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Local News and Notes from Kathy
Lender Pre-Approval
Why you should get a pre-approval from a lender before you start looking for your dream home?
When you are ready to make the commitment to purchase a home, you should first talk to a mortgage person to see what you can get approved for. This process is a pre-approval and cost little or nothing to get. If you are serious, do not get a pre-qualification, which is an opinion of a loan officer, based on information you verbally provide to him or her. This is not enough in today's market. While you are still in the thinking stages, this may help, but when your are ready to buy, you will want to have the pre-approval in hand. Why? Because a pre-approval is based upon documentation submitted within the application process and underwriters have approved it. You will get something in writing, from your lender,based on your credit score, debt ratios, etc. that you are able to purchase a home with a certain mortgage amount. It will be subject to certain conditions, such as a contract on a property, an appraisal, and your final selection of rates and terms with the lender. It is a loan approval subject to those conditions. Your loan officer and Realtor should be available to assist you when you have questions, throughtout the buying process. Now you are ready to look at the homes for sale!
Now you know exactly what you can afford to pay monthly for a home, including taxes and insurance.
Now you have negotiating power that you did not have before. Your pre-approval letter can be included in your offer, which tells the Sellers you are ready to go to settlement in a timely fashion.
Now you will not waste your valuable time, and your Realtors valuable time because you both know the price range you need/want to be in. It takes the stress off of you because you are confident, knowing you have done all you can to be prepared.
Call Kathy for her preferred lender phone number and get started!
Tax Time
We're all getting our information to our accountants this time of the year. This year you may be eligible for a tax credit if you bought a home last year.
In 2008, congress passed a home buyers tax credit, which has been changed and extended over time.
Some factors to consider to see if you are eligible:
- You must have signed a contract to purchase your primary residence by April 30, 2010.
- You had to settle on the property by June 30. Congress added an extension, up to September 30, with stipulations.
- First time homebuyers credit can be up to $8,000.
- Repeat homebuyer credit can be up to $6,500.
- First time and repeat home buyer are limited to homes purchased for less than $800,000.
This is just a reminder for those of you who purchased last year. Check with your Accountant for details on the above items, and YOU may save!
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