J. David Rogers asked:




If you are searching for a NM home loan, chances are you already know that the deadline for being in contract on your new home in order to receive the Federal tax credit for first-time buyers is coming up at the end of this month, April 2010. Yet, did you know that the state of New Mexico has gone out of their way to allow more New Mexico residents to purchase their new home with this Federal program?

It’s true! New Mexico first time home buyers (which actually means those who have not purchased a home within the last three years) can now get help making the down payment on their new NM home loan through a state operated program called the Tax Credit Loan Program.

The Background

While most New Mexico residents have been dreaming about taking advantage of the Federal tax credit which is currently rewarding first-time home buyers with up to $8,000 in tax credits (or refunds!)just for taking out a new NM home loan, not everyone has been able to take advantage of this deal.

Why? Because they don’t have a down payment to secure the NM home loan that is required to take advantage of the Federal tax credit. That has always been a problem for people looking to secure a new home loan in New Mexico, but the problem has been even more widespread throughout the state as people suffer from job losses and other effects of the troubled U.S. economy.

That was why the New Mexico Mortgage Finance Authority started the Tax Credit Loan Program with the goal of allowing more New Mexico residents the opportunity to take advantage of the Federal tax credit program for first-time home buyers.

The Program

This program allows those who are taking out a new NM home loan to take up to $6,500 in a special loan that will go directly to the down payment on the NM home loan. This is just the help thousands of families have needed in order to take advantage of the Federal program.

The catch here is that the money you receive from the program is a loan which must be repaid. Those who are using the Federal tax credit to offset large bills that will be collected by the IRS at the end of the year won’t benefit much from this program, but those who are expecting to receive the majority or all of their Federal tax credit back as are fund will benefit tremendously.

The program is designed so that the refund received from the Federal government at the end of the year can pay back the down payment loan that was taken through this state operated program.

This is not free money, but rather a convenient way for first-time home buyers in New Mexico to get the down payments needed to take advantage of the huge Federal tax credit.

The Approaching Deadlines

If you are looking to take out a NM home loan in the near future and are interested in either of these programs, you have to act quickly. You must be in contract on your new home by the end of this month, April 30, 2010, in order to qualify for the Federal tax credit.

Further, your home purchase must be completed by June 30, 2010 in order to actually receive your credit on your taxes. This means you need to act quickly to get pre-approved for your NM home loan and get into contract to take advantage of these programs.

Amber

R.P. Brown asked:




Buying your dream home is as easy as A-B-C. Follow the simple steps below. It may take months or even years to be prepared for your purchase; don’t get discouraged, just keep working on it every day. Once you move into your new home, it will be worth all the planning and preparation! So just keep focused on your goal and be persistent.

A. PREPARE FOR PURCHASE:

1. Write down your family’s financial goals (short term and long term). For example: Buy a house within one year; Be debt-free within 10 years.

2. Prepare a monthly family budget. Your monthly debts (including car payments, child support, and credit card payments) should be 10 – 15% of your gross monthly income. Contact your financial planner for assistance.

3. Upgrade your credit report. Make all credit payments on time for at least 6 months. Make arrangements to clear up any unresolved items such as charge-offs or defaulted student loans.

4. Eliminate consumer debt. Don’t purchase an automobile or any other major purchase on credit.

B. PRIOR TO PURCHASE TIME:

1. Complete the loan application form (1003) and turn it in to your lender, with the credit check fee (usually about $25 per person).

2. Follow through with loan agent to receive a letter of pre-qualification from your lender.

3. Contact your Realtor

]]> http://firsttimehomebuyer.info/real-estate/home-buying-steps-for-first-time-home-buyers/feed/ 0 http://firsttimehomebuyer.info/real-estate/first-time-home-buyer-programs-tax-incentives-and-down-payment-assistance/ http://firsttimehomebuyer.info/real-estate/first-time-home-buyer-programs-tax-incentives-and-down-payment-assistance/#comments Mon, 19 Jul 2010 12:05:11 +0000 admin http://firsttimehomebuyer.info/real-estate/first-time-home-buyer-programs-tax-incentives-and-down-payment-assistance/

Simon Volkov asked:




A variety of first time home buyer programs exist offering financing options, down payment assistance and tax incentives to individuals purchasing real estate for the first time. In order to receive house buying benefits, applicants must meet eligibility requirements. First time buyers should conduct online research or consult with a real estate advisor to determine which program is best suited for their needs.

Popular first time home buyer programs include Fannie Mae financing, FHA loans, VA loans and various programs offered through HUD. Home buyers might also be eligible for the Worker, Homeownership and Business Assistance Act which provides an $8000 first time home buyer tax credit toward real estate purchased by April 30, 2010. The Recovery Act also grants up to $6500 in tax credits to homeowners that have resided in their home for a minimum of five years and ready to move into a higher priced property.

Fannie Mae engages in first time home buying programs and mortgage refinancing. One of the more popular home buying programs is Home Path

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John H asked:




First time homebuyers are in the exciting position of both choosing a home and making one the biggest investments in life. But are realtors necessary? I hear this question a lot from first time homebuyers. They wonder why they can’t just peruse open houses and visit new developments where realtors are just sitting there waiting. Well, that opens the first can of worms for first time homebuyers. Realtors usually work as either buyer’s agents or seller’s agents. That friendly realtor at the open house only represents the interests of her clients (the sellers.) That’s why I tell any first time homebuyer to team up with a professional realtor who knows the things that you don’t.

Tap Into Their Knowledge

Anybody can buy a house. But all the unknowns typically overwhelm a first time homebuyer. The great thing about working with a realtor is that you get an “instant guru” for all you questions from finding good schools, to how much less a seller might take, to “what is PMI again”? You will find that the mountains of paperwork go more smoothly if a realtor guides you through the purchase agreement. The legalities of buying a home are enormous, but competent realtors make sure you don’t skip the inspection, or spend all your time driving around an area that’s out of your price range.

But what about price range? One of the biggest concerns that new buyers have about hiring realtors is paying the commission. After all, is it really worth it to pay realtors when you could have that money available for your new home? Weigh this decision carefully. Don’t nickel and dime yourself out of competent advice. Especially if you have never navigated the paperwork and legalities of a real estate transaction, one of your smartest moves can be to include a realtor on your house hunting team.

Use the Services that Realtors Offers

Once you decide to work with a realtor, let them really work for you. Realtors can eliminate many homes based your requirements, so that you spend less time looking at inappropriate ones. List your desired amenities and priorities so that your realtor really knows what to look for. Good realtors listen. You shouldn’t have to tell him 4 times that a second bathroom is a must.

The best realtors will honor your time schedule and when you are available to look at sites. Realtors can also give valuable information about movers, local amenities and things to do, even local doctors if you’re new to town. Remember, in addition to having professional knowledge of the real estate game, your realtor is an area local. Ask lots of questions, and expect lots of information in return.

Where to Find Competent Realtors

Realtors are everywhere. Ask for referrals from people you trust. Interview potential realtors before making up your mind. Ask about their background, client load, experience and availability. Then grab you digital a camera and a notepad, call your chosen realtor, and have fun buying your fist home.

Rachel

Sarah Beckham asked:




Most people underestimate the amount of money they need to buy their new home, and first time home buyer grants can provide the free money individuals need for closing costs. Between down payment money, moving charges, title fees and outstanding debts with your current property, purchasing a new home is a big financial commitment. These grant programs can significantly reduce this financial burden and provide you with the cash you need to purchase a new home.

Firs time home buyer grants can be obtained by millions of eligible home buyers, yet most people are largely unaware that these programs exist. These grant programs are not loans. First time home buyer grants are additional funds that home buyers can obtain to pay the down payment on their loan or assist with closing costs. Depending on the particular grant you are approved for, the cash obtained may be able to cover your entire down payment.

Because grants are not loans, you will never be asked to repay this money. In most cases the terms state that you must own your home for at least three years, which prevents real estate investors from buying and quickly selling properties for a profit with free government money.

So who qualifies for first time home buyer grants?

These programs are offered by various government and private organizations, which means eligibility requirements vary from program to program. In most cases, however, a first time home buyer is classified as an individual who has not owned a home within the past three years. Obtaining these funds typically has nothing to do with your credit score or income, and because you never have to pay this money back, you do not need any kind of collateral or a co-signer.

Once you view the list of grants available in your area by using the links below, you’ll be able to instantly apply for first time home buyer grants. Those who qualify can have cash in hand in as little as a week, saving yourself thousands of dollars in the purchase of your new home. If you have any plans to remodel your new home, you may qualify to receive free home improvement grants too. The money is available, but first you have to find out if you qualify to obtain it.

Marc

Flynna Sarah Molina asked:




Short sale properties are said to be the better option for first time home buyers who wish to push through their plans of acquiring their own house. These properties are somewhat similar but not totally alike with foreclosed and REO houses. Buying short sales require much work from the aspiring homeowner but it is definitely very rewarding once you have successfully bought the house. As you continue with the remaining paragraphs, helpful tips for hopeful homeowners are explained further.

When you say short sale, it is usually defined as buying a property that is lower than the remaining balance of mortgage on the house. It only means that the market value of the house is usually not enough to fulfill the outstanding balance borrowed from the bank or the lending company. Previous owners of such houses badly need to find a buyer so they can pay off whatever balance they have to the lending company.

A short sale deal involves a third party buyer which can conduct the negotiation with the lender to save the original owner from getting a foreclosure. This is a great way to keep the original homeowner from ruining his credit status and get the lesser evil of the very few choices he has. Actually, he only has to choose from foreclosure and short sale. Thus, the best way for those struggling borrowers is to prefer the lesser evil from the two.

Initially, when you plan to buy a house, you need to find the right house that will suit your needs and preferences. To help you make the process easier, try to research using the internet. Local newspapers can also be another good source of property listings. Recommendations and suggestions by your relatives and friends will also keep you posted on the latest short sale properties.

When you are about to begin the transaction, as a short sale buyer, you wild have to confirm with the old owner about your plans on buying a short sale. This also means that if the old owner will not accept your offer of buying the house, then you do not have the choice but to drop the case. The fact that lies behind short sale properties is that this is actually asking the permission of the latest owner to accept your offer, as a third party buyer, to keep him from getting a possible foreclosure. You are also building a business rapport with the lender. This can sometimes pay off the tedious job since lenders start to be lenient with your requests.

As soon as you have successfully obtained the permission, you can go immediately to the loss mitigation and deal with the lender. Inquire about the possible terms and conditions. Then you can now proceed to making a hardship letter. This is one of the most vital requirements since this is where the evaluation process will greatly depend on. This will inform the lender the current status of the previous owner. Keep in mind that this is where the lender will base his assessment if he will allow the short sale process to take place.

Stacey

RJ Baxter asked:




Mistake #1: Not employing the services of a Realtor.

One of the most common mistakes I see is avoiding hiring a Realtor. Many first time home buyers think that a Realtor is costly and won’t help them much. Nothing could be further from the truth. The seller in your transaction pays the Realtor, so it won’t cost you a dime, and a Realtor can save you valuable time and money by finding properties you may not have been aware of and negotiating your contract.

Mistake #2: Not looking at enough homes.

Many first time home buyers will look at a couple of homes, get really excited, and then decide to make an offer, only to regret it. Even if you are extremely excited about a particular home, it’s a good idea to take a deep breath, and keep looking, at least at a few more. You may miss out on something even better by biting too soon on one of the first ones you see (my wife and I made this mistake on our first home).

Mistake #3: Taking the “lowest” mortgage offer.

It’s not difficult for shady mortgage brokers to show you a mortgage offer that seems a lot lower than everyone else’s. The new good faith estimate will help alleviate some of this problem, but the point still persists- keep in mind what you’re getting if you automatically choose your mortgage company based solely on the lower price. The adage “you get what you pay for” holds true with mortgage shopping as much as with any other product or service. Pay for a Kia, get Kia- you know what I mean.

Jean

Sani Orman asked:




President Barack Obama’s 2009 Stimulus Package is all set to rescue the home owners from bankruptcies & foreclosure. It has brought along several relieves for those who wish to own a home but have none right now. The first time home buyers have much to look up to in the new Stimulus Package. They can get grants & tax credits to make their buy easier.

Here are some key points to qualify & apply for the tax credits & grants to buy your first home:

]]> http://firsttimehomebuyer.info/real-estate/first-time-home-buyers-president-obamas-stimulus-for-first-time-house-owners/feed/ 0 http://firsttimehomebuyer.info/real-estate/the-days-of-the-mortgage-broker/ http://firsttimehomebuyer.info/real-estate/the-days-of-the-mortgage-broker/#comments Wed, 30 Jun 2010 14:34:31 +0000 admin http://firsttimehomebuyer.info/real-estate/the-days-of-the-mortgage-broker/

Molly Wider asked:




Home ownership has generally been heralded as the ultimate financial achievement and, if all goes well, a solid way to create a foundation of wealth. The perception is that homeowners are not throwing their money away on rent. Instead, the thought process is that the new homeowner is putting their money toward an asset that can only appreciate in value. Agreed, home prices have, for the most part, been a good financial investment over the past few decades. The last two generations have had these concepts instilled in their thinking when it comes to real estate. They’ve been taught to save for a down payment to buy a house then work hard to pay off their mortgage. They’ve also been encouraged to ‘get in soon’…and that’s exactly what they’ve been doing.

According to the Canadian Association of accredited Mortgage Professionals, the combination of inevitable bank rate increases with the new rules for qualifying first-time home buyers is causing a surge in the demand for mortgage brokers as potential homeowners are having to look harder for their first mortgage.

Many borrowers will not understand what the changes mean and how they will impact them as a consumer. The new April 19 rule requires all potential homebuyers to qualify for the standard five-year, fixed rate mortgage, even if they plan on a lower-rate variable mortgage. Also, rental property income will no longer be given the same consideration as before when qualifying for a mortgage. CMHC reported their 2009 survey showed that approximately 25% of all mortgages were conduced through mortgage brokers instead of with a bank. 42% of these first-time purchasers were between the ages of 25 and 34. This number is expected to rise with tighter qualifying rules for the first-time buyers who are looking for the best deals. Some also think the trend of the mortgage broker is rising due to the current generation of home buyers growing up in a different era.

Although mortgage brokers can offer market expertise, they generally cannot offer any more guidance than the banks. However, brokers have access to a menu of options a bank may not have. One of the benefits of an independent mortgage broker is that they have access to all banks and can sometimes use the lower interest rates of one bank as leverage against another. Brokers do not work for any one bank, which means they can shop around to provide their clients with the best deal. While one bank may decline a borrower, another lender may approve them.

If you are like many others who have bad credit are hoping to get into the market but are concerned about how the new rules are going to affect you, you may want to think about a private loan. There are many private financial lending institutions that specialize in bad credit loans that you can put towards the house of your dreams.

Susan

Ricky Lim asked:




FHA simply stands for Federal Housing Administration. This is basically a federal government organization in the United States of America which is responsible for the improvement of housing conditions and standards. It is a part of the National Housing Act and it is used for provision of a proper home financing system by means of insuring mortgage loans as well as stabilizing the mortgage market.

What any FHA first time home buyer should know is that this organization does not make or guarantee loans. Instead, the organization primary activity is to insure loans. This is helpful as the insurance will reduce the risk of lenders when they are faced by buyers who pay a deposit that is less than 20%. FHA is also involved in the mortgage institution as it falls under housing. This is a factor that one should be aware of anytime they wish to be an FHA first time home buyer.

Due to the fact that the organization is not out to do business without the concerns of the consumer, you will find that the mortgage limits of FHA insured loans are very friendly. The mortgage limit has been known to be quite a concern for any person who wishes to be an FHA first time home buyer. FHA has got many more advantages which will include the consideration for the persons who have a bad credit history.

Since it is a government based organization, you can be able to qualify for an FHA loan even in the event that you may be experiencing bad credit or you have had a bad credit history. This means that anyone who is interested to be an FHA first time home buyer and has had a blemished credit history will be more eligible than if they just went to any other institution for the home loan. Finally, the best thing about the FHA loans is the rates and terms that they give.

The rates of such a loan will be seen to be varying in the range of about 0.125 percent of the conventional loan and this does not change according to the markets. These rates are the most competitive in the housing market making them very popular among the people. Their terms are also very considerate and they are not a strict as other loaning institutions would be. This combination has led to an increase in the demand of such loans.

Tim