SellAustinTexas

Low interest rates, large resale inventory and big incentives on new homes have been big motivating factors for home buyers recently.  If you have a steady income and good credit, now is the best time to buy a home, not only for a place to live but for future investment as well.

If you’re ready to make that leap to home ownership, there are 4 things that you need to do before even getting in the car to take a look at that first house.

1) Pre-approval for a home loan – If you are serious about buying, talking to a loan officer or mortgage broker and getting pre-approved for a loan should be the first step.  You will know how much home you can afford and begin to really focus your home search.  But most importantly, with a pre-approval letter from the bank, you will be able to submit an offer on a home more quickly as most home sellers require a pre-approval letter with offers.

2) Collect Pay Stubs, Bank Statements and Tax Returns – Banks need these in order to process your loan.  Keep the last 6 months of pay stubs, print out your bank statements from the past year and print out the past 2 years of tax returns.  Having these handy will speed up the loan process and help ensure all deadlines are met when you put a home under contract.

3) Don’t Make Any Big Credit Purchases – Your credit score is checked 2 times during the purchase of the home.  The first is during the loan approval process.  The next is right before closing which could be 30, 45 or even 65+ days after the approval process.  If there’s a big purchase that hasn’t been paid off, delinquent bills or anything else that might affect your credit it could create problems in getting the loan and in you getting your home.

4) Save Cash In Order to Pay Closing Costs – Depending on the type of loan you get, you’ll need to pay 10%-30% of the total sales price in cash at the closing table.  On top of that, there are other lenders fees, inspection fees and sometimes title company fees that you will need to pay in cash.  It’s smart to get a Good Faith Estimate from your loan officer or mortgage broker in order to know how much cash you will need at the closing table.

If you have more questions on the buying process, feel free to give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com

Time is running out on taking advantage of the up to $8,000 Federal Housing Tax Credit for qualified first time home buyers. The tax credit is available for qualified first time home buyers purchasing a principal residence before December 1, 2009. That deadline is only 3 months away! If you are considering purchasing your first home, now is definitely time to get off the fence and buy. Interest rates are low, it’s still a buyer’s market for residential real estate and the government is offering an $8,000 tax credit. Don’t let this opportunity pass you up!

The FHA (Federal Housing Administration) has made some recent changes to its loan program in an attempt to make home buying more affordable for everyone. Here is a recap of some recent adjustments and current benefits.

Gift Funds for Down Payment

3.5 % gift funds for down payment. These can be from a direct relation, employer/union or charitable organization.

Seller Concessions

Allows up to 6% seller concessions, which can offset closing costs.

No Credit Score Required

There is no minimum credit score needed for approval. Alternate credit can be considered, for instance, regular bill payment in absence of credit cards or loans.

Competitive Rates

            As low as 5.25%/5.638 APR.

Other Highlights

OK 2 years after BK 7 Discharge, monthly and financed Mortgage Insurance, quick underwriting and close.