First Time Home Buyer Closing Cost Assistance

What is Closing Cost Assistance?

src=""When you have finally decided to purchase a new home, there would be many initial cash outlays required from you, and two of these would be the down payment and the closing cost, both of which are necessary to close the deal and for you to be able to proceed to the next steps involved in loan acquisition. Not everyone would be having enough liquid funds to cover such costs, which is why there are many agencies which offer assistance to cover these costs for you. As for the closing cost, this should include payment for everything necessary to complete the process prior to acquiring a loan, and is thus, essential before you can buy a new home.

Where to Get Closing Cost Assistance

There really is no shortage of housing and finance institutions offering services such as down payment and closing cost assistance, given how these two aspects are very important in purchasing a new home. Nevertheless, the requirements differ from one agency to the next, and obviously, there would be some that are offering better rates than others.

The best thing to do would be to ask your realtor about it, although take note that you have to meet basic qualifications which appear to be the same across the board. Most often than not, the amount you would be able to borrow would depend on your household median income, and at times a minimum borrower investment from the buyer would also be required. Some agencies would even have conditions regarding the house to be purchased. For example, the property has to be vacant prior to the sale.

Should You Get Closing Cost Assistance?

The answer to this question would really depend on you, but since most of first time home buyers would find it hard to come up with the cash needed for down payment and closing cost assistance, this option is quite useful. It could significantly reduce the initial cash outlay that you would have to shoulder. Take note, though, that there will always be requirements for qualification, and not everyone would be able to comply with those prerequisites. Fortunately for you, if you have a good credit rating, then you will find yourself one step closer to purchasing your first house.

Five Creative Ways to Save For a Down Payment

Gone are the days are getting a home with literally no money down. Today everyone that wants to buy a house for the first time needs to come up with a down payment. Saving is difficult enough. For gas to groceries, the cost of just about every thing has gone up in the last ten years.

To save for a down payment you need to get creative. Here are five ways you can save for a down payment on a new home.

1. Get a Keurig  – The cost of a Keurig coffee machine is about $100 right now on Amazon. Why get a Keurig? Simple, it makes great coffee easily and quickly. Skip your favorite coffee shop that charges you $2 for a cup and make coffee at home yourself for a fraction fo the price since a cup of Keurig coffee typically costs around $ .60.

2. Sack Your Lunch – While this is probably a lot harder than it seems, if you do it enough it becomes a habit. Eating out is expensive. An economical lunch typically costs around $8, a decent lunch will set you pack around $15. If you and your spouse are both eating out for lunch every day it gets very expensive very quickly. Consider it practice. After buying a house, most first time home buyers end up bringing a lunch from home because it’s the cheaper option.

3. Get Rid of Cable or Dish – Why spend up to $99 a month for television and movies? Instead you can stream your entertainment via Amazon, Netflix and Hulu. You get the similar programming at a fraction of the price. If you must have your daily dose of first run cable shows (like Duck Dynasty or Walking Dead) you can always purchase them for $2 an episode.

4. Say Goodbye to Your Land Line – Ask yourself this question – if you and your spouse or partner each have cellphones why do you need a land line? If the answer is we don’t, then say good buyer to your land line. The truth is more and more households are dropping their land lines because cellphones are more practical.

5. Skip the Movies – The cost of going to the movies add up quickly – tickets, popcorn and drinks can cost up to $25 per person. Instead, wait for the movie to get to Redbox (the red movie rental machine) and buy popcorn and your favorite drink at the grocery store. Most grocery stores have a Redbox so you you can get your movie, popcorn and drink at a fraction of the price.

Hopefully these five tips will get you started on your way to saving for a down payment. They’re pretty easy to implement and once you buy a home, there’s a very good chance that you will need to implement these tips anyway.

The Truth About Buying Your First Home

Every article you read on buying a home for the first time always starts like:


Buying your first home is easy…

Buying your first home is hard…

Buying your first home is exciting…

Buying  your first home is fun…

Buying  your first home is stressful…

The truth is buying a home is all of the above.

It’s easy if you have a lot of money saved up for a down payment, have great credit, stable incomes and can easily or get help from family when qualifying for a mortgage.

It’s hard if you don’t have money for a down payment, have bad credit, your employment history is unstable and don’t have the ability to have someone cosign on your mortgage.

There’s nothing better than making a decision and moving forward. So when buying your first home you will have no choice buy to get excited. Some people get excited moving from their apartment, rental, parents home or dorm and into a new house, condo or townhouse. Others get excited thinking about painting walls any color they choose. Dog owners may get excited about finally not having a backyard while families with small children may finally have more space for their kids to play. If you don’t get excited about buying your first home, you probably shouldn’t buy one.

The fun part of buying your first home is seeing homes whether it’s a condo, townhome, or house and thinking of all the possibilities for their new home.

The stressful part usually falls under money or the most asked question by first time home buyers “Can I afford it?” First you have to deal with he application process. Having to divulge your entire financial life to get a mortgage is stressful because you either have good credit or bad credit, you either have money for a down payment or you don’t, and you either can pay for a mortgage or you can’t. Next you have to deal with whether or not your offer is going to be approved. Then there’s the stress of getting to the closing table – where your mortgage gets approved and all the funds are dispersed. Lastly, there’s the “Can I afford it?” question that you now have to answer every month when your mortgage is due.

There’s no way to sugar coat buying a home. It’s going to be easy, hard, exciting, fun and stressful all at the same time. Just keep in mind that everyone who has bought a home for the first time has dealt with similar emotions.

Important Information for First Time Home Buyers

Information for First Time Home Buyers

Important Information for First Time Home Buyers

In the past, the guidelines for home buying were so relaxed people were flocking into their financial institutions scooping up great, low down payments and even some zero down payment loans that were available to almost anyone with a job.

The Present

With financial institutions barely treading water and the economy taking a huge plunge, there are now buyers on the hunt for any alternative when it comes to finding a mortgage they can afford. Many homeowners are now searching for ways to refinance their homes without having much luck. There are many owners who opted for adjustable rate loans and now find themselves in dire starts trying to pay back these loans they can’t afford. Finding a willing mortgage lender is now becoming a challenge. Many of these people are now having to face financial ruin or are selling their homes.

Future with Fannie Mae

Fannie Mae’s American Dream Commitment offers people an affordable solution to their financial woes. Fannie Mae is dedicated to helping the under-served by offering affordable solutions to home ownership. It strives to help minorities in purchasing their first homes and serve the communities that need the assistance the most.

The Fannie Mae foundation is dedicated to offering the lowest financing rates available in today’s market for people who have a less than pristine credit history. With the most flexible financing rules around, the Fannie Mae foundation is striving to help anyone and everyone with the chance to buy a home that they can call their own. Allowances for things like undocumented income are being enforced and even allowing a person with little to no savings or assets buy a home is what Fannie Mae is all about. Fannie Mae has come to the rescue of millions that may have otherwise never been able to afford their own home.

There is also the added benefit of not having to have an actual housing history. This is something that changes the future for so many people. If you are currently living with your parents and pay no rent, that is no longer a blooper on your account. You can still qualify for a loan and become a homeowner by working with the friendly people of the Fannie Mae foundation.

Benefits For 1st Time Home Buyers

Looking for the first home can be an exciting time in the lives of many. However, it can also be a scary for time those who are concerned about the long-term commitment that they are making. Even the word mortgage can be viewed and translated into long-range goals and objectives, since many new homeowners are normally committed to a 30-year loan.

Although this long-term commitment can be major concern for many, buyers who purchase their first home can also associate this transaction with many different benefits. This is because first time buyers are normally given special incentives and there are inherent advantages in buying a home.

Some of the main benefits of buying the first home include financial stability, home equity, establishing strong credit, and saving money at tax time. Also, after working hard, the new homeowner will have an opportunity to participate in the American dream (owning a home).

Financial Stability

One benefit to buying a first home is having financial stability. The homeowner has more financial stability because they know the amount that they will have to pay each month for an extended period of time (i.e. 30 years). This is not true for those who pay rent each month because it can vary widely based on the economy and other things. The amount that a renter pays can also change in 6 months or in a year. The amount due is based on the current lease. However, if the homeowner has a fixed rate instead of an adjustable rate more, they will know the exact amount each month and they can plan their budgets accordingly.

Home Equity

One of the benefits of buying a home and paying the mortgage is building up equity. Equity can be described as ownership and it increases as the homeowner makes their mortgage payments. Some people consider it as savings because the money can be taken out when it is needed. This means, the homeowner is making money, while they are paying of their mortgage.

Strong Credit

Another benefit to buying the first home is rebuilding the crediting history and rating. While some buyers will have a high credit rating when they purchase their new home, others may have a low score. In these situations, the new home can build their rating quickly when they make payment on time every month. By paying the mortgage on time, creditors can review the history and view the owner as a positive risk. In fact, the new owner can watch their credit ratings increase by reviewing the three credit bureaus periodically.

Money Savings at Tax Time

When an individual rents instead of buys a home, they may have problems with finding tax credits and deductions at the end of the year. Without a home, many people owe the government instead of looking for a refund. However, when this same individual buys instead of rents, they will have additional tax savings at the end of the year. This is because the government allows deductions on the interest that is being paid.

Advice for the First Time Home Buyer

Buying your first home is a great time full of excitement and even fear. The process of buying your first home is unfamiliar and can be a bit intimidating. There are several mortgage loan programs available and it is important to know the difference between them before signing on the dotted line. You should also know what factors can increase or even decrease your chance of getting a great rate.

What is Your Bottom Line?

Many first time buyers end up purchasing a home that is out of their price range and they can’t afford it. Many people make the wrong assumption. Just because a loan is approved does not mean you can actually afford the monthly payments. Lenders do sometimes approve loans that are higher than what a buyer can afford because let’s face it, they make more money on these loans. You need to figure in cost of living, utilities, and emergencies.

Getting Pre-Qualified

When you are pre-qualified for a loan, the sellers know that you are probably going to be able to get the mortgage and make your home buying go smoother. You will also be able to know the price range of homes you should be looking at so you don’t waste your time on homes that are out of your price range. A pre-approval is still a loan that will have to be processed but it states that if your current situation has gone unchanged, you will be able to get the loan you apply for.

Get Your Credit Under Control

Make sure that any debts you have outstanding are paid for or at least under control before you start applying for loans. If you have a bad debt on your account, fix it before you begin. If you have a good credit history, you will be able to make a choice in loans. If you have poor credit, you may be stuck with the loan that is offered, high interest and all. Don’t skip payments and by all means pay off the smaller loans that can affect your score.

Select Your Mortgage Package

Your broker will have an idea on what loans you may qualify for. If you want to keep a little cash on hand, you should look for a loan with little to no down payment that will have to be handed over up front. Let your lender know what it is you are looking for and they will find you the best deal possible.

Using an IRA Withdrawal for Down Payment on a Home

IRA Withdrawal for Down Payment

People wanting to purchase a new home today have to come up with larger down payments then they used to have to. Recent economic woes have forced lenders to tighten lending requirements and reduce risk. The days of getting into a home with little to nothing down comes at the cost of higher interest rates or rejected applications.

IRA Withdrawal and Mortgages

Banks are often wanting a substantial down payment. Often they would like to see twenty percent or more used to secure the mortgage. Few people have this money easily available to them. But there is a resource that many people do not think about.

Your IRA is a potential source of those higher down payments. But you must understand the implications of using your IRA withdrawal for such a purpose. Selling that individual retirement plan may seem like a great idea, but you need to keep some things in mind.

IRA Withdrawal and Age

If you are not 59.5 years old, you will be charged an immediate ten percent penalty for early IRA withdrawal. The amount withdrawn will also be reported as income on your taxes. States vary but you may even find the state leveling taxes and penalties on an early withdraw of funds.

There are ways around these tax and penalty implications. The IRS publication 590 lists exceptions to the penalties and taxes. First time home buyers are often considered exempt, however it is always best to make sure that you fully qualify by checking with the IRS.

IRA Withdrawal For First Time Home Buyers

It is important to remember that these IRA withdrawal exceptions are almost exclusive to first time home buyers. Generally the home must be residential and not commercial or rental. Tax laws are subject to change, especially at the local and state level, so you should consult with a tax adviser on the exact implication of using your IRA for the down payment of a home.

Buying Tips for First Time Home Buyers

tips for first time home buyers
Tips for First Time Home Buyers

Tips for First Time Home Buyers – First Things First

There are many people jumping in to buy their first home and do not even have a clue as to how it works. Asking questions can sometimes get you vague answers and knowing just what to do during your first home buying experience can be scary. The first two tips for first time home buyers are simple, getting a real estate agent and finding a home.

Tips for First Time Home Buyers – Getting a Real Estate Agent

The first tips for first time home buyers that you have to learn about is the real estate agent. There are two types of agents: the selling agent and the buying agent. If you are looking at a home, you do not want to look at the home with the selling agent because they are contractually bound to the seller and must try to get the best deal possible for the seller. Ask your friends about a good agent; chances are if they are homeowners, they will easily be able to point you to a reputable agent.

When meeting your agent for the first time, pay attention. Does he answer your questions professionally? Does he have frequent interruptions during your meeting? Does he respond in a timely manner when you call or email? All of these are important factors. If he seems too busy for you at your first meeting, that is a sign he will always be too busy during the next meetings. Getting the right real estate agent is your first of two tips for first time home buyers.

Tips for First Time Home Buyer – Getting a Home

Now that you have found an agent you like, the next set of tips for first time home buyers is getting a home. Check out all of the possible choices. If you are trying to stay within a budget, you can find foreclosed homes and even HUD homes that may fit the bill. Housing and Urban Development (HUD) homes are usually sold as is so it is important to know just what you’re getting yourself into. If you choose to buy a HUD home, you should know that you will need an agent that is approved for HUD home sales.

Consider the value of the home before making an offer. Choose a home that will rise in resale value and you should have no problems. Up and coming neighborhoods are a great way to get a low cost home that will appreciate over time.

Make sure the home of your choice has no deed restrictions. Make sure if you want to add a pool to your new home that it is allowed without restrictions on the deed or you will soon find yourself in deep water without a pool.

Make sure you get the inspections done before buying your home because what you don’t see is sometimes what will cost the most in the long run to repair.

Finally, make sure that all is running smooth in the purchase. If you have questions, get them answered before it is too late. The last thing you want to do is buy a home that you are not happy with. Two important tips for first time home buyers are essential and will help you get the home of your dreams.

Top Four First Time Home Buyer Tips

first time home buyer tips

First Time Home Buyer Tips

Buying a home is a big step and being a first time buyer can be a very exciting time. There is a special feeling of being able to pull up into your own driveway and walk into your own home. There are some challenges as you travel down the path to home ownership but the payoff will be well worth the small amount of headache you have on the way there. Living in an apartment for so many years will be well worth it when you get to walk up and unlock your own door for the very first time. Here are a few first time home buyer tips to help you on the path to ownership:

1. First Time Home Buyer Tips – Real Estate Agent

The first thing for first time home buyers is to find an agent. You should find an agent who has the time to deal with you and can answer your questions in a professional manner. This should not turn into a sales pitch! Keep looking until you find the agent who takes the time to consider your situation.

2. First Time Home Buyer Tips – Finances

The next thing you want to be sure of is your finances. Check your credit report and clear up any questionable marks on your credit. If there are errors in your report, you should clear them up and get something in writing stating you have done so. You will want your credit report to be clear and concise, and if there are errors on the report, they will only hurt you in the long run.

3. First Time Home Buyer Tips – Mortgage

The third of four first time home buyer tips is learning the lingo when it comes to mortgages and if there are terms you do not understand then you should try to familiarize yourself with them. Knowing the difference between a pre-qualified letter and a pre-approval could mean the difference between winning a bid and losing it. It is important to know what all of these terms mean and how they affect you.

4. First Time Home Buyer Tips – House Choices

Lastly, the fourth of four first time home buyer tips is knowing what it is you are looking for. Knowing how much you want to spend and what the amenities are in the house of your dreams are important. There are things that you will be willing to let slide but know exactly where you stand firm in your choices and stick to your plan.

Buying your new home takes time and knowing what it is you are looking for will only help you in the long run. Take your time and make careful choices to ensure your happiness with your new purchase with these four first time home buyer tips, you’re on your way.