2009 First Time Buyers Credit

The IRS is now accepting the new credit. You will still need to file Form 5405. If you have already filed your taxes for 2008 then you are allowed to go back and amend your return to get this credit. The IRS will use this credit to offset federal debts (student loans, back child support, back taxes).

2008-Refundable First-Time Homebuyer Credit

I am also a tax professional- this is the information on the First Time Buyers Credit to date- like with all tax rules things change year to year.

Taxpayers who purchased a principal residence April 9, 2008 through June 30, 2009 who have not owned a principal residence in the previous three years may claim a refundable credit. The maximum credit is $7,500 and there are guidelines that reduce this amount when you do your taxes. There are no restrictions on what you can use the money on- it is added to your refund so you can use it for anything like repairs, remolding, or even paying off a couple of small bills or credit cards.

The credit, however, acts more like a no-interest loan because it must be repaid to the government over 15 years. It is repaid in 15 equal annual installments beginning with the second tax year after the year the credit is claimed. If you qualify for the full $7,500 then you would repay $500 for 15 years out of your tax refund each year.

If more than one person owns the home and all qualify for first time home buyers the credit can be split between all persons involved if not married. If one person qualities for the first time home buyer and the other one does not (they owned a home within three years) the person who qualifies can still claim their part of the credit no matter if the other person could not.

The money can not be used as a down payment as the closing has to have taken place to claim the credit. It is not based on a credit score or job history it is only based on your income taxes in the year you are claiming the credit. It does not matter what type of home you buy- foreclosed or not- as long as it is considered real property.

This is not a mandatory credit and you can elect not to take it. If you are not planning to keep your home very long then this credit might be for you because if you sell with an outstanding credit still owed then this will need to be paid off in the year your home was sold. Also if you decide to rent out this home the credit will also become due in the year that is done. You need to ask yourself some questions before taking this credit and make the best choice that suits you.

The First-Time Homebuyer Credit can be claimed on Form 5405, which is filed with your 2008 or 2009 federal tax return.

 

“Why should I buy an owner’s title insurance policy?”

“Why should I buy an owner’s title insurance policy?”

Click on the link above to read more about Owner’s Title Insurance.

The Closing Process for Home Buyers

Things To Know About The Closing Process

• What To Bring To The Closing
• Closing Checklist
• What To Expect After A Closing

What You Should Look For When Walking Through Homes

• Is there enough room for both the present and the future?
• Are there enough bedrooms and bathrooms?
• Is the house structurally sound?
• Do the mechanical systems and appliances work?
• Is the yard big enough?
• Do you like the floor plan?
• Will your furniture fit in the space? Is there enough storage space?
• Does anything need to repaired or replaced? Will the seller repair or replace the items?

Take your time and think carefully about each house you see.

Credit Report & Credit Score

Your credit history is a list of ALL your financial activity during your life. It list all of the credit accounts you have ever opened and how long they’ve been open.

A credit score is a number from 300 to 850.

A low score is considered 350, an average score is around 678, and the highest credit score is 850.

Credit Scores are calculated by the following:

• 35% payment history
• 30% credit owed
• 15% length of credit history
• 10% new credit
• 10% types of credit

Just like positive information will make your credit score go up- negative information will make it go down. Depending on what type this is some will stay listed on your credit report for up to 10 years. Examples of negative information are late payments, liens, court judgments, bankruptcy, and overdue child support.

Problems Bad Credit Causes

1. Inability to get a loan
2. Higher interest rate if you do get the loan
3. Larger down payment required if you do get the loan

Ways to IMPROVE your credit score

• Start paying all bills on time
• Pay off any outstanding amounts you owe
• Correct any mistakes on your report
• Pay down debts
• Don’t apply for new credit unless you really need it

Copyright 2008 by Sheila Barrett

Finding A Real Estate Agent

Working with a Real Estate Agent

A good Realtor can show you more suitable properties, offer valuable advice, and coach you through the entire home buying process.

Do I Really Need To Use A Realtor?

When you use a REALTOR, they will be at your side, making the process of finding the perfect home easier, faster and a lot more fun.

And you’ll save time.

Yet many buyers still spend endless hours pouring through classified ads, driving all over town,and viewing dozens of unsuitable properties – simply because they haven’t connected with a Realtor.

Some people think that if they have several agents looking for homes on their behalf, they’ll find a house more quickly. Like most relationships, the buyer-agent relationship thrives on communication, loyalty and trust. By working exclusively with one agent, you’ll improve both the process and the results.

Finding The Right Agent For You

Some helpful hints on finding and working with a Realtor:
* Ask friends, family members, neighbors or co-workers for referrals.
* Trust your intuition.
* Share with your sales associate as much as possible about your lifestyle, tastes, needs and dreams for your home.
* Focus your search on a few geographic areas.

Why Have A Home Inspection

The purchase of a home is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards.

Picture this scene, you buy the house – under the assumption it has a new furnace because one of your friends said it looked new – and in a year the furnace breaks. Now what?

A home inspector is going to look at all the mechanicals, the foundation, the roof, and more then give you a detailed report on the condition as of the inspection date.

General Home Inspection Checklist Items

Structural Elements-Construction of walls, ceilings, floors, roof and foundation.

Exterior Evaluation-Wall covering, landscaping, grading, elevation, drainage, driveways, fences, sidewalks, fascia, trim, doors, windows, lights and exterior receptacles.

Roof and Attic-Framing, ventilation, type of roof construction, flashing and gutters. It does not include a guarantee of roof condition- that is something to consider.

Plumbing-Identification of pipe materials used for potable, drain, waste and vent pipes. including condition. Toilets, showers, sinks, faucets and traps. It does not include a sewer inspection.

Systems and Components- Water heaters, furnaces, air conditioning, duct work, chimney, fireplace and sprinklers.

Electrical-Main panel, circuit breakers, types of wiring, grounding, exhaust fans, receptacles, ceiling fans and light fixtures.

Appliances-Dishwasher, range and oven, built-in microwaves, garbage disposal and, yes, even smoke detectors.

(Please note that this will vary from company to company so please ask your inspector for more information)

The serious problems are:

Health and safety issues
Roofs with a short life expectancy
Furnace / A/C malfunctions
Foundation deficiencies
Moisture / drainage issues

Some buyers feel a home inspection is unnecessary if they are buying new construction. The problems that aren’t readily identifiable to you such as code violations, a furnace that leaks carbon monoxide or a failing chimney, are the types of defects a home inspector could identify in a new home. Builders’ contractors make mistakes too.

You don’t want to end up in a “Money Pit”

Refrigerated Ovens

Built In Refrigeration* for Cooking Later

Connect IO^TM PS302SS00 (double) and PS301SS00 (single) electric wall ovens feature both a professional cooking system and advanced refrigeration system. Refrigeration keeps foods fresh for cooking later—whether preset for automatic cooking, or manual cooking—or for remote cooking so that meals can be ready when you arrive home. Also great for extra cold storage, refrigeration mode can even be used to chill beverages until guests arrive. Ultimate luxury and convenience for your lifestyle. Dinner is truly ready whenever you are ready to eat.

TMIO advanced refrigeration, plus remote command and control are based on NASA space technology, and available only from your Connect IO^TM, the Intelligent Oven. Standard double and single non-refrigerated models are also available.

Internet & Telephone Remote Control

Call home from your telephone or cell phone to get dinner started. Simply dial up your oven, and tell Connect IO^TM when you want dinner to be ready. Use your land line or cell phone. Or just as easily, connect to MyOven^TM via your Internet browser and adjust your oven temperature in a matter of seconds. Spend your new extra time on your lifestyle instead of being controlled by your cooking schedule.

Real Dinner in Real Time with Telephone Voice and Touch Tone Commands. Remotely control any oven function—in real time. The MyOven^TM controls you see on your Internet web browser are exactly what you see on your oven control panel at home—in real time. Remotely control cooking so that meals are ready when you arrive home—anytime, from literally anywhere in the world. The multi-award-winning Connect IO^TM creates unprecedented mobility for your family members, and saves everybody time with built-in refrigeration, plus telephone and Internet remote control (based on NASA-based space technology). Imagine coming home from work to the aroma of a healthy, freshly home-cooked meal, without the stress of needing to rush to prepare—or without needing to settle for nutrition—poor fast foods. A true dream appliance for those with busy lifestyles, voilà: Home-cooked meals can ready when you are ready to come home.

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TMIO

Build A Residential Safe Room?

A residential safe room is a small, specially designed (“hardened”) room, such as a bathroom or closet, or other space within the house that is intended to provide a place of refuge only for the people who live in the house. In areas subject to extreme-wind events, homeowners should consider building a residential safe room. Wind hazards, such as those associated with tornadoes and hurricanes, vary throughout the United States. The decision to build a safe room will be based largely on the magnitude of the wind hazard in a given area and on the level of risk considered acceptable.

TO READ MORE VISIT

FEMA