First-Time Homebuyer Dallas Mortgage: Frequently Asked Questions (FAQ)
Part 1: Getting Started on the Home Buying Process
Are you considering purchasing a new home? If so, you probably have plenty of questions left to be answered. In fact, you may be wondering if buying a home is even the right step for you to take. To that end, here is a look at some of the most Frequently Asked Questions asked by those Dallas first-time homebuyers who are considering buying a property.
What are the benefits of buying versus renting?
As a renter, the check you write each month goes toward paying off someone else’s mortgage. When you buy a home, however, the money you spend goes toward an investment that will pay off a greater return in the long run. Furthermore, as a homeowner, you enjoy certain tax benefits from the state as well as from the federal government. By deducting your property taxes and the interest from your mortgage loan, you can save a significant amount of money each year. Of course, aside from these financial benefits, nothing can replace the joy of ownership that you can only achieve when buying a home of your own.
Should I consider purchasing a HUD home?
HUD homes are homes that were insured through the HUD program that were foreclosed upon due to failure to make payments. When someone fails to pay what is owed on a HUD home, HUD pays the remaining balance on the loan and takes ownership of the property. The home is then sold as quickly as possible and at market value. Therefore, it is possible to get a very good deal when purchasing a HUD home.
Can I be approved for a Dallas first-time homebuyer mortgage loan even if I have bad credit and I don’t have much for a down payment?
Yes. Even if you are not a very good candidate for obtaining a conventional mortgage loan, you may qualify for one of several different alternative mortgage programs. To learn more about first-time homebuyer mortgage in Dallas, Texas, call PrimeLending today: (800) 308-8503.
Are there homeownership grants or programs available for single parents?
Yes. To learn more about grants and programs for single parents, contact a HUD-funded housing counseling agency in your area. Your local government, such as the office of housing and community development, the mayor’s office or your county executive’s office, may also be able to provide you with information about local programs.
Are there any special considerations to take into account as a single parent who is trying to purchase a home?
As a single parent, it is important to keep in mind you may not have the benefit of having two incomes to help with qualifying for a loan. Therefore, it is even more important to get pre-qualified before looking for a home. This way, you will know the price range you can comfortably afford to borrow and you won’t have any delays in getting qualified once you find the right home. It is also a good idea to familiarize yourself with the home buying process and to get a good real estate broker.
Do I need to use a real estate broker?
It depends. If you want to purchase a HUD home, you will need to hire a real estate broker to submit your bid. With all other types of purchases, you are not legally required to hire a broker.
While you can technically purchase a home without a real estate broker, most buyers find that hiring a broker helps to simplify the process. Furthermore, hiring a broker doesn’t cost the home buyer anything, as this cost is paid by the seller.
Experienced brokers bring many benefits to the entire process of purchasing a home. These include:
- Familiarity with the neighborhood, including knowledge about things such as the quality of the schools, the number of children who reside in the area, the amount of traffic in the neighborhood and the overall safety of the neighborhood.
- The ability to help you determine the price range you can afford.
- Knowledge about the homes that were most recently put on the market, which can save time in terms of looking for a home.
- Experience with the closing process and the required paperwork, which can prove invaluable when questions arise.
To contact a Dallas first-time homebuyer loan expert, call PrimeLending today: (800) 308-8503.