Dr. Stacey-Ann Baugh

Any home over $80,000 qualifies for the full tax credit. Homes under $80,000 qualify for a credit of 10% of the purchase price (E.G. $65,000 home qualifies for a $6500 tax credit).

To qualify for the credit the purchaser & the purchaser's spouse must be first-time home buyers.

Any single person who makes less than $75,000/per year ($150,000 for a married couple) qualifies for the full credit.  The credit phases out at higher income levels.

The tax credit does not need to be repaid provided the buyer does not sell the home within 3 years.

Though there was much talk, this tax credit cannot currently be used as a downpayment.

The 2009 $8000 tax credit expires on December 1, 2009. To qualify for the credit the real estate transaction must go to closing prior to the December 1 deadline.

Part 1: Contact a mortgage broker.

Part 2: Determine a budget.

Part 3: Decide what features you want in your home.

Part 4: Looking at homes.

Part 5: The Offer.

Part 6: The Home Inspection & Other Contingencies.

Part 7

The Closing

Finally we have made it to the end. This is the most exciting part. At the end of this step you will be the proud owner of your new home. The closing process is very important because this is where you will sign papers taking over ownership of the home and assuming the financial liability of the mortgage.

The closing company ensures that there is a clear title to be delivered to the buyer - this means that all liens against the property have been satisfied.

The closing company will also provide you with a HUD-1 which is the form that breaks down all the costs associated with the mortgage and the closing costs. This is the form that will let you know exactly how much money you must have present to complete the transaction. Each closing company has different rules about how the funds can be presented. It is important to review this form very carefully to ensure that it is accurate.

If you are ready start the home buying process give me a call!

Part 1: Contact a mortgage broker.

Part 5: The Offer.

Part 6

The Home Inspection & Other Contingencies

Inspections

The Home Inspection is a critical part of the home buying process. I advice EVERY client to get a home inspection. Usually these contingencies are between 7 and 10 days from the date of offer acceptance. It is important to make arrangements to attend your home inspection. A good inspector will use this time to educate you on your potential new home. The home inspector will do a visual inspection of the roof, the heating & cooling systems, the foundation, walls, appliances, and often will check for mold. After the inspection, the inspector will provide a report telling you what needs to be fixed on the home and what might be maintenance issues in the future. Your real estate agent and you will then negotiate with the seller to get some or all of the items fixed. If the home is listed as an AS-IS property the seller may not fix any items but you can decide whether the repair issues are ones you want to tackle. The home inspector may also conduct a termite inspection.

Other inspections that may be requested include environmental inspections, well certification, and a septic evaluation.

Financing Contingency

Most contracts are contingent on the buyer obtaining the financing as expected. It is important to make the formal application for the loan as soon as possible and provide the loan officer with all necessary documentation.

Appraisal Contingency

The ability to get the mortgage is contingent on the home being able to appraise for the purchase price. This can be a huge problem in our current market as many homes do not appraise for as much as sellers want to sell them for. If the appraisal comes back under the purchase price the seller must usually decide whether they are willing to lower the asking price of the home.

Read Step 7: The Closing

If you are ready to start the home buying process, give me a call!

Part 1: Contact a mortgage broker.

Part 2: Determine a budget.

Part 3: Decide what features you want in your home.

Part 4: Looking at homes.

Part 5

The Offer

Now you've finally found the home of your dreams and you are ready to make an offer. This is the part where your agent will be really essential. First of all, it's important for the agent to look at all the comparative sales in the area. This will help you determine what you want to offer for the home. At this point you need to determine not just the offering price but also whether you want to request seller credit for closing costs, etc.

The other thing you need to determine is what contingencies are going to be placed on the offer. I ALWAYS recommend a buyer have a home inspection contingency. Even if the home is listed, as-is, it is still important for the buyer to know what they are getting and to be able to have the option to walk away from the home. Depending on the situation there may be other contingencies that need to be included. These might include sale of previous home, mold inspection, lead based paint inspection, well, sewer, and septic inspections, as well as appraisal & financing contingencies.

During the offer, you will also need to determine when you want the settlement date to be. Your lender will give good guidance as to how long he/she needs to complete the loan. Related to this, it is the buyer's responsibility to choose a settlement company. Your real estate agent or your lender can provide referrals for trusted settlement companies.

To make your offer attractive to the selller, it is important to include a pre-approval letter from your lender. Many lenders will provide a generic pre-approval letter with a maximum amount you can spend. I prefer to have the letter tailored to each property. This is especially true if your pre-approval amount is much higher than the amount you are offering on a property.

The earnest money depost is a very important part of the offer. This is the amount of money that you submit with the offer. This indicates how serious you are about the offer. The amount of your earnest money deposit is relative to the purchase price and can be determined with advice from your real estate agent. It is important to note that this check WILL be cashed and held in escrow. It will be applied to your down payment/closing costs at closing.

Part 6: Home Inspection and Other Contingencies.

Part 7: The Closing

If you are ready to start the home buying process give me a call!

Part 1: Contact a mortgage broker.

Part 2: Determine a Budget.

Part 3: What Features Do You Want in a Home.

Part 4

Looking at Homes

When people think about home buying they automatically think about the home looking process. This is an exciting time but it can also be very stressful. If there are many homes on the market that meet your criteria it can be overwhelming.

Be open minded about the homes you are planning to see. Many homes look great online but not so great in person and vice versa.

Try to not see too many homes in one day. Unless you are extremely time limited, it's difficult to see many homes in one day. After awhile it will be difficult to even remember the distinct details of each home.

When I go out with a buyer I provide them with a summary of each home we are going to see. I encourage every buyer to make notes about the homes seen and to immediately rate homes as possibilities or not.

Homes that make the short list should be visited a second time if possible. When you have found a home that you think might be THE ONE, drive through the neighborhood at different times of the day, do a dry run to work or public transportation, look into the schools and the crime stats. It's important that you check out all angles before making an offer, after all, this is likely to be the most expensive purchase you have made.

Do not let anyone rush you into making an offer on a home if you are not sure.

If you are ready to start the home buying process give me a call!

Part 5: Making An Offer

Part 6: The Home Inspection and Other Contingencies

Part 7: The Closing