First-Time Home Buyer In Texas: What You Need To Know
When you hear the phrase “first-time buyer,” the first thing that probably comes to your mind are the people who are purchasing their first homes ever. Well, this is not entirely the case. The first-time buyer is not only limited to these people.
Who Qualifies As A First-Time Buyer?
According to the Department of Housing and Urban Development, a Texas first home buyer includes people who are:
- A single parent who used to co-own a home while she or he was married
- A person who has not owned a house or residence for a minimum of three years
- A homemaker who used to own a property with a spouse, however no longer receives any financial support from the said spouse
- A person who only owned residences that are not fixed to a permanent foundation. It includes a trailer or mobile home.
If you qualify for the requirements listed above, then you can take advantage of the benefits offered for those who are buying their very first property. If a buyer has already purchased a home in a specific area that has less stringent criteria for buyers to meet and seen as chronic economic distress, then there is a chance that the criteria will be lifted.
Aside from that, if you had a former house that didn’t meet the model, local and state building codes and may not be brought into compliance for the minimum price of building another home, then you can go ahead and call yourself a first-time home buyer.
Criteria for Choosing the Best Lender
When searching for the best lender, here are a few things you should consider.
The very first thing that most borrowers look for when comparing several lenders is their interest rate. It is quite important but what you should check is the annual percentage rate or APR which includes the interest rate, the processing points, and fees so you will have a more precise picture of what you will be paying yearly. The APR is what you should look at if you want to know the total cost.
Usually, when you are looking for a lender, you are looking for the right loan amount. If you need a loan of about $200,000, there’s no need to choose a lender who will only provide you with a $150,000 loan. On the other hand, if you get approved for a $250,000 loan, there’s no need for you to spend all of it. You can purchase that $200,000 home. Borrow only the amount you need.
Closing costs are when lenders can add any fees to your mortgage. These can include title, surveying, origination and third-party fees. It is essential that you find lenders who are willing to provide you with a discount on these fees or better yet, waive them.
Your loan term can alter your total loan amount or APR so choose the one that will suit you. Usually, the term ranges from 15 to 30 years.