Tuesday, January 15, 2008

How to Get a Home Mortgage in Texas

Introduction

You’ve decided that Texas is the place for you. So where do you start when it comes time to getting your Texas home mortgage? It may a bit scary, but with a little preparation and some good old common sense, getting a home mortgage in Texas isn’t quite as hard as you may think. Follow these steps to getting a Texas home mortgage loan.

Instructions

Difficulty: Easy

Steps

1

Step One

Request a current credit report and check it out for any inconsistencies. Make sure to correct any errors before submitting any loan applications.
2

Step Two

Hop online and search for mortgage programs targeted for specific areas and situations. States typically have assistance programs for seniors, veterans, the disabled, first-time and low-income buyers but there are many more. The Texas Home of Your Own Coalition and Texas First Time Buyer Program are good places to start looking.
3

Step Three

These sites also have lots of helpful information:
• Texas Homeownership Overview
• USDA Texas Rural Development programs
• Texas Homeownership Assistance programs
4

Step Four

Shop for a lender. Check out traditional sources such as banks and credit unions but also investigate mortgage brokers and online lenders and compare them for the best terms.
5

Step Five

Become pre-approved or pre-qualified for a home loan before you move forward with the house-hunting. This will arm you with solid information about the type of house you can afford and will give your prospective sellers a feeling of security when they see that as one of your buyer qualifications.
6

Step Six

Shop for a real estate agent as carefully as you shop for a home. Look for one with experience and knowledge of the area you want.
7

Step Seven

You’ve done the research, gotten the facts, and know where you stand. Now get out there and find yourself a home! Make an offer and complete the loan with your lender.

Tips & Warnings

  • Make sure you shop around for the lowest interest rates. Even one quarter of a percent can mean thousands of savings over a thirty year mortgage.
  • Before you sign anything, make sure that you thoroughly understand all the terms of the mortgage contract. Ask questions about anything that you’re not sure if.

  • Never pay a lender to apply for a loan. No reputable lenders engage in this practice.
  • If you find yourself needing to revoke an offer or even a transaction you’ve made on a property, the Home Solicitation Transactions Act (Tex. Rev. Civ. Stat. arts. 5096-13..01 to .07) in the state of Texas will allow you to do just that, so know that you have a bit of protection if a situation should arise.
  • Know that Texas is a community property state which means both spouses own half of the property regardless of who is paying for it.
  • Beware of predatory lending practices. Predatory lending is when lenders intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit.

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