The U.S. Senate approves an amendment to the economic stimulus package that would provide a tax credit of up to $15,000 OR 10% of the home price for homebuyers who purchase a primary residence in the coming year. Before signing on the dotted line, make sure that this “GIFT” is not a “LOAN”, repayable within 15 years
If you are about to get into the housing market, this is all good news. But before you begin visiting open houses, recognize that the old home-buying rules no longer apply. You want to approach buying your first house with a financially realistic point of view.
Remember!!You’re investing in a place to live So keep it simple. Buy smarter. Buy cheaper
There are some great deals out there but the homes usually need some work or updating and this credit would give the buyer a home improvement loan interest free for 15 yrs
Determine what you can afford. “The days of easy money are over,” says Jeff Bogue, a financial planner in Wells, Maine. Mortgage lenders have tightened their standards and are requiring larger down payments. Typically, they want buyers to spend no more than 28% of their gross monthly income on mortgage payments, real-estate taxes and home insurance.
To figure out how much you can afford, use online calculators at realestatejournal.com, dinkytown.com or bankrate.com and “get preapproved or preauthorized for a loan,” Mr. Bogue says.
Be sure you also have cash for closing costs like legal fees and title charges. The total typically reaches 2% to 3% of the house price, but differs by state and mortgage product, says Ilona Bray, co-author of “Nolo’s Essential Guide to Buying Your First Home.”
Speak to a professional real estate agent; ask questions before making the decision to buy, BUT IT IS STILL A GREAT TIME TO BUY!!!!!!!