Because of today's sluggish economy, many personal items, including homes, are being reduced. So why not take advantage of these low home prices and low mortgage interest rates before it's too late. If you 
have been thinking of homeownership and can afford to buy, make it your goal to do so this year.
This year's new stimulus package, along with this week's low interest rates, sweeten the deal even more. Here's the deal: If you're a first-time homebuyer who buys a home between January 1, 2009 and December 1, 2009 and live in the home for at least three years, you get a 10% credit for the purchase price of the home up to $8,000. The credit can be used on your 2008 or 2009 tax return. First-time homebuyers are people who have not owned a home in the last three years. Homebuyers will get full credit if their modified adjusted income is less than $75,000 for single filers or $150,000 for joint filers. The credit amount will then drop as your income rises. However, you will be out of luck if your income is over $95,000 for single filers and $170,000 for joint filers. The credit is then eliminated. The best way to make sure you will qualify for the credit is to speak with an expert about your specific situation.
If you are ready to buy a home and wonder if you qualify for a loan, here's what I recommend doing:
· Check your credit. There are several online companies that will let you run a free credit check once a year, along with giving you your credit score.
· Clean up your credit, if necessary. If you have any delinquent balances on your credit, get them paid off. Also, pay any credit cards down as low as possible, but not completely. Leave just $200 or less on one or two cards. And always pay on time and more than your minimum balance.
· Be prepared for a down payment and buy within your means. Homebuyers that bought above their means are how we got into this mess in the first place. So, learn from their mistakes: only buy what you can afford.
· Get all your financial records in order. You will need paycheck stubs, tax returns, bank statements and more. Your loan processor will give you a complete list.
· Never make any big purchases before you buy a home. This means don't run out and buy a new car or an expensive engagement ring.
Following these simple steps will set you in the right direction. Now, get online and find the right real estate professional to help you find your dream home. Happy home-hunting.
Realtor® Kandy Clayton - Salt Lake City Real Estate
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