Housing & Economy Recovery Act of 2008

Summary of Key Provisions

Hints for First Time Buyers

1. Get preapproved through a Mortgage Broker.   This process will allow you to know the maximum price you can pay for a house.   While VA loans does not have a minimum Beacon Score, most other loans will require a miniumum 620 score.

2. Research to determine the type of home that appeals to your taste - ranch, cape cod, etc. Know the number of bedrooms/baths that are necessary for your family.

3. Know the geographical location where you want your home to be; for instance, within a certain school district boundary.

4. Do not let obtaining a specific home become an emotional issue; remember what you can spend and stick to that. Set your upper price level and do not deviate.

5. Obtain preapproval from a mortgage broker, mortgage company, or other financial institution. You will need this in order to make an offer. Today's sellers are very savvy and will not take their home off the market without some assurance that you will be able to purchase.

6. Interview several Real Estate Professionals until you find one that you feel comfortable is listening to you and taking your needs and desires into account. Remember, this is your home search and your money and you need to make sure that the Realtor is listening to you. Sign an Exclusive Right to Buy agreement with one Broker.

7. Walk through at least 10-12 homes with your Realtor. On a sheet of paper, write down your likes and dislikes for each property. Also, verify that its price is within your budget. Decide what your offer will be. You should have two figures in mind - the ideal price you want to offer and the maximum price you will offer.

8. Have your Realtor verify that the property is within the school district boundaries that you require. Have your Realtor prepare the offer at your offer price. You will have to give your Realtor an Earnest Money check; usually from $100-$1000 (depending on the seller's requirements). Also, give your realtor the preapproval letter from your financial institution.

9. Points: a. If the property is preowned, a Home Inspection is recommended; it is always better to be safe than sorry. Generally speaking you should be able to have a home inspection done for around $500. b. You probably want a termite inspection - this is going to be required by your financial institution; generally costing from $125-$200. c. Give yourself at least 45 days to close as the loan process may take this long or longer.

10. If your offer is accepted, your Realtor will provide you with a copy of the executed contract (one signed by you and the seller). You should get this to your financial institution immediately so that you can begin the loan process. Word of advise - whatever your financial institution tells you they require in your loan package then you must provide it. The Universal Residential Loan Application is long and detailed and must be completed in totality. Should you have a question, please consult your loan officer. Other financial documents will be required in order to process your loan.

11. If your offer is not accepted, do not exceed your maximum price. Do not let this become a bidding competition or an emotional decision.

Contact me and I will provide you with excellent service.

Benefits of Home Ownership

• Dollar for dollar the rate of return on an indivdual's cash down payment on a house is substantial
• You can deduct the mortgage interest and property taxes from your income taxes
• The gains from a primary residence that you've occupied for two out of the five years can be tax free.

Resources:

• Find out about FHA loans
• Find out about other loans - search for "Consumer Literacy"
• Primary Mortgage Survey at Freddie Mac
• The value of your investment over time