Archive for Financing
Warning to Kokomo Home Buyers
Posted by: | CommentsIf you are one of Kokomo’s first-time home buyers, this is for YOU!
A lot of first-time home buyers want to find a house and close by November 30 so they can take advantage of that 10% tax credit (up to $8,000). It really is a great opportunity!
But, Buyer Be Aware…
If you haven’t found a house yet, you’d better get going. If you don’t have an accepted offer on a house within the next couple of weeks, you may find yourself with a house but no tax credit.
Why, you ask?
- Because it generally takes from 30-45 days from the time you have an accepted offer to closing. And that’s if there are no problems! If there are problems, it can take anywhere from just a few days to resolve the issue to months!
- Keep in mind there are lots of first-time buyers, just like you, wanting to make that November 30th deadline. That means you are competing for the same loans, the same title companies, the same closing companies, etc. There just may not be enough of all these services to go around to meet that November 30th deadline for everyone.
Another warning, if you are under contact for a house…
You are excited about your first home and are anxious to buy new furniture, appliance, big screen TVs, etc. DON’T DO IT! Don’t even look until after the house is yours!
Lenders can and do recheck your credit as it gets closer to closing. They can even pull your credit the day of closing! If you’ve had inquiries on your report or increased your debt lenders may see red flags which can delay or even cancel funding your mortgage.
For more information see Dawn Wotapka’s article in the Wall Street Journal:
First-Time Home Buyers Eyeing Tax Credit Shouldn’t Splurge
So, all you first-time buyers, get out there and find that house and don’t even think of window shopping until after you have closed and have your keys in hand!
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Get Paid to Buy a Home in Kokomo!
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Yes, you read that right! The federal government will pay you up to $8000 to buy a home in Kokomo (or anywhere else in the US).
You can buy a new home, a re-sale home, a foreclosure, a condo or even a multi-family home where you will live. Of course, like all good things, there are some rules. So, here’s some of the “fine print”:
- First of all, the government doesn’t actually hand you the cash. You get a tax credit which for most buyers means they will get the cash when they file their income tax return.
- You must be a first-time buyer OR you must not have owned a personal residence for the past 3 years.
- The tax credit is for 10% of the purchase price of the home, up to a maximum of $8000.
- You must close on the home before December 1, 2009. That means you have to close on or before November 30!
- The money does not have to be repaid as long as you live in the home for at least 3 years.
- There are some income restrictions; but most home buyers in Kokomo don’t have to worry about them.
Note the final day you can close on a property and take advantage of the tax credit is November 30. I know that may seem like it’s a long time from now. But in reality, the way the process of buying a house works, it really isn’t that far off.
Right now it usually takes from 30 days to 60 days after you have an accepted offer to get through the loan process – inspections, the appraisal, title work, underwriting, etc.
Once people realize time is running out for the tax credit, be prepared for “traffic jams”! Realtors, lenders, inspectors, appraisers, title companies - everyone involved in the process - will be swamped. And even with the best team working with you, you may not be able to meet that November 30 deadline.
Solution for Kokomo Home Buyers…
Get out there right now! Find the house you want! Aim to have an accepted offer by October 1st at the latest with a 30-45 day closing. Then you can sit back and relax in your new home while others are scurrying around trying to find a home and beat the November 30 deadline.
Get started by calling me at 765-513-0354 or sending me an email.
Your Credit Score and Buying in Kokomo
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How Kokomo Residents Can Guard or Fix Your Credit Scores
We all know a lot has happened in our economy lately – not just in Kokomo, but throughout the country.
Nationally, banks have closed. Some have been bought-out. Still others have been “bailed-out”!
The stock market crashed.
The “Big 3″ automakers are in trouble. Read More→
