When thinking about purchasing a new home as a first time home buyer, there are so many factors to consider. But what do you do first as a first time home buyer?
Well, when you have made the decision to become a home owner, the first step as a first time home buyer before you do anything is get pre-qualified with a lender. It is important that you contact a lender or a Realtor to recommend a qualified lender to get pre-qualified. Sit down with them, bring in all your financial papers. Have them look at everything. This is very important. If you are serious about buying then you need to lay it out there so the professionals can help you in every aspect and counsel you on what is the best options for you. Why? Well, this is going to save some frustration in the buying process by helping you avoid looking at houses out of your price range. It will also give you a starting point on what you can afford. Plus, it could bring to light any credit issues you may have and give you time to correct them. Is it a good idea to contact the appropriate professional six months to a year prior to actually making that big purchase to help you make a “To Do” list for you and prepare you for becoming a first time home buyer in the year to come. Before running out the door once you have become pre-qualified sit down and meet with a Realtor in their office and discuss your plans and goals. You will only need to work with one, so pick one you are comfortable with. Talk about what you are looking for. How the buying process works. Have questions ready for your Realtor to Answer. Also, to take a look at the homes that fall in your criteria. Sometimes just taking a moment and looking at what is available may help you evaluate what you are looking for.
You should be comfortable with your lender and your Realtor during the process of becoming a first time home buyer. Also, understand that they are the professionals and they are the ones looking at your transaction and your situation. Every situation, every transaction, every home buying process is different and they know how to help you become a first time home buyer. So ask them all the questions you can think of that way you get the right answer and their professional option for your purchase. You will then be on the road to becoming a first time home buyer.
Go Luck and Happy Hunting!
First Time Homebuyer Tax Credit
Posted by: Scott Swinford, Mortgage Planner & Credit Expert In: Real Estate Finance| tax credit
One of the most exciting provisions of the Housing and Economic Recovery Act of 2008 was the First-Time Homebuyer Tax Credit. The credit was expanded as part of the most recent economic stimulus bill (The American Recovery and Reinvestment Act of 2009). The credit is designed to encourage first time home buyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices and interest rates are at historical lows, and it is indeed an ideal time for many first-time homebuyers to purchase a home!
Here are some things to keep in mind:
A first time home buyer is defined as someone who has not owned a home in the last three years
For Homes Purchased Between April 9, 2008 and December 31, 2008
The credit amounts to 10% of the purchase price of the home not to exceed $7,500
For Homes Purchased Between January 1, 2009 and December 1, 2009
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit… Continue to Loan Guy’s Blog
Gina Bombin, Real Estate Professional for NWI
By MARTIN CRUTSINGER
AP Economics Writer | Tuesday, March 17, 2009 |
WASHINGTON | Housing construction posted a surprisingly large increase in February, bolstered by strength in all parts of the country except the West.
The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared with January, pushing total activity to a seasonally adjusted annual rate of 583,000 units.
Meanwhile, the Labor Department reported that wholesale prices edged up a slight 0.1 percent in February as a big drop in food costs offset a second monthly increase in energy prices.
While the surge in housing construction was far better than the continued decline economists had expected, the rebound is likely to be viewed as a temporary gain given all the problems the housing industry still faces.
Even with the big increase, construction activity remains 47.3 percent below where it was a year ago. The strength in February was led by a big increase in apartment construction, which can be highly volatile from month to month.
All areas of the country reported an increase in February, except the West, which has been hardest hit by the current housing slump.
The 0.1 percent increase in wholesale inflation was much lower than the 0.8 percent surge in January and smaller than the 0.4 percent increase economists had expected. Compared with a year ago, wholesale prices are actually down 1.3 percent.
Core inflation, which excludes energy and food, edged up 0.2 percent in February, only slightly higher than the 0.1 percent gain economists had expected. Core prices had risen 0.4 percent in January.
Only last summer, officials at the Federal Reserve had started to worry that a surge in energy costs could spread to other areas of the economy and boost inflation to unacceptable levels. But after the financial crisis struck in the fall, the Fed switched signals and is now aggressively fighting a deepening recession with no real threat of inflation.
On Wednesday, Fed officials are expected to signal that they will continue to keep a key interest rate at a record low near zero percent for as long as necessary and use other unorthodox means to jump-start the economy.
The Fed has the leeway to focus on the weak economy because inflation pressures are expected to remain law in the face of widespread layoffs that are depressing wage demands.
The 0.1 percent rise in wholesale inflation in February reflected a 1.3 percent increase in energy prices, which have been rising for two months after having retreated for five straight months.
Gasoline prices jumped 8.7 percent in February after a 15 percent surge in January.
Food costs fell for a third straight month, dropping 1.6 percent in February, the biggest one-month decline in three years. The costs of eggs, fruits, vegetables and dairy products were all down.
Outside of food and energy, prices for cigarettes rose 2.7 percent, the biggest increase in two years, while the price of light trucks rose 1.3 percent, a gain that is not expected to last given the weakness in auto sales.
Prices for computers dropped 4.5 percent, the biggest one-month fall since January 2005.
Inflation is not expected be a problem for some time to come given the prolonged recession, which is already the longest downturn in a quarter-century. Overall economic growth fell at an annual rate of 6.2 percent in the October-December quarter and many economists expect the drop in the gross domestic product for the current quarter will be a similarly steep decline.
Many economists say the Fed will not even contemplate interest rate increases until the unemployment rate, which soared to a 25-year high of 8.1 percent in February, declines.
For more on this story: http://nwitimes.com/articles/2009/03/17/updates/breaking_news/doc49bfa633ebc1b443686335.txt
Gina Bombin, Your Hometown Agent in Wheatfield, Indiana
McColly Real Estate
Designed By :
