In 2010, the "Kiplinger" financial magazine named Austin, Texas, as the number-one city to live in for the next 10 years. Whether you choose Austin or one of Texas' many other cities, buying a home here can be one of the best ways to turn your residential status into a strong real estate investment and accumulate wealth. Several tips and financial strategies can help you navigate the state's real estate waters and make the most of your opportunities.
Collect Your Documents
It can generally take one to two months to get your mortgage application processed, reports the Texas Department of Housing & Community Affairs. You can help speed up the process by collecting all the documents your mortgage broker or agent will need. This can ensure an optimal processing time. Documents you'll generally need in most circumstances include a current statement on all your bank accounts; tax returns and W-2 stubs from the previous three years; pay stubs from the previous three months; and documents outlining all of your long-term debts, such as forms detailing payment amounts and times, account numbers and your creditors' names.
Apply for Homebuyer Assistance
People who are buying their first Texan home can apply for assistance through the Texas State Affordable Housing Program. Assistance includes low-interest mortgages with fixed rates; grants to help you cover the closing costs and down payment on your home, and tax credits on the annual interest that you pay on your mortgage. Eligibility varies depending on your personal situation. Contact the corporation at 888-638-3555 for further details.
Pay Off Your Other Loans
When your Texan lender looks at your financial situation, he or she will look at your total monthly debt. For optimal interest rates on your mortgage, you'll generally need your monthly debt to not be above 40 percent of your monthly gross income. Thus, it's often better in the long run to focus on paying off your current debt, including credit card debt, instead of saving up for a down payment like many first-time home buyers often do.
Check Foreclosures
Foreclosures on homes can offer first-time home buyers significant discounts as the possessing banks try to recoup some of their losses on the defaulted loans and mortgages. The public listing of foreclosures is governed by each county and varies accordingly. Your local municipal office can provide you with specific details. Generally, foreclosure sale dates are posted by the Texas county clerk's office on the first Tuesday of every month.
Tags: your mortgage, Austin Texas, Documents generally, down payment, first-time home, first-time home buyers
