| First Time Home Buyers |
First time home buyers with high credit scores can benefit from tax credits and attractive home prices. Foreclosure properties are available at bargain prices, and you can buy a home that may have been out of your reach a year ago. Mortgage interest rates have risen from their historic lows, but they are still affordable.
A tax credit of $8,000 is being offered for first time home buyers, which will be applicable until the end of 2009. Apart from this federal tax credit, some states are also offering their own first time home buyers credit. One of these is the government of California.
If you are a first time home buyer, you need to explore your options online and talk to mortgage lenders of different types. You can contact mortgage companies, commercial banks, credit unions, savings banks, and savings and loan associations.
Mortgage brokers will also help you to find out about the best deals being offered by different lenders. Use an online
mortgage calculator to find out how much you can afford to borrow.
You will need to have a very high credit score to be eligible for the lowest mortgage rates. Check your credit score before you make any decision about investing in real estate.
You can get a free copy of your
credit report by visiting AnnualCreditReport.com. If you find anything in your credit report that is incorrect, you can dispute it and have it set right.
Lenders may ask you to make a down payment of 20 percent of the price of the home. If you want to make a smaller down payment, lenders may ask you to buy private mortgage insurance (PMI), which covers them against the risk of default. The PMI premiums will make your mortgage more expensive.
You can also find out if government-assisted programs like those of the Federal Housing Administration (FHA), Veterans Administration (VA), or the Rural Development Services are available. Programs of this type have lower down payments and closing costs, and easier qualifying credit norms.
You can get a better deal if you obtain a mortgage quote in writing from a few reputable lenders and brokers. Compare the offers and negotiate with the lenders on the basis of quotes provided by others. Check the reputation of the lenders and read the fine print carefully before you sign up.
We can help you to get free, no-obligations mortgage quotes from pre-screened lenders and brokers who provide first time home buyers loans. This is a free offer and there are no commitments involved at all. We will not disclose your contact information to anyone without your permission.
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