Can we still get the first time home buyer tax credit?
Crystal J asked:
We bought our house on April 2, 2008. Is there any way that we can still get the 7500 dollar first time home buyer tax credit? The only information that I can find says that it has to purchased on or after April 9, 2008. Any help is greatly appreciated.
Edwin
We bought our house on April 2, 2008. Is there any way that we can still get the 7500 dollar first time home buyer tax credit? The only information that I can find says that it has to purchased on or after April 9, 2008. Any help is greatly appreciated.
Edwin
Barriers To First Time Home Buyers
Jennifer Stromsteen asked:
First time home buyers are facing a number of barriers to becoming first time home owners today. Included in these barriers is the current market, the increasing cost of a down payment and a lack of confidence in today’s economy. These barriers are very real to everyone looking to buy homes; however, they are not insurmountable. Most adults admit to finding home buying intimidating and money related issues are a big concern that often makes the potential home buyer back off. Many have concerns about finding the right home and find the entire process to be intimidating. Being able to shop for homes online and obtain as much information about the home and the neighborhood without the pressure of a sales agent is appealing to the people intimidated.
Some of the top real estate agencies in the industries have addressed this concern by delivering a large and fresh collection of listings with new features that allow the buyer more options to remove the uncertainties they may have. By providing comprehensive information with relevant tools and links to local realtors online realtor sources help make the process of buying a home easy and less stressful.
The first time home buyer is looking at the area differently today. Naturally the rate of crime is still a top concern; however, being close to daily conveniences is a close second. This is due to environmental concerns as well as the ever increasing price of gas. The home buyer of today is willing to sacrifice cultural and recreational amenities for environmentally green features over buying other houses in today’s housing market. The importance of community and concern over gas prices are evident as buyers look for accessibility with just a small percentage of home buyers being willing to sacrifice the closeness to work and shopping. Green features such as solar panels and energy saving appliances are more important than the more luxury amenities.
Understanding the mortgage as well as the entire financing process during times of change is a major issue and barrier of the first time home buyer. The majority wish the process of taking out a mortgage was easier to understand. Some of these buyers report that understanding financing and the uncertainty of the lending process is the most intimidating part of buying a home. The recent changes in the percentage of down payment required for a mortgage is a major issue for many buyers as well. The lack of money for a down payment prevents around a quarter of buyers from buying a home; more even than buyers with poor credit, low income or lack of confidence in the economy.
The majority of first time home buyers will make sacrifices to save money and earn extra money to be able to buy a home in today’s housing market. These sacrifices include spending on personal luxuries, clothes, shoes and accessories. Buyers are willing to go out less often, clip coupons and even cancel vacations to buy that first home.
Thelma
First time home buyers are facing a number of barriers to becoming first time home owners today. Included in these barriers is the current market, the increasing cost of a down payment and a lack of confidence in today’s economy. These barriers are very real to everyone looking to buy homes; however, they are not insurmountable. Most adults admit to finding home buying intimidating and money related issues are a big concern that often makes the potential home buyer back off. Many have concerns about finding the right home and find the entire process to be intimidating. Being able to shop for homes online and obtain as much information about the home and the neighborhood without the pressure of a sales agent is appealing to the people intimidated.
Some of the top real estate agencies in the industries have addressed this concern by delivering a large and fresh collection of listings with new features that allow the buyer more options to remove the uncertainties they may have. By providing comprehensive information with relevant tools and links to local realtors online realtor sources help make the process of buying a home easy and less stressful.
The first time home buyer is looking at the area differently today. Naturally the rate of crime is still a top concern; however, being close to daily conveniences is a close second. This is due to environmental concerns as well as the ever increasing price of gas. The home buyer of today is willing to sacrifice cultural and recreational amenities for environmentally green features over buying other houses in today’s housing market. The importance of community and concern over gas prices are evident as buyers look for accessibility with just a small percentage of home buyers being willing to sacrifice the closeness to work and shopping. Green features such as solar panels and energy saving appliances are more important than the more luxury amenities.
Understanding the mortgage as well as the entire financing process during times of change is a major issue and barrier of the first time home buyer. The majority wish the process of taking out a mortgage was easier to understand. Some of these buyers report that understanding financing and the uncertainty of the lending process is the most intimidating part of buying a home. The recent changes in the percentage of down payment required for a mortgage is a major issue for many buyers as well. The lack of money for a down payment prevents around a quarter of buyers from buying a home; more even than buyers with poor credit, low income or lack of confidence in the economy.
The majority of first time home buyers will make sacrifices to save money and earn extra money to be able to buy a home in today’s housing market. These sacrifices include spending on personal luxuries, clothes, shoes and accessories. Buyers are willing to go out less often, clip coupons and even cancel vacations to buy that first home.
Thelma
Tips for First-time Home Buyers
Lee Keadle asked:
Buying a home for the first time can be a very overwhelming experience. After all, we were once first-time home buyers, and we remember buying our first home. Add our personal experiences to the experience we’ve had helping first-time buyers, and you’ve got quite a bit of useful information. So, we’ve made a list of tips for those of you considering buying your first home.
1) Weigh the pros and cons of renting versus buying a home. Since there is a ton of information available on this point alone, we’ll only do a quick run through of things to consider. Remember that when you rent, you typically only pay the bills, the rent, and maybe renters’ insurance. When you buy a home you can expect to pay the bills, the “permanent rent” (A.K.A. “mortgage”), homeowners’ insurance (and, depending on where you live, you may need to get additional insurance policies for your home), and property taxes. Also, you’ll have closing costs to pay when you buy the home, and these costs will be at least four or five thousand dollars (even if you have a $0 down payment). Plus, you’ll need to pay for the upkeep of the home and any needed repairs.
2) A non-financial point to consider is how long you plan to live in the area. If you plan on moving in the next couple of years, you should probably think about renting. If you plan to stay for three or more years, you may want to consider buying.
3) Use your current budget to determine how much you think you can pay for the mortgage every month. If you know that the amount you pay for rent now is about as much as you feel comfortable paying, then make a note of that. When you talk with a home loan officer, he or she will probably ask how much you want to pay every month for your mortgage.
4) Talk with home loan officers to find out what size loan you’ll be able to get. There is no way to know what price range you’ll be qualified for until you talk with lenders. And, be sure to talk with several loan officers (we recommend talking to at least three). Since you’ll be a first-time home buyer, you’ll find a range of possibilities for financing. Some home loan officers even specialize in helping first-time home buyers. Sometimes first-time home buyers are pleasantly surprised at how much a lender is willing to lend. This is why I said for you to find an amount you’re comfortable with before talking with the lender. If you’re not comfortable with the monthly payment you’ve received, be sure to talk with your loan officer so that you don’t spread yourself too thin!
5) Be sure to get a “good faith estimate” from the loan officers that breaks down all of the costs of your mortgage. Looking at these estimates can help you to compare loans. You can also use the estimates to work in the estimated mortgage payment into your budget. Would you be able to comfortably afford your mortgage payment?
6) Be sure to think about your needs versus your wants. Although you may want a house with three bedrooms, two baths, 1800 square feet, and stainless steel appliances, remember that this is going to be a first-time home. Depending on where you live, you may not be able to afford everything that you want. So, don’t get discouraged if you can’t find the home of your dreams – you can work up to that home in the coming years. For now, you may find a two bedroom townhouse in a great neighborhood with other first-time home buyers like yourself.
George
Buying a home for the first time can be a very overwhelming experience. After all, we were once first-time home buyers, and we remember buying our first home. Add our personal experiences to the experience we’ve had helping first-time buyers, and you’ve got quite a bit of useful information. So, we’ve made a list of tips for those of you considering buying your first home.
1) Weigh the pros and cons of renting versus buying a home. Since there is a ton of information available on this point alone, we’ll only do a quick run through of things to consider. Remember that when you rent, you typically only pay the bills, the rent, and maybe renters’ insurance. When you buy a home you can expect to pay the bills, the “permanent rent” (A.K.A. “mortgage”), homeowners’ insurance (and, depending on where you live, you may need to get additional insurance policies for your home), and property taxes. Also, you’ll have closing costs to pay when you buy the home, and these costs will be at least four or five thousand dollars (even if you have a $0 down payment). Plus, you’ll need to pay for the upkeep of the home and any needed repairs.
2) A non-financial point to consider is how long you plan to live in the area. If you plan on moving in the next couple of years, you should probably think about renting. If you plan to stay for three or more years, you may want to consider buying.
3) Use your current budget to determine how much you think you can pay for the mortgage every month. If you know that the amount you pay for rent now is about as much as you feel comfortable paying, then make a note of that. When you talk with a home loan officer, he or she will probably ask how much you want to pay every month for your mortgage.
4) Talk with home loan officers to find out what size loan you’ll be able to get. There is no way to know what price range you’ll be qualified for until you talk with lenders. And, be sure to talk with several loan officers (we recommend talking to at least three). Since you’ll be a first-time home buyer, you’ll find a range of possibilities for financing. Some home loan officers even specialize in helping first-time home buyers. Sometimes first-time home buyers are pleasantly surprised at how much a lender is willing to lend. This is why I said for you to find an amount you’re comfortable with before talking with the lender. If you’re not comfortable with the monthly payment you’ve received, be sure to talk with your loan officer so that you don’t spread yourself too thin!
5) Be sure to get a “good faith estimate” from the loan officers that breaks down all of the costs of your mortgage. Looking at these estimates can help you to compare loans. You can also use the estimates to work in the estimated mortgage payment into your budget. Would you be able to comfortably afford your mortgage payment?
6) Be sure to think about your needs versus your wants. Although you may want a house with three bedrooms, two baths, 1800 square feet, and stainless steel appliances, remember that this is going to be a first-time home. Depending on where you live, you may not be able to afford everything that you want. So, don’t get discouraged if you can’t find the home of your dreams – you can work up to that home in the coming years. For now, you may find a two bedroom townhouse in a great neighborhood with other first-time home buyers like yourself.
George
Am I considered a first time home buyer?
Mr. Falling asked:
If someone put my name on the deed for their home within the past three years, and I’m looking to buy my own home for the first time, am I considered a first time home buyer?
I’m not on the loan.
Minnie
If someone put my name on the deed for their home within the past three years, and I’m looking to buy my own home for the first time, am I considered a first time home buyer?
I’m not on the loan.
Minnie
I was needing help with a first time home buyer loan?
christin k asked:
I was wondering if there is a way to get a first time home buyer loan that would let you get more than the loan to pay off some bills? I was hoping to pay off one credit card I had before we bought a house, but the only way to do that would be to put it into the home loan. Anyways also wondering if VA loans are good loans? Thanks!
Mark
I was wondering if there is a way to get a first time home buyer loan that would let you get more than the loan to pay off some bills? I was hoping to pay off one credit card I had before we bought a house, but the only way to do that would be to put it into the home loan. Anyways also wondering if VA loans are good loans? Thanks!
Mark
First Time Home Buyer Tips
Ken Black asked:
For the first time home buyer, buying your first home is one of the most exciting things you will ever do. If you have spent years living in apartments, there is nothing more satisfying than owning your own property. The process can be a little lengthy and you might hit a few bumps in the road to home ownership. The following tips will help the first time homeowner avoid some of the hiccups.
Step one is to talk to a real estate agent about the home buying process. It should not be a sales meeting and you should be able to find an agent that will agree to meet with you about the basics without having to sign a sales agreement with them. If you cannot find a good agent to talk to, you might want to consider talking to a loan officer at your bank or a mortgage broker.
An equally important tip is to get your finances in order before you apply for a mortgage. Order a copy of your credit report so you can check it for accuracy. Mistakes are common and you want to make sure that there is no fraudulent activity. You have the right to dispute errors on your credit report. If you come across something that you know is an error, circle it and send it to the reporting agency along with a letter of dispute.
Next, you should really study the mortgage industry. You need to be able to find the right loan and lender most suitable for your needs. Familiarize yourself with industry terms like debt to income ratio and adjustable rate mortgage. Learn the difference between pre-approval and pre-qualified. It will all seem foreign at first, but taking the time to learn the business will spare you from headaches in the future.
Also, you need to figure out what your wants and needs are. What kinds of amenities are you looking for? How many bedrooms? One story or two story home? You also need to consider the size of the down payment and figure out what you need to do to come up with the money for it.
You must learn about how real estate agents work. There are buyers agents and sellers agents. A buyers agents responsibility is to negotiate the best deal for the buyer. The goal of the sellers agent is to get the price that the seller most desires. The best way to find the right agent is to ask your friends for suggestions. They have all probably been in the same boat, so they can probably recommend a good real estate agent.
When meeting with a potential agent, pay attention to how they treat you. Make sure they listen to you when you talk about what you want. Also, how are their follow up skills? Do they take the time to return your calls or emails? If they do not take the time to respond, move on. There is a better agent out there for you.
When looking for a home, consider all of the possibilities. Look up real estate agents websites. Do not rule out For Sale by Owner Properties and foreclosed homes. Housing and Urban Development (HUD) homes can often be found for very reasonable prices. You do need to find an agent that is approved to sell HUD homes if you choose to take that road to home ownership.
Before you even think about making an offer, you need to consider the resale value. You might plan on being there for a long time, but you just never know. You might opt for a different climate to alleviate your allergies or you could simply be transferred by your company. You want to pick a good location that will be attractive to others as well.
Another issue that cannot be ignored are the deed restrictions, which govern what you can and cannot do with the property. If it has always been your dream to have a pool, you want to make sure that you do not buy a home in a subdivision that will not allow it because of deed restrictions.
Home inspections are an important part of the equation. Talk to your agent to find out when the inspection will be performed. It varies state to state. Sometimes the inspection will be right before the contract is signed and other times, they are performed right after an offer is made.
Finally, make sure you stay on top of things. Any number of problems can crop up at the last minute and delay the purchase of your home. If you are not sure about something with the paperwork, do not be afraid to ask questions. You might think of something that everyone else has overlooked.
Purchasing a home is a time consuming and sometimes frustrating task, but it is worth it when you have your backyard barbeques.
Arnold
For the first time home buyer, buying your first home is one of the most exciting things you will ever do. If you have spent years living in apartments, there is nothing more satisfying than owning your own property. The process can be a little lengthy and you might hit a few bumps in the road to home ownership. The following tips will help the first time homeowner avoid some of the hiccups.
Step one is to talk to a real estate agent about the home buying process. It should not be a sales meeting and you should be able to find an agent that will agree to meet with you about the basics without having to sign a sales agreement with them. If you cannot find a good agent to talk to, you might want to consider talking to a loan officer at your bank or a mortgage broker.
An equally important tip is to get your finances in order before you apply for a mortgage. Order a copy of your credit report so you can check it for accuracy. Mistakes are common and you want to make sure that there is no fraudulent activity. You have the right to dispute errors on your credit report. If you come across something that you know is an error, circle it and send it to the reporting agency along with a letter of dispute.
Next, you should really study the mortgage industry. You need to be able to find the right loan and lender most suitable for your needs. Familiarize yourself with industry terms like debt to income ratio and adjustable rate mortgage. Learn the difference between pre-approval and pre-qualified. It will all seem foreign at first, but taking the time to learn the business will spare you from headaches in the future.
Also, you need to figure out what your wants and needs are. What kinds of amenities are you looking for? How many bedrooms? One story or two story home? You also need to consider the size of the down payment and figure out what you need to do to come up with the money for it.
You must learn about how real estate agents work. There are buyers agents and sellers agents. A buyers agents responsibility is to negotiate the best deal for the buyer. The goal of the sellers agent is to get the price that the seller most desires. The best way to find the right agent is to ask your friends for suggestions. They have all probably been in the same boat, so they can probably recommend a good real estate agent.
When meeting with a potential agent, pay attention to how they treat you. Make sure they listen to you when you talk about what you want. Also, how are their follow up skills? Do they take the time to return your calls or emails? If they do not take the time to respond, move on. There is a better agent out there for you.
When looking for a home, consider all of the possibilities. Look up real estate agents websites. Do not rule out For Sale by Owner Properties and foreclosed homes. Housing and Urban Development (HUD) homes can often be found for very reasonable prices. You do need to find an agent that is approved to sell HUD homes if you choose to take that road to home ownership.
Before you even think about making an offer, you need to consider the resale value. You might plan on being there for a long time, but you just never know. You might opt for a different climate to alleviate your allergies or you could simply be transferred by your company. You want to pick a good location that will be attractive to others as well.
Another issue that cannot be ignored are the deed restrictions, which govern what you can and cannot do with the property. If it has always been your dream to have a pool, you want to make sure that you do not buy a home in a subdivision that will not allow it because of deed restrictions.
Home inspections are an important part of the equation. Talk to your agent to find out when the inspection will be performed. It varies state to state. Sometimes the inspection will be right before the contract is signed and other times, they are performed right after an offer is made.
Finally, make sure you stay on top of things. Any number of problems can crop up at the last minute and delay the purchase of your home. If you are not sure about something with the paperwork, do not be afraid to ask questions. You might think of something that everyone else has overlooked.
Purchasing a home is a time consuming and sometimes frustrating task, but it is worth it when you have your backyard barbeques.
Arnold
7 Common First Time Home Buyer Mistakes
anonymous asked:
Not all that long ago I was a first time home buyer. Actually, it was a while ago, but that’s okay! I remember being very excited about owning my first home. I was also pretty naive and during the home buying process realized just how little I knew about real estate and how difficult it was trying to navigate the murky waters and not get eaten up by folk looking to take advantage of me.
It was easy to make mistakes back then, and is even easier nowadays to turn a pleasant dream of owning a home into a nightmare. But if you’re able to avoid the 7 common mistakes that home buyers make it could help you achieve a safer and smoother transaction.
First, changing jobs during the home buying process is a definite no-no! Lenders like to see employment stability and job tenure, and as a general rule will hold job hopping against you. So, unless you just can’t stomach your job another minute tough it out until you close on the sale of your home.
Second, never give earnest money deposits directly to For Sale by Owners. If the deal falls through you won’t have any leverage to get it back. Instead, put the deposit into a trust account until the transaction is finalized – title companies, attorneys and closing agents can help you with this. In any regard your contract needs to specifically state what will happen to the deposit in the event that the transaction falls through.
Third, stay practical and realistic during the home buying process and understand that while some sellers are willing to fix their homes to sell them others aren’t. So, don’t let a refusal to make repairs close the door on your dream home. However, at the same time don’t let your desire for a particular home blind you to costly repairs down the road.
Fourth, arrange in advance to have the utilities turned on in your new home. The utility companies usually need at least a few days to switch the service. Also, don’t forget to cancel the service at your old residence. This seems simple enough, but there are so many things to remember that this one is often overlooked.
Fifth, be sure to get hazard insurance for your new home and be able to show proof of purchase prior to closing. Failure to have insurance at the time of closing may delay the closing, which could result in all kinds of unforeseen complications; angry sellers, you’ve already given notice to move out of your old place and have no place to go, etc.
Sixth, purchasing a home is a business deal, so treat it that way. Don’t get too close and personal with the seller, as it could unexpectedly lead to hurt feelings and/or deal breaking situations. For example, you could make a seemingly harmless comment about how you dislike like the decorations in the mother in law suite, only to have the seller get upset because they have great sentimental value attached to it.
Finally, use an agent, unless you’re well schooled in real estate transactions. It’s most buyer’s fantasy to save money by cutting out a Realtor. However, it’s a full time job keeping up with all of the daily details of a contract, including the lender, the seller, and the seller’s agent. It’ll be your agent’s responsibility to do all of this; as well as disclose any information that they are aware of that you might otherwise be unaware of.
In closing, buying a home is a business transaction and may be one of the largest transactions you’ll ever make. By treating it that way and surrounding yourself with knowledgeable professionals you can have smooth, safe transactions. Anything less becomes risky business, at least until you know what you’re doing.
Leo
Not all that long ago I was a first time home buyer. Actually, it was a while ago, but that’s okay! I remember being very excited about owning my first home. I was also pretty naive and during the home buying process realized just how little I knew about real estate and how difficult it was trying to navigate the murky waters and not get eaten up by folk looking to take advantage of me.
It was easy to make mistakes back then, and is even easier nowadays to turn a pleasant dream of owning a home into a nightmare. But if you’re able to avoid the 7 common mistakes that home buyers make it could help you achieve a safer and smoother transaction.
First, changing jobs during the home buying process is a definite no-no! Lenders like to see employment stability and job tenure, and as a general rule will hold job hopping against you. So, unless you just can’t stomach your job another minute tough it out until you close on the sale of your home.
Second, never give earnest money deposits directly to For Sale by Owners. If the deal falls through you won’t have any leverage to get it back. Instead, put the deposit into a trust account until the transaction is finalized – title companies, attorneys and closing agents can help you with this. In any regard your contract needs to specifically state what will happen to the deposit in the event that the transaction falls through.
Third, stay practical and realistic during the home buying process and understand that while some sellers are willing to fix their homes to sell them others aren’t. So, don’t let a refusal to make repairs close the door on your dream home. However, at the same time don’t let your desire for a particular home blind you to costly repairs down the road.
Fourth, arrange in advance to have the utilities turned on in your new home. The utility companies usually need at least a few days to switch the service. Also, don’t forget to cancel the service at your old residence. This seems simple enough, but there are so many things to remember that this one is often overlooked.
Fifth, be sure to get hazard insurance for your new home and be able to show proof of purchase prior to closing. Failure to have insurance at the time of closing may delay the closing, which could result in all kinds of unforeseen complications; angry sellers, you’ve already given notice to move out of your old place and have no place to go, etc.
Sixth, purchasing a home is a business deal, so treat it that way. Don’t get too close and personal with the seller, as it could unexpectedly lead to hurt feelings and/or deal breaking situations. For example, you could make a seemingly harmless comment about how you dislike like the decorations in the mother in law suite, only to have the seller get upset because they have great sentimental value attached to it.
Finally, use an agent, unless you’re well schooled in real estate transactions. It’s most buyer’s fantasy to save money by cutting out a Realtor. However, it’s a full time job keeping up with all of the daily details of a contract, including the lender, the seller, and the seller’s agent. It’ll be your agent’s responsibility to do all of this; as well as disclose any information that they are aware of that you might otherwise be unaware of.
In closing, buying a home is a business transaction and may be one of the largest transactions you’ll ever make. By treating it that way and surrounding yourself with knowledgeable professionals you can have smooth, safe transactions. Anything less becomes risky business, at least until you know what you’re doing.
Leo
Almost Free Grants for First Time Home Buyers
Maria Mbura asked:
Your dream of owning a home may soon come true if you are a first time home buyer.
You can take advantage of the many government grants for first time home buyers that are available to assist low income and first time home buyers get their first home.
These are specific government grants which are made to first time home buyers to provide them with part of the financial assistance needed for the initial down payments and acquisition costs of a new home.
Depending on the value of your property you could find that your down payment and closing costs can be paid up with this free money.
These funds are almost free with no interest or monthly payments to be made.They remain in the background as a second mortgage only to be repaid on the selling of the house. The government has also been known to forgive the loan in many cases after you reside in the house for 30 years.
Every state has a customized policy for granting such money. One needs to do an elaborate research work before applying for such grants.
Some of these grants assist specific groups for example the Federal Department of Veterans Affairs offers help for military personnel and veterans.
So if you’re a first-time home buyer or your income is low, look online for financing that is undertaken through your local or state board of housing.
Don’t miss this opportunity to own a house by taking advantage of the almost free government grants for first time home buyers.
Terri
Your dream of owning a home may soon come true if you are a first time home buyer.
You can take advantage of the many government grants for first time home buyers that are available to assist low income and first time home buyers get their first home.
These are specific government grants which are made to first time home buyers to provide them with part of the financial assistance needed for the initial down payments and acquisition costs of a new home.
Depending on the value of your property you could find that your down payment and closing costs can be paid up with this free money.
These funds are almost free with no interest or monthly payments to be made.They remain in the background as a second mortgage only to be repaid on the selling of the house. The government has also been known to forgive the loan in many cases after you reside in the house for 30 years.
Every state has a customized policy for granting such money. One needs to do an elaborate research work before applying for such grants.
Some of these grants assist specific groups for example the Federal Department of Veterans Affairs offers help for military personnel and veterans.
So if you’re a first-time home buyer or your income is low, look online for financing that is undertaken through your local or state board of housing.
Don’t miss this opportunity to own a house by taking advantage of the almost free government grants for first time home buyers.
Terri
Failing Banks? What It Means For The First Time Home Buyer
Jennifer Stromsteen asked:
It is the opinion of many people that the government, despite what the President may say, will in fact bail out mortgage high players Fannie Mae and Freddie Mac. For these companies to fold would be detrimental to the economy. But what exactly are Fannie Mae and Freddie Mac and what do they do? Simply put, a home buyer achieves a mortgage from a lending institute and Fannie Mae or Freddie Mac purchase the mortgage to then resell it again to investors. They receive money from the sale to the first lender to continue lending.
In the last decade Freddie Mac handled nearly $164 billion in New York mortgages alone; serving over 1,325,000 families. If Freddie Mac and Fannie Mae have serious financial problems then credit will tighten and it will become increasingly difficult for any consumer to get a mortgage; but particularly for the first time home buyer. At this point it is speculated that these companies will not need to borrow money from federal reserves, the government or the treasury; however, the government has stated that if they do need it they can come for it. With the potential for government bailouts confidence is building.
When push comes to shove, impact from national news or news on a local level does not change the rules in applying for a first mortgage; make sure you have your finances in order before shopping for a home, make sure your credit is in line and be aware of your credit score. The first time home buyer needs to educate themselves more than ever as lenders begin to tighten their belts. Knowing what your credit score is, how to increase that score and look favorable to the lenders will increase your chances of obtaining a mortgage regardless of what is happening in the financial world; these are basic rules.
Before a lender will grant a loan for a home he will first run a credit report on the buyer to help them get a picture of the buyer’s ability to pay the loan. The last thing a lending institute wants is for a buyer to get in over their head and default on their mortgage. It is therefore recommended that before shopping for a home or showing up at the lending institute to apply for a first mortgage you run a credit report of your own. This will help you figure out any areas that need to be corrected and what areas could be improved. Once you are satisfied and your lender runs the report he will be able to help you understand what you can afford. If you have discovered your credit is in shambles or your credit score is low there are ways to bring up your credit score and you will have the time to do so.
Freddie Mac and Fannie Mae having financial problems is just the reflection of what is happening in the economy today; we are all feeling the pinch. This is a time, more than any to tighten our own belts, avoid using credit excessively and manage your credit well; doing these things will allow you to be among the few buyers that the lenders extend a first time mortgage to.
Jean
It is the opinion of many people that the government, despite what the President may say, will in fact bail out mortgage high players Fannie Mae and Freddie Mac. For these companies to fold would be detrimental to the economy. But what exactly are Fannie Mae and Freddie Mac and what do they do? Simply put, a home buyer achieves a mortgage from a lending institute and Fannie Mae or Freddie Mac purchase the mortgage to then resell it again to investors. They receive money from the sale to the first lender to continue lending.
In the last decade Freddie Mac handled nearly $164 billion in New York mortgages alone; serving over 1,325,000 families. If Freddie Mac and Fannie Mae have serious financial problems then credit will tighten and it will become increasingly difficult for any consumer to get a mortgage; but particularly for the first time home buyer. At this point it is speculated that these companies will not need to borrow money from federal reserves, the government or the treasury; however, the government has stated that if they do need it they can come for it. With the potential for government bailouts confidence is building.
When push comes to shove, impact from national news or news on a local level does not change the rules in applying for a first mortgage; make sure you have your finances in order before shopping for a home, make sure your credit is in line and be aware of your credit score. The first time home buyer needs to educate themselves more than ever as lenders begin to tighten their belts. Knowing what your credit score is, how to increase that score and look favorable to the lenders will increase your chances of obtaining a mortgage regardless of what is happening in the financial world; these are basic rules.
Before a lender will grant a loan for a home he will first run a credit report on the buyer to help them get a picture of the buyer’s ability to pay the loan. The last thing a lending institute wants is for a buyer to get in over their head and default on their mortgage. It is therefore recommended that before shopping for a home or showing up at the lending institute to apply for a first mortgage you run a credit report of your own. This will help you figure out any areas that need to be corrected and what areas could be improved. Once you are satisfied and your lender runs the report he will be able to help you understand what you can afford. If you have discovered your credit is in shambles or your credit score is low there are ways to bring up your credit score and you will have the time to do so.
Freddie Mac and Fannie Mae having financial problems is just the reflection of what is happening in the economy today; we are all feeling the pinch. This is a time, more than any to tighten our own belts, avoid using credit excessively and manage your credit well; doing these things will allow you to be among the few buyers that the lenders extend a first time mortgage to.
Jean
Home Buying Tips for the First Time Home Buyer
Jason Bacot asked:
If you’re a first time home buyer and your wallet is not overflowing, the first thing you need to do is get yourself pre-approved by a lender. Assuming they decide you’re of good character and there’s a pretty good chance you’ll choose to pay their monthly stipend, they’ll tell you what the maximum is that they will lend you, so now you have a figure with which to work.
The easy part is to figure how many bedrooms and bathrooms you want. Find out the amount of square footage you’re living in now. Decide if that’s less than or more than you need to feel comfortable and then begin your search.
Feed your search engine with these facts, i.e. 2 bedrooms, 2 bathrooms, minimum 1200 square feet and your maximum listing price and see what pops up. Don’t forget to add to your monthly expenses the estimated property tax – take the annual amount of property tax, divide by 12 and that’s your monthly addition to your budget.
If the property you’re considering has an association – condo or HOA – there are also going to be common charges. See what they are and how often they’re assessed – usually monthly or quarterly. If it’s quarterly, divide by 3 and that’s your monthly amount. You’re probably going to need homeowner’s insurance. Usually the lender insists on it, to protect their investment in your property.
Make a couple of calls to find out what the approximate charge will be and divide that into a monthly amount. Then there are your utilities – electric, telephone, cable, water, sewer. If there’s a homeowner’s association, some of these are probably included. Find out.
Once you’re armed with these figures and you’ve decided how much of your earnings you want to give away in order to move from under that bridge or out of Mom and Dad’s or from that rental apartment that you thought was so terrific when you first moved into it, it’s time to start house hunting. And that’s the fun part!
If you haven’t done your homework, you’ll be wasting your time and your realtor’s time looking at properties that will not work for you. Give your realtor the maximum amount of information that you can. Talk about communities that appeal to you. Talk about driving time to work.
Talk about pets, your vehicles, child friendly communities or not, how important security is to you, i.e. gated communities, your need to be near public transportation or close to beaches. There’s a long list that belongs exclusively to you that makes up your wish list. Communicate well and save time. Be prepared to compromise on some of those wishes. Decide if you want a renovated property or a fixer upper or anywhere in between.
It’s my opinion that unless you have experience renovating, whatever the budget you create, it’s probably going to cost around double that number. It’s also my experience that if you’re inexperienced, it will be cheaper and easier in the long run to pay more for that renovated property instead of doing it yourself. It’s also my experience that most people don’t listen to advice and do what they want. And then live to regret their decisions.
Once you’ve seen 3 properties, it’s time to have a talk with your realtor. Is the space too small? Are you changing your mind about your needs? Or are you on the right track and just need to find the right one. Most people walk in the front door and know immediately if this is the one. Something talks to them, first saying no, no, no and then yes, I love it!
If you’re moving because you require more space, i.e. another bedroom, a larger home, a bigger kitchen, then you know what you’re looking for. And a lot of people like to stay in the same community and just move up one level. But you need to do your homework with a Lender and calculate your expenses so you’ll have that listing/selling price figured out.
Unless you have nerves of steel and can afford to carry two properties at the same time, I advise you to sell your home first and then start looking. No sense shopping for the new home till the old one is sold. That’s not to say that you can’t shop Open Houses and check out model homes. That’s a good Sunday afternoon expedition to educate yourself. It solidifies your needs and wants too. But don’t waste your time or your realtor’s time till you’re really ready.
Now for you folks who are about to buy a vacation home in the sun, it’s time to have a reality check about how much space you need or want. I always tell people that if they have a Fla in their mailing address, the people will come. And if you have children or grandchildren, they’ll come for sure – and probably bring friends for company!
So how many bedrooms do you really need? Bearing in mind that if there are children involved, Christmas, Easter, spring break, etc. are the times they’ll be able to visit. They’ll all want to come south at the same times. Unless you don’t care about creating a dormitory in your living room, it’ll be a lot easier to have enough bedrooms to accommodate your family comfortably. And save you moving twice.
So that’s my advice for choosing a home that suits your needs. Happy House Hunting!!
Sandra
If you’re a first time home buyer and your wallet is not overflowing, the first thing you need to do is get yourself pre-approved by a lender. Assuming they decide you’re of good character and there’s a pretty good chance you’ll choose to pay their monthly stipend, they’ll tell you what the maximum is that they will lend you, so now you have a figure with which to work.
The easy part is to figure how many bedrooms and bathrooms you want. Find out the amount of square footage you’re living in now. Decide if that’s less than or more than you need to feel comfortable and then begin your search.
Feed your search engine with these facts, i.e. 2 bedrooms, 2 bathrooms, minimum 1200 square feet and your maximum listing price and see what pops up. Don’t forget to add to your monthly expenses the estimated property tax – take the annual amount of property tax, divide by 12 and that’s your monthly addition to your budget.
If the property you’re considering has an association – condo or HOA – there are also going to be common charges. See what they are and how often they’re assessed – usually monthly or quarterly. If it’s quarterly, divide by 3 and that’s your monthly amount. You’re probably going to need homeowner’s insurance. Usually the lender insists on it, to protect their investment in your property.
Make a couple of calls to find out what the approximate charge will be and divide that into a monthly amount. Then there are your utilities – electric, telephone, cable, water, sewer. If there’s a homeowner’s association, some of these are probably included. Find out.
Once you’re armed with these figures and you’ve decided how much of your earnings you want to give away in order to move from under that bridge or out of Mom and Dad’s or from that rental apartment that you thought was so terrific when you first moved into it, it’s time to start house hunting. And that’s the fun part!
If you haven’t done your homework, you’ll be wasting your time and your realtor’s time looking at properties that will not work for you. Give your realtor the maximum amount of information that you can. Talk about communities that appeal to you. Talk about driving time to work.
Talk about pets, your vehicles, child friendly communities or not, how important security is to you, i.e. gated communities, your need to be near public transportation or close to beaches. There’s a long list that belongs exclusively to you that makes up your wish list. Communicate well and save time. Be prepared to compromise on some of those wishes. Decide if you want a renovated property or a fixer upper or anywhere in between.
It’s my opinion that unless you have experience renovating, whatever the budget you create, it’s probably going to cost around double that number. It’s also my experience that if you’re inexperienced, it will be cheaper and easier in the long run to pay more for that renovated property instead of doing it yourself. It’s also my experience that most people don’t listen to advice and do what they want. And then live to regret their decisions.
Once you’ve seen 3 properties, it’s time to have a talk with your realtor. Is the space too small? Are you changing your mind about your needs? Or are you on the right track and just need to find the right one. Most people walk in the front door and know immediately if this is the one. Something talks to them, first saying no, no, no and then yes, I love it!
If you’re moving because you require more space, i.e. another bedroom, a larger home, a bigger kitchen, then you know what you’re looking for. And a lot of people like to stay in the same community and just move up one level. But you need to do your homework with a Lender and calculate your expenses so you’ll have that listing/selling price figured out.
Unless you have nerves of steel and can afford to carry two properties at the same time, I advise you to sell your home first and then start looking. No sense shopping for the new home till the old one is sold. That’s not to say that you can’t shop Open Houses and check out model homes. That’s a good Sunday afternoon expedition to educate yourself. It solidifies your needs and wants too. But don’t waste your time or your realtor’s time till you’re really ready.
Now for you folks who are about to buy a vacation home in the sun, it’s time to have a reality check about how much space you need or want. I always tell people that if they have a Fla in their mailing address, the people will come. And if you have children or grandchildren, they’ll come for sure – and probably bring friends for company!
So how many bedrooms do you really need? Bearing in mind that if there are children involved, Christmas, Easter, spring break, etc. are the times they’ll be able to visit. They’ll all want to come south at the same times. Unless you don’t care about creating a dormitory in your living room, it’ll be a lot easier to have enough bedrooms to accommodate your family comfortably. And save you moving twice.
So that’s my advice for choosing a home that suits your needs. Happy House Hunting!!
Sandra