First Time Home Buyer Tax Credit For Buyers 8000 Reasons To Buy

Izvor: KiWi

Whether most people like to admit it or not, the desire of almost every human being is to own a US home they are proud to live in. This provides a person with a sense of stability and security. However, the reality for most potential first time home buyers is that it is more difficult to find your ideal home than you may think.

Whether you are a first time home buyer or a veteran in real estate, you should find a good agent who can help you make an informed decision when it comes to buying the home of your dreams. An experienced agent can help you find a home that fits your budget and has all the amenities you are looking for, in addition to a convenient location. They can help you determine the market value of property so that you pay the price you both want. Their goal is to buy property as quickly as possible, at the lowest price that can be paid, and with less effort, stress and involvement on your part.

A first time home buyer will most likely overlook items like designer fixtures, walk in closets, solid counter tops and a large garage.Their list of must-haves tend to be shorter and they usually have a stricter budget. Repeat home buyers will have some experience and require those things that first time home buyers overlook.

Whether you've decided to purchase your first home, or your still in the researching phase, check to see if your state or local community has programs available for first time home buyers. Many of these programs will offer you step-by-step assistance in finding realator, a home and the loan that best suits your needs. They are an invaluable resource.

A down payment and pre-approval for financing is a must for any first time home buyer. Although it is possible to obtain a mortgage with a down payment of 5% (and even less), first time home buyers are advised to strive for the recommended 20% down payment. Pre-approval for a mortgage allows a buyer to know their price range.

The first time home buyer credit is offered for taxpayers who have not purchased a home within the past 3 years and have income of less than $125,000 ($225, 000 for married filing jointly). The house can be new or a resale, but must have the sale completed by a certain time. The credit amount is 10% of the purchase price, with a maximum value of $8,000. In November of 2009, the credit was extended until April of 2010 The 2009 surveys completed by the National Association of Realtors (NAR) reported the highest percentage of first-time home buyers ever at 47%, which increased significantly from 41% in 2008.

Although the NAR survey suggests success of the first time home buyer credit program, there were some problems that were exposed as well. Home buyers often reduce their spending in other areas in order to purchase a home, which this year was 30% luxury goods, 38% entertainment, and 30% clothing. A decrease in their spending is expected, however these other industries may have suffered more than necessary because of the government incentives in the housing market. The survey also revealed that 12% of buyers found that financing their first home was more difficult than expected, which may discourage them from purchasing other expensive items which require loans. Another 13% of successful buyers said they had experienced cancelled or terminated purchase agreements, with 8% rejected by a lender. The overall confidence that buyers have with the financing industry can strongly affect their willingness to borrow money and recommend borrowing money in the future.

When negotiating a deal, a buyer's representative is the first time home buyer's most valuable asset. Although the services of a buyer's representative are covered usually by the seller's commission payment, the rep works for the buyer not the seller.