You are ready to buy your first home.....

...but just not sure where to begin. This is a big step and you definitely want to make certain you have a strong foundation before you even look at the first house. One of the first things you need to do is get your finances in order and understand how much you can truly afford.

So often new buyers just kind of “fly by the seat of their pants” guessing how much they should be spending on a home. That may work okay for small purchases but definitely not on the largest financial investment you will most likely ever make!! As many of you know, you need to sit down with a loan officer, get pre-approved and figure out how much a lender will allow you to borrow. However....don’t stop there!! That is just the tip of the iceberg!! It is up to you to determine how much you can really afford....there is a huge difference.

Your loan officer will go over your income, debts, and credit score to determine how much they will loan you. However, they have no idea about your lifestyle....you need to factor that in. Do you like to take small weekend trips? Are you planning to go back to school? Do you have children or plan to start a family soon? What about your car? Are you looking to purchase another soon? Think before you leap. Either you are going to own your home or it is going to own you.

The best thing to do is figure out your budget....and, oh, how we hate to do that!!! However, if you don’t know where your money is going, how can you make adjustments needed for homeownership? Collect your spending data for at least a three-month span to determine how much you spend in a typical month on various things. You may be surprised you spend $100 a month on Starbucks or $300 a month going out to dinner and the movies.

Once you know where your money is going and have made adjustments in your spending habits, you can take the lenders information and determine what is best for you. I have actually recommended to several buyers to take the difference between what they pay now for housing...whether it is their current house payment or rent....and what the new payment will be, put that money in the bank and feel the pain of the new financial commitment before signing on the dotted line. That will not only give you a feel of how comfortable that monthly expense will be on your budget but will also give you a little nest egg to use on perhaps closing costs, window coverings or appliances!!



Dawn Lawson, CRS, ABR
Cutler Real Estate
Dawn@DawnLawson.com
http://www.dawnlawson.com/

$7,500 First-Time Home Buyer Tax Credit

This is an incredible time to buy....especially for first-time home buyers. I can’t believe interest rates are at a record low....below 5%. And then, you add the $7500 Government Tax Credit on top of that!!!

A few of my buyers have asked me what is needed to qualify for the tax credit. These are the highlights of the program....

Tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500
The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
The tax credit works like an interest-free loan and must be repaid over a 15-year period.

Detailed information can be found at $7,500 Tax Credit.

If you have any questions, please don’t hesitate to email, call, or comment on this blog. I will be glad to answer your questions or point you in the right direction to get you the answers you need.

Dawn Lawson, CRS, ABR
Cutler Real Estate
Dawn@DawnLawson.com
http://www.dawnlawson.com/

Happy New Year!!

I hope all of you are having a wonderful New Year. Lets hope 2009 will be good to all of us!! With the $7500 tax credit for first time homebuyers, record low interest rates as well as tremendous inventory, we should see the market open up this year. It is a perfect time to buy!!

It was refreshing to see the foreclosure rate for 2008 in Summit County dropped from 2007. As a member of Summit County's Foreclosure Prevention Partnership Program, we have been doing outreach programs in an effort to save homes.....and apparently it is working. We are continuing to find ways to educate and assist homeowners who are in jeopardy of losing their homes.

I wish all of you a Healthy and Happy 2009!!!