Your House Your Home

Buy Now! Why? Read on!

FIRST-TIME HOMEBUYER TAX CREDIT  Calling all first-timers!  Here is a Q&A written and published by the Massachusetts Association of REALTORS regarding YOUR First-Time Homebuyer's Tax Credit.  Contact me with any questions: Frequently Asked Questions  In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale. For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Tax Credits -- The Basics  1. What’s this new homebuyer tax incentive for 2009?    The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  2. Who is eligible?    Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.  3. How does a tax credit work?    Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)  4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?    This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference

Hey Homebuyers: Get Credit Where Credit Is Due!

Wondering just HOW important your credit score is when you go to get a mortgage? One word: VERY. If you're looking to buy a property in the next few months, get your credit pulled ASAP. Your loan officer can help you through the process. There may be leftover credit history items that are still lingering, or have never been removed, that will negatively affect your score - sometimes by 40 points! Getting credit cleaned up can take up to three months or longer in some cases.

Not sure where to begin cleaning up your credit? Contact me and I'll be happy to help.

To give you an idea of credit score and loan rates, here are the very latest rates available according to credit score:

Credit Purchase Refinance no cash out
Score Equity 20% $400K loan Equity 20% $400K loan

740 4.625% 4.875%
720 4.750% 5.000%
700 4.875% 5.500%
680 5.125% 5.625%
660 5.625% 6.875%
640 6.250% 6.875% .5 pt
620 6.875% 6.875% .75 pts

How Much For That Buyer ' s Agent In The Window?!

You've got good credit, you'll GET a good tax credit, and you've been saving for your down payment.  You've even gotten pre-approved. You don't have a property to sell, and you're really sick of renting. You no longer want to pay someone else's mortgage. You're ready to make a change. Sounds like this could be YOUR year to become a homeowner. Not sure where to begin?  Okay, let's back up. Although you can certainly look for a home on your own - lots of people do - you may end up surfing the Internet till all hours for listings, dragging your missing-football-game partner, your missing-naptime new baby, or your missing-patience mother-in-law to Open Houses all winter long, trying in vain to figure out WHAT to offer for a house. What if you offer too much? How will you know? Once you get a house "under agreement," what happens when the Inspection doesn't go well? What if you need a new roof or heating system and the Seller won't pay for it? What if there are termites? What if your financing falls apart right before your P&S? What do you do then? Remember that Listing Agent? Well, they work for the SELLER, not for you. Their job is to get the BEST deal for the Seller. So who's going to help YOU? If you had a Buyer's Agent, you could turn to them. So... just what is a Buyer's Agent? What will a Buyer's Agent do for you? And more importantly, how much does a Buyer's Agent cost? WORKING WITH A BUYER'S AGENT IS FREE.   A Buyer's Agent earns a commission at closing that is a portion of the fee that the Seller has agreed to pay an agent.  So the fee is paid from the proceeds of the sale of a home.

What Is A Buyer's Agent?

A Buyer's Agent is a real estate professional who works for home buyers. A good Buyer's Agent will be your advocate, assertively guiding and advising you through every step of the complex homebuying process. A Buyer's Agent will put your best interests first, negotiating the best price, terms for your new home. Working with a Buyer's Agent will save you stress, time and money.

How Much Does a Buyer's Agent Cost?

Working with a Buyer's Agent is FREE.

How Does A Buyer's Agent Get Paid?

A Buyer's Agent is paid a percentage of the proceeds of the sale from the Seller at closing. When a homeowner decides to sell his/her property with a Realtor (the Listing Agent), they agree to pay that agent a percentage of the sale as commission. The Listing Agent works for the Seller to market the home and find a Buyer. Their loyalty lies with the Seller, not the Buyer. When the house is sold, that commission goes to the Listing Agent. If there is a Buyer's Agent (which there usually is North of Boston), then the commission is split between the Selling Agent and the Buying Agent. So, there is NO upfront cost to you when you work with a Buyer's Agent.

A Buyer's Agent will help you:

• Recruit your Home Team: lender, real estate attorney, and inspector.
• Advise and assist you with the pre-approval process.
• Find and preview properties for you.
• Schedule showings for you.
• Tour houses with you.
• Formulate Offers and Counteroffers with you.
• Oversee inspections, radon tests, contingencies, paperwork.
• Manage all aspects of your purchase & sale and closing.
• Assist in assembling your Move-In Team: home insurance company, movers, roofers, house cleaners, plumbers, electricians, and painters.

Don't forget: unless you're buying a home directly from an Owner (FSBO), the real estate agent that's listing the house works for the Seller - not you. Why shouldn't you be represented, too?! It's oh-so-much easier to work with a Buyer's Agent then to go it alone. Especially if it's FREE.

Dear Santa, Please Bring Me A House!

Starting a home search is exciting - and daunting.  So just in case Santa does not deliver that cute-two-bedroom-one-bath-Cape-with-a-nice-yard-in-a-friendly-neighborhood, Here's a quick-and-dirty list of how to buy a home: 1. Get pre-approved by a reputable lender.  If you've already gotten pre-approved, make sure it's up-to-date.  Nothing will kill a deal faster than a bad pre-approval. 2. Make a wish list of what you really must have and what you can live without.  And remember... every house has a history, and  there is no "perfect house!" 3. Based on your price range and wish list, pick a few towns to look in.  Don't look all over Middlesex County or you will be looking for a long, long time. 4. Find yourself a good Buyer's Agent (shameless plug).  It's free so why not? Okay, okay.... if you REALLY want to find a house, email me and we'll look together!