Buyer’s Series – Does the Stimulus Package help me?

I’m planning on buying a house, but I don’t know if I should buy it now or later, what’s the main strategy these days? I know a few of my friends are saying I should do it quick in order to get the Stimulus Package benefit. Help!

First of all, calm down. You don’t have to buy it today or tomorrow (or yesterday) in order to benefit from the current market. It’s a buyer’s market, it’s been one for a while, so you’re in good shape.

As I understand it, with all income limits considered and whatnot, first time homebuyers will qualify for UP TO $8,000 tax credit (not deduction). What determines the total amount of your credit is the total price of the house. The credit will go toward 10% of the price of the house.

There are also income limits, so read the new bill carefully (if you’re single it’s one thing, if you’re married is another). My best suggestion is to talk to your favorite mortgage lender about it.

Finally, it’s great to realize that it’s a credit and not a deduction. Meaning the money comes right off your tax liability. Pretty cool if you owe Uncle Sam a lot next year.

Questions? Comments? Want to talk more about the bill? Email me at dcharbel [at] kw [dot] com.

Buyer’s Series – I have no credit! Help!

A friend of mine just moved to the United States six months ago. He has six kids, a wife, and no credit history. He’s got a job, is a reliable person, but can he qualify to buy a house if he doesn’t want to rent?

The short answer, is “maybe.” It really depends on the market you’re in, but if you’re in a place anything like San Antonio (chances are good since this blog is being read in 5 countries on three continents) then you’ve got choices in this case.

Odds are that without a sterling credit history you’re not going to be a great candidate for lending from an institution. What’s my recommendation in a situation like this? Seller financing.

Seller financing is available when a homeowner is willing to sell a house as well as collect the mortgage payments (plus interest of course).

Upon completion of the payment schedule the house is owned outright by the buyer. Depending on the state title may or may not be transferred to the buyer at the time of closing/funding, or the seller can wait until the completion of the loan.

What are the benefits of seller financing? You’re more likely to have luck buying a house this way if you have no credit or less-than-perfect credit.

What are the drawbacks of this option? Just like everyone else, sellers who offer financing are looking to make money, so they can charge a higher interest rate than a bank or other lender would. You’ll also be expected to invest in the house with a down-payment.

When in doubt, find a Realtor and ask for their assistance! Need help finding a Realtor you can depend on? Email me or fill out the “Contact Us” form on my website.

Questions? Comments? Concerns? Looking for seller financing properties in your area? Email me at dcharbel [at] kw [dot] com.

Is refinancing a good idea?

Interest rates have been increasingly low (especially this year). As a Realtor® I’m exposed to the mortgage community almost continuously, but make no mistake about it, when it comes to the ever-changing interest rates, cost of refinancing, and other things that your mortgage professionals specialize in.

Give your local mortgage broker a call. Ask questions. Make sure you make the right decision, though.

Questions? Comments? Concerns? Need a recommendation of mortgage consultants? Email me at dcharbel [at] kw [dot] com.