If you are planning to buy a home this year you are not alone. Pending sales are up 13.2% over last year in spite of the frigid temperatures! Here are some things you should know about.
$7500 income tax credit
Buyers who haven’t owned a home in 3 years may be eligible for an income tax credit up to $7500 for home purchases closed by June 30, 2009. The credit is repayable at $500 per year for 15 years or in full when sold, making it essentially an interest-free loan. Click here for more information.
Credit score is important
More than ever before, your credit score determines your interest rate and the kind of loan for which you qualify. Make sure you keep 3-4 lines of credit open…without them, you may not even have a credit score! Click here to check your credit score…click here for more information about how credit scores relate to getting a mortgage.
3.5% minimum down payment
While the days of 0% down financing are gone, most people don't need 20% down to get a home mortgage in spite of what you might hear. FHA mortgages currently offer the lowest down payment option at 3.5%, up from 3.0% last year.
Finance closing costs
Most mortgages still allow you to finance your closing costs through a seller contribution of up to 3% of your purchase price…sometimes as high as 6%, depending on your mortgage.
Buyer FAQ …why use a Realtor? what does it cost?
Today nearly 90% of buyers start searching for a home online. With more information readily available than ever before, it can also be even more confusing…and legal representation can be more important than ever. Did you know that the Realtor listing a property for sale is legally representing the seller? Did you know that most purchase agreements I write are 20-30 pages long?! Did you know that a buyer's agent is usually paid through the seller's listing contract? (That means no cost to the buyer!) Click here for more information…and answers to common buyer questions.
Sharlene Hensrud, RE/MAX Results – Email – Website
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