Fort Mohave Homes For Sale Buying Tips For The First Time Home Buyer
1) DO NOT COUNT ON ANOTHER EXTENSION.
The tax credit won’t be available forever. If you want to take advantage of it make sure you make the Spring deadline of having your home under contract by April 30, 2010. A mortgage broker in Miami, Eddie Fadel, explained this well by saying,
“This is a medication for the housing crisis. Once the patient — which is the housing market — cures, there will be no medication needed.”
2) DO NOT PROCRASTINATE
Start searching for your home now. The first thing you need to do is contact a Realtor who understands this market and will work hard for you. Speak with your Realtor about getting you in touch with a trusted Lender so you can begin to get your financing in order. It will be a requirement that your Realtor submit your Loan Approval Letter along with any offer you write. Also, a good Realtor will most likely not take too much time working with you until they know you will be able to secure financing for your home purchase.
Start searching for your home with your Realtor now. The sooner you start the less you’ll be flirting with the expiration of the tax credit deadline. And for buyers who have an existing home to sell, be sure you price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.
3) MIND THE INTEREST RATES
Mortgage Interest Rates are low right now, but will likely rise next year. Higher rates will affect your monthly payments, thus the affordability of the house you are buying. Rates have been staying low, hovering around the 5% mark for the past few months, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.
4) COMMUNICATE WITH YOUR REALTOR AND YOUR LENDER
Throughout the process make sure you are communicating with these guys regularly. If there’s a piece of documentation you’re asked for, get it to them pronto. Good communication and cooperation is crucial in making sure the transaction closes on time.
5) THINK TWICE ABOUT PURSUING A SHORT SALE
If you want to make the tax credit deadline, you probably don’t want to mess with any short sale listings. A short sale is where someone is selling their home for less than he or she owes on a mortgage, and the entire deal is contingent on lender approval. The process is usually very lengthy and unpredictable because the home owner’s lender has to review the seller’s finances and reason(s) for needing to short sale. This can also become more complicated when there is a second lien holder on the property and you’re dealing with more than one loan.
6) DON’T TAKE SHORTCUTS
Don’t forget any of the steps you would normally take just to make the tax credit deadline. Although (up to) $8,000 would be really nice to get after your taxes next year, it should not be the basis of your home buying decision. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.
