Do Not Wait Any Longer

With the recent approval of the new Home Buyer Tax Credits and the recent low rates available for mortgages, today may be the ideal time for you to purchase a home.

30-year fixed-rate mortgage have fallen again, for the week ending Dec. 3, the 30-year rate was 4.71. The 15-year loan rate was 4.27.

Do not pass up this opportunity, we may not see rates this low again for a long time.

It was the fifth consecutive week that interest rates have fallen. This is another great incentive to take the steps to become a homeowner.

For more great information go to First Time Home Buyers Are Leading The Way.

If you have been patiently waiting to buy a Hoboken home, now is the time to do it. All of the key factors are in place to ensure that your home purchase will be a major, positive life changing event.  With low mortgage rates available, along with the recent passing of the new tax credits, this is the opportunity you have been waiting for. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at eddie@InvestHoboken.com or 201-344-2886.

First Time Home Buyers Are Leading The Way

It’s likely that more first-time homebuyers will aim to make a purchasesoon, as they try to meet the $8,000 homebuyer tax-credit deadline in November.

If you are a seller and you would like to attract first-time homebuyers, you may want to consider the following:

Reduce your price. You don’t have to lower your price by a lot to get the attention of buyers. That discount may even be able to get you a higher selling price should the discounted price attract enough buyers and a bidding war could begin.
Make your home move-in ready. Often, first-time buyers want a home that’s move-in ready, since they might not have the means to make decorating changes or to pay for repairs. Consider making minor repairs and upgrades to your and you won’t scare off buyers with repairs that may need to be done.
Cover closing costs. Consider picking up the bill for the closing costs — this will help attract those first-timers who have limited funds available to them.
Help with a down payment. You could help the buyer come up with a down payment — this might actually not come at a higher cost to you, because you may be able to make up for it by getting a higher selling price.
Pay points. You can bring down the interest rate for a buyer’s mortgage by paying points. A lower rate may help to lower the buyer’s monthly loan payments.
Offer furnishings. If it is possible, include furnishings with the home or provide a furnishings allowance.
Add incentives. If you don’t have furnishings to offer, you could get creative and offer freebies like gift certificates for home cleaning for a month or two. These types of incentives are appealing because not only do they offer the homebuyer a savings, they have a lifestyle appeal as well.
Offer a home warranty. For a few hundred dollars, you can give buyers peace of mind should something with a home’s heating, plumbing or cooling go wrong after purchase. This is especially attractive for buyers who might not have the cash for major repairs after moving in.

For more great information go to How to Get a Home Inspection.

Allow me to help you find the home of your dreams Contact Eddie Perez at (201) 344-2886, www.investhoboken.com.

Buying Your First Home Takes Time

Research alone on how to buy a home is a big time commitment. If you pick up a book on the subject, it might be helpful, but might overwhelm you with detail. Many informative websites have short, sharp home-buying tips that sacrifice depth and introduce pop-up invitations to apply for mortgages, credit reports, or real estate listings.

 

When you buy your first home the government offers big tax incentives; banks work to loan out massive mortgages while many Realtors®, will compete to get new clients.

What many first-timer buyers do not realize, is that they are doing the government, the banks, the Realtors®, the construction industry, and the overall economy a favor. Apart from the money the bankers, builders, Realtors®, inspectors, lawyers, and insurers make being involved with the purchase of a home, a new homeowner generally spends large amounts of money on furnishings, appliances, home decorating, and gardening – which bolsters the local economy.

The buyer is the one person in a real estate transaction who makes it all happen. If a buyer decides to not buy, the entire process comes to a grinding halt.

If you are in the process of purchasing your first home, do yourself a favor by doing basic research to ensure that you understand everything that is happening around you.  A buyer needs to learn new terms, apply new concepts, and take the time to understand what you’re getting into. And when something happens that doesn’t make sense, demand a full and complete explanation from the professionals working on your behalf.

Plan from the beginning to approach your home buying process intelligently and with confidence. By doing this you will be have a home to be proud of and the knowledge that you made the best decision.

Please take a look at the following helpful article to give you a very good perspective regarding   rates. Mortgage Rates Down and Likely to Fall Further. Time to Buy? Also, don’t forget to check out  Six Things to Know About the First Time Home Buyer Credit. This is more encouraging information to assist you with the purchasing your first home that you need to be aware of.

For assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

6 THINGS TO KNOW ABOUT THE FIRST TIME HOME BUYER CREDIT

6 Things to Know About the First Time Home Buyer Credit

1. Eight grand, new buyers: This credit is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000–and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home–but not a principal residence–within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

For assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.

TEN THINGS FOR A FIRST TIME BUYER TO DO BEFORE PURCHASING A HOME

 

 

Research the Home Buying Process  

This will allow you to act confidently and feel like you are making the correct decisions. There is a lot of home buying terminology that you will need to learn, so be sure pick up as much information as possible to help you in your transaction.

Get a Copy of your Credit Report

You can get copies from all three credit bureaus at once by going to http://www.AnnualCreditReport.com. Mortgage lenders will review your credit very thoroughly, so be sure to correct any possible errors.

Fix Any Credit Errors Immediately

If you find an error on your credit report, go to the company’s website where the report came from (TransUnion, Equifax or Experian) to contest it. It can take time to clean up an erroneous credit report, so don’t waste any time.

Check Your Debt-To-Income Ratio

Mortgage lenders prefer a borrower’s debt to be at (or below) 20% of net monthly income. If your debt exceeds 20% of your net monthly income, try to pay it down before applying for a mortgage. You’ll have an easier qualification process and will likely qualify for a better rate.

Stick to a budget

Utilize an online mortgage calculator to get an idea of how much you can afford to pay for a house each month. This will give you a budget to work from and help you be realistic when shopping for a home. 

Start Saving your Money

This is one of the best things you can do before starting the home buying process. Mortgage lenders like to see that you have some cash reserves on hand. Keep in mind you will need cash reserves for any unexpected fees or costs that could take place.

Get Pre-Approved for a Loan 

During this process a mortgage lender will qualify you for a certain amount of mortgage. Sellers will take you more seriously if you have a pre-approval letter, and the process also helps identify any problems with your credit or other qualifying factors.

Avoid Any New Loans

The worst thing you can do is take out a new loan / line of credit. This will not only make the qualification process take longer,  it could make your debt “greater than 20%”, which will make it harder to get a loan.

Always Question the Listing Price

No listing price is set in stone, and everything in real estate is negotiable. So don’t accept a listing price as being reasonable until you validate it through careful research. Your real estate agent can provide a comparative market analysis (CMA) to help you with this step.

Always Get a Home Inspection

A house is a sizable investment, and the last thing you want is to find things wrong with it after you have become the owner. A home inspection will give you peace of mind knowing your investment is good.