Thinking of Buying Your First Home Or Trading Up?
With mortgage rates at historic lows and more reasonably priced properties on the market than in recent memory coupled with a variety of state and federal programs specifically designed for first time home buyers, it is indeed an excellent time to explore home ownership. Perhaps it is the mom in me (seven children) but I truly enjoy working with first time home buyers and is why I have dedicated this page to that exciting subject.
Below, you’ll find a letter that describes the experience of a young couple, Travis & Megan, that I had the pleasure of working with this past fall. I think it will give you a better insight to my personal style and how I can work with you better than I could ever write.
Rounding out this page, are my thoughts on the Top 10 Tips for First Time Buyers followed by a number of resources and links for you to pursue at your leisure, if you desire. And of course, please feel free to contact me, by phone 203-283-4697 or 203-747-HOME or by email; realtormom@athomebytheshore.com if you would like to learn more on any facet of the buying process.
NEW TAX CREDIT BILL HR3548 - First Time and Repeat Buyers - Highlights
- Tax credit: 10% of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between Dec. 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers (or their spouse) must have owned their current home at least five of the eight years prior to their purchase.
- Deadline for qualifying: Purchase agreements must be signed by April 30, 2010 and closings must be final by June 30, 2010. The deadline is extended for one year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009 to May 1, 2010.
- The credit cannot be used for houses costing more than $800,000. Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with income up to $245,000 qualify for reduced credits.
Online resources include; calculators that estimates “how much you can afford” and the tax savings possible of Buying Vs. Renting.
Travis and Megan Say It All...Customer Testimonial
Maryhelen:
I wanted to write you a THANK YOU note for helping us find our first home. Megan and I are thrilled!!!You have been such a huge help. Being first time home buyers we had no idea what to expect. You provided us with all the information we needed and answered all our "silly" questions. You gave us a great understanding of the real estate market, local economy and other insightful information that helped us make our decision. You truly were a pleasure to work with.
We appreciate the time and effort you put in on the various weekends we got together to explore many houses. Your experience and knowledge of the area really helped us decide on what home was right for us. During the times we spent looking at houses together we looked to you more as a friend than our realtor. Its not everyday your realtor becomes a friend and both Megan and I consider you to be a friend.
You truly made our first buying experience a pleasurable one.
Thanks for all your hard work.
Travis & Megan
Maryhelen's Top 10 Tips for First Time Homebuyers
1. BE YOURSELF - DON’T BE OVERWHELMED- While this may sound a little corny, no one knows better than yourself what your dream of home ownership entails and while all of the unknowns, details, options and necessities of the process can seem overwhelming, it should be a fun and exciting time that should be consistent with your comfort level of how you best function.
2. LET PROFESSIONALS HELP YOU- Like over 80% of first time buyers, you wouldn’t be reading these tips if you haven’t started research on the internet. The bad news is the amount of information on the web is vast and can be daunting, even contradictory at times. The good news is there are experienced professionals out there who can and want to help you every step of the way.
3. KNOW WHAT YOU NEED- Write down what your basic requirements of a home are (absolute necessities such as number of bedrooms, location in terms of commuting, etc.) and then list what would be nice to have. Feel free to download my “Buyer’s Checklist” to help you organize your thoughts along those lines.
4. KNOW WHAT YOU CAN COMFORTABLY AFFORD- There is a real tendency for first time home buyers to focus on the upper limit of what they can afford versus what they can comfortably afford. Be conservative, yes you may be able to afford a big, beautiful home but what good is that if it is at the expense of the simple pleasures of life, like an evening out or special school field trip for your children. A good old fashion rule of thumb is your annual mortgage payments, property taxes and homeowner’s insurance shouldn’t exceed 28% of your gross annual income.
5. PRE-QUALIFY FOR A LOAN- Even though it is a buyer’s market right now, often the deciding factor in the case of multiple offers is the potential buyer who has already secured financing. This will also allow you to focus your home search based on real parameters.
6. SEEING IS BELIEVING- While one can certainly search properties on the internet that seem to meet the requirements you have determined, there is no substitute for visiting a property to truly get a feel for neighborhoods, the actual condition of the home and other details. Myself as other professional REALTORS would be more than happy to take you out for home tours to help you gain a real perspective of what your budget can buy and where.
7. KEEP TRACK OF WHAT YOU SEEN - After visiting multiple properties it can become difficult to remember exactly what you have seen in what house. Make notes on the listing forms and brochures your realtor will give you, take pictures and use tools like my “Buyers Checklist.” Also don’t hesitate to ask to see a property again, particularly those that upon reflection seem to meet your needs.
8. SET YOUR OWN PACE - Whether you want to act quickly or take your time, set a pace that is comfortable for you but allow time to compare properties and to shop financing and other services while being cognizant of any deadlines or financing commitment timeframes that apply.
9. ASK QUESTIONS- There is no such thing as bad, wrong or dumb questions with the only exemption being questions not asked. That is exactly why I and other professionals are in the business. Obviously, we also want to make a living too, but my observation is most experienced realtors, mortgage originators and brokers truly want to help you but if someone exudes the attitude of not having time for your questions, move on to someone who does.
10. USE THE IE OF BUY- Ok, as a former nursery school director I should know that the correct spelling is BUY but I believe; I - instincts and E - experience, plays an important role in every first time buyer’s ultimate purchase. Trust your instincts when a home feels affordable and right for you and reinforce that feeling through the experience of others, your family, friends and your professional REALTOR, i.e. hopefully Me!
