First Time Buyer Central

The Obvious, and Hidden, Costs of Buying a Home

Posted on May 2, 2010 by Jeff Dowler

No doubt buying a home these days is expensive. Particularly in some parts of the country such as Southern California.

Many of the costs are obvious, but some are expenses buyers don’t necessarily think about, or are somewhat hidden.

In this first article of 3, the focus is on the costs you may incur during the home search, as well as after you get an offer acceptance. Because some folks are backing out of deals, or having them fall apart (especially the short sales and foreclosures [REOs]), there may be fees you are paying even though you don’t end up with the home you want.

Posted in Financial, House Hunting | Tagged buyers, Financial, first time buyer, first time buyers, first time buyers. home search, home search, House Hunting | Leave a comment

Do You Have Proof of Funds?

Posted on April 27, 2010 by Jeff Dowler

Proof of funds (POF) can be an important component of your offer.

If you are a buyer with a down payment, it may be in your best interest to submit an offer with proof of funds. While this may only be required in the case of REOs and short sales as we see here in Southern California, I think it may be in your best interest, and make your offer more competitive, if you include a copy of a bank statement or other record (black out those account numbers) to prove you have the funds for the down payment.

If you are a cash buyer this is pretty much a MUST DO part of your offer.

Your state contract may require this, as ours does, after offer acceptance, but why not show your interest and your financial capability to the seller up front.

Visit my Real Estate Consumer Blog at Carlsbad Real Estate News for lots of information about the general area.

Posted in Financial, Offers | Tagged buyers, down payment, Financial, first time buyers, Offers | 1 Comment

Summary of FEDERAL and CALIFORNIA Tax Credits

Posted on April 12, 2010 by Jeff Dowler

Time is running out to get in on the Federal tax credits.

But if you are able to put a California home under contract BY APRIL 30, 2010 and CLOSE after MAY 1, you could get both the Federal and California state tax credit (up to a total of $18,000!!).

Here’s a handy dandy summary of what you need to know to take advantage of these tax credits.

Visit my Real Estate Consumer Blog at Carlsbad Real Estate News for lots of information about the general area

Posted in Financial, Taxes | Tagged first time buyers, House Hunting, Taxes | 2 Comments

The Importance of Your Credit Score – What it Is, and What You Can Do to Improve It

Posted on April 4, 2010 by Jeff Dowler

Having a strong credit history and score is critical in this buying market, especially since the banks are getting stricter with their lending requirements and the scores that are acceptable.

Many folks are not really even aware of their credit score and history until they start looking into buying a home. And sometimes there are errors that buyers are not aware of.

There are a number of things you can do to improve your credit score, as well as things you should not do because they will lower your score.

This article by a friend of mine back East is an excellent overview of what the FICO (credit score) is, what impacts it, and how you can improve it. A VERY worthwhile read.

Increasing FICO Scores to Purchase a Home

Visit my Real Estate Consumer Blog at Carlsbad Real Estate News for lots of information about the general area

Posted in Financial, Mortgage info | Tagged buyers, credit score, first time buyers | 3 Comments

NEW Tax Credits for California Homebuyers

Posted on March 26, 2010 by Jeff Dowler

Here is some great news if you are planning on buying a home, or thinking about it.

New legislation signed yesterday by the Governor approved new state tax credits for:

First Time Home Buyers

Buyers of NEW homes (i.e., new construction or never occupied before)

The NEW TAX CREDIT is up to $10,000. And if you time it right you COULD receive up to $18,000 (provided you meet all the qualifications) if combined with the current federal program that is ending soon. You would need to CLOSE on your new home ON or AFTER May 1, 2010 and ON or BEFORE June 30, 2010.

Let me know if you have questions or need help making your home buying dream a reality! It’s important to also consult a tax professional to see if you qualify and what the tax implications might be. The credit for Californians is paid out over 3 years.

Posted in Financial, Taxes, What do I Buy? | Tagged buyers, first time buyers, first time home buyers, Taxes | Leave a comment

Here’s How to Get in Touch with Me if You Need to!

Posted on March 21, 2010 by Jeff Dowler

Communication these days is pretty complex, given all the options.

I wrote this article for buyers and sellers who are interested in getting in touch me with me, for whatever reason, about the different ways we can communicate. Some of this is pretty obvious, but hopefully it will be useful to you if the need is there.

Want to Get in Touch With Me? Here’s How

Posted in Personal Stuff, Realtor's Job | Tagged buyers, first time buyers | Leave a comment

Update on the California (Southern California Real Estate Market)

Posted on March 20, 2010 by Jeff Dowler

Here’s is some encouraging information, with some concerns, about the California real estate market. Rather than reproduce it here, check out the link:

Update on the California and Southern California Real Estate Market (as of January 2010)

Posted in market reports | Tagged market reports | Leave a comment

Are YOU Interested in Buying an REO?

Posted on March 10, 2010 by Jeff Dowler

I just wrote an article that may interest you IF you are interested in buying an REO…or perhaps have little choice because of price range.

There are some important questions that I like to ask, so these might be useful for you to consider so you can decide IF buying an REO is right for you.

If nothing else, it will help you be prepared for the issues you need to confront during the search.

SO YOU WANNA BUY AN REO? ARE YOU REALLY READY?

Posted in House Hunting, Psychological Stuff, REOs, What do I Buy? | Tagged bank owned properties, first time buyer, first time buyers, first time home buyers, foreclosures, REOs | 1 Comment

Misconceptions About the First Time Home Buyer’s Tax Credit

Posted on February 13, 2010 by Jeff Dowler

First of all, don’t forget that this credit is not going to last forever.

The DEADLINE to get the credit is APRIL 30, 2010 (You must have your new home under contract by that date, i.e., a binding sales contract, and CLOSE by the end of June). So if you are going after a short sale, you may lose out given what we know about how these transactions get delayed.

A misconception is the amount of the credit for first time home buyers.

Folks often think it is an automatic $8000. Buy a $60,000 condo and you get a credit of $8000.

WRONG. Unfortunately.

BUT, the credit is UP TO $8000 based on the purchase price of the home, with the credit being 10% of the purchase price.

THIS IS A CORRECTION TO MY ORIGINAL POST (thanks to a recent reader) So an $80,000 purchase yields a credit of $8,000, depending, of course on income (there are limits in the plan) and your personal tax situation.

Another important point is the ARM’S-LENGTH TRANSACTION – you can read more about this in an article by a friend of mine, MISSY CAULK, in Ann Arbor, Michigan (It must be an Arms-Length Transaction to Claim the Tax Credit). BTW if you are looking to by OR sell a home in Ann Arbor, Missy is THE REAL ESTATE AGENT to call. Tell her I sent you!