Buyers have access to the lowest mortgage rates in years and an $8000 first time home buyer tax credit that does not have to be repaid if the homeowner lives in the home for at least three years. This should improved demand side for the housing market and with these nine tips, buyers should be moving in to their new home soon.
- Cash is king. With down payment increases from FHA and Fannie Mae, cash has more buying power than before.
- Negotiate everything. Home sellers will be offering more incentives to sell their home quickly. Consider asking for seller paid closing costs, property taxes, and home association fees.
- Save for a down payment. Set up a budget and include savings. The ideal goal is for 20% down on your new home.
- Determine how much home you can afford. Understand what you would like your monthly payment to be before finding out what amount you qualify for.
- Improve your credit score. Check your credit report for reporting errors, pay your bills on time, and do not cancel or close any open accounts.
- Research the local housing market. As you work with your local Realtor, search online to find out how long homes have been on the market and what they have sold for. The more you know, the better off you are in negotiating your purchase.
- Watch for certain neighborhoods. A Realtor will be able to help you avoid traffic issues, zoning changes, and higher crime areas.
- Consider foreclosed homes. With the number of foreclosed homes on the markets banks should be eager to sell.
- Look ahead. If you don’t qualify for a mortgage today continue to watch the market and keep up your savings.
For assistance on qualifying for your home purchase or for a Realtor referral contact us directly at JaneNicoletti@schneidersells.com or 636.946.5553 ext. 216.
Source: Bankrate.com
9 Tips for Homebuyers and Sellers in 2009
February 24, 2009
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