Time is Running Out For First Time Home Buyer Tax Credit
September 10th, 2009 categories: Movin Consumers, Movin Information, Movin Real Estate News
First time home buyer credit
First off let me say that I am the queen of procrastination. I am not getting on to you, but I know human nature and I am here to tell you, time is running out. I can’t tell you how many research papers I did the night before they were due in school. I made my believe I did my best work “under pressure”.
Well, the same for you if you are a first time home buyer and you would like to take advantage of the potential $8000 credit, time is a wasting. You need to take action and take it now!! You have, at this point, waited until the last minute. You have 80 days from today to qualify for your tax credit . Today is “the night before your project is due”.
You say, “what do you mean? I have until December 1st to buy my home?” Hear me loud and clear, YOU HAVE UNTIL DECEMBER 1ST TO CLOSE AND OWN YOUR HOME, NOT WRITE YOUR OFFER!!!! There is a big difference. Closing and owning the home and having an accepted offer on a home are two different things. Hear me one more time, you must close and own the home to qualify for the credit.
Okay, so what does that mean, what’s the big deal you say? That means you need to find an agent, get qualified for a mortgage and find a home by the end of November. If the average closing takes 30 to 60 days, that means you only have 20 days to find your home!!
This means that you can search for the home you want to make an offer on, negotiate your contract and get to closing by November 30th to beat the clock for December 1st!!
So let’s look at some of the details involved in getting you to closing by November 30th;
- Have all of your finances in order to hand over to your loan officer to get your loan done in time
- Finding a seller that can move and close by the deadline
- Making sure all inspection items can be finalized by the deadline
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Competing with other buyers who have procrastinated who will take up time slots to close at the last minute
Here is the most important thing I would like to say to anyone who is now trying to take advantage of the tax credit, DO NOT SCHEDULE YOUR CLOSING ANY LATER THAN NOVEMBER 15TH. LET ME SAY THAT ONE MORE TIME, DO NOT SCHEDULE YOUR CLOSING ANY LATER THAN NOVEMBER 15TH IF YOU ARE TRYING TO TAKE ADVANTAGE OF THE TAX CREDIT!!
Why? Because there are so many details involved with your loan and what and underwriter wants in a file these days it may delay your closing. You may need a week for a seller to make a last minute mandatory underwriter repair and you will need the time, with a major holiday in the middle of your closing, to make it by the deadline. The underwriter may ask for documentation from you for your loan package, there are many things that can go haywire at the last minute and you need a time cushion to get to closing on time. Just think how many other people are going to try to close at the last minute. The banks and title lawyers are going to be swamped trying to get everything done by the deadline.
You still have time but you will need to act now. Call your real estate agent and loan officer to get started right away. Remember, it is the proverbial “night before your project is due”.
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Hello Mutta, Hello Fatta We Help Your Dautta, Purchase Her Home
October 1st, 2008 categories: Movin Home Search, Movin Real Estate News
Hello Mutta, Hello Fatta I know 
I am working with ya dautta,
Dont be scared or nervous,
I am here to be at your service.
One of my friends says that God makes babies so wonderful and cute that you love them through their teenage years. God also makes them teenagers so you are able to let them move on and move out when they are in their late teens. I always thought that was a pretty good analogy.
I know you nurtured and sheltered your child to the nth degree of your love and ability. Now they have gone off and grown up. I know, the nerve of them. They have been out in the working world for awhile and may actually have saved up some of their own money to consider starting to look for their very own home.
This will be a new milestone for them. I know you will want to be there and support them through this transaction. I am going to tell you, as a first time buyer specialist, you – Mom and Dad- need to be there for them, but you MUST let them navigate this transaction on their own with their REALTOR®. They will call you to discuss the transaction and ask for your advice. They will resent you if you try to “do” the transaction for them. I have seen this happen more times than not, but far be it for me to get in the middle of a family squabble.
The questions you, Mom and Dad, will want to ask your kids as they purchase their first home are;
- Who are you working with as your agent?
- How much experience does your agent have?
- Does the agent specialize in the area you are interested in?
- Does the agent have a good balance of Buyer Transactions vs Seller transactions.
- Of the Buyer Transactions – are first time home buyers one of the agent’s specialties.
- Did the agent refer 2 or 3 lenders so rates and services can be compared.
- Does the agent represent the buyer or the seller.
- Will the agent have a Buyer Broker Agreement where the agent has a Fiduciary relationship with the buyer?
- Does the agent have a “Buyer Pre-qualification Appointment” to lay a good foundation for a smooth transaction?
- Does the agent have a grasp on basic financing information.
If you wonder about the agent, you can do a search based on the agent’s license number with the state commission. In Maryland, we work under a Fiduciary relationship. That means that the agent has to, by law, put the interest of their client above all others – even the agent’s own interests. Fiduciary is the highest form of loyalty in any relationship. As a matter of fact, we agents probably have a higher loyalty to your kids than you do now that they are adults. So know they are in good hands.
Mom and Dad, don’t worry. You did a great job raising your children. They know right from wrong. When I work with First time home buyers, they will typically come and see me for the initial buyer prequalification appointment. Once that has been done and we have the ground work set, they will go out with me and look at different homes and pick the ones they like the most. That will be when they call you into the transaction. They will want to show you the work and research they have done. They will also want your opinion about the homes they have narrowed down in their search.
Once you get there to see the house(s) they have picked, look for the major items of concern, but please don’t beat the house up. I have had parents be so hard on the house their kids choose, I have had some cry at the house because they think you hate their house. Just help them, don’t criticize them. Remember, it is THEIR home, not yours.
I find that the parents that come with the kids to every appointment from start to finish and make all of the decisions during the transactions end up with more friction between family members than friction with the agents. Remember, your kids are no dummies and they have probably done more homework and research on the internet than you did when you bought your first home.
Just relax, be there for them, let them ask you – because they will want your advice- and it should be a smooth transaction for all.
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Buying your First Home, Making Sound Price Decisions
May 21st, 2008 categories: Movin Lifestyle, Movin Real Estate News
Buying your first home, making sound price decisions
When you are thinking about buying your first home, it can be intimidating. All of the questions you have racing through your head. How much should we spend? What is it like to apply for a loan? What will our payment be like? Then, the fun thoughts; what kind of house will I have? What you want in a home and how you will fix it up to make it your home.
As you look at homes, you may decide that you want to be conservative in the amount of money that you spend when purchasing your first home. This might not be as financially sound as you may think? Typically cheaper homes are smaller and you may find that you will grow out of the home quicker than you think? Five years from now may seem like a long time from now, but it will be here before you know it.
Things will change for you in time; you may have children, maybe a different job, and promotions? Who knows? I think it is smarter for a purchaser in today’s market to spend a bit more, as long as you qualify, so you can live in the home longer and be comfortable in your home.
What I am saying is, if you qualify for a $400,000 mortgage, you certainly should not stretch yourself to where you will struggle. Not suggesting that in anyway. However, I do not think it is prudent to purchase a $200,000 home either. You will grow out of the $200K home sooner and will start to want to move into something larger. At that point, you will probably want to sell your home to have the down payment and closing costs to purchase your new home.
Here is where you are going to cost yourself money. Right now, buying your first home, you will have closing fees, down payment and inspection fees. If you purchase too small of a home, and decide you want to move, you will then have to spend money to pay the fees associated with selling your home and buying your next home. The fees can run into tens of thousands of dollars.
By making a compromise in the above comparison, maybe investigate how much the payment would be around a $300,000 price range? The home should be larger, therefore hopefully giving you a “longer shelf life” in your home. If your home is larger you should have more space and be more comfortable for longer in the middle sized home. As homes appreciate over time, the more expensive home will be worth more exponentially than the smaller, cheaper home. 
Whatever type of home you decide to purchase, make sure you talk to 3 mortgage lenders to compare interest rates to ensure you get the best rate possible. Maybe speak to a couple of REALTORS® and get a feel for their style, make sure your agent is knowledgeable and your best interests are their priority. This is an important relationship and decision in your life.
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