Basic Steps for First-time South Central Vermont Home Buyers – PART II
A simplified guide for painless purchasing of your South Central Vermont home.
Part 2 of this four-part series dealt with analyzing your financial situation, getting prior loan approval, and determining your real needs/desires in a first home. All that having been accomplished, you will now want to look for a mortgage and decide which is the most advantageous for you.
As with any major purchase, you will want to shop around for the best deal. Contact several lenders (bank, savings and loan, credit union, private mortgage company, or a state or federal government lender.) Before doing that, however, you need to familiarize yourself mortgage types, terminology, and options. Your real estate agent will be helpful in this mission, as will the internet. Keying in First-time house buyers, mortgage assistance, HUD, or Community Housing Partners, will result in innumerable informative sites, a wealth of information for you to consider, and, most likely, a list of questions for you to ask your realtor and/or potential lender.
Steps for First-time South Central Vermont Home Buyers – Part I
A simplified guide for painless purchasing of your South Central Vermont home
PART 1
Congratulations! So you’ve made the decision to stop renting and purchase a place of your own. The home buying process may initially appear complicated and a bit daunting, but by using the skills of a buyer’s real estate agent, searching the internet, and familiarizing yourself with each of the steps involved, your experience can be a smooth and rewarding one.
1. Analyzing your financial situation.
The first thing to do is to learn how much you can afford to pay for your South Central Vermont home. Generally speaking, mortgage costs, or PITI (principal, interest, taxes, and insurance), should not exceed 26-28% of your gross monthly income. Many internet web sites furnish free tools for calculating these expenses for you. You can search under “calculating mortgage costs” or visit www.mortgagefit.com, www.bankrate.com, or www.bcsalliance.com, to name just a few. Remember that in addition to income, your credit rating, on-going monthly expenses, amount of the down payment, and the current interest rate must be factored into your financial analysis. Also take into consideration any HOA’s (homeowners’ association) dues, maintenance costs, and utilities you’ll have to pay on a monthly basis. You would be wise to investigate state and federal government programs which help qualifying first-time buyers with down payments and closing costs. Visit U.S. Department of Housing and Urban Development website for specific information which could be quite beneficial to you.
2. Getting prior loan approval.
The next step, before you ever begin actually looking a home, is to secure pre-approval for a loan. In order to do this, you will need to provide a potential lender with all necessary information about your finances. Your realtor will help you do this.
After performing a thorough and positive analysis of your financial situation, the lender will issue you a letter of approval which states the amount for which you qualify. This letter assures buyers that you are guaranteed a sufficient loan and that they are guaranteed a sale with no unpleasant surprises.
3. Determining your needs and desires.
If you are relocating to South Central Vermont, you will certainly want to familiarize yourself with the area–in person or via the net. Think about the type of community you’d feel most comfortable in. Older and established? Brand new and shiny? Consider age, style, and size you’d prefer. Would a fixer-upper be a good match for you? Is proximity to good schools important? What about the distance to and from your workplace? Traffic patterns and noise? Ample (and reserved?) parking? Do the community amenities suit your lifestyle? Do you want neighbors nearby?
Make lists for yourself. What are your “must haves”? Where do you want laundry facilities? Is an updated kitchen essential? Do you prefer an open floor plan? Who will maintain a large yard? Prioritize your wants and needs and revise the list when necessary.
As a first-time South Central Vermont home buyer, you’ll learn that you’ll have to make some compromises and that the whole process can be time-consuming–but oh, so exciting! Rely on your real estate agent to advise you about the advantages/disadvantages of specific locations and house styles and help you through the loan approval step. Because of his/her access to the Multiple Listing Service (MLS), he or she can search, with your wish list in hand, through thousands of listings to find the “ideal” South Central Vermont home for you.
Be an Informed Investor When Buying South Central Vermont Real Estate
Because it offers year-round recreation, investing in South Central Vermont real estate can be quite profitable and safe. Such a transaction can also be challenging, especially for first-time investors, and requires prior planning, a time commitment, realistic goals, and careful consideration of the following factors.
1. Selecting a property. First decide on a location and the type of property you are interested in. You will want to consider proximity to good schools, public services, shopping centers, highways, recreation, etc.
Another decision will deal with the type of property you want to own–a single family residence, a multi-family unit, or a vacation rental home. Discuss with you realtor and tax advisor the pros and cons of each to decide which will be most advantageous for you.
2. Examining your finances. In addition to a monthly mortgage payment, investment property expenses can also include taxes, property management fees, utilities, insurance for fire and floods, repair and maintenance costs, condo fees, and periods of vacancy. Be prepared to have cash on hand for a 20% to 30% down payment (or investigate other options). A helpful tool to assist you in calculating costs and probable financial outcomes is www.GoodMortgage.com.
Also keep in mind that long term (5 to 10 years) ownership is usually best for the average investment. The shorter the length of time you hold the property, the greater the risk.
Steps For a Stress-free Move To a South Central Vermont Home
If you are moving to a South Central Vermont home, you can, with prior planning and these tips, make your move a smooth, less stressful experience. After you have gathered recommendations from friends and checked out moving companies on the web, you should narrow your choices to three or four. At this point you can avoid moving mistakes by using these guidelines to make informed, intelligent choices.
Steps For a Stress-free Move To a South Central Vermont Home
1. Insist on an in-home survey and estimate.
Movers have to actually see what needs to be moved and be aware of items requiring special attention, such as pianos or valued art pieces. In addition,, by meeting the mover’s representative in person, you can get a feel for the way customers are treated by the company. It is also important that you disclose at this time any details, such as elevator availability, street restrictions, etc., to avoid unpleasant surprises on moving day.
2. Beware of too low a price.
While price is certainly a major consideration in making your selection, you need to question a low-ball estimate, Are there hidden charges? Is the firm reliable? Does it value your business? Is it a licensed, insured mover? Check the web at www.protectyourmove.com for this information and for a record of customer complaints.
A New Year’s Resolution For South Central Vermont Real Estate You Won’t Regret!
Are you tired of the same old promises you make to yourself every January 1st but forget by February? Not this year! Here’s a 2010 resolution that’s so beneficial you simply must keep it: buy South Central Vermont real estate! Now that the Home Buyer Credit Act has been extended and qualifying income levels have been raised, this is an ideal time to purchase a house. Generally advertised as a tax credit for first-time buyers, the new legislation actually benefits many current homeowners, also.
Basic facts:
Changes: Originally slated to end in November 2009, the credit deadline has been extended to April 30, 2010. If you have a binding, signed contract and settle on a South Central Vermont home before July 30, 2010, you are also eligible.
First-time buyers are those who have not owned a home in the last three years. They are eligible for a credit of 10% of the purchase price (not to exceed $800,000), up to $8000. Ownership of a vacation home or rental property not used as a prime residence does not disqualify a buyer as a first-timer.
Repeat buyers, or those who have owned and lived in a principal residence for at least 5 consecutive years of the last 8, may qualify for a credit of up to $6500.
Income levels have been increased to $125,000 for individuals and $225,000 for couples.
Six Steps For a Stress-free Move To a South Central Vermont Home
If you are moving to a South Central Vermont home, you can, with prior planning and these tips, make your move a smooth, less stressful experience. After you have gathered recommendations from friends and checked out moving companies on the web, you should narrow your choices to three or four. At this point you can avoid moving mistakes by using these guidelines to make informed, intelligent choices.
1. Insist on an in-home survey and estimate. Movers have to actually see what needs to be moved and be aware of items requiring special attention, such as pianos or valued art pieces. In addition,, by meeting the mover’s representative in person, you can get a feel for the way customers are treated by the company. It is also important that you disclose at this time any details, such as elevator availability, street restrictions, etc., to avoid unpleasant surprises on moving day.
2. Beware of too low a price. While price is certainly a major consideration in making your selection, you need to question a low-ball estimate, Are there hidden charges? Is the firm reliable? Does it value your business? Is it a licensed, insured mover? Check the web at www.protectyourmove.com for this information and for a record of customer complaints.
3. Avoid the busy season. Good moving companies are especially busy in the summer and in the first and fourth weeks of the month. Plan ahead and reserve early to get the mover and time frame you want. Remember that the best deals can usually be found in the winter and in the second and third weeks of the month.
4. Sign a contract. Do not begin a move without first signing a binding agreement which spells out all the services you are to receive and the total amount you’ll be expected to pay. Do you have insurance options? What is the charge for that? If you’re not comfortable with the document, trust your instinct and don’t sign!
5. Have a budget. Be informed and realistic about your overall moving costs. Be sure to include travel to your South Central Vermont home, any hotel and meals expenses, auto transport, and insurance.
6. Do unto others… Your movers will respond well to smiles and a positive attitude
They also appreciate offers of coffee, water, soft drinks, and tips for quality service.
The city has many reputable and reliable moving companies who want your business and will work with you to make your moving experience as stress-free as possible. By following these six steps, your relocation to your new South Central Vermont home can actually be rewarding!
Tips For South Central Vermont First-time Home Buyers
Low listing prices, reasonable interest rates, and an abundant variety of homes to choose from are among a few of the reasons now is the perfect time for buyers to make a move in today’s real estate market. Current market trends and other factors have made conditions even more favorable for first-time homebuyers. Though becoming a homeowner comes with huge responsibilities and financial commitments, first-time home buyers should take advantage of the market over flowing with opportunities. The following tips will help ease the mind when considering the smart purchase of your first South Central Vermont home.
1. Become familiar with the new first-time homebuyer federal tax credit.
People who are considering the purchase of their first home, or have not been home owners for at least the past three years can gain great benefits from the first-time homebuyer tax credit. According to FederalHousingTaxCredit.com, qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before May 1, 2010 will receive a tax credit of up to $8,000. Unlike past tax credits from 2008, the money received does not have to be repaid, unless the homebuyer sells the property with in three years.
2. Determine what is reasonably affordable.
Expanded Tax Credit for South Central Vermont Home Buyers
The $8000 first-time home buyer tax credit was scheduled to expire in just a few short weeks…Nov 30, 2009. I say ‘was’, because the Senate voted unanimously to extend the credit on Monday and the House of Representatives approved the extension yesterday afternoon by a vote of 403-12. The extension includes an expanded tax credit to repeat home buyers. The bill now goes to the President for his signature which is expected to happen today.
Home Buyer Tax Credit Expansion and Extension
- The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010.
- A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
- Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.
- Income limits are expanded to $125,000 on a single return and $225,000 on a joint return.
- Limitation on the cost of a purchased home is $800,000.
If you know anyone looking to buy their first South Central Vermont home at a time when prices and interest rates are still down, or if you are thinking of buying another home and getting the new $6,500 credit please contact me today.
Reasons To Buy Rather Than Rent South Central Vermont Home
Many South Central Vermont renters are finding that they get more ‘bang for their’ buck if they buy a home rather than rent one. With affordable prices, low interest rates and tax incentives, South Central Vermont home ownership makes more sense than ever.
7 Reasons to Buy Rather Than Rent South Central Vermont Home
1. Buying doesn’t always cost more.
The Associated Press reports the gap between buying and renting has decreased $550 in the last three years.
2. Affordability is at an all-time high.
Nationwide, prices have declined by nearly 20-40%.
3. Tax benefits for home ownership saves money.
The biggest tax break is the mortgage interest deduction. Most of your mortgage payment goes to interest which is tax deductible. Property taxes and mortgage insurance are also tax deductible.
Buying South Central Vermont Home With Good Bones
It doesn’t matter if you are buying your first South Central Vermont home or are a veteran home buyer, you will have list of ‘wants’ and ‘needs’ for your new South Central Vermont home. The ‘wants’ are things that would be nice to have such as a gas fireplace or granite counters. The ‘needs’ are things like, well a ‘bathroom’ or the number of bedrooms to suit your family. It is rare that you will get all your ‘wants’ and needs’ in the home you buy.
The key to maximizing your South Central Vermont home investment today is distinguishing between the types of ‘wants’ and ‘needs’ you’re better off buying as part of the property, and those you could add later without too much trouble and expense. Here’s some information to help you prioritize the amenities on your list.
Location:
Location is the one thing you can’t change about a property. Location is about being in a desirable neighborhood and close to (but not necessarily next to) valued amenities or planned ones — employment opportunities, good schools, shopping, public transportation, major highways, parks and recreation, cultural activities, etc. A good location is also about not being on a high-traffic street, near noise, next to run-down properties, in a flood plain, etc.