What should your credit score be for a first time home buyer?
"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.
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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.
Answer . The higher the score, the cheaper your loan will be. 700+ will get you the cheapest prime rates advertised in the paper. Around 520-620 will get you subprime r…ates meaning increased fees and or a higher interest rate. Sometimes subprime points and "junk" fees can be as much as 4 points depending on the lender. Below 520 and even the subprime lenders start looking away for you.
If your credit score is 588 make 70K and your a first time buyer should you wait to increase your score before purchasing a home?
Generally, you should work to improve your credit score whether buying a home or not. Other factors can/should weigh in here, such as the market (good time to buy now), progra…ms such as the First-Time Homebuyers credit (currently in effect, it is $8,000 if you are below $75K individual income) which you might be able to use as a downpayment, any other downpayment money you could use, good reputation or history at your institution such as Credit Union, and Credit Unions typically allow lower down payments, along with FHA loans which are worth checking into. Your recent debt/credit is also a factor, if no larger loans recently this will look better for you.. The main thing is if you can get approval/financing, and can afford it, have the down payment, and can find a good property with a motivated seller... meaning if all the elements are there and you get a loan, you should do it. Find out. If you don't get approval, then you will know what you have to do. Either way, you can work toward improving the score.
Tax Credit to Aid First-Time Homebuyers . If you were a first-time home buyer in 2008, you should know about and begin to plan for a new tax credit that was recently put in…to place.. Some details of the credit include:. The tax credit is applicable to taxpayers who purchased homes after April 8, 2008, and before July 1, 2009. . The First Time Homebuyer tax credit will reduce the taxpayer's tax bill or will increase their refund, dollar for dollar. . The homebuyer tax credit will be paid to eligible taxpayers even if they don't owe any tax or the credit is more than what they owe. . This tax credit works almost like an interest-free loan in that it has to be paid back over a 15-year period. . This information was provided by: http://www.efile.com/tax-deduction/mortgage-deduction/first-time-home-buyer-tax-credit.asp
That depends on the state in USA and province in Canada. As you didn't say where you are, inquire at your state or provincial office.
The first time buyer credit for 2009 expires November 30, 2009. If you are involved in a Real Estate Transaction, you must close by that date in order to be eligible for the …credit. A first time buyer is a buyer who has not purchased Real Estate in the last 3 years. If that is you, you are not automatically qualified for the first time buyer credit. There are certain criteria 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 The scenario section found here: http://www.irs.gov/newsroom/article/0,,id=206294,00.html Hope this helps. For more Real Estate Info/News/Fun Facts, visit my blog at www.wordpress.com/thomsonteam..
The tax credit for 2009 ends November 30, 2009 - your transaction must close by that date in order to qualify for the credit. Currently, there is no official continuance of t…he credit. There are rumors that it will be continued into 2010, but no confirmation from the government yet. For more Real Estate info/stats/fun facts, visit my blog at www.wordpress.com/thomsonteam.
To qualify for the credit you have to purchase your home between January 1, 2009 and April 30th, 2010. You can still qualify for the credit if you purchase your home after Apr…il 30th but before June 30th, 2010 as long as you have a legal contract binding you to the sale before April 30th, 2010.
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/.
You must have bought --- or entered into a binding contract to buy --- a principal residence on or before April 30, 2010 . . If you entered into a binding contract by April …30, 2010, you must close (go to settlement) on the home on or before Sept. 30, 2010 . Go to the IRS gov website and use the search box for First-Time Homebuyer Credit
Its an 8000 dollar tax credit. that's the max you can get. its 10 percent of what you paid. So if your house was 50,000 you get 5,000 in tax credit. So take the amount you pai…d x .1
If there are 2 purchasers on a home and only one is a first time home buyer can first time buyer get first time home buyer tax credit?
Sorry for the one-liner question, did not know how to add all the details in the question itself. Here they are: We purchased out first home on October 15th; we file under mar…ried filing jointly status, and our combined income is above the 150,000$ limit (that was in effect before Nov 6 2009) but below the 225,000$ limit (for home purchased after Nov 6 2009). Do you know if there is any way I can claim any tax credit for our home purchase? Not knowing that congress was going to increase the income limit for the second tax credit extension, I decided to go ahead with house closing on Oct 15th w/o waiting for the new extension to start, now it just seems a bit unfair that I cannot get any tax credit just because I purchased the house 3 weeks before Nov 6th!
You must have bought - or entered into a binding contract to buy - a principal residence on or before April 30, 2010 . If you entered into a binding contract by April 30, 201…0, you must close (go to settlement) on the home on or before June 30, 2010 .
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.
There is information available on the internet that suggests that first time buyers with bad credit need not worry about their bad credit causing issues as they may be a good …candidate for a federal mortgage payment plan.