3 reasons why now’s the time for renter’s to become home owners.

If you are currently renting a home or apartment now is the time to consider becoming a home owner. There are 3 very simple reasons why this is true and here they are.

Sellers are motivated and there are some great deals out there
Over the past couple of months I have seen my clients get some great deal on property. I have had clients buy homes for several thousand dollars below appraisal. I have also had customers who have purchased foreclosures that require very little if any work and save a ton of money. In many other cases I have seen sellers make concessions like replacing old carpet, updating fixtures and paying all closing costs and pre-paid’s. The bottom line is if you don’t have a house to sell you are positioned as good as you could possibly be to get a great deal on a home. Make sure you are connected with a great Realtor and they will help you find it.

Mortgage Rates are at Historic Lows
The Federal Reserve is currently purchasing Mortgage Backed Securities in an effort to drive mortgage rates down to boost the housing market. (For an in-depth explanation of this see Marty Preston’s Blog entry titled A Mortgage Pro’s Take on the Market from April 2nd) What this mean to you is that interest rates have dropped to low’s that have never been seen. Take this example; I have a first time buyer client who was renting a 2 bedroom town home in the Hamburg Pavilion area for just over $900 per month. With the help of a local Realtor, we were able to find her a 3 bedroom home less than a mile away. The home was in great shape and needed no repairs. With a 3.5% down payment on an FHA loan (that was gifted to her by her parents) and today’s low rates we were able to get her a payment $10 per month less than her rent including taxes and insurance! At today’s low rates you can own a home for about what you are paying rent. Because of the amount of money the government is pumping into the financial system inflation will soon be on the rise. When it does mortgage rates will be to. Take advantage of the low rates now before it is too late.
The Government is going to give you an $8000 Tax Credit to Buy
As part of the recently passed stimulus package you will get an $8000 tax credit if you have not owned a home in the last 3 years and do it before December the 1st of this year. What this means in very basic terms is as long as you make less than $75,000 if your single and less than $150,000 if your married you will receive a line item credit for $8000 on your 2009 tax return. So think of it this way, if you normally get a refund take that amount and add $8000 bucks to it. If you normally pay, take $8000 away from what you would owe. This is a great incentive and something that everyone who can should take advantage of.

2009 is going to be the year of the first time buyer. The bottom line is if you choose to buy you are going to get a great deal, at a historically low rate and the federal government is going to give you 8 grand to do it. If you would to get to get pre-approved and receive a FREE Home Buyers Handbook give me a call today!

Happy Home Buying!


Brad Hacker, Senior Mortgage Planner
mymortgagepro
Toll Free Phone (866) 293-0411
Fax (859) 293-0511
Mobile (859) 351-6495