The Home Buyer Tax Credit is Back...and Better!

From the Cary Real Estate Home Source:

Good News!

The home buyer tax credit has been extended...and expanded. Here's what it looks like:

1. The first-time home buyer tax credit of up to $8,000 is extended to April 30th of next year.

2. Up to a $6,500 tax credit has been added for current home owners who purchase a new or existing home by April 30th of next year.

So...Who Qualifies?

-- To qualify as a first-time home buyer you or your spouse may not have owned a residence during the three years prior to the purchase.

-- Current home owners must purchase a home before April 30, 2010...and have used the home being sold or vacated as a principal residence for 5 consecutive years within the last eight.

Okay...Which Properties Are Eligible?

The extended home buyer tax credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

And...How is a Buyer's Credit Amount Determined?

1. Price:

Credit may only be awarded on homes purchased for $800,000 or less.

2. Buyer's Income:

Single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit.

What's the Catch...Do I Have to Repay the Tax Credit?

Only if you occupy the home less than 3 years or more.

So...if you have thought about purchasing a home, this might just be the time to make the move!

Here is more information from the National Association of Realtors. If you have specific questions or need additional information, you should contact a tax professional or the Internal Revenue Service at 800-829-1040.

Kwik Kwote: "Nothing great can be accomplished without enthusiasm". --Ralph Waldo Emerson

Know Your Real Estate: "ARREARS"...at the end of a term. For example: Interest on a mortgage loan is usually paid in arrears, i.e. at the end of the month, rather than at the beginning.  

To SEARCH FOR HOMES, visit the Triangle Estates Realty website. Or, email me at tim@timhaag.com. Or, for a no pressure chat, call me at 919-389-7135.

Should You Get Pre-qualified Before House Hunting?

From the Cary Real Estate Home Page:

Should you talk to a mortgage professional before looking for a home?

Absolutely!

You say you haven't even picked out your new home yet? Why should you talk to a home lender before you even start looking?

Here's why:

1. You need to know how much home you can afford.
2. You'll be a step ahead of those who haven't been to a lender.
3. You have to do it at some point anyway...why not now?
4. It will increase your negotiating strength.
5. It will help you and the lender know which loan best meets you needs.

So...what will you have to show for it? You'll get a pre-qualification letter from the home lender. You can show it to the owners of the home you are interested in. That may well give you the advantage you need to compete successfully for the home of your choice. 

Okay...what is a pre-qualification? The lender will take a look at your income and debts. Your employment. Your current residence situation. Your available funds for a down payment and required reserves. And some other things.

The pre-qualification will help you know how much of a monthly mortgage payment you can afford...and how much your loan can be. The pre-qualification requires a minimum of effort on your part but provides you with a valuable tool for your home search.

The pre-qualification or "pre-qual" letter assures the sellers of the home you want that you are serious. It shows that you have taken the initiative to prepare to pay for the home. It gives the home sellers confidence that you'll be able to get a loan and are not just wasting their time.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things:

1. It lets you know how much you can offer. Your real estate agent can help you decide what to offer.

2. Being pre-qualified gives you the confidence to know you can "put your money where your mouth is". You'll have the clout of a buyer who is ready to make the deal right now!

Sooo...what are you waiting for? Get off the couch and take the first step in your search for that new home of your dreams! Go see a home loan professional.

For more details see the article by Mark Pendergast at Maker Capital Group


Kwik Kwote: "The problem is not that there are problems. The problem is expecting otherwise and thinking that having problems is a problem".
--Theodore Rubin

Know Your Real Estate: "ASSUMABLE MORTGAGE"...a mortgage that can be assumed by the buyer when a home is sold. Usually, the buyer must "qualify" for a loan in order to assume the loan.


To SEARCH FOR HOMES in the Cary-Raleigh area of North Carolina, visit the Triangle Estates Realty website. Or, email me at tim@timhaag.com. Or, for a no pressure chat, call me at 919-389-7135.

Do Not Go Furniture Shopping for Your New Home!

From the Cary Home Page:

Sorry! That new recliner for your new home will just have to wait.

Sure...you're excited to know you'll soon be moving into your new home!

Of course, one of the first things you want to do is hit the stores for new furniture, appliances or curtains for your new home.

Don't even think about it!

Wait until the closing is over before you start buying stuff.

Why? Because lenders sometimes run credit reports as late as the day of closing. If there is new credit card debt or indications that debt may soon increase, it could delay or even prevent your home purchase.

Okay...so I can't buy...but I can do some serious looking. Right?

Wrong! If you plan to charge it, you're credit report may be pulled. An inquiry on a credit report might well raise red flags with your lender. Don’t even look until you’ve closed.

Sometimes what may seem to be the smallest thing can create a serious setback. It's just not worth taking the chance.

Be patient!

For the rest of the story, check out this article by Dawn Wotapka, Associated Press.


Kwik Kwote:  "The thing that really sets successful people apart from the dreamers is action." --Mark Joyner

Know Your Real Estate:  "ASSESSED VALUE"...the valuation placed on your property by the tax assessor. The tax rate is applied to the assessed value to calculate the taxes you owe. Sometimes assessed value reflects the property's market value and sometimes it doesn't.

To SEARCH FOR HOMES in the Cary-Raleigh area of North Carolina, visit the Wake County Real Estate Center. Or, email me at tim@timhaag.com. Or, for a no pressure chat, call me at 919-389-7135.

Guess What? It's Time to Winterize Your Home!

From the Cary Home Page:

As the cold air moves in, you may be looking for ways to keep heating costs down and protecting your home from the icy temperatures.

Fortunately, you can follow a few simple steps to guard against cold-weather damage and keep those energy bills from skyrocketing during the upcoming winter months.

Stop Those Air Leaks

Even a small draft can make a big impact on the comfort of your home and your monthly heating bill. To check for leaks, try lighting a stick of incense and holding it near possible draft areas. If the smoke gets sucked in or blown out, you have an air leak.

Be sure to check your windows, door frames and points where materials meet (e.g. wood and brick or foundation and wall). Most drafts can be fixed with caulking. Drafts around or under your door can be fixed with weather stripping, which is available at most hardware stores.

Prevent Icy Pipes and Gutters

Ice can form in outdoor pipes and gutters. This can cause them to crack or burst, resulting in serious damage to your home once they warm up. And...don't forget to shut off the water valve for all outdoor pipes.

Here's an extra precaution. You can also purchase pipe insulation and slip it over outdoor piping. Oh...be sure to clean out all of your gutters. Any debris could cause a water blockage that may result in ice damage to your gutters or roof.

Insulate, Insulate, Insulate

The biggest money and energy-saver for your home this winter is good insulation. Older homes tend to have significantly less insulation than newer ones. It pays to check it out.

The U.S. Department of Energy says that adding new insulation will pay for itself within a few years through lower energy bills. Areas that need the most insulation are attics, cathedral ceilings, exterior walls and foundations.

Be Smart About Carbon Monoxide

Winter is the most dangerous time for carbon monoxide poisoning. Protect your home by purchasing a carbon monoxide detector. Or...if you already own one, be sure to test the batteries. It is also important to have a professional check your furnace for carbon monoxide production.


Kwik Kwote: "Problems are the price of progress. Don't bring me anything but trouble. Good news weakens me." --Charles F. Kettering

Know Your Real Estate: "APPURTENANCE"...something that is outside of the property, but is considered a part of the property and adds to its enjoyment. For example, a right-of-way over someone else's property.

To SEARCH FOR HOMES in the Cary-Raleigh area of North Carolina, visit the Wake County Real Estate Center. Or, email me at tim@timhaag.com . Or, for a no pressure chat, call me at 919.389.7135