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After the purchase, the contract has been signed, but before the time of closing, borrowers apply for mortgage credit certificates with the originating lender. <\/p>
A non-refundable fee is charged for the service of the mortgage certificate program by the party administering it. <\/p>
There is a validity of up to 120 days for the state or local approval and it can be transferred to another property in case the current loan does not close. <\/p>
Homebuyers must qualify for income and purchase price criteria to take advantage of the mortgage credit certificate program.<\/p>\n
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A portion of the monthly mortgage payment can be balanced and saved by reducing the buyer\u2019s federal tax liability, with the help of a mortgage credit certificate and tax breaks. <\/p>
Borrowers now with this reduced tax liability can qualify for a loan during the initial approval process.<\/p>\n
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Once they obtain a mortgage credit certificate, and as long as the borrower remains in the home and occupies it as his principal residence he can take advantage of the tax credit every year. <\/p>
In most cases, the mortgage credit certificate can be reissued if the borrower refinances the loan.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t