First Time Homebuyers – 101
Doing research on how to buy a home is a serious time investment. There are plenty of ways to get this info on your own. Newspapers are a good starting point to find information by taking a look at the local property transfers. This can help you see what homes have sold for and how much activity is taking place in the town you are interested in. You can also do plenty of research on the internet. This is a great way to start compiling your information. The next thing that you want to do is find a great real estate agent. The best way to do this is through a referral from family and friends or you may meet a great agent through a weekend open house.
There is no need to be anxious about what comes next. The process can seem so overwhelming. The first thing that you need to do is talk over your financing options with a qualified reputable mortgage broker or bank. You can discuss your down payment options and see which loan programs best fit your needs. Then you will have a starting point on the price range for your new home. Now you are armed with your information. Its time to go home shopping.
Do you want to live in the city or suburbs? What are you looking for in home? Do you want a certain style? How many bedrooms? What home style do you like? Do you want a ranch, colonial, condo or high rise? Once you narrow this down, take a look and see what fits in your price point.
Now you go out with your Realtor and start looking. You will probably see a lot of properties your first time out. Don’t get confused. I recommend bringing a digital camera to document each property. You should also take notes and pay attention to the home’s surroundings. Remember the old saying “Location, location, location”. After leaving each property you should rate them right away. This allows you to make an easy decision later.
You found your home, now what? You make an offer through your real estate agent. There will be some negotiating back and forth. Finally everyone agrees to terms and price. You give a 1% binder check to show good faith that you are serious about purchasing the home. There will be an offer to purchase which has information about the property including dates and contingencies. This is an agreement on paper that will provide the attorneys information to create a binding contract. Next its time to hire a building inspector to look over the property for you and you need to hire an attorney. It’s best if you hire an attorney that specializes in real estate law. If everything is okay you will go to contract the next few days. This will be the legal and binding document that your bank will need to continue processing the loan.
From this point on the bank and your attorney will contact you and ask you for all sorts of paperwork and documentation to complete the loan process. When you receive your mortgage commitment, its time to start dreaming about paint colors and decorating.
This year there is the first time home buyers tax credit of $8000 for qualified buyers.
You must have a contract to purchase a home by April 30th, 2010 and close on the home by June 30, 2010. Eligible properties can be purchased up to $800,000. There are income limits for first time homebuyers. Single home purchaser’s income can be up to $125,000 and married couples up to $225,000. There is a partial tax credit for incomes that are within $20,000 of limits. There is also a tax credit of $6500 for “Step Up” home buyers. These are just some of the basic terms. For more information please go to www.Bondirealtygroup.com and click on Home Buyers Tax Credit.
2010 is a great time to buy. Prices are affordable and there are many homes to choose from. Mortgage rates are historically low and there is the home buyer’s tax credit. This combination should help stimulate the real estate market for the immediate future.
Betty Bondi
Bondi Realty Group LLC
203-899-9990