First Steps for First Time Buyers 

Note:  Most IRS tax rules and lender first time buyer programs define a "first time buyer" as someone who has not owned a home as their primary residence in the past three years.

UPDATE!  The recently passed "economic Stimulus" includes an expansion of the first-time homebuyer tax credit.  A 1st time buyer purchasing between 1/01/09 and 12/01/2009 can claim an $8,000 TAX CREDIT for the purchase of a home...more details.

Many people use real estate investments as a means to generate income and provide a viable tax shelter while still providing financial benefits to the investor. The first time home purchaser is more likely to be buying a new house for a primary residence rather than for a real estate investment. While the primary residence is still a major investment in real property, the start to finish method is a little different than it is for the investor.

The first time buyer should always start the search for their dream home with a recognized lending agent. Whether this means the loan officer at their personal bank or a more formal mortgage broker in a larger financial institution, this is the place where everything begins in the process of real estate investments. Be sure and ask me for references for reputable, reliable and professional lenders in Fredericksburg, TX

A good mortgage broker will be able to explain all of the necessary details about the process of real estate investment. They will also be more fully qualified to look at the individual situations of the prospective homeowner and give them a more complete analysis of what financing options are available and which types of loans or mortgages will best suit the individual needs of the real estate investor.

Any good lender in Fredericksburg, TX will provide a "Best Faith Estimate (BFE) of all of the costs associated with a particular loan program or package.  This is very important information!

Other options which may be viable are large down payments for someone who has the capital to invest, but does not have the credit. Some mortgage lenders offer very enticing deals to first time buyers, which include benefits that may not be available to other parties who are purchasing real property as an actual investment instead of buying a primary residence.

Still other mortgage and financing options include the use of zero down loans for real estate investors. These loans will usually cover all of the closing costs when buying a house as a primary residence.

Real estate investment is a major expense, and as such, it is important to know how much the homeowner has to spend before going out and trying to spend it. There are so many loan and mortgage options available to the real estate investor that it is imperative to start any home or property purchase with a lengthy discussion with the loan officer or mortgage broker in order to make sure that all of the proper options can be readily explored.

As a certified Texas Affordable Housing Specialist I am uniquely qualified to provide you with information, insight and resources that may not be available to current or previous homeowners. Many programs exist that offer low down-payments, down-payment assistance, mortgage credit certificates and other incentives exclusive to the first-time buyer. Call me for more details on these exciting (and often overlooked) programs.