First Time Home Buyer Information
Charlotte Real Estate For SaleFind your perfect home for sale by searching over 45,000 active listings in the Charlotte area.Can I afford to buy a home?Purchasing a home that you can afford is among the most important aspects of any home purchase. Homeownership should be rewarding, not a burden or stressful because there is not enough income coming in to pay the bills. Before you ever start looking at homes online or even speak with a lender, first create a budget. You don't need to purchase a fancy software package to do this. A budget on pen and paper works well however you can download a free personal budget software from Mint.com. The goal is for you to see the areas of your spending habits may need to change for you to realize your dream of home ownership. Also, if you haven't done so, a budget will help you in saving for a down payment and / or closing costs. With your budget created, you can qualify yourself based on your income and debt. This mortgage qualifier calculator will enable you to see how much of a mortgage you can afford based on your income and debt load. Of course, a mortgage banker can also tell you the maximum the bank will lend to you based on your income, debts, and credit history. Ideally, your debts including your mortgage should not exceed 36% of your income. View other mortgage calculators You may also want to view a copy of your credit report before you apply for a mortgage to check for errors. You are entitled to one free report a year from each of the three credit bureaus. You may also visit http://www.annualcreditreport.com to obtain an actual free credit report. Approved Mortgage LendersChoosing the right lender is as important as finding the right home and using an excellent Realtor®. It's important not to just shop rates but products and programs based on your needs long and short term. We have compiled a list of lenders that are highly recommended, work hard to ensure their clients best interests are met, and are experienced. Of course, you may also check with your local credit union or bank to as well.
Whenever you are discussing a mortgage with a lender, here are a few helpful questions:
Getting approved for a mortgage loanIf you have spoken with a friend or family member who recently purchased a home, they may have a horror story to tell about the mortgage approval process. The truth is that the more that you can do up front with your lender, the better off you will be when you find your dream home and begin to work towards a closing. Schedule a time to meet with your prospective lender face-to-face to discuss your purchase and mortgage. After all, you wouldn't trust a medical diagnosis over the phone or via the computer, would you? That may be a little dramatic however choosing the wrong loan may put you in a financial hardship down the road. Your lender will be requesting from you:
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The $8,000 First Time Home Buyer Tax CreditFor 2009, first time home buyers may receive up to an $8,000 tax credit for the purchase of their primary residence. There are a few important details that you should be aware of before you endeavor on your home purchase. The first time home buyer tax credit is not limited just to first time buyers. If you are a renter that has:
you can receive a tax credit of up to 10% of the purchase price or a maximum of $8,000, whichever is less. Unlike the tax credit passed in 2008 which maxed out at $7,500, this new credit does not need to be repaid unless you sell the property or otherwise cease to make it your primary home for the three years following the purchase date. That means that buyers purchasing before December 1, 2009 should plan to remain in their home until December of 2012. First time home buyers with incomes between $75,001 - $95,000 ($150,001 - $195,000 jointly) can receive a maximum of a $4,000 tax credit. Incomes exceeding those limits are not eligible at all under the program. Buyers looking to take advantage of the credit will need to download and complete IRS form 5405. For more information, here is a helpful video to help explain the tax credit.
The Home Buying ProcessHere's a quick synapsis of the steps in home buying process:
If you are planning to occupy a home by a certain date (i.e. need to be in before December 25), you need to plan at least 45 days once your offer has been accepted until the home closes. If you spent 4 weekends prior to that looking a properties in person with your Realtor®, you would want to start no later than October 13. The Role of your Realtor®In North Carolina, your Realtor® can function as either a representative for the seller, the buyer, or both. It is important to ask any Realtor® who they represent in the transaction and that should be done at the first substantial meeting. When hired as a buyers agent, your Realtor® is charged to assist you in finding the home of your dreams using the tools as their discretion, negotiate at your direction, remain accountable of any funds associated with the transaction, and to keep your confidential information CONFIDENTIAL! We are experts on the area as well as experts of the market conditions.
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