Register Real Estate Advisors

What does a first time home buyer need to know? There’s so much that you’ll need an experienced and well trained Realtor to help you through this exciting process. In 2010 50% of the buyers were first time home buyers. Before 2010 it was less than 50%. So we know there are more first time home buyers out there now than ever before and it is the job of a Realtor to assist you throughout the transaction and be your advocate. This is a service that is FREE to you – the buyer! The seller will pay for you to be represented in the transaction. Can you believe that? Yes, the seller pays for you to have representation when you are purchasing a home. So please call RREA today to get started. The average income of a first time home buyer in 2010 was $59,900 nationwide. The average home purchased was 1,540 and the average cost was $152,000. Most plan to stay in their homes for 10 years. In 2010 there was a first time home buyer tax incentive, which is why there were so many fist time home buyers in 2010. Now the government has ended that program. First time home buyers searched on average two weeks longer than repeat buyers, so you want to get started as soon as possible. They typical age of the first time home buyer is 30. The median price paid by first time home buyers in 2010 was $152,000 while the median home price paid by repeat buyers was $215,000. Go ahead and jump in the game and purchase your first home. Our agents at RREA will make it a wonderful experience for you and your family! 281.288.3500 info@rrea.com

For Active Duty Military personnel living overseas during any part of the $8,000 First Time Home Buyer Tax Credit or the $6,500 Move Up Tax Credit – you are still eligible to take advantage of the tax credits until April 30, 2011.
The $8,000 First Time Home Buyer Tax Credit will be ending soon. You must be under contract by the end of April to qualify for the tax credit and must close on your home by the end of June. To qualify, the purchaser(s) may not have owned a primary residence in the last three years. It does not have to be a resale home, you may purchase from a builder. You should use a Realtor even when you purchase from a builder. It’s free for buyer’s to use Realtors and your Realtor will be representing you and looking out for your best interest. You can receive the maximum $8,000 tax credit if you are single with an income up to $125,000 or married with an income up to $225,000. The amount of the tax credit decreases as home buyers income approaches the maximum limit. Homebuyers earning more than the maximum qualifying income are not eligible for the credit.

There is an existing home buyer tax credit currently in place for $6,500. To use this tax credit you must sell your current primary residence that you have lived in for atleast five consecutive years and purchase another primary residence. If you don’t want to sell your current home, but have lived there for five years and now want to move to a new primary residence, you can still qualify for the tax credit. There are some income requirements, so check with your accountant to be sure you qualify.

Neither of these credits have to be repaid as long as you live in the new primary residence for at least three years.

1.  Decide how much home you can afford.  Generally, you can afford a home equal in value to between two and three times your gross income. 

2.  Develope a wish list of what you’d like your home to have.  Then prioritize the features on your list.

3.  Select three or four neighborhoods you’d like to live in.  Consider items such as schools, recreational facilities, area expansion plans, and safety.

4.  Determine if you have enough saved to cover your down payment and closing costs.  Closing costs, including taxes, attorney’s fee, and transfer fees average between 2% and 7% of the home price.

5.  Get your credit in order.  Obtain a copy of your credit report.

6.  Determine how large a mortgage you can qualify for.  Also explore different loan options and decide what’s best for you.

7.  Organize all the documentation a lender will need to pre approve you for a loan.

8.  Do research to determine if you qualify for any special mortgage or down payment-assistance programs.

9.  Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10.  Find an experienced REALTOR who can help you through the process. 

Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, Copyright 2005, All rights reserved.

The $8,000 First Time Home Buyer Tax Credit will be ending soon.  You must be under contract by the end of April to qualify for the tax credit and must close on your home by the end of June.  To qualify, the purchaser(s) may not have owned a primary residence in the last three years.  It does not have to be a resale home, you may purchase from a builder.  You should use a Realtor even when you purchase from a builder.  It’s free for buyer’s to use Realtors and your Realtor will be representing you and looking out for your best interest.  You can receive the maximum $8,000 tax credit if you are single with an income up to $125,000 or married with an income up to $225,000.  The amount of the tax credit decreases as home buyers income approaches the maximum limit.  Homebuyers earning more than the maximum qualifying income are not eligible for the credit. 

There is an existing home buyer tax credit currently in place for $6,500.  To use this tax credit you must sell your current primary residence that you have lived in for atleast five consecutive years and purchase another primary residence.  If you don’t want to sell your current home, but have lived there for five years and now want to move to a new primary residence, you can still qualify for the tax credit.  There are some income requirements, so check with your accountant to be sure you qualify. 

 Neither of these credits have to be repaid as long as you live in the new primary residence for atleast three years. 

 For Active Duty Military personnel living overseas during any part of this tax credit are still eligible to take advantage of the tax credits until April 30, 2011. 

 To take advantage of these tax credits call me today because time is running out to qualify.  For additional questions about the tax credit you can contact a tax professional or the IRS at 800.829.1040.

Not only does owning a home give you a haven for your family, it makes great financial sense, too. You can use the “Calculators” on my website to help you figure out how much your mortgage payment will be based on the interest rate and the amount of the home you want to purchase. The calculation below will also help you figure out what you can afford. It assumes a 28% income tax bracket. If your bracket is higher, your savings will be, too.
Rent: _____
Multiplier: X 1.32
Mortgage Payment: __________
Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up with the same amount of income.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved

Don’t be fooled, take advantage of the $8,000 tax credit before it goes away.  It ends at the end of this month.  It’s the best gift Uncle Sam will ever give you!  If you would like to sell your home and buy another home, you may be eligible for the $6,500 tax credit.  Give me a call today so we can get you qualified for your tax credit.  I am not fooling around, these tax credits are a great deal!

1.  They don’t ask enough questions of their lender and miss out on the best deal.

2.  THey don’t act quickly enough to make a decision and someone else buys the house.

3.  They don’t find the right real estate professional who is willing to help you through the homebuying process.

4.  They don’t do enough to make their offer look good to a seller.

5.  They don’t think about resale before they buy.  The average first-time buyer only stays in a home for four years.

REPRINTED WITH PERMISSION FROM REAL ESTATE CHECKLIST AND SYSTEMS ( http://www.realestatechecklists.com )  REPRINTED FROM REALTOR MAGAZINE ONLINE BY PERMISSION OF THE NATIONAL ASSOCIATION OF REALTORS, COPYRIGHT 2005, ALL RIGHTS RESERVED.

The $8,000.00 First Time Home Buyer Tax Credit is available until April 2010.  The following are ten tips for those First-Time Home buyers:

1.  Be picky, but not unrealistic.  There is no perfect home.

2.  Do your homework before you start looking.  Decide specifically what features you want in a home and which are most important to you.

3.  Get your finances in order.  Review your credit report and be sure you have enough money to vover your downpayment and your closing costs.

4.  Don’t wait to get a loan.  Talk to a lender and get pre qualified for a mortgage before you start looking.

5.  Don’t ask too many people for opinions.  It will drive you crazy.  Select one or two people to turn to if ou feel you need a second opinion.

6.  Decide when you could move.  When is your lease up?  Are you allowed to sublet?  How tight is the renatl market in your area? 

7.  Think long-term.  Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer?  This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.

8.  Don’t let yourself be “house poor”.  If you max yourself out ot buy the biggest home you can afford, you’ll have no money left for maintenance or decoration ot to save money for other financial goals.

9.  Don’t be naive.  Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10.  Get help.  Consider hiring a REALTOR as a buyer’s representative.  Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you.  And often, buyer’s reps are paid out of the seller’s commission payment. 

Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, Copyright 2005, All rights reserved.

If you are a renter, you might be wondering how much mortgage you can afford.  Please use the Rent vs. Buy calculator on my website to figure out what you can afford.  I thought the following information was interesting, so I am sharing it with you.  It is reprinted with permission from the National Association of REALTORS and reprinted from REALTOR Magazine Online.

The following calculation assumes a 28% income tax bracket.  If your bracket is higher, your savings will be, too. 

Rent: _____________

Multiplier:  X 1.32

Mortgage Payment:  __________________

Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up wtih the same amount of income. 

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.  Right now, if you are a first time home buyer you can take advantage of the $8,000 tax credit available.  You must hurry, because it ends in April!  Call me today so we can get started.

As well as helping people buy and sell properties, I also help families lease homes.  I often refer them to my rent vs. buy calculator so they can see that owning a home does not cost much more than renting a home.  Why pay someone else’s mortgage for them?  There are many reasons to own your own home. 

First of all, when you own your own home you can take advantage of tax breaks.  You can deduct the interest you pay on your mortgage and property taxes.  Houses usually appreciate in value over time, so you gain equity.  Now I know right now houses in most areas are not appreciating, but in general, usually houses do appreciate over time.  When you pay rent, you lose that money.  But when you purchase a home, part of that monthly payment goes towards your equity in the home.  Through the years, you will gain equity and pay down the mortgage.  Usually, after 30 years people can own their homes free and clear.  Building equity is like a savings plan for most homeowners.  If they need money, they can take out a home equity loan and use the equity to make purchases when needed.  Also, your mortgage payments do not increase over the years unless you have an adjustable rate mortgage.  Many landlords do increase rent yearly.  When you own a home you have the freedom to make whatever decorating changes you want. 

There are many reasons to purchase a home instead of renting or leasing a house.  Right now, first time home buyers can take advantage of the $8,000 tax credit.  That is free money from the government that won’t be around much longer – it ends this April.  If you would like to explore your options in home ownership, please call me today so we can get started.  I have helped many renters enjoy the opportunity of home ownership and that is what makes my job as a REALTOR so exciting!