Buyers did you know?

The $790 billion American Recovery and Reinvestment Act signed into law by President Barack Obama in February gives first-time home buyers an exciting incentive to enter the housing market-an $8,000 tax credit. Now the trick is to take advantage of it. In 2008, the home buyer tax credit of $7,500 required repayment over a 15-year period. Under the new provisions, there is no repayment requirement as long as you remain in the home for three years. 

Combine these new criteria with low home prices and interest rates; you can see the value of entering the market once you know all the details

The time frame has been extended for all of you that have not taken advantage of the tax credit.
You have until April 30th 2010 and until July 1, 2010 with a written binding contract.
This should help anyone who is going through short sales that can take up to six months to complete (who ever came up with the name short sale it should have been long sale). 

Not a first time home buyer? If you have owned a home for five years you may qualify for a $6,500 tax credit, so what are you waiting for?
Maybe your family has grown and you need to buy up, or maybe you need to downsize if you don't a large home anymore.

What ever your reasons may be, THE TIME IS NOW!
Don't listen to the doom and gloom on the TV, houses are being listed and sold every day, maybe yours.

We know where the great deals are, email us at kenandann@theteam4u.com for more information.

Don´t wait too long as prices are rising and inventory is depleting.

What Should A Buyer Do?

1. Learn about first-time home buyer programs. Consider taking a first-time home buyers course or visit with your local banker to find out about programs available to you, such as the new federal $8,000 first-time home buyer credit for 2009 home purchases.

2. Get pre-approved. Know the difference between "pre-qualified" and "pre-approved." Getting pre-qualified is a casual process where the lender tells you how much you should be able to borrow based on how much money you make, how much debt you have and how much you have to put down on a house. Pre-approval occurs only after you actually apply for the loan and the lender gives you in writing the amount you can borrow. A buyer who is pre-approved is more attractive to sellers and their agents than one who is only pre-qualified.

Once you find a mortgage that is best for you, get pre-approved before you start making offers on a home.

Don't have a lender? Email us at kenandann@theteam4u.com or call us at 619-917-2121, we know several qualified lenders.

3. Be honest with the lender and yourself. You don´t want to borrow more than you can afford. Your bank can provide a calculator to determine if you can afford to borrow and if so, how much. The American Bankers Association has several home financing calculators available at www.aba.com/aba/static/calculators.htm.

4. Look at the basics of the loan. Don´t get distracted by all the bells and whistles. Choose the type of loan that makes the most sense for you.

5. Know your credit situation. Obtain a copy of your credit report and FICO score or VantageScore at least six months before you apply for a mortgage. This should give you enough time to challenge and remove any errors on your credit report and take care of anything that´s hurting your credit score. To obtain a free copy of your credit report, visit www.annualcreditreport.com.

6. Consider all the costs. A lender will review costs like fees, closing costs, points, homeowner insurance, and taxes. But consumers should also consider repairs and maintenance costs. As a homeowner, you are responsible for those additional costs - there won´t be a landlord to call.

7. Organize your finances before you go to the bank. While each bank may require different documentation, at a minimum you will need:

- Pay stubs.
- Tax returns.
- Financial statements (one that is less than 60 days old).
- Copies of additional monthly payments such as car loans, credit cards, student loans, etc.
- Any additional information (such as proof of additional income) that you think will help your banker to positively evaluate your credit request.

Email us at kenandann@theteam4u.com we are here to help.

Oh by the way....If you are thinking about selling or buying or know anyone who could use our real estate services call 619-917-2121 or email us at kenandann@theteam4u.com we are only a click away!