Tuesday, May 19, 2009


Home Buyer Tax Credit Becomes Down Payment

HUD creates new $8000 dollar tax credit flexibility for first time home buyers.
In an effort to spur the housing market, the United States Department of Housing and Urban Development released plans to implement flexibility to the $8,000 First Time Home Buyer Tax Credit; as part of President Obama’s 2009 stimulus package.

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," United States HUD Secretary, Shaun Donovan stated.


HUD will allow approved lenders and nonprofits to issue short-term bridge loans buyers can use for down payments. Buyers would repay the loans after getting their tax refunds in 2010.
“Allowing first time homebuyers to utilize the tax credit as a down payment, plus the availability of low interest rates creates incredible opportunities for those who waited. There might be a cost or a fee involved on taking advantage of this scenario, the cost is still to be determined.
If you have any questions regarding real estate please contact me rina@my858realtor.com

Thursday, May 7, 2009

9 Easy steps to Buying a Home in this Market

SO YOU ARE THINKING OF BUYING A HOME…WHER DO YOU BEGIN?

9 Easy steps to purchasing a home in today’s market


1-Look at your reasons for homeownership and make an informed decision whether buying a home IS the right step for you at this time. If it is, determine your time frame.
2-Sit down and talk to a lender. Yes even before looking at a single property, get the facts of what you can afford in this market and which loan programs are out there and right for you (it might be more or less than you think). This will allow you to be very precise and save time and even hardship down the line. You will also be ready if you come across a great opportunity and want to make an offer right away.
3-Now that you know how much house you can afford and what limitations your loan has (i.e FHA loans will have strict guidelines and not all properties will qualify for this loans) Make sure you will have enough money in reserves after the purchase.
4-Sit down with the other people that will make the decisions with you and make a list with at least 3 categories: a) Things I NEED (must haves) b) Things I would LIKE (Nice if I could have) c)Things I could NOT accept (deal breakers). In this list you will asses what is important to you from the area to the numbers of bedrooms and Bathrooms. Try to make it as extensive and detailed as possible but then be willing to be flexible and open, this list will change through the process. It is O.K.
5-Start looking…If you have not contacted a Realtor up to this point, this is the time to do so, you want someone who will not only help you find a home (“apparently” not that hard to do on your own with the help of today’s technology) but will actually look after your best interest and give you guidance about the process, the specific areas, will be able to navigate this real estate market and all the different forms of listings that have come up in recent months (REO, Short Sales, Auctions, etc.) the market is changing day to day and you need a professional that is ahead of the game to know how to deal with each situation and to prepare you on what to expect , how long it might take, and how to make the right decision in each case.
6-Be prepared to start writing offers when you see a home you like. In order to do this your agent will help you determine the right offer depending on the particular circumstances. Not only money wise but timing, correct wording on the contract, order of paperwork it really does make a big difference when dealing with banks making the final decision.
7-Get an accepted offer (probably after a couple of offers and counter offers) Open an Escrow. This is where your agents Negotiation skills will come into play.
From this point on, there will be some deadlines to meet, your Realtor should have already sat down with you and explained the Escrow process and what comes next, including removal of contingencies and specific timeframes. There are inspections to be done, documentation to be gathered and funds to be handled….
8-Everything goes according to plan (usually there will be some bumps and unexpected turns down the line, but do not worry this is why you have a great agent or team of agents working on your behalf) Seller gets paid…you just got yourself a HOME!!!
9-Remeber to have fun!!! Try to enjoy the ride and be open to adjust the path during the process.