What are you waiting for??
My clients, friends and subscribers are getting the wake up call today!
If you think you are waiting for the bottom of the market to arrive before buying a house...it's here.
All the planets and stars have aligned to be the best time ever to get that new house.
Mortgage rates are historically low! There is a $8000 non-repayable tax credit for first time home buyers to use on 2008 or 2009 tax return, many more houses to pick from so you won't have to just settle for just anything (like we did a few years ago), and sellers are motivated.
If you wait much longer for the mortgage rates to drop, you will see them rise and they might never again be this low.
Five years from now, when inflation and mortgage rates are out of sight, you might look back and longingly say, "If only I had bought that house in 2009! I could have invested at the perfect time to gain equity. Why did I wait??"
You only have until December 1, 2009 to get the 8000 tax credit. Here's more information from Kristal Kraft on how you can use it now...
Good News For First Time Home Buyers Who Lack Funds for a Down Payment!
First Time Buyers are benefitting from the best incentive from the government in a long time. A Tax CREDIT of $8000 is significant, so much so that any First Time Home Buyer who is gainfully employed, has decent credit (or can improve credit) and plans to be in the one location for at least THREE YEARS, should consider buying a home.
The Problem is:
First Time Home Buyers often lack the necessary funds for a down payment and closing costs. Closing costs can be paid for by the seller, assuming the seller is ready, willing an able to pay. In fact the seller is legally allowed to contribute up to 6% for the closings costs and pre-paids on behalf of the seller.
This practice is so common, many homes are listed with this incentive built into the price or at least the seller's expectations!
The buyer must fund the 3.5% (on an FHA loan) himself, so that can be a problem if the First Time Home Buyer lacks the funds.
Here's the solution:
Take the Tax Credit right now, this year even before buying a house. Use the $8000 Tax Credit for the down payment. At 3.5% the $8000 will cover the first $225,000 of a purchase price. If a buyer purchases much above that price, they will need to have additional funds to make up the difference.
BE RESPONSIBLE
Yes, you already know this, but if you take the credit you must buy the house. If by chance you cannot complete a purchase you MUST return the money. Due diligence is required prior to taking the tax credit, check with your account to confirm they agree it's ok, confirm and reconfirm with a reliable, trustworthy lender that you can quality for the loan (get it in writing) and then go find a house.
Credit for this idea Goes to Ryan Hukill!
I cannot take credit for this idea. It came from a fellow blogger friend of mine Ryan Hukill who sells Edmond OK. Real Estate. Please visit his post here. Ryan checked with his CPA so please heed his advice and check with your own as well.
Do you know of a First Time Buyer?
Please pass this information along. The clock is ticking, we need to get the word out on this wonderful incentive for First Time Home Buyers Across the County! Pass the word along and make someone's day!
Photo Credit: Stockexpert
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Lizette,
I think you are right. This is a good time to buy.