For those of you who waited until this year to purchase a first home, you might have made a great decision! While many first time home buyers ran around scooping up all the great properties last summer and fall, we were able to clear up much of the inventory. Many people were so excited to just BUY a property, they didn't care so much about condition, location, or what they really wanted. That tax credit was so exciting that many irrational purchases were made only to not miss out on the $8,000 tax credit.
The great news for you, is that with the new year beginning, many people will not be out looking for homes in January and February. Historically, the best deals are in the coldest months. Since the tax credit expires this April 2010, you have a 60-day window with almost NO competition and your pick of the best properties. For first time home buyers, the tax credit is still $8,000 and for second time home buyers, they have added a $6,500 credit as well. (For more details on qualifications, contact me)
If your mortgage is a FHA, you will only have to put down 3.5% and will be able to ask for a seller concession up to 6%. What this means, is that you could buy a home that is $150,000 for an out of pocket cost under $8,000, and then a few months later, get back your tax credit of $8,000! So.... it is almost like buying homes for No money down! It has been MANY years since buyers/investors were able to do this!
It is an exciting time, and the best time to get out there is when no one else is looking.... right now. Narrow down what you like, where you want to live, and be realistic as to how much time, work and improvements you may want or need to put into a property. Many first time home buyers get excited about the thought of buying a foreclosure for the savings. However, banks normally want cash offers, and they need a lot of work.
I have a ton of listings right now that are under $200,000 and are in Burlington and Camden county that are perfect for the first time home buyer. For example, who wouldnt' want to live in a beautiful 2 bedroom condo in Mt Laurel for $155,000 or a Single Family Home in Pennsuaken for $170,000? Both of these properties can be purchased with VERY little up front costs.
The best thing you can do as a first time home buyer is sit down with a mortgage professional and see what your options are. Let him/her know the questions you have so that they can put you in the best program out there. With rates at an historical low, now is the time to get out there are start making those new years resolutions of home ownership come true!
Mortgage Contacts For Reference:
Tom VanAuken - Coldwell Banker Mortgage 609-417-1098
Jeramiah Phillips - First Mutral Corp - 609-760-9234
Bill Sandvig - Wells Fargo - 908-295-5324