I recently had the pleasure of working with a first time home buyer in Macomb County as she realized her dream of becoming a home owner. Nicole found me via my blogging and contacted me when she was ready to start the home buying process. She was also on the ball in regards to the first time home buyers tax credit, and knew she didn't want to wait to miss out on it. Armed with knowledge about this tax credit as well as the advantages of using an FHA 203K streamline mortgage, we set out to find her the home of her dreams.
Nicole was pre-approved for her FHA 203K streamline mortgage prior to our going out and looking at homes. She knew exactly where her comfortable payment amount was, and we based our home searches on that comfort zone. We also kept in mind the property taxes varying because of non-homestead reversals on some homes and adjusted the homes to see accordingly. During the last couple of months Nicole did everything that one could expect from a first time home buyer, and then some:
Chose a home based upon her needs and wants and keeping in mind
the cost of the updates to not exceed what we felt would be the "after repairs" estimate of value by an appraisor.Hired a home inspector for a thorough inspection of the home. Had a 2nd inspection - EPA lab testing performed on vermiculite found in the attic. (No asbestos was found, client was happy and could proceed.)
Chose a contractor to perform the repairs & updates. Contractor wrote quotes specifically detailing parts and labor costs and filled out the necessary forms required by FHA.
Worked out a sidewalk replacement assessment by the city building department to have the necessary money placed in escrow at the title company until the final bill comes in to the current homeowner.FHA appraisal performed with 2 separate values given: "As is" condition market value and the market value after the repairs & updates.
Performed one repair deemed necessary by the appraisor
(scrape and paint
a garage window) rather than add that to the contractors work list.Whole package (appraisal, homeowners insurance, latest paystubs and bank statement) turned in to underwriting.
5 business days later the "clear to close" was given by the mortgage lender and the appointment with the title company to close on the mortgage was made.
** It was 45 days from the time the offer to purchase was accepted by the home owners to the closing on Nicoles home .If you are planning on taking advantage of the 1st time home buyers tax credit don't dawdle! Time IS running out!**
Last Thursday, the 30th of July, Nicole became a home owner for the first time. All of her hard work, research and patience paid off for her. She now has a home to call her own and with a mortgage payment that is much less than apartment rent.
She also will be amending her 2008 income tax return so that she can receive her 1st time home buyers tax credit this year, instead of waiting until she files her return next year.
**I'm so proud of this young lady**
Kris Wales - A partner for your real estate needs in Macomb County MI
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