First time home buyers

by Kyle Probert
Introduction

First time home buyers are buying homes priced much lower than the median. First time home buyers are more likely to pay top dollar for their home, this is because they are not familiar with the differences between lenders and may not get the rate or terms of the mortgage loan that you should. First time home buyers are often anxious about their home purchase and are, by definition, new at understanding how home financing works.

First time buyers

In markets with excess inventory, first-time home buyers are a prized commodity, says Mark Zandi, chief economist at Moody's Economy. To qualify, your household income can be no more than 80% of the area median income which, in many communities, includes perhaps the majority of first time home buyers, who tend to be younger and less affluent than other home buyers. Certain banks & or Government Grants may offer a flat percentage of the purchase price, such as 5%, as down payment assistance (up the $15,000 limit), so that buyers of less expensive homes would be likely to receive less than the maximum allowable amount of assistance. This helps first time home buyers in a variety of ways.

Real Estate Agents

Real estate agents have the experience to guide you through this process and they have the knowledge of neighborhoods, homes or condos on the market and properties coming on the market that you should absolutely tap into. Real estate analysts say the once-growing segment has shrunk to less than 25 percent home sales. Real estate has become a buyer's market in the United.

The Market

Market watchers say the Valley lags slightly because investors and rising home values are pricing newcomers out of the market. In markets with excess inventory, first-time home buyers are a prized commodity. They help stabilize a market in flux. Have your agent look up how much time other neighborhood houses have been on the market and how different the current asking price is from what it was at first listed. Some will offer their normal market rate mortgages, while many will offer a discounted rate.

Buying a home

Buying a first home has always been everyone's dream. Buying a first home is an American dream. Buying a home may involve having cash to make your down payment as well as closing costs, however in today's market more and more sellers are paying the closing costs for the buyer. There is more to buying a home than collecting curtain swatches and making sure you've got enough moving boxes, just be sure that you do your research, talk to experienced professionals and always get a second opionion.

Property Prices

Property prices have continued to rise in the majority of regions around the country and the result has been first time buyers looking for other routes onto the property ladder than traditional means.

Income Eligibility

Income eligibility is based on household gross income for your household size. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative. "Home prices have to really drop or incomes have to jump for first-time buyers to have a real chance in the home buying process, however given the right circumstance home ownership is never out of reach.

Lenders

Lenders that offer bad credit mortgages are called sub prime lenders. Lenders offer a variety of loan options, which create affordable living. Lenders who wait for mortgage borrowers to shop for better refinance rates elsewhere are likely to lose those loans before they've earned much more than the closing costs. Even with bad credit, mortgage lenders and companies are prepared to offer no money down or 100 percent financing loans to first time home buyers.

Brokers

Brokers are a great source for getting the best home loan possible at the lowest rate and terms. Brokers will go to work for you and have direct access to hundreds of wholesale lenders who will compete for your business. Some brokers have their own in-house financing which in most cases can drastically help in the qualifying process and get you an even better rate and program.

Conclusion

First time home buyers are having an increasingly tough time acquiring their first dream home, they are immersed in information and emotion. First Time Home Buyers are looking for the right home at the right time. As a general rule, first time home buyers are a pretty stressed-out bunch.

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