Good Time for a Good Buy

By LaTasha Hewitt

When we talk about relationships, most people think of relationships with their partners, family, friends, coworkers and even their pets. However, not many of us think about the relationships that we will have with our home. Any one who has ever owned a home will tell you for both good and bad reasons you will form relationships with your house. In all reality how could you not form a bond and relationship. Homes are where we live our lives.

For many, the thought of such a large investment can be a little overwhelming as the idea of “signing their lives away” haunts them. But home ownership does not have to be a daunting experience. If ever there was a time to consider owning a home, it’s now. This is the case for three great reasons:

Low Home Prices
The downturn of the economy has had a significant impact on the real estate industry, particularly home values. What this means for the buyer is that they can get more bang for the buck. A home they may not have been able to afford 5 years ago could be well within their reach in the present market.

Low Interest Rates
Interest rates are at record lows, averaging between 4.5-5.5%. What does this mean to the buyer?… lower monthly payments and less money paid throughout the life of the loan.

Tax Credit
First-time home buyers who purchase a home by April 30th of this year, and close by the end of June 2010, will qualify to receive an 8,000 tax credit on their taxes. That extra cash could really come in handy to add a little TLC to a room or simply furnish one.

There is also a monetary incentive for current homeowners who have lived in their homes for 5 of the last 8 years. They are eligible for a tax credit up to $6,500. The great thing about his credit is that homeowners can either upgrade or downsize that next home.

So with all these incentives, I’m sure you’re asking…What do you need to do?

1.Save!
Because of the many homeowners who bit off more than they could chew by buying homes that could not realistically afford, most loans do require putting some money down, usually 5-20% of the purchase price. Lenders are viewing the money down as proof that you are financially prepared to handle home ownership.

2. Check your credit
Each person is entitled to one free credit report per year from one of the credit bureaus (TransUnion, . Take advantage of this so that you can address any questionable findings before your lender does. Pay down as much debt as possible so as to positively impact your score What this means to you: Your credit score affects your eligibility for a loan and also determines what your interest rate will be.

3. Do Your Research
Shop around with different mortgage companies. You are not obligated to go with someone suggested by your realtor, but it is a good idea to get recommendations from friends or family. While doing your research, be sure to inquire about 100% financing that may be available on qualifying homes.

4. Once you have found a lender that meets your need, get pre-approved for a loan.
This will aid you in determining how much you can afford and will prevent you from looking at homes out of your price range. Avoid the disappointment of falling in love with a home that you cannot afford.

5. Find a real estate agent.
Search for a realtor that you can trust. Family and friends are a great resource in this search as well. Look for someone with who is interested in listening to what you need and is committed to finding you what you want.

6. Go Looking!
This is the best part of the process. Go out and start looking at available homes. You’d be surprised how your needs and wants can change. Imagine your flat-screen on the wall or select which room would be best showcase your collectibles.

Happy House Hunting.

LaTasha is a real estate agent specializing in first-time home buyers. She believes in making the home-buying experience a memorable one. She is a family-centered person whose heart is overwhelmed with love for her husband and little girl!

Have real estate questions? I’d be glad to answer them. E-mail them to latasha.hewitt@prufoxroach.com or visit our website at a2zRealtorPA.com

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