3 People The First Time Home Buyer Needs On Their Team
Heather Dunlop asked:
Many first time home buyers are not sure where to get started. They are ready to buy their first home and want to make sure they don’t make any mistakes. So where do you go first?
There are three people that will be important to the first time home buyer. These people can walk you through the process and help you purchase your first time. You and your team have the same goal, to find you a home you can afford.
The first person you want on your team is a Realtor. You want to make sure you find a Realtor who specializes in working with first time home buyers. They will have the patience to answer all of your questions and reduce your fears. They have been through the process many times and will be able to anticipate your questions and your needs, making the process easier on you. Your Realtor can show you homes in neighborhoods that meet your needs. They will keep you focused on what you said you were looking for in a home.
Your Real Estate Agent can also help you find the other two people you need on your team. Your Realtor will already have relationships with these other people, who are also familiar with working with first time home buyers.
The second person you want on your team is a Mortgage Broker. Again, find a mortgage broker that works with first time home buyers. This mortgage broker will know about the city, state, and federal programs available to help first time home buyers purchase their dream home. They know what kind of loan you can qualify for, how much you will need for a down payment, and the lenders requirements.
Get pre-approved before you start to look at homes. Your mortgage broker will get your pre-approved so you know exactly how much house you can afford and don’t waste your time looking at houses you can’t buy. There’s nothing worse than finding the house you love then finding out you can’t afford it. Avoid this activity and you will be very excited when you find the home you can afford.
The third person you want on your team is a Home Inspector. As a first time home buyer you are not aware of what is involved in looking at the details of a home to make sure it is safe and will not require costly repairs. Your Home Inspector will go over every nook and cranny and tell you what they find. A good home inspection can save you from buying a home that needs major repairs without you knowing about the. Be present during the home inspection. You can ask the inspector questions about what they find, giving you a better understanding of the condition of the home. You can also ask the inspector any questions you may have about the house.
Build your team with people who specialize in working with first time home buyers. You’ll be glad you spent the time to find the right people to help you.
Sandra
Many first time home buyers are not sure where to get started. They are ready to buy their first home and want to make sure they don’t make any mistakes. So where do you go first?
There are three people that will be important to the first time home buyer. These people can walk you through the process and help you purchase your first time. You and your team have the same goal, to find you a home you can afford.
The first person you want on your team is a Realtor. You want to make sure you find a Realtor who specializes in working with first time home buyers. They will have the patience to answer all of your questions and reduce your fears. They have been through the process many times and will be able to anticipate your questions and your needs, making the process easier on you. Your Realtor can show you homes in neighborhoods that meet your needs. They will keep you focused on what you said you were looking for in a home.
Your Real Estate Agent can also help you find the other two people you need on your team. Your Realtor will already have relationships with these other people, who are also familiar with working with first time home buyers.
The second person you want on your team is a Mortgage Broker. Again, find a mortgage broker that works with first time home buyers. This mortgage broker will know about the city, state, and federal programs available to help first time home buyers purchase their dream home. They know what kind of loan you can qualify for, how much you will need for a down payment, and the lenders requirements.
Get pre-approved before you start to look at homes. Your mortgage broker will get your pre-approved so you know exactly how much house you can afford and don’t waste your time looking at houses you can’t buy. There’s nothing worse than finding the house you love then finding out you can’t afford it. Avoid this activity and you will be very excited when you find the home you can afford.
The third person you want on your team is a Home Inspector. As a first time home buyer you are not aware of what is involved in looking at the details of a home to make sure it is safe and will not require costly repairs. Your Home Inspector will go over every nook and cranny and tell you what they find. A good home inspection can save you from buying a home that needs major repairs without you knowing about the. Be present during the home inspection. You can ask the inspector questions about what they find, giving you a better understanding of the condition of the home. You can also ask the inspector any questions you may have about the house.
Build your team with people who specialize in working with first time home buyers. You’ll be glad you spent the time to find the right people to help you.
Sandra
First Time Home Buyer Stimulus – Tax Credit Deadline Extended
Safiur Rahman asked:
Owning one’s own home is a dream of every individual. But as fate would have it, the current economic crisis with rampant job cuts in the US have made this dream a distant reality for many. The introduction of President Obama’s home stimulus package has, however, made this goal significantly more achievable for first time home buyers.
The first time home buyer stimulus package offers individuals a tax credit of 10% on the purchase price of a home (with a maximum amount of $8000) for homes purchased between January 1st, 2009 and April 30th, 2010. For those of you already familiar with this program, recent legislative changes have extended the previous purchase deadline of December 1st, 2009. Sales occurring by June 30, 2010 are also covered provided a binding contract is entered into by April 10, 2010.
A key point to mention here is that this credit is a grant which does not need to be paid back (unless the home is sold within the first three years). The entire credit amount is deducted from the total taxes owed to the government. Therefore, an individual qualifying for this credit who owes the government $8,000 in taxes would then owe nothing.
There are certain criteria that have to be met to qualify for this tax credit. First and foremost, you must meet the definition of a first time home buyer. For the purposes of the stimulus package, you are a first home buyer if you have not bought a home as a primary residence in the three years prior to your purchase. This applies to both you and your spouse if you are married. Therefore, if you have not purchased a home as a primary residence in the last three years but your spouse has, then you do not qualify. A primary residence does not include vacation homes; therefore if you own such a property you may still qualify for the credit. There are also no restrictions on the specific type of home (e.g. townhouses, condominiums, mobile homes, houseboats, etc) that can qualify as long as it is your primary residence.
You must also be within certain income limits (i.e. not earn above a certain amount) to qualify for this tax credit. For home purchases after November 6th, 2009, the income limit is $125,000 per year for single tax payers and $225,000 for couples filing jointly. These limits have also been amended recently from the previous limits of $75,000 for single tax payers and $150,000 for couples filing jointly.
I hope you found this overview of the first time home buyer stimulus package to be useful. There are many nuances surrounding the home stimulus legislation and it is always challenging to keep up with all the changes going on. Just make sure you do all the necessary research, stay up to date on the latest developments, claim your credit on your next tax return, and enjoy your new home!
Suzanne
Owning one’s own home is a dream of every individual. But as fate would have it, the current economic crisis with rampant job cuts in the US have made this dream a distant reality for many. The introduction of President Obama’s home stimulus package has, however, made this goal significantly more achievable for first time home buyers.
The first time home buyer stimulus package offers individuals a tax credit of 10% on the purchase price of a home (with a maximum amount of $8000) for homes purchased between January 1st, 2009 and April 30th, 2010. For those of you already familiar with this program, recent legislative changes have extended the previous purchase deadline of December 1st, 2009. Sales occurring by June 30, 2010 are also covered provided a binding contract is entered into by April 10, 2010.
A key point to mention here is that this credit is a grant which does not need to be paid back (unless the home is sold within the first three years). The entire credit amount is deducted from the total taxes owed to the government. Therefore, an individual qualifying for this credit who owes the government $8,000 in taxes would then owe nothing.
There are certain criteria that have to be met to qualify for this tax credit. First and foremost, you must meet the definition of a first time home buyer. For the purposes of the stimulus package, you are a first home buyer if you have not bought a home as a primary residence in the three years prior to your purchase. This applies to both you and your spouse if you are married. Therefore, if you have not purchased a home as a primary residence in the last three years but your spouse has, then you do not qualify. A primary residence does not include vacation homes; therefore if you own such a property you may still qualify for the credit. There are also no restrictions on the specific type of home (e.g. townhouses, condominiums, mobile homes, houseboats, etc) that can qualify as long as it is your primary residence.
You must also be within certain income limits (i.e. not earn above a certain amount) to qualify for this tax credit. For home purchases after November 6th, 2009, the income limit is $125,000 per year for single tax payers and $225,000 for couples filing jointly. These limits have also been amended recently from the previous limits of $75,000 for single tax payers and $150,000 for couples filing jointly.
I hope you found this overview of the first time home buyer stimulus package to be useful. There are many nuances surrounding the home stimulus legislation and it is always challenging to keep up with all the changes going on. Just make sure you do all the necessary research, stay up to date on the latest developments, claim your credit on your next tax return, and enjoy your new home!
Suzanne
First Time Home Buyer Stimulus: Are You Ready to Claim Your Tax Credit of Up to $8,000?
Safiur Rahman asked:
Buying your first home is a big, life changing decision regardless of the economic climate. The decision becomes even more bold in an a recession where job cuts are rampant and the housing market has been in a slump for over a year. Nevertheless, if you are confident in your financial future, this is actually the best time to buy a house thanks to the federal government’s first time home buyer stimulus package. The stimulus package awards first time home buyers with a tax credit of up to 10% of the purchase price of their home with a ceiling of $8,000. In layman’s terms, this is a grant which does not need to be repaid unless you sell the home within the first three years. More specifically, this is a dollar by dollar reduction in taxes owed or an increase in your tax refund. It is also referred to as “refundable” tax credit because you can claim it regardless of your federal income tax liability.
For those who are unfamiliar with this program, here is a quick summary of the key requirements. Firstly, you must be a first time home buyer as required by the current legislation. You meet this definition if you have not purchased a home as your principal residence in the three prior to your current purchase. If you are married, this applies to both you and your spouse. In other words, If either of you do not meet the definition of a first time home buyer, neither of you qualify for the tax credit. A primary residence does not include vacation homes and the specific type of home (e.g. townhouse, condominium, mobile home, etc) does not matter. Secondly, the purchase must take place between January 1st, 2009 and April 30th, 2010. The deadline was extended recently which gives you a few more months to close on your purchase. (The previous deadline was December 1st, 2009). Technically, you have until June 30th, 2010 to complete the sale but a binding agreement must be entered into by April 30th, 2010. Thirdly, you must fall within certain income limits. Single tax payers must not make more than $125,000 annually if the sale occurs after November 6th, 2009 and not more than $75,000 if the sale occurred between January 1st, 2009 and November 6th, 2009. Married couples filing jointly must not make more than $225,000 annually if the sale occurs after November 6th, 2009 and not more than $150,000 if the sale occurred between January 1st, 2009 and November 6th, 2009. The income limits were also raised as part of recent changes. There are other caveats in the legislation but these are the main requirements.
If you feel that you qualify for this tax credit, you are likely wondering how you will claim it. You do so on your federal income tax return. You must first complete IRS Form 5405 to determine the amount of your tax credit. You then enter that amount on line 67 of the 1040 form on your 2009 tax return or line 69 on your 2008 tax return. No other applications or special forms are required. It is as simple as that.
If you are serious about buying your first home by April 30, 2010, the best advice anyone can give you is to plan ahead and plan accordingly, get in touch with mortgage brokers, file your taxes on time, and make the provisions of the first time home buyer stimulus package work for you. Most importantly, do all your due diligence and do not procrastinate! The law may change from time to time so make sure you stay current on all the latest developments. If you do all that, you’ll be well on your way to owning the home of your dreams.
Tamara
Buying your first home is a big, life changing decision regardless of the economic climate. The decision becomes even more bold in an a recession where job cuts are rampant and the housing market has been in a slump for over a year. Nevertheless, if you are confident in your financial future, this is actually the best time to buy a house thanks to the federal government’s first time home buyer stimulus package. The stimulus package awards first time home buyers with a tax credit of up to 10% of the purchase price of their home with a ceiling of $8,000. In layman’s terms, this is a grant which does not need to be repaid unless you sell the home within the first three years. More specifically, this is a dollar by dollar reduction in taxes owed or an increase in your tax refund. It is also referred to as “refundable” tax credit because you can claim it regardless of your federal income tax liability.
For those who are unfamiliar with this program, here is a quick summary of the key requirements. Firstly, you must be a first time home buyer as required by the current legislation. You meet this definition if you have not purchased a home as your principal residence in the three prior to your current purchase. If you are married, this applies to both you and your spouse. In other words, If either of you do not meet the definition of a first time home buyer, neither of you qualify for the tax credit. A primary residence does not include vacation homes and the specific type of home (e.g. townhouse, condominium, mobile home, etc) does not matter. Secondly, the purchase must take place between January 1st, 2009 and April 30th, 2010. The deadline was extended recently which gives you a few more months to close on your purchase. (The previous deadline was December 1st, 2009). Technically, you have until June 30th, 2010 to complete the sale but a binding agreement must be entered into by April 30th, 2010. Thirdly, you must fall within certain income limits. Single tax payers must not make more than $125,000 annually if the sale occurs after November 6th, 2009 and not more than $75,000 if the sale occurred between January 1st, 2009 and November 6th, 2009. Married couples filing jointly must not make more than $225,000 annually if the sale occurs after November 6th, 2009 and not more than $150,000 if the sale occurred between January 1st, 2009 and November 6th, 2009. The income limits were also raised as part of recent changes. There are other caveats in the legislation but these are the main requirements.
If you feel that you qualify for this tax credit, you are likely wondering how you will claim it. You do so on your federal income tax return. You must first complete IRS Form 5405 to determine the amount of your tax credit. You then enter that amount on line 67 of the 1040 form on your 2009 tax return or line 69 on your 2008 tax return. No other applications or special forms are required. It is as simple as that.
If you are serious about buying your first home by April 30, 2010, the best advice anyone can give you is to plan ahead and plan accordingly, get in touch with mortgage brokers, file your taxes on time, and make the provisions of the first time home buyer stimulus package work for you. Most importantly, do all your due diligence and do not procrastinate! The law may change from time to time so make sure you stay current on all the latest developments. If you do all that, you’ll be well on your way to owning the home of your dreams.
Tamara
First Time Home Buyers – Home Buying Process
Jeff Ragan asked:
Are you ready to buy that first home? Are you sure you’re ready to begin? Some would say you need to begin with finding the house you want to buy. But really there are steps you need to take as first time home buyers before you begin. Let’s say you’re planning a wedding, you don’t begin the process by picking a reception hall when you haven’t even popped the question! The same with buying a house. There are some steps you need to take before you pick the location.
Beginning Steps for First Time Home Buyers:
You need to find out how much you can afford. Can I qualify for a loan? Do I have enough money saved for a down payment? What type of loan programs are out there? Which one is best for me? Do I need a bank or a broker?
Step One:
In order to figure how much you can afford you need to take a look at your income and expenses. Do you have enough left over at the end of the month to make a mortgage payment? If you’re renting you probably already have a certain amount of money budgeted. Will that amount buy you the size home you want? There are mortgage calculators out there that will help you estimate how much you can spend.
Step Two:
The first thing in qualifying for a loan is your credit rating. You may need to get a credit report pulled. Most lenders use the middle score to figure your credit rating. They get this figure by taking the credit score from all three credit reporting agencies and picking the middle one. If your credit score is too low, then you have some work to do before you go looking for that new home.
The second thing in qualifying for a loan is the ability to pay it back. So your debt-to-income (DTI) reflects whether you are a good risk or not. If you’re expenses are higher than your income, you need to lower those first.
Step Three:
Now you need to look at your savings account. Do you have enough money saved for the down payment? If not, then you may need to consider down payment assistance or grants to help you. Or perhaps you may need to set up a savings plan to help you save for that down payment.
Step Four:
It’s a good idea for first time home buyers to be educated on the different types of loan programs out there to see which one is a good fit for you. There are programs that have low down payments, ones that are best for buying in suburban areas, ones that have low interest, and many more. It never hurts to be educated.
Step Five:
You will have to make a decision on who you’re going to use to process the loan. You may wish to go to your bank and have them start the application process. Or you may wish to pick a broker. There are pros and cons to both, so spend some time learning the pros and cons so you can make your decision.
Now you’re ready to propose marriage!!! But before you buy that ring, know your rights. First time home buyers should understand things like Fair Housing, Real Estate Settlement Procedures Act (RESPA), Predatory lending and what the borrower’s rights are before they initiate their search.
Once you’re really engaged, I mean have all these steps in place, then you can begin looking for that first home. You’ll be happy you did all this planning ahead of time.
Jeffrey Ragan wants to help you get into your first home by offering a free buyers guide and other helpful informatin on their website, First-Time-Home-Buyer-Solutions.com.
Kathleen
Are you ready to buy that first home? Are you sure you’re ready to begin? Some would say you need to begin with finding the house you want to buy. But really there are steps you need to take as first time home buyers before you begin. Let’s say you’re planning a wedding, you don’t begin the process by picking a reception hall when you haven’t even popped the question! The same with buying a house. There are some steps you need to take before you pick the location.
Beginning Steps for First Time Home Buyers:
You need to find out how much you can afford. Can I qualify for a loan? Do I have enough money saved for a down payment? What type of loan programs are out there? Which one is best for me? Do I need a bank or a broker?
Step One:
In order to figure how much you can afford you need to take a look at your income and expenses. Do you have enough left over at the end of the month to make a mortgage payment? If you’re renting you probably already have a certain amount of money budgeted. Will that amount buy you the size home you want? There are mortgage calculators out there that will help you estimate how much you can spend.
Step Two:
The first thing in qualifying for a loan is your credit rating. You may need to get a credit report pulled. Most lenders use the middle score to figure your credit rating. They get this figure by taking the credit score from all three credit reporting agencies and picking the middle one. If your credit score is too low, then you have some work to do before you go looking for that new home.
The second thing in qualifying for a loan is the ability to pay it back. So your debt-to-income (DTI) reflects whether you are a good risk or not. If you’re expenses are higher than your income, you need to lower those first.
Step Three:
Now you need to look at your savings account. Do you have enough money saved for the down payment? If not, then you may need to consider down payment assistance or grants to help you. Or perhaps you may need to set up a savings plan to help you save for that down payment.
Step Four:
It’s a good idea for first time home buyers to be educated on the different types of loan programs out there to see which one is a good fit for you. There are programs that have low down payments, ones that are best for buying in suburban areas, ones that have low interest, and many more. It never hurts to be educated.
Step Five:
You will have to make a decision on who you’re going to use to process the loan. You may wish to go to your bank and have them start the application process. Or you may wish to pick a broker. There are pros and cons to both, so spend some time learning the pros and cons so you can make your decision.
Now you’re ready to propose marriage!!! But before you buy that ring, know your rights. First time home buyers should understand things like Fair Housing, Real Estate Settlement Procedures Act (RESPA), Predatory lending and what the borrower’s rights are before they initiate their search.
Once you’re really engaged, I mean have all these steps in place, then you can begin looking for that first home. You’ll be happy you did all this planning ahead of time.
Jeffrey Ragan wants to help you get into your first home by offering a free buyers guide and other helpful informatin on their website, First-Time-Home-Buyer-Solutions.com.
Kathleen
first time home buyer grants in Pa?
mbreasia asked:
I am looking to purchase a home in the next few months. Does anybody know of any first time home buyer programs, that offer grants?
I live philadelphia county, and that is where I will be looking.
Ruby
I am looking to purchase a home in the next few months. Does anybody know of any first time home buyer programs, that offer grants?
I live philadelphia county, and that is where I will be looking.
Ruby
Do we still qualify for the First-Time Home Buyer Tax Credit if we use a non-occupant co-borrower?
Jimmy T asked:
My wife and I have are buying a home, and used my mother in law as a non-occupant co-borrower. It is our first home, and we received an FHA loan. Can we still qualify for the First-Time Home Buyer Tax Credit even though we have a non-occupant co-borrower who owns a house already?
Jackie
My wife and I have are buying a home, and used my mother in law as a non-occupant co-borrower. It is our first home, and we received an FHA loan. Can we still qualify for the First-Time Home Buyer Tax Credit even though we have a non-occupant co-borrower who owns a house already?
Jackie
Grants for First Time Home Buyers: Make Your Dream A Reality
Primoz Borovnik asked:
While people have suffered tremendous financial loads, there are government grants for first time home buyers so you can buy you dream home without shelling out a huge amount of money way out of your price range.
This type of government grant enables you to purchase property at a much lowered cost. Now wonder so many people are taking advantage of applying for this grant. This financial assistance is available through your local or state agencies. You just fill out an application form to check if you are qualified to receive free monetary funds. If you are 18 years old and above, and a valid U.S. citizen, you can definitely apply.
Even though you are not exactly a first time home buyer, the government has provided mortgage and real estate grants which you can easily obtain. There are a slew of programs that will afford you with money grants to repair or shape up your home. These grants for first time home buyers can even allow you to upgrade your house appliances into energy efficient ones and also may feature other government programs you can get a hold of.
When looking for first time home buyer grants, you may notice that there are several other government grants you can apply for. Keep in mind that even if you are applying as a first time home buyer, you can avail additional grant cash grants for your various personal needs. Besides getting free money and obtaining the home of your dreams, you could be eligible for additional project funded grants. What is more, the government can give you a down payment even if you have a small cash deposit. Furthermore, you will not be so stressed and anxious about purchasing your potential home when you receive these grants.
Rafael
While people have suffered tremendous financial loads, there are government grants for first time home buyers so you can buy you dream home without shelling out a huge amount of money way out of your price range.
This type of government grant enables you to purchase property at a much lowered cost. Now wonder so many people are taking advantage of applying for this grant. This financial assistance is available through your local or state agencies. You just fill out an application form to check if you are qualified to receive free monetary funds. If you are 18 years old and above, and a valid U.S. citizen, you can definitely apply.
Even though you are not exactly a first time home buyer, the government has provided mortgage and real estate grants which you can easily obtain. There are a slew of programs that will afford you with money grants to repair or shape up your home. These grants for first time home buyers can even allow you to upgrade your house appliances into energy efficient ones and also may feature other government programs you can get a hold of.
When looking for first time home buyer grants, you may notice that there are several other government grants you can apply for. Keep in mind that even if you are applying as a first time home buyer, you can avail additional grant cash grants for your various personal needs. Besides getting free money and obtaining the home of your dreams, you could be eligible for additional project funded grants. What is more, the government can give you a down payment even if you have a small cash deposit. Furthermore, you will not be so stressed and anxious about purchasing your potential home when you receive these grants.
Rafael