Posts Tagged ‘homebuyer’

Making a home Budject and sticking to it

Thursday, April 8th, 2010

The real estate market has been posting some modest gains, and those gains are expected to continue well into 2010. For those of us who have been waiting on the sidelines to purchase a new Plano home, now may be the time to take action.

Now is a great time to enter the real estate market, provided you have the credit and the down payment to make it happen. However, an area not often addressed by homebuyers is budgeting for a new Plano home.

In particular, figuring out a budget and sticking to it. Making a home budget is essential for handling your finances, and that goes for your mortgage, too. Foreclosures and short sales are still circulating through the market; many of which are a direct result of homebuyers not budgeting themselves and thinking long-term.

It is therefore important to establish a home budget as soon as you decide to purchase a new Plano home and, more importantly, it is important to stick to the budget, without fail.

  • Before you begin looking for homes in the Plano real estate market, go straight to a lender and get pre-qualified for a mortgage. It makes no sense to begin looking at homes before you are pre-qualified, as you likely will not have a clear picture of how much home you can afford.
  • In addition to a pre-qualification letter from a lender, sit down and make up a realistic household budget. Make sure your monthly budget has plenty of wiggle room, and make sure you have enough left over every month to put at least 10 percent of your income into an emergency savings account. It is true that many homeowners are just a month away from not being able to pay their bills. Don’t let this happen to you; aim to put at least a year’s worth of your salary into an emergency savings account.
  • Consider changes in your lifestyle or family. If you are planning to start a family, take into consideration the added expense. If you don’t plan on staying in your current home for more than a couple years, you may rethink buying at this time and look at renting instead. A big part of planning a feasible household budget is to anticipate changes in your life and the many ways in which they can affect your finances.

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Is a Mortgage Possible without Perfect Credit?

Monday, April 5th, 2010

Can you really obtain a mortgage if you don’t have perfect credit, given today’s credit climate?

Although the government keeps promising otherwise, most homeowners are still finding it decidedly difficult to secure a mortgage in the Allen real estate market unless they have spotless credit. The reality is that there are still plenty of qualified buyers out there who want to own a home and there are just as many homebuyers who are having a difficult time qualifying for low mortgage interest rates.

So, we’ve concluded that getting a mortgage with a competitive interest rate in today’s economic climate may be challenging, but it is important to point out that there are still a variety of attractive home loans for those home buyers with less-than-perfect credit and even for homeowners with little equity in their homes.

Where do I go from here?

If you are one of those home buyers who desperately want a home in the Allen real estate market but you’re lacking that perfect credit score, you may be wondering how you go about negotiating the landscape of today’s home loans.

One factor that is important to remember is that you will have more wiggle room if you have more money down or more equity in your home. Most lenders will require less down if you have a higher credit score and more money down if your credit score falls below 630.

If you are trying to refinance your home with average credit, but the equity in your home is quite small, then you may have to pay more in points. Most experts agree that you will likely have to give up at least a point or more above the published rates if you have little equity. Some lenders, like Freddie Mac, have refinancing programs for mortgages up to 105 percent of their appraised value, and Fannie Mae’s loans can loan up to 95 percent of their appraised value.

Where should I turn?

The bottom line is that there is no substitute for doing your homework. There is simply no better way to explore your options than to seek information from several sources, including your current home loan provider, you local bank, and your mortgage broker.

Don’t ever underestimate the value of a good mortgage broker, as this type of professional will help you find the best rate possible for your particular situation.

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Why Owning a Home is Still a Smart Move

Tuesday, February 2nd, 2010

The media has a knack of scaring even the most level-headed of people. Case in point: many would-be homeowners have been scared silly by reports of a tanking housing market. But what they fail to tell people is that now may be the best time to purchase your first home. From low interest rates and government programs to a slew of fantastic homes on the market, now may be the moment you’ve been waiting for.

Are there challenges in this market? Absolutely. But the fact of the matter is that there are just as many advantages to purchasing a Las Colinas home in 2010.

Why now may be your time to buy your first home:

  • Appreciation – Housing values across the country have hit rock bottom. What does that mean for you? It means that housing prices have nowhere to go but up. Great for you, considering that your appreciation value will be even greater than someone who purchased their home five years ago. A home is still a great investment in your future, all things considered.
  • Mortgage Interest Deductions – You will be thanking your mortgage when tax time rolls around, as mortgage interest is fully tax-deductible (with a few exceptions). You can’t do that with your rent!
  • Government Incentives – The federal government has certainly done its part over the last few months with the Homebuyer Tax Credit. In fact, it was recently announced that this government tax credit, which equals about $8,000 for each homebuyer, is extended well into 2010.
  • Home Equity Loans – Equity in your home is a great thing. You can take the equity in your home and use it towards paying off other higher interest loans, including credit cards, personal loans and auto loans, just to name a few. You can also use the equity in your home to send your kids to college, to make home improvements, or to simply take the vacation of your dreams. And, best of all, the interest paid on a home equity loan is also tax deductible.

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Homebuyer Tax Credit Extends into 2010

Friday, December 18th, 2009

Millions of first-time homebuyers throughout the country took advantage of the new homebuyer tax credit this year, and the good news continues.

Much to the relief of homebuyers, real estate professionals and lenders, the federal government just recently announced that they will extend the first-time homebuyer tax credit throughout April 2010.

There are other changes to the tax credit that has many people perking up their ears, as well. They include:

  • A 6,500 tax credit for existing homeowners who want to “move up.”
  • As of December 1, income limits for the first-time homebuyer tax credit rise from $75,000 for a single individual to $125,000, and from $150,000 for a married couple to $225,000.
  • A maximum cap of $800,000 for a home purchase.
  • A home buyer must have a sales agreement by April 30, 2010, and close on the property by June 30, 2010.

The new homebuyer tax credit, which is part of the overall federal stimulus package, has pumped more than $22 billion into the economy. In fact, the National Association of Realtors estimates that more than two million people (more than 200,000 transactions) took advantage of the tax credit this year alone.

It is clear that this incentive helped the real estate industry in general, so it only makes sense that the program is extended. For areas of the country that are still drowning in bank-owned homes, this extension could not have been better news.

The tax credit does extend to foreclosed homes, provided that the buyer will use it as his/her primary residence. The tax credit has also helped the housing market stabilize, which therefore helps local economies, such as Dallas County and Tarrant County.

The move to extend the homebuyer tax credit was also part of the unemployment benefits extension legislation. In addition, it doesn’t hurt that mortgage rates are still dipping below the five percent range.

The tax credit may extend longer for military personnel. Military personnel who are deployed overseas may have until April 30, 2011 to claim the tax credit, provided they are deployed overseas for a minimum of 90 days throughout 2008 or 2009.

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Why it

Tuesday, December 8th, 2009

There’s so much bad news concerning the real estate market today that the advantages of being a first-time homebuyer often get glossed over.

In fact, many would-be first-time homebuyers may be shying away from purchasing a home out of fear of the market. After all, hearing the grim news of the economy and the real estate market day after day can certainly impact your confidence level.

It is therefore important to point out that there are many reasons to purchase your first home, particularly in today’s market!

  1. You don’t have a house to sell. Yes, the market is still rough for individuals trying to sell their homes; but, luckily, because you are not tied down to another home or another mortgage you have one less thing to worry about.
  2. You can take advantage of today’s super-low mortgage rates. Mortgage rates are low – very low. In fact, most 30-year mortgage rates are flirting in the five-percent range. Now, more than ever, you can score a low interest rate, thereby enabling you to buy more for your money.
  3. You can get an $8,000 tax credit. Luckily, the first-time homebuyer tax credit of $8,000 has been extended to April 2010. So don’t fret if you haven’t yet taken advantage of this great tax credit, which is part of the federal stimulus plan.
  4. You have your share of great properties from which to choose. Because the market has yet to rebound significantly, there are still plenty of Las Colinas homes on the market. This, of course, is great news for you as a seller because the large selection of homes will allow you to find the home that is perfect for you.
  5. You can get the home of your dreams for less than you ever thought possible. Homes prices across the country have dropped significantly over the last year or so, thereby offering many homebuyers an extraordinary opportunity. For many homebuyers, these lower prices have allowed them to purchase a Las Colinas home that they never thought that they could afford. In other words, your dream home may be more attainable than you thought!

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