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5 Common First-Time Home Buyer Mistakes

by The Jana Caudill Team

The Jana Caudill Team knows that buying a home can sometimes be a stressful situation. We have compiled a list of common home buyer mistakes to for you to avoid:

*5 Common First-Time Home Buyer Mistakes:

1.       They don’t ask enough questions of their lender and end up missing out on the best deal.

2.       They don’t act quickly enough to make a decision and someone else buys the house.

3.       They don’t do enough to make their offer look appealing to a seller.

4.       They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

5.       They don’t find the right agent who’s willing to help them through the home-buying process.

The Jana Caudill Team has 4 buyer specialists who are dedicated solely to helping you find your perfect home. They are experts on the local real estate market and they represent you, the home buyer, and not the seller. Their services as a buyer specialist are free because the home seller will pay our fees!

Be sure to check out our free report called “What First Time Homeowners Need to Know” on our website, http://www.thejanacaudillteam.com. We think you’ll find it useful. We want to find you just the right home, at the best price, in the right time with the least amount of problems. Give the Jana Caudill Team a call for all your real estate needs.

*Reprinted from REALTOR Magazine online.

New Home Buyer Tax Credit

by The Jana Caudill Team

Although the proposed $15,000 home buyer tax credit did not pass legislation, President Obama did sign a similar, although smaller, tax credit to help stimulate our economy.

The new tax credit is equivalent to 10% of the purchase price of the home, capping at $8,000. The purchase must be made on or after January 1st, 2009 through December 1st, 2009. This only applies to first time home buyers. First time home buyers are considered those who have not owned a home for three years. The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit. Married couples need a gross income of $150,000. Those earning more may be eligible for reduced credits. Their new home has to be their principal residence for three years. Those who sell before three years will have to pay the tax credit back to the government. 

To compare the difference between the new tax credit and the previous tax credit, please click here.

This is another great reason why now is the time to buy a home. Let The Jana Caudill Team help you find the home of your dreams. Give us a call at (219) 661-1256.

The Housing and Economic Recovery Act of 2008, the most sweeping housing legislation since the Depression era, was passed by the U.S. Senate and House of Representatives at the end of last month and was signed into law by President Bush. The new law addresses various aspects of the housing downturn, including assistance for homeowners who are behind on their mortgages, federal oversight of Fannie Mae and Freddie Mac, and funding for cities to buy and fix up foreclosed properties. Many of the provisions of the new law go into effect October 1, 2008 but for first-time home buyers who bought, or will buy, their home between April 9th of this year and July 1, 2009, there's an immediate bonus a tax credit of up to 10 percent of the sales price, up to $7,500. Note that this is a tax credit, not a tax deduction. A deduction is an item that is subtracted from your annual income before income taxes are calculated. A tax credit is subtracted from the amount of taxes you owe.

First-time home buyer is specifically defined in the new law, and includes those who may have owned a home in the past, but not within the last three years. To qualify, be prepared to show your last three years? worth of income tax returns to prove that you did not pay mortgage interest during that period. There are also income limitations on the tax credit - $75,000 per year if you're single and $150,000 if filing a joint return to qualify for the full credit, but the credit does phase out beyond those amounts up to $95,000 for singles and $170,000 for joint filers.

By the way, the tax credit isn't a gift - you have to pay it back. Nevertheless, it provides an initial reprieve, as repayment doesn't begin until two years after purchase, and is payable over a 15 year period. If you sell the property before the tax credit has been fully repaid, any remaining amounts owed are due to the IRS upon closing.

Applying for the tax credit isn't mandatory, but for many, it will make home ownership feasible in the coming year and that's exactly what the tax credit is intended to accomplish.

Displaying blog entries 1-3 of 3