Obama’s Stimulus Package Offers First Time Home Buyers Huge Benefits!

26. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , , , ,

If you’ve been following the news, you are likely familiar with the federal government’s 0-900 billion stimulus package designed to boost the economy by creating new jobs, providing mortgage assistance, educational grants, and a suite of other incentives.  A key part of this package is the first time home buyer stimulus program aimed at reviving the ailing housing market by assisting first time home buyers and buyers who haven’t purchased a home in the last three years.  The incentives for those qualifying under this program are such that even those previously opposed to buying a home in this market are now changing their minds.

The main reason the first time home buyer stimulus package is so attractive is that it directly addresses the concerns that most people have about buying a new home.  The first concern that most people have is how they will come up with the down payment.  After all, you must have a considerable sum of money saved away in order to come up with a ten percent down payment.  Thanks to the stimulus package, however, the federal government will help first time buyers by paying a percentage of the down payment.  In other words, you do not have to come up with the full amount on your own.  The second worry is the dreaded interest that accompanies monthly mortgage payments.  There is good news here as well as the federal government has cut interest rates.  Thirdly, those qualifying as first time home buyers can apply for refundable tax credit of ten percent of the purchase price of their homes (up to ,000) if they enter into a binding agreement by April 30th of next year.  This is practically money in your pocket which you do not have to pay back unless you decide to sell or move out of your home within the first three years.

With all these benefits, no wonder more and more people are getting exciting about buying a new home in these tough economic times.  These incentives will not last forever so if you have a steady source of income and are serious about owning your own home, now is the time to act.

Steps for Home buyers purchase first home

23. May 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

Buy your dream home is as easy as ABC. Follow these simple steps. It may be months or even years ready to buy, not get discouraged, just work on it every day. Once you move into your new home, it will be worth all the planning and preparation! So, just to stay focused on your goal and persistent.

A. Prepare for the purchase:

Before Writing your family financial goals (short and long term). For example: Buy a housewithin one year; Be debt free within 10 years.

http://www.firsttimehomebuyerloans.goodarticlesite.com/steps-for-home-buyers-purchase-first-home/

According to Prepare a monthly household budget. Your monthly debts (including car payments, child support, and payments by credit card) should be 10-15% of your gross monthly income. Contact your Financial Planner for their support.

Third Update your credit report. Make all loan payments on time for at least six months. Agreements to settle all open meetings of factors such as depreciation or student loans defaulted.

FourthEliminate consumer debt. Do not buy a car or other major purchase on credit.

B. Pre Sales TIME:

Before you fill in the form of loan application (1003) and in turn to your lender with the tax credit check (usually about $ 25 per person).

Follow with a second agent will receive a letter of loan pre-qualification by the lender.

Third contact your broker ®, pre-qualified for homes in your price researchSpectrum.

® See Fourth with your estate agent and find the best holiday for your family.

Your Realtor ® Fifth bids to buy a house. Your offer will be from your deposit deposit (usually $ 1,000 or more to be accompanied).

Negotiate a sale price

Negotiate a sale begins when you make a bid for the home. Depending on the market, this is usually less than the price the seller. The seller may accept, reject or ignorethe first offer. It can also be a counter offer, which is a grant to meet the price offered by your-way lower.

Remember, there are two parts, an ‘offer: price and terms. So if you do not agree on price, perhaps you can provide conditions that help both parties reach an agreement. There is an old saying in real estate transactions, “they call the price, and I name the terms,” which means that both are important parts of the offer.

After the firstcounter-offer, the buyer and the seller may pass through a series of counter offers, to reach a sale price (if everyone agrees). This means distributing, or the gap between list price and the first bid is close. Armed with assessment and report, can provide effective information and negotiate a final sales price.

http://www.firsttimehomebuyerloans.goodarticlesite.com/steps-for-home-buyers-purchase-first-home/

First Time Home Buyers, Good News

12. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , ,

Mortgage rates pretty much held steady last week, which is good news for those wanting to refinance at a lower rate and for buyers, especially first time buyers. Freddie Macs Primary Mortgage Market Survey (PMMS) for a 30 fixed loan was a scant 4.86%, up slightly from last weeks 4.84%. Last year at this time, while the “bubble” was bursting, mortgage rates were 6.01%.

Real estate professionals from around the country are reporting increasing sales, not by a lot, but increasing. Still, there is quite a bit of inventory out there on the books yet, meaning supply is still out in front of demand.

Another thorn, the major banks have been impediments standing in the way of short sales. Banks get less money in a short sale situation. Some banks, including Bank of America, have reportedly been taking a more rational stance lately on short sales to avoid the costly foreclosure process. So banks with a lot of inventory and eminent foreclosures will be able to get more homes off the market. They may take less money, but some is better than none and it lessons inventory which will eventually drive prices up.

Higher home prices will definitely be part of the near future. Good news for sellers and builders. Bad news for buyers. The time to buy is now. There’s a good chance we’re in the trough of this latest business cycle and about to start the recovery phase. When that happens home prices will rise and interest rates will soon follow to try and head off inflation.

Some really good news coming out has to do with the Governments 00 tax credit for
qualified first time home buyers. Right now the FHA is finalizing a plan that would allow for the tax credit to be used up front as a down payment. If, and when, this program goes through, it will be a big win for the market.

After the sub prime loan debacle of the last several years where anyone could get a loan and buy a house with no money down, no credit and in some cases no income, the banks have become much more strict in their lending practices. It’s been difficult for this administration to get any momentum behind it’s efforts to end the housing crisis. This new FHA program just makes sense. By giving the credit up front, it will greatly improve peoples ability to acquire financing with the required 3.5% down. There will still be income and credit qualifications so we don’t end up in another mess like the one we’re pulling out of, but it will help to get the ball rolling and get these houses off the market and lived in.

So again, the time to buy is now. The time to sell will be in the near future. Somewhere along that line the market will hit equilibrium, where it is the most beneficial for both buyer and seller, but for the most part one benefits more than the other. Right now it’s the buyers turn. Right now it’s a buyers market.

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Canada’s 2010 Budget Keeps Home Buyers In Mind

07. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , ,

The 2010 budget contains some plans and proposal of interest to Canadian home buyers, including both old and new items. The Canadian government considers home purchase to be an important part of the overall economy and wants to encourage Canadian home buyers in their endeavours.

To this end, the 2010 budget has kept the first-time home buyer tax credit. The Home Buyers’ Tax Credit allows first-time home buyers to deduct 15% of up to 00 in home purchasing expenses up to 0. For the purposes of this credit, according to the Canada Revenue Agency, “first-time home buyers” are considered to be anyone who has “acquired a qualifying home” and who has “not lived in another home owned by them or their spouse or common-law partner in the year of acquisition or in any of the four preceding years”.

The ceiling for RRSPs is remaining at ,000. Canadians may recall the changes to the 2009 budget that bumped up the amount of funds that one may draw out of their RRSP from ,000 to ,000.

There are some new proposals that will be voted on this year. “Enhancing Disclosure and Business Practices of Financial Institutions” is aimed at de-mystifying the penalties of mortgage pre-payment penalties. Thus far, they can vary widely and can be considerable, especially for the unprepared home owner. The legislation is geared towards informing home owners as to when it is the best time to use extra money to put on their mortgage.

New legislation enabling credit unions to expand beyond the provinces of their establishment will greatly aid people who want to transfer a mortgage across provincial boundaries. It will also introduce new players in the mortgage lending industry and increase competition. Canadians will start to have more options than ever before when it comes to choosing a mortgage and an interest rate.

The Insured Mortgage Purchase Program is continuing until the end of March 2010. This program provides funds to financial institutions that lend to businesses and individuals. Stable funding for lenders is an important part of stabilizing the economy, so that lenders can provide the capital for Canadian business and personal endeavours.

There are still opportunities for home buyers, even in today’s economically-minded 2010 budget. Make sure that you know what Canadian incentives and tax breaks apply to you when you purchase Canadian real estate so that you don’t miss out on hundreds or thousands of dollars of savings.

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Foreclosure Homes Remain Unsold As Buyers Hesitate

06. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , ,

Despite interest rates at almost record lows and the low prices of foreclosure homes, buyers remain reluctant in most areas of Indiana. November housing sales in certain areas of the state declined further, showing that most property buyers still lack confidence in the state’s housing market.

A big number of Indianapolis foreclosures and residential properties in various areas of the state remain unsold during the month. Even in smaller markets like Howard County, sales have slowed considerably when compared with previous year’s figures. Howard recorded a total of 65 residential property sales for the month, representing a 26.1% decline from November of 2009 when 88 homes were sold in the county. However, when year-to-date figures are considered, the total is still 3.1% better than 2009.

According to local realtors, most people are reluctant to buy even low-priced foreclosure homes despite interest rates at record lows because of the financial difficulties most Americans are facing. They added that even those who have found new jobs are afraid to put down money on residential properties. The slowdown in home buying has been going on for months ever since the federal government’s tax credit expired, realtors have reported.

Housing data showed that since the expiration of the credit, sales of Indianapolis foreclosures and non-foreclosure dwellings in various areas of the state have continued to decline. However, they also cautioned that the drop might not be as much as it appears since the previous year’s sales figures were likely inflated by the tax credit program. They added that it might take some time before the effects of the tax credit on housing sales recedes and figures can be evaluated more accurately.

Although sales declined in most of Indiana markets, prices did climb in several areas, including Howard County. Median selling price of homes in the county was pegged at ,000 in November. This represents a 2.3% increase when compared with the same 2009 month. In terms of year-to-date price, the county posted a 5.7% rise compared with last year at ,900. Realtors stated that the huge supplies of foreclosure homes in the area have created problems in terms of residential sales, consumer confidence and values of properties.

 

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