What should a first time buyer know about buying a multi-family home?
You need information on real estate, mortgage financing, home-repair, property management, and legal issues relating to real estate. This article below will give you great place to start: http://www.helium.com/items/942662-multi-family-think-multi
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First and foremost educate yourself. Use your state's local housingauthority for free seminars in the steps of a home purchase andlearning about financing is key. You need to …have a good sense ofyour income and the amount of money you can afford for the costs ofownership: mortgage, insurance, taxes and repairs. Once you havethe basic real estate knowledge, you can make better choices inchoosing your mortgage lender as well as your real estate agent. Choose a lender and get preapproved for an amount that they wouldlend you for a house. Many times you are approved for more of aloan than you can afford to pay monthly, so be cautious about yourprice range when you are looking. Being preapproved will make theoffer and sale process go smoother than if you are trying to buyand apply for a loan at once. You may need several thousand dollarsto pay for the application, prorated insurance and taxes, titleinsurance, termite inspection, home inspection as well as closingcosts. If you attend open houses, keep the preapproval and its amount toyourself. That realtor is not for you--they are the seller. If theyknow your top dollar, you may end up with less negotiating room. Call a real estate agent. Remember that fees for his/her serviceare paid by the seller. If you are a first time buyer with no home,you pay the agent nothing. He/she splits the fee of the agent whois working with the seller of the home you will buy. A good agentcan make appointments to see houses you have found as well as somethat may not have hit the market yet. They are also good atnavigating through all of the hoops if you choose a repo or shortsale home. I have also heard that some agents are called "buyer'sagents" meaning they have nothing to sell you; they only work withhomebuyers so there is no conflict of interest with them trying toput you into a home where they represent the seller also. When your title company calls and is ready for you to sign,make sure that you carefully read the form that shows all of thecharges that you and the seller will pay. Check that items you havepaid upfront and those that the seller should pay are correct. Thisdocument should come to you the day before signing. If it isincorrect, contact both the realtor and the title company.
What is the impact on a credit score of getting a car loan within a year of buying a new home as a first time car buyer and home buyer?
Answer . The time involved has little effect. It depends on your income to debt ratio. Higher income, lower debt is good, while lower income and higher debt is bad. It al…so depends on the total amount used of you current available credit.
It i more likely that a first time home buyer is someone that has never bought a home before, either that means that you have never picked out the home or you have and someone… else has paid for it. Either way that person would be a first time home buyer. Depending on what state you live in there are factors that could place you in the category of first time home buyer even if you have previously owned a home. In New Jersey, if you haven't owned a house in the last 3 years, you are considered a first time home buyer and are eligible for the First Time Home Buyer Program funded by the New Jersey Housing and Mortgage Finance Agency (NJHMFA). This loan offers a below market, fixed interest rate and can even help with down payment. I would check with a mortgage company in your state to see if there are similar programs available.
"Should" is subjective. It depends on the type of loan you are attempting to get. FHA loans accept lower credit scores than traditional lenders. Traditional lenders have rate …discounts at the higher levels, the best loans being found with scores over 800. Each lender is different. Some price everyone the same over 750, or 720. On average a score over 680 is desirable, although loans can be had with lower scores. Don't forget that lenders are now placing a greater weight on debt ratios and down payment levels.
If you sell your home to a first time home buyer is there any tax break when you buy your next home?
There are currently no federal programs that allow for you to receive a tax credit based on the fact that you sold the home to a first time home buyer. You should check if the…re are any state programs available.
In New Jersey, if you haven't owned a house in the last 3 years, you are considered a first time home buyer and are eligible for the First Time Home Buyer Program funded by th…e New Jersey Housing and Mortgage Finance Agency (NJHMFA) which offers a below-market, fixed interest rate and can help with your down payment.
Even if you are a first time buyer (or have not purchased in the last 3 years), you are not automatically qualified for the first time buyer credit. There are certain criteri…a that you must fall under. The most helpful information is found on the IRS website: http://www.irs.gov/newsroom/article/0,,id=204671,00.html From there you will find links to Form 5405 which should be used to claim your tax credit. You will also be able to see the restrictions on the credit: . First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit: . Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009. . Applies only to homes used as a taxpayer's principal residence. . Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. . Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. . The question and answer section found here: http://www.irs.gov/newsroom/article/0,,id=206293,00.html and the scenario section found here: http://www.irs.gov/newsroom/article/0,,id=206294,00.html are also very helpful. Hope this helps. For more Real Estate Info/News/Fun Facts, visit my blog at www.wordpress.com/thomsonteam.
This will tell you what type of credit you're eligible for: http://thedailey.files.wordpress.com/2009/11/2009-homebuyer-tax-credit-changes.pdf and this will tell you how to f…ile for the credit http://thedailey.wordpress.com/2009/10/20/filing-amended-tax-return-for-first-time-homebuyer-credit/.
Here's the link to the IRS website for details but I've also cut and pasted the info here for your use and review. Thank you:) http://www.irs.gov/newsroom/article/0,,id=20467…1,00.html New Legislation New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law: . Extends deadlines for purchasing and closing on a home. . Authorizes the credit for long-time homeowners buying a replacement principal residence. . Raises the income limitations for homeowners claiming the credit. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. General Information Homebuyers who purchased a home in 2008 or 2009 may be able to take advantage of the first-time homebuyer credit. The credit: . Applies only to homes used as a taxpayer's principal residence. . Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. . Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405 , which you file with your original or amended tax return. For 2008 Home Purchases The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year. For 2009 Home Purchases The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase. First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options . Questions and Answers More information is available in the question and answer section . Related Items . IR-2009-83 , First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date . The American Recovery and Reinvestment Act of 2009: Information Center Feel free to contact me:) Tiffany Saunders-Short Sale, Foreclosure, REO Residential & Land Specialist Licensed in MO & KS Re/Max Results 816 728-0724 mobile 816 285-2352 fax www.RealtorinKansasCity.com
Go to a nearby apple store and ask someone who works there to help you select one.
Talk to friends and co-workers about realtors in your area and then talk to a few. Check your local library for books and articles on finding a Realtor. After your initial r…esearch, you should find a mortgage company that has a solid reputation in your area. Try to find a company that is part of the LendRIGHT program (which represents the top 3% of community lenders in the United States) and a direct lender. Direct lending mortgage companies are able to offer programs and services that others can not. These programs include but are not limited to: . First-time home buyer loans . FHA loans and FHA refinance programs . FHA 203K renovation loans . USDA Rural Housing loans . VA home loans and VA refinance loans . Mortgage refinancing options Once you find a trusted mortgage company I would consult with a loan officer about your loan choices.
Get a licensed real estate broker in their area to get the latest prices on the homes they are interested in. Look at several before deciding and make sure you have financing …in place before you start looking.
In Home Buying
yes every home Buyer
The question is pretty vague, but I will try to provide you adetailed answer. The most important thing about buying a home for the first time ischoosing the right mortgage pr…ogram. Most of the times when a home buyer starts his house hunt, he goeslike "well, I have saved money for years and i can buy whicheverhouse I want." But that is not how things work here. You cannot afford to spend all your money on buying a home anddeplete your budget when it comes to paying bills, home repairs andother monthly costs. How to avoid this this situation? Go to a mortgage lender. He will determine youractual financial situation and help you choose the house that suitsyou best. One more thing, when you consult a lender, you will often hear" you either pay 20% down payment or we wont grant you anyloan. " This is not true! There are several first time home buyer loan programs ( FHA, VA, USDA, Conventional 97 ) that provide you loan forlow or no down payment at all. Then there are programs like VA, USDA which give you an option ofloan with zero down payment. However, both these loans are limitedto a particular class each. (VA for US military veterans and USDAfor those looking for a property in Rural/Suburban areas). On the other hand, FHA and Conventional 97 loan are accessible toanyone for a small down payment. FHA requires 3.5% whileConventional 97 Loan requires a down payment as low as 3%. So when you start you house hunt, determine you financial conditionand go for the loan that suits you best, rather than spending allyour savings on a "Dream Home" that will leave you with a depletedbudget.
The most important thing that a first time home buyer should look for in a mortgage loan is that it works for the person who is getting the loan. It's always smart to ensure t…hat it's a reasonable amount and time, in order to fully pay off the mortgage when planned.