The Many Reasons to Buy Your First Home, Right Now

Considering buying your first Tampa, Flordia home? Act now and take advantage of reduced home prices in Tampa. What’s more, if you purchase a home by November 30, 2009, you are eligible for the government’s First-Time Homebuyer Tax Credit worth up to $8,000. The purpose of the tax credit is to improve the economy by making homes more affordable. Read below to learn more about the government tax credit.

If you missed this deadline, continue reading to learn many vital first-time home-buying tips.

Establish a Budget
The first thing a homebuyer should do is to determine their home-buying needs and establish an accurate budget by listing all monthly expenses. From this, you can figure out how much you can afford for your monthly Tampa mortgage payment.

Choose the Best Tampa Mortgage Lender
Next, compare various Tampa mortgage lenders. Select the lender offering low rates, excellent terms, and outstanding customer service. Contact us and we will pair you with an accredited Tampa lender today!

Know Which Mortgage is Right for You
For first-time Tampa homebuyers, selecting the right kind of mortgage can be an intense process. Let’s take a look at three popular Tampa mortgage types.

First-time Tampa homebuyers love Fixed Rate Mortgages (FRM) because they are clear-cut and predictable. A Tampa FRM has a fixed interest rate and monthly payment amount that stays the same for the life of the loan. A FRM is a good option for conservative first-time Tampa homebuyers who expect to stay in their home for ten or more years, or those able to lock in a low interest rate.

Less conservative Tampa homebuyers often choose an Adjustable Rate Mortgage (ARM). An ARM has a variable interest rate that fluctuates according to current market rates. An ARM is a good option for Tampa homebuyers who plan to move from their home in less than 7 years, or for those wanting to benefit from an ARM’s low preliminary interest rate.

Tampa Interest Only Mortgages give borrowers the opportunity to just pay the interest on their mortgage for an initial time period. After this interest-only period, borrowers are responsible for both interest and principal payments. An Interest Only Mortgage is a great option for first-time homebuyers who currently have limited cash flow but expect an increase in income in the future, or for Tampa homeowners who can pay off the loan in just a few years.

The Government’s Tax Credit Explained
First-time Tampa homebuyers may use the tax credit to pay for closing costs, lock a lower interest rate, or increase their down payment amount in order to lessen their principal balance and increase home equity.

Who qualifies for the government tax credit?
-- You or your spouse must not have owned a home in the past three years.
-- The house must be your main residence.
-- The tax credit equals 10% of the home’s purchase price, up to $8,000.
-- Single buyers with incomes less than $75,000, or married couples with incomes less than $150,000, may receive the maximum credit amount. The credit amount lowers for buyers earning slightly more.
-- Single buyers with incomes over $95,000, or couples earning more than $170,000, are ineligible.
-- Tampa homebuyers must not repay the tax credit if they remain in the home for at least three years.

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