Are you a First Time Home Buyer seeking to Buy a Home in East Contra Costa County? Did you want to find a home in Bay Point, Pittsburg, Antioch, Oakley, Brentwood, Discovery Bay, or other smaller communities. Maybe you need to know about Bank Owned Homes?
This information is primarily for the First Time Buyer, but many of them are things all buyers should consider. Each Market is local and Real Estate and Lending Markets are constantly changing. For the most current and up to date information please contact me directly at 925-260-4321 or Gene@AskGene.info.
Things to Consider:
• Know what you can Afford: Talk to a loan office before you start. Find out what you can afford and what your payments will be. Most sellers will not accept your offer unless you have a pre-qualification Letter. They can help you with Credit Repair.
• FHA Loans: The best entry level loan for buyers with minimal down payment available is the FHA Loan. The Down Payment is 3.5%, However, the seller may pay provide a credit for the closing cost. The down payment funds may also be gifted to the buyer. There are Tax Credits for buying.
• 100% Financing: Except for Veterans there are not a lot of zero down payment options at this time. If you are a veteran contact me about VA Loans and getting your home. I am constantly monitoring the lending market and will let you know when 100% financing returns to the market. Certain cities have First Time Buyer Programs available; please contact me for information on particular cities.
• Other Loan Options: If you can afford more down payment then consider putting more down, however, not always. If you can afford 20% down then you will probably get a better loan with no PMI (Premium Mortgage Insurance) payment. However, I had a client taking a FHA loan who could have put down about 6 to 7%. I advised against this as it would not help the loan rate or lower the payment significantly. I suggested they save the balance of the available funds as a reserve.
• Find a Realtor: A good Realtor can educate you on the current market and the area you are looking in. A Realtor will guide you to the home that fits your needs and budget; advise you concerning local pricing and the sale of comp properties; and provide you with information on the local community. Some buyers think they will save money if they go straight to the Listing Agent on a property. Not so. Generally the listing agent just takes the commission for being the buying and selling agent; but will only represent the seller and not provide you with all the disclosures and obligations of a buyer’s agent.
• Buyers Do Not Pay Realtor Fees: Generally speaking the sellers of the property pay the fees of both the seller and buyer agent.
• Get $8,000.00 from the Government: Until 12/31/09 if you are a first time buyer you can qualify for a $8,000.00 tax credit. That is a Credit, not a deduction. That $8,000.00 could be enough to cover the down payment on house costing up to $228,571.43. Please note the government will not provide the money at the time of purchase to cover the down payment at that time.
• Get another $10,000.00 form the State Government: The State of California has a program for a limited time to provide a $10,000.00 credit over 3 years to the buyer of a new home. This is a limited time only. This credit can be combined with the Federal Tax credit for a Total of $18,000.00. Yes the government will give you $18,000.00 just to buy a home. This is enough to cover the cost of a down payment on a home costing up to $514,285.71.
• Builders Pay Realtors to Bring in Buyers: Yes, a Realtor can help you find a new home and the builders will pay us to help you. IT IS VERY IMPORTANT TO GET THE REAL ESTATE AGENT FIRST AND BRING THEM WITH YOU TO YOUR FIRST VISIT AT THE NEW HOME COMMUNITY. Remember, the builder’s sales agent does not work for you. I will. A home is the biggest purchase most people will make. You will be in a high pressure environment designed to get the most money out of you. You need an agent in your corner. Especially when being paid by the builder.
• Get help for Credit Repair: Get advice on repairing your credit. Some things you do that you think will help may only hurt. It may be easier than you think to repair your credit. But no matter how long it takes you need a plan. FHA loans may be possible even with poor credit, if you can demonstrate an ability to pay the loan.
• Educate Yourself: Talk to your Realtor and get information. Look at homes on line. You may go to my web site to look at homes www.AskGene.info. You will find every home by every agent on my web site. This report was prepared on March 18, 2009. Some information (especially regarding lending and taxes) is subject to change. Please contact me for the most up to date information. Gene Riemenschneider Area Pro Realty 925-260-4321 Gene@AskGene.info www.AskGene.info
This Blog is about giving you the information you need when East Contra Costa County including the cities of Brentwood, Antioch, Oakley, Discovery Bay, Pittsburg, Bay Point and others. As a Realtor I can help you. Please contact me if you need more information.
Comments(1)