Are you ready to get off the sidelines and make the leap into homeownership? If so, then you’re not alone! The home-buyer tax incentive, which was recently extended until April 2010, has motivated many first-time homebuyers to purchase their first West University home, and the market has increased home sales to show for it.
The government tax credit is an excellent opportunity for many homebuyers, but there are a few things you should consider:
- Although the tax credit has been extended into 2010, don’t wait until the last minute. You will have much better luck finding the right West University home if you take your time and begin searching now, instead of a month or two before the deadline.
- See a lender and get preapproved before you even begin searching for a Houston property. It doesn’t make much sense to begin your home search if you don’t know how much home you can afford and if a bank will approve you for a mortgage at this time.
- Pay close attention to your credit score. Although the government tax credit is encouraging new buyers, it’s still important to note that the credit sector is still enforcing tough lending standards. Order copies of your credit report to clear up any discrepancies, pay down some of your debt, and don’t take out any new loans until after you close on your home loan.
- If you are selling a home, price it right –from the beginning. Don’t let the recent spike in home activity fool you; it’s still a buyer’s market. So make it easy on yourself and price your home aggressively so that you can sell it and move on.
- Continue to pay close attention to mortgage rates. Although mortgage rates are low right now, they may very well start creeping back up next year. And a small rise in mortgage rates can mean a large rise in your monthly mortgage payment.
- Be careful of purchasing a short sale. The process of buying a short sale can be a long one, particularly when you are dealing with the tax credit deadline. Because the process of purchasing a short sale can be quite lengthy (and frustrating), you may want to think twice about buying a home in short sale.
Tags: home buyers, tax credit