First Time Home Buyers
for sale by owners homes
In 1994, we focus our attention on a house located in a nice, quiet suburban enclave called Bixby Knolls in Long Beach, CA. Although we hardly afford the home of $ 230,000 purchase price – a chance for us at the time – it was a small, neat, modest home is in a good neighborhood with appreciation potential. So where we are in the home market. It was a perfectly reasonable house in a perfectly acceptable neighborhood.
We have no idea at the time that home prices are beginning to slowly rise and rise and rise, thanks to an extended period of historically low interest rates. Low interest rates spurred consumer demand, which soon grew to overwhelming demand from consumers for home, to their own. Consequently, home prices reached stratosphere in our neighborhood as well as in most large cities markets (Texas, Oklahoma, the Dakota and a few other affordable markets is the exception).
Ten years later, in mid-April 2004, a staggeringly tragic electrical fire, the life of our beloved Italian Greyhounds, Ben and Rusty. Although we rebuilt our house better than it was before, it was still a sad time for us, and we finally sold our first one, the “first house”. The offers for our modest 1600 square foot home were obscene – obscene amounts, that is. It was unquestionably the most profitable shocking, but also investments in our lives.
In retrospect, having regard to the application and any loan for the mortgage to buy our perfect little house, well, we remember in this process was not so perfect.
In 1994, when we are fighting in order to qualify for the mortgage, we were not aware of available to first time home buyer programs for people with low to moderate incomes.
In addition, our Loan Officer does not introduce us to these options, either because he was so clueless as we were about the existence of such programs or the Bank, with whom he was employed at the time elected not to participate in specialty programs first time home buyers.
Neither we nor our Loan Officer, had an idea, the city Long Beach, Los Angeles County and yes, even the State of California all had available specialty loan programs specifically for people like us: The first time home buyers, short for cash — 20%, 10% or even 5% down payment, not to mention resources to cover the closing costs.
We were totally unfamiliar with the mortgage credit certificate programs, below market rate programs, mortgage revenue bond programs, and we have our left arm to help with no-strings gift of cash grants and forgiven by the city, county and state housing agencies.
If we only knew. . . House buying process would be so much easier and much less stressful. Driving our decision to buy a house, we could hardly afford, was the demand by our landlords, we recognize the house that once rented by my husband and his ex-wife (the landlord’s daughter), within 30 days. Great – no pressure there. . .
Fortunately, with the generous help of parents and with a loan borrowed from our 401K, we were finally a minimal down payment. Our motivated home seller, an 80-year-old pensioner, who wanted to move closer to their daughter in another city that helped us pay some closing costs from seller concessions. Then after all that we have to somehow scrape up enough funds for money to our lender and our personal service removal after escrow closed.
Did we buy new furniture and / or larger devices to update our 50-year-old new house? Fuggedaboutit! And then we had to take into account recurring costs associated with the new mortgage debt and maintaining our new home, such as water, electricity, property taxes, etc.
If your borrowers are anything like us back in the day, the sticker shock in the context of a new home purchase and maintenance costs can discourage even the most motivated buyers.
The timely solutions to the above challenges are not easy to find, or soon will be. Despite the charity of their parents, other relatives and / or through the liquidation of assets to cover most lenders minimum binding requirements for the payment and cash reserves, a substantial number of first time home purchase will be Regal hopes her dream of house.
This is the sad, sad, Regal, on the dust collect itself, collect and eventually completely obscure the bright dream of home ownership, which once burned brightly in their eyes – snuffed out, extinguished.
What you must know it is not until the end of it.
Be the hero. With the new information provided by the official Loan Officer GUIDE, solutions to the challenges described above are at your fingertips.
In most real estate markets today, it is practically impossible for the average consumer of low to moderate income is a modest, without much mortgage can benefit from a significant out-of-pocket investment. Depending on a variety of factors qualified, we are talking a deposit investments amounting to 10, 15, 20 or 25% of home sales plus closing costs (points, title insurance, etc.).
Be the hero. Be the “Go to Guy” for information about the transportation assistance programs and products.
Programs like those at the heart of the official Loan Officer will also guide your slightly qualified borrowers and supporting the real estate industry as a whole by providing another way to strengthen the buyer qualifying and loan profitability.
Be the hero. Reserve first time home buyer program on behalf of the borrower before the competition does not. If I for a large national mortgage bank (a bank heavily vested benefits for the first time home buyer loan programs), I observed firsthand the fierce competition among loan officers and lenders competing for the right to secure funding programs for their constituencies – the first time home buyers.
I watched eager await word from their borrowers Loan Officer for the assurance that they too would her play for the first time home buyer mortgage assistance pie charts. Anything less could and often did, jeopardize the borrower is in a position for a mortgage and close escrow time (if ever).
A growing number of city, region and state housing finance agencies / authorities / companies are creating new and / or fully funding existing programs to assist first time home buyers with cash for the portability and closing costs. Financial support can be significant, the amount of $ 5,000 to $ 100.000 + (amounts vary by city, region and state) or as a percentage of the selling price of the apartment or a percentage of the first mortgage loan amount.
Be the hero. Be the first in line to obtain information about the program, educate your customers and secure means stress for your clients – first time home buyers.
Please note that programs in the Loan Officer OFFICIAL GUIDE are primarily used exclusively in connection with the purchase money mortgage loans with 30-year fixed loan terms. Alt-A, subprime and non-traditional first mortgage loans Hybrid loans are strictly prohibited.
Bottom line? There is hope, and it starts with this fast read, very simple approach to assist the neophyte and veteran Loan Officer Loan Officer to better understand how these first time home buyer programs work in tandem with step-by-step processes and procedures and methods for determining available channels in your chosen topic of the credit owned by the city, city and / or environment. Some first time home buyer can buy (or not to buy) in a particular city or region on the basis of availability (or lack thereof) of the first time home buyer programs.
THE OFFICIAL GUIDE Loan Officer provides a fast track to inside knowledge about useful specialty programs designed to assist first time home buyers of low to moderate incomes on a nationwide scale.
There is a lack of information on education loans, with a nationwide scale about the many positive programs that are the focus of this guide. When I write my first book on this topic, it is my hope, desire and intention, THE OFFICIAL GUIDE Loan Officer: below the market rate programs – Down Payment Assistance Programs, First Edition, is the training and qualifications you to help cash strapped first time home buyers to see tangible results in the form of new, affordable housing within the budget of all eligible citizens nationwide.
To you, and girls in the mortgage finance trenches, you are amazing! This book was written for you. Do you have a lot of first home buyers and real estate agents happy, satisified customers of your effective use of the information within this book.
Good luck to you all and happy hunting deadweight support!
Esperanza J. Creeger
Author
Esperanza Creeger currently resides in Dallas, TX. A mortgage industry veteran for 21 years and counting, Esperanza is currently working on her manuscript for film \”An Akashic Tale\”. Inquiries: Contact Ecreeger@hotmail.com or (469) 438-9659. Esperanza’s book “First Time Home Buyers’ Guide” is available for purchase at FTHBGuru.com 96 pages $10
