What do I do first?

Just the other day I received an email asking, "What do I have to do before I can buy a house?"

Excellent question. Buying a home doesn't have to be an overwhelming process if you just break it down into steps.

There are 4 basic steps in buying your home.

1.) SECURE THE FINANCING. This will give you the amount of money that you can borrow for a mortgage. That allows us to look at the right price range of homes.

That is done by talking with a lender and providing him the proper documentation. I work with several lenders that specialize in first time home buyers. I can match you up with one that best suites your needs.

2.) IDENTIFY THE TYPES OF HOMES AND NEIGHBORHOODS that meet your needs and desires. Decide whether you'd like a single family home or townhouse. How many bedrooms and bathrooms do you need? What neighborhoods do you like?

We'll spend a little time narrowing down your needs and likes so we can target good possibilities.

Based on these things, I will send you listings of homes that fit your criteria. It's helpful to me to have you search the internet and send me the listings of homes you like.

3.) VIEW THE HOMES and WRITE an OFFER.

4.) THE PROCESS: Once the seller has accepted an offer, we will do a home inspection, appraisal and the title work. When that is completed, we meet at the title company's office for closing.

I will work closely with you, the lender, and the title company to make sure things go smoothly. Since this is your first home, I will work and explain each step as we go and always welcome your questions.

OPEN FORUM

Do you have any questions about buying or selling your home in this market? This is your chance to ask a realtor anything that's been on your mind. Please just use the comments link below and well start the dialog!

$8000 First Time Homebuyer Stimulus Credit

After much debate, the final Stimulus Plan contains an $8,000 tax credit to first time homebuyers who purchase a home between now and December 1, 2009.

Apart from the stimulus plan, there is also a $10,000 grant for middle income first time homebuyers currently available. These funds can be used to help with the down payment or closing costs.

That's an $18,000 gift from our government. I hope you spread the news - it won't last forever!

Any questions anyone?

FINAL STIUMULUS BILL REDUCES HELP FOR FIRST TIME HOMEBUYERS

"A $15,000 tax credit for anybody buying a home over the next year was dropped; instead, first-time homebuyers could claim an $8,000 credit for homes bought by the end of August. Car buyers could deduct the sales tax they paid on a new car but not the interest on their car loans..." By Andrew Taylor, AP Feb. 12, 2009

I'm not sure that an $8,000 tax credit to first-time homebuyers will be enough to turn the entire real estate market around, but it's a good start. I would have prefered the higher amount to go to any buyer, and help stimuluate the market across the board.

If you are a first time homebuyer...this is great benefit for you. We'll have to wait to hear the details to see whether or not it can be used towards the downpayment or if it comes after closing. It certainly will help get new carpeting, paint or other things your new home might need! Nancy

Stimulus Plan Update

We're all anxiously awaiting the the final Stimulus Package to be passed by both houses and signed by the President on February 18th. There will be at least one provision for homebuyers in this bill.

On Feb 10th the Associated Press reports:

"HOMEBUYER CREDIT:

_House — $2.6 billion to repeal a requirement that a $7,500 first-time home buyer tax credit be paid back over time for homes purchased from Jan. 1 to July 1, unless the home is sold within three years. The credit is phased out for couples making more than $150,000.

_Senate — Doubles the credit to $15,000 for homes purchased for a year after the bill takes effect, increasing the cost to $35.5 billion."

We hope to see more help for our real estate market in second half of the "TARP" bill now relabeled "FST". More to come on FST.

Introduction

Hello! I've been getting tons of email and questions about the new stimulus bill and the Northern Virginia (NoVa) real estate market. People are wondering how the stimulous bill affects buying or selling a home. They are asking when's the best time to buy or sell a home; as well as all sorts of mortgage questions. Since lots of people are asking the same kinds of questions, I've decided to create a blog for an open dialog. Please send me you questions and help me get the blog going. Go ahead...It's fun!!!!