traditional routes of home lending have been re-established to put the market back on solid ground. What are first-time home buyers to do for financial assistance? Look towards government agencies like the FHA or Federal Housing Administration. The FHA is known to help find loans for individuals who have average credit and a down payment that is less than the required 20% of the purchase price.
Meanwhile, the U.S. Department of Housing and Urban Development can help first-time buyers with closing costs and with down payment assistance. In addition, the FHA’s assisted mortgages are set to potentially become even more affordable for first-time home buyers in the future as a response to the chaotic real estate boom.
Combine this help with mortgage next to the latest recommendations from realtors about which houses to avoid – and why. Studies have shown that three main factors can make selling your home difficult in the future and for first-time home buyers who will most likely upgrade in the future, these are important tips.
Avoiding environmental elements like landfills, noting the rate of foreclosures in the neighborhood and looking into the crime rate within the location of the new house can all have significant impact on the future of a first-time home buyers investment.
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