First Time Home Buyer Incentives

Did you know that there is a Federal Housing Commissioner? Me neither. Nevertheless he is there inside the beltway, ostensibly looking to balance the needs of the housing market and the options available to consumers – would-be home buyers. Recently, Commissioner Brian Montgomery had this piece of advice about first time home buyer incentives when a developer dangles glittery incentives in front of you trying to entice a home purchase, you can always say no. And often, you are not walking away from a particularly good deal.Have a look at see it here for more info on this.

Even though recent home sales prices have flattened, the inventory of unsold homes has climbed to a level not seen in nearly fifteen years. Developers who have borrowed in order to get their new homes built can’t afford to hold inventory, and many have resorted to some fairly glamorous incentives. These include upgraded kitchens, cars, and a number of financial incentives such as making the first six mortgage payments. Often these are first time home buyer incentives, designed to reel in the people who are less able to compute the real cost. The kicker with most of the financial incentives – such as reduced closing costs – is that you are required to use the developer’s mortgage provider.

Commissioner Montgomery comments, “Often these (first time home buyer incentives cause) consumers feel compelled to use a builder’s hand-picked mortgage company because they feel they’ve been offered an incentive they can’t refuse.” But federal real estate settlement rules “require that these incentives be legitimate and not built into the price of the house or the cost of the loan.”

Controlling the terms of the mortgage gives the developer the ability to recoup the costs of those incentives by building them into the loan. Recent home sale prices don’t necessarily act as a deterrent to an excited buyer closing in on a purchase. Too often, builders will threaten to revoke the incentives offers if the potential buyer seeks out other financing. The Commissioner’s comment was prompted by reports of consumers feeling compelled to accept this in-house financing, even though there is a better loan available elsewhere.

One of the ways that developers provide this compelling influence is by taking deposits of $10,000 or more on the home while details are being worked out. A consumer who chooses to seek outside financing can be in danger of losing the deposit, regardless of what escrow law has to say about initial deposits. These first time home buyer incentives can cause new buyers to feel trapped.

In one case an Arizona builder took an $11,000 deposit and a signed contract from a buyer who found that the builder was providing a loan that was a percentage point higher than what was available from mortgager brokers in the area, where recent home sales prices have cause intense competition in the loan business. When the buyer opted for the outside financing, the developer kept the deposit, tore up the contract and stated that the home would be sold to someone else. The Commissioner’s office intervened and the buyer got the deposit reinstated, the home and an additional $3,800 contribution from the developer.

In a Tennessee case, the builder offered cash and a loan package as an incentive for a first time home buyer that was accepted. As escrow progressed, the builder’s mortgage company informed the buyer that her credit score – a near 700 FICO rating – would only qualify her for a high interest loan, instead of the mortgage originally promised. That’s bait-and-switch, pure and simple.

Officials see antitrust and unfair trade practices involved in these maneuvers. Builders manipulate buyers who are in an anticipatory and emotional state; they want to believe in the incentives and they don’t want to lose the house. The buyer becomes a captive of the builder and his marketing staff, not stopping to think that recent home sales prices put the buyer in the driver’s seat.

Home Buyers Birmingham – Insight

Prior to your sale there are many things that is required to be performed so as to ensure that your dwell is sold for cash and you have made a good amount of profit. There are many individuals who will seek help from real estate agents or brokers. But to say you they will charge you hefty amount of commission for the services that has been rendered to you. Hence make certain to evaluate the value of your home and you must even check out the repairs and remuneration that it will require before you put on the market. get redirected here is one of the authority sites on this topic.

It is a well known fact that in today’s economy there are very few prospective home buyers that have the means to purchase a home with complete cash payment. To get the best you are required to sacrifice some thing.

To sell a house for cash you must make sure that you have clean up your dwell inside and out. If your dwell appears in a mess condition then those prospective buyers who have turned to you will drop their plan of purchasing once they had the look of your home. During your selling process you must ensure to keep your home in a spotless condition so that it will help buyers to see the real beauty of your home.

To sell a house for cash, you must ensure yourself that the buyers are not finding it as a mess or difficulty in locating out the real charm of your home. That means you must allow your home to speak on its own.

Another method that you are required to follow during your selling process is to fix the price of your dwell in a reasonable manner. If you have out priced the value of your home then your dream of achieving reasonable profit will never be achieved. To fix up a reasonable price for your dwell you are required to conduct a bit research by finding out the rates of other dwell that are located within your locality. This will help you to sell a house for cash as it significantly matches the price that is prevailing in market.

Rather than putting up a sign board in your backyard you can make use of other techniques to promote the sale of your home. To sell a house for cash you can place your ads in newspapers, magazines and online so as to grab the attention of huge buyers. You can even go with the option of local television channels so that your ad will be displayed with videos and images that you have provided. All this resources are considered to be as a powerful marketing tool in advertising and promotion field. For a successful deal you must ensure to follow a proper strategy.

Good Advice for First Time Home Buyers

First time home buyers have a lot to learn as they go through the experience of purchasing their first home. If you are a first time buyer, finding the right realtor – one who specializes in helping first time home buyers – will make all the difference in the world. The right realtor will help you find the right home, and help you negotiate the right price. check over here

If you are an inexperienced real estate investor, make sure to get some experience on your side. Your newly licensed cousin may be willing to work hard for you, and need the business, but you require someone who is knowledgeable about real estate to help you with your first home purchase. You need someone who will point out and explain all the various aspects of finding and buying a house because there will undoubtedly be considerations that don’t occur to you and processes with which you are unfamiliar.

As a first time buyer you likely have a ton of questions, and the first one might be; do I need a buyer’s agent to buy a house? The short answer is – yes, if you are smart!

Experienced real estate investors might not use a buyers agent (although many of them do because they can do a lot of the legwork, saving time and money) once they have gone through the process several times. First time buyers could miss a critical step along the way, leading to problems with financing, timing, legal issues, or even problems with the property chosen! Don’t let this happen to you – get some experienced help.

Before you get serious about looking for your first home, you should prequalify for a mortgage. Your realtor can advise you about this and even recommend a mortgage broker.

Considerations when house-hunting that your realtor can help you with include:

What will affect the resale value of homes that I’m interested in?

What should I look for when touring homes for sale?

How do I decide between houses I like?

How do I manage when I’m relocating from another city?

An experienced agent specializing in helping first time home buyers can also explain the real estate terms with which you may not be familiar. You’ll need to understand terms like:

Subject to;

Property disclosure;


Closing costs, and

Conditional offer, among many others.

Then there are those indecipherable abbreviations and acronyms that you will encounter when you are searching through real estate listings. Some of them are pretty obvious, like:

3 bdr – three bedrooms;

Bsmt – basement, or

Sqft – square feet, but what the heck is


Egdo, or


Your realtor can explain all these and more.

If you are a first time home buyer don’t go it alone. You risk making a mistake with what is likely the biggest investment of your life! An experienced realtor, even better, one who specializes in helping first time buyers can help you with the entire process, making sure that nothing critical is forgotten and that your first home buying experience is a positive one.