Wake Forest Homes & Real Estate

Foreclosures! Complete MLS Sheets on all the Raleigh Area Foreclosures & Information on Buying Them!

tripp@aliceray.com (Tripp) — Tue, 18 Aug 2009 16:13:51 GMT

Are you looking for or thinking about purchasing Foreclosures?

Here is the information you need to know as well as access to all of the areas foreclosures!

To start with here are the links that will show you the full MLS sheet on every property in Foreclosure in the following counties that is actively listed in the MLS system:

Links Updated 8/18/2009

Click here to view foreclosures in Wake County - 132 Available!

Click here to view foreclosures in Franklin County - 26 Available!

Click here to view foreclosures in Granville County - 9 Available!

Click here to view foreclosures in Johnston County - 69 Available!

Click here to view foreclosures in Durham County - 77 Available!

On each of the above links it will take you to a page that looks like the screen shot below. You will be able to move through each of the listings by clicking on the right arrow as indicated in the screen shot below. The screen shot below also tells you how to look at the pictures and a virtual tour if available.

You can also request any of these searches be set up for you and have them automatically email you new listings everyday by sending us an email at alice@aliceray.com and letting us know what type of search you would like.

If you are interested in purchasing any of the homes please let us know and we would be glad to assist you as your buyer's agent. You can call us at 919-556-6459 or email us at alice@aliceray.com.

*These listings are in the Triangle MLS System and are not listed directly by our team. As Realtors we are able to show you any home on the market and provide information to you. We will be able to assist you as your buyer's agent in the purchase of any of the homes.

First Time Homebuyer Update! Use the $8,000 Tax Credit as a Downpayment/Closing Costs Now!

tripp@aliceray.com (Tripp) — Mon, 01 Jun 2009 20:39:05 GMT

HUD: Tax Credit Can Be Used on Closing Costs

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

If you are in the market for your first home in the Wake Forest, North Raleigh, or Franklin County Areas, or know someone who is please email or call us today to let our team help guide you in the purchase. As your Realtor we can help you make sure you make the right choices and take advantage of this Great Time to Buy! Email us at alice@aliceray.com or call us at 919-556-6459!

First Time Homebuyers - This Blog is for You! $8,000 Tax Credit Info & More!

tripp@aliceray.com (Tripp) — Wed, 20 May 2009 16:10:21 GMT

First Time Homebuyers

What you need to know!

First off you have made a good first step by visiting our website. In this blog we are going to try to give you all the information you want without requiring anything of you. No special meeting to attend, no phone number, and no email address. In the end we hope you have gained some knowledge and are ready to make that exciting step into homeownership!

Here is a list of things we are going to cover:

1. First Time Buyer Tax Credit

2. Getting Pre-Approved for a Mortgage

3. Choosing a Realtor to Represent You!

4. Searching for Homes

5. Making the offer!

6. Savings of Owning versus Renting

7. Give the Alice Ray Team a Call or Email!

You can reach us at alice@aliceray.com or contact Alice directly at 919-906-5794!

Ready? Let's get started! Click on any of the above topics to the specific blog on that section!

First Time Homebuyers Section 1 - 2009 First Time Home Buyer Tax Credit

tripp@aliceray.com (Tripp) — Fri, 15 May 2009 19:53:15 GMT

First Time Buyer Tax Credit

I'm sure most of you have heard about the first time home buyer tax credit that is available to anyone who has not owned a home in the past three years. If not, don't worry, I'm going to provide all of the details for you and also clear up a few frequently asked questions.

The details:

First the original 2008 Tax Credit

In 2008 Congress created a $7,500 First-Time Homebuyer Tax Credit.
It went into effect April 8, 2008 and was set to expire July 1, 2009.
The big problem: It had to be repaid over 15 years. People view it as a debt and not as a benefit.

So a new credit was introduced in 2009 largely beacuase of a strong push from the National Association of Realtors!

We succeeded in removing the repayment requirement for 2009.
The credit has been extended to on or before November 30, 2009 and can be claimed by those who closed on homes on or after January 1, 2009. It is still repayable for 2008 purchases.
The credit has been expanded to the lesser of $8,000 or 10% of purchase price. Therefore any home over $80,000 will receive the $8,000 tax credit.

So what this means for the current first time homebuyer looking to puchase a home now: You will receive an $8,000 Tax Credit if you home purchase is at least $80,000 as long as you close on your new home before November 30, 2009!

Here are a few things to remember about the credit:

1. The new tax credit is REFUNDABLE!

Refundable means that if your total tax liability in the given year is less than $8,000, the IRS will send a refund for the balance! Many taxpayers do not have tax liability that exceeds $8,000. For example, according to the 2008 IRS Tax Tables:

•A single filer would need $46,600 in taxable income to have $8,000 in tax liability.

•A couple would need $58,600 in taxable income to have $8,000 in tax liability.

•Those with less tax liability will in most cases get a refund meaning they get the full value of the credit.

2. Who Cannot Take the Credit?

If any of the following:

–Your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

–You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

–You stop using your home as your main home.

–You sell your home before the end of three years.

–You are a nonresident alien.

3. First Time Homebuyer Definition:

Defined as someone who did not own another main home at any time during the three years prior to the date of purchase.

–For example, if you bought a home on January 15, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another home at any time from January 15, 2006 through January 15, 2009.

–So if the last time you owned a home was 2005, you are eligible for the credit even though it is really not your “first” home.

–For married joint filers, both must meet the 1sttime homebuyer test to take the credit on a joint return.

4. More on Income Limits:

TYPE	INCOME LIMIT	PHASE OUT START
SingleFilers	$95,000	$75,000
Married Filers	$170,000	$150,000

This means that for singles making over $75,000 and couples making over $150,000, the credit is proportionately reduced as incomes approach $95,000 and $170,000 respectively.So if a couple makes $165,000, the excess amount is used to create a fraction 15,000/20,000 (.75) times the credit amount. 75% or $6,000 of the credit would be disallowed. They would still get a $2,000 credit.

5. The Home Details:

Must be the “main home” i.e. principal residence. Which is generally considered to be the home where you spend 50% or more of your time. It can be a condo, Single Family detached, co-op, townhouse or something similar.

•The home must be located in the United States .

•Vacation homes and rental properties are not eligible.

•For new construction, the “purchase date” is the date you occupy the home. So the move in date must be before December 1, 2009.

6. Recapture 3-Year Residency

•If the home is sold prior to three years of ownership, the tax credit must be repaid.

–This is an improvement from the prior credit. That credit needed to be repaid in total over 15 years or the balance had to be repaid on sale.

•This provision is designed to prevent flipping homes in order to get the credit.

7. Other Provisions

•The new credit is available to residents of the District of Columbia

•Purchasers who utilize state/local revenue bond financing can now use the credit.

•Purchasers who bought before January 1, 2009 are still subject to the terms of the repayable credit.

8. When Can You Claim the Credit

It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

Conclusion

•The new credit is greatly improved compared to the old credit.

•It is a true credit and does not need to be repaid as long as you occupy the home for 3 years.

•NAR estimates that hundreds of thousands of potential buyers will take advantage of the credit.

Click here to continue to How to Get Pre-Approved for a Mortgage

Click here to return to the Main Blog so you can reach the other topics.

First Time Homebuyer's Section 2 - Getting Pre-Approved for a Mortgage

tripp@aliceray.com (Tripp) — Mon, 11 May 2009 19:57:56 GMT

How to Get Pre-Approved for a Mortgage

Pre-approval is an important first step in the home buying process, especially for the first time home buyer. Many people will start off looking for homes online and getting figured out exactly what you want only to find out later that you may or may not be able to afford what you are looking at. Once your expectations are set so high it is difficult to adjust to homes that are available in your price range. Finding out first home much home you can afford will put you in a much better position and save you a lot of time.

One note I want to point out at this time is just because a lender approves you for a $300,000 home, doesn’t necessarily mean you shouldn’t consider homes less than that. One big mistake that many people have taken in the past is they buy as much home as they can and they struggle to make all of the payments every month and therefore have to cut back on savings and everyday luxuries and necessities that they are used to. Always leave yourself some wiggle room and make sure you are comfortable with your payments and are still able to save a little each month.

Now back to getting Pre-approved. Pre-approval is better than getting pre-qualified. A mortgage lender is able to pre-qualify you with limited information, but going ahead and getting pre-approved gives you a leg up when you make an offer on the home you decide on. Pre-approval means the lender has verified many more things and you are essentially approved for the loan with minimum conditions left to meet. Your offer will look stronger with a pre-approval letter.

Here are the steps and the necessary information and paperwork a mortgage lender will ask you for:

1. Choosing a Lender

First thing you need to do is get in touch with a mortgage lender. Many people’s first option is their current bank or who they have their current home loan with. If you are a first time home buyer you may want to consider a parent’s mortgage lender or a recommendation from a friend who has a mortgage lender they trust. Another good option is to get a few options from a Realtor. Realtors have many lenders that like to earn their business and will generally work hard to make sure a Realtors client they send to them is well taken care of.

2. Loan Application

The Mortgage lender will need you to fill out a loan application. Many lenders now have this available online for you to fill out or can send you one by email. You can also either meet them at their office even talk to them on the phone and they can fill out the information for you. It is usually a simple process that will only take 20 to 30 minutes.

Here are some questions that many lenders applications will ask:

For your street address, e-mail address, phone and Social Security number. If you've lived at your current address for less than three years, the lender will want to know where you lived before that. If you are buying this home with another person or persons, they'll probably want to know your relationship to the co-borrowers.
Whether you currently rent, own or live with family.
How many dependents you have.
Your annual income.
Your occupation, employer and how long you've been employed there. If you've been with the company for less than two years, it will ask where you worked previously.
Your assets -- what you own and what it is worth. This includes your current home and other property, checking and savings accounts, stocks, bonds and retirements accounts.
Your liabilities -- how much you owe, to whom and how much you pay every month.
Whether you have filed for bankruptcy in the last 10 years.
Whether you are behind on any bills.
Whether you are a first-time buyer.
Whether you are buying a home as a residence or rental property or, in the case of a duplex or other multi-family unit, both.

You may not need them immediately but eventually you will need your W2s, pay stubs, bank statements, brokerage statements and more. So it's never too early to start a file and fill it up.

3. Credit Report/Score

With your social security number, full name, and address all of your past financials is complied and rated.

The higher the score the better a 750 score and above your at the top of the list, 680 and above you are in the game but may have hoops to jump through for a better interest rate, below 650 you can still get a mortgage usually at a much higher interest rate.

You may want to consider getting a credit report on your own before speaking with a lender. You are entitled to a yearly free credit report from each of the main three reporting agencies. You can go to www.annualcreditreport.com to get yours. If you are married you would want to get it for you and your spouse. By getting this ahead of time you may be able to find errors that you can work on correcting before you contact a lender. Many lenders can also help you find these errors and advise you as to how to correct them to get where you need to be.

4. Answer Questions and Provide Documentation

Depending on how complicated your finances are you may receive your pre-approval in a couple of hours or it may take days. If you have held the same job for 10 years and have no credit card debt, two car payments, and a simple financial portfolio it may only take an hour, but if you have changed jobs 5 times in the last 5 years, have many credit cards with debt, late payments, etc., it may take as long as a week or two to get pre-approved.

Be ready to provide tax returns, W-2’s, bank statements, etc if the mortgage lender needs it to produce the pre-approval. The quicker you can provide all the documents and information the faster the pre-approval process will go.

In today’s lending market the rules are changing constantly and mortgage lenders are having to request more to get loan approved by the underwriters so do not let the loan process frustrate you if additional questions or requirements come up. This is just a sign that the lending institutions are now researching people better to make sure they are lending as they should so we are able to get out of the current financial mess we are in.

5. Get your Pre-Approval Letter!

Once the lender sends you the pre-approval letter you are ready to provide this to your Realtor and start house hunting! Your Pre-approval letter will usually state what price home you are pre-approved up to and sometime the type of loan program and at what interest rate you are pre-approved for. You may also want to ask how long your pre-approval letter is valid for – typically this can be anywhere from 30 to 90 days. Most lenders will extend the pre-approval once the time runs up but they may require for your credit to be checked one more time before they extend it.

Now you are a qualified buyer and are ready to seriously begin searching for your new home! Once you have reached this step the fun stuff begins. Now you need to make sure you choose the right Realtor to represent you in purchasing your home!

Click here to go to the next section about choosing a Realtor to help represent you!

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First Time Homebuyer Section 3 - Choosing a Realtor to Represent You

tripp@aliceray.com (Tripp) — Wed, 06 May 2009 20:05:54 GMT

Choosing a Realtor to Represent You

Many 1st time home buyers are often confused about how a Real Estate Agent helps to represent them and how that Real Estate Agent is paid. I hope to clear up these questions in this blog and help you to understand the benefits of choosing the right agent.

1. Working With Real Estate Agents

The first thing I would like to bring your attention to is a document called Working With Real Estate Agents, which was produced by the North Carolina Real Estate Commission and is designed to give you a description of all of the different types of Agency and the differences between them. I recommend you click on the link above and read that form. Your Agent will ask you to sign a copy of that form to acknowledge that you have received a copy. The NC Real Estate commission requires agents to have a signed copy with every client they work with, buying or selling.

2. Buyer’s Agent

The most common type of agent for a buyer to have is what is known as a Buyer’s Agent. In the buyer’s agent relationship the agent works in the sole interest of the buyer. Here is the information from the document above about Buyer’s Agents:

Duties to Buyer:

If the real estate firm and its agents represent you, they must

· promote your best interests

· be loyal to you

· follow your lawful instructions

· provide you with all material facts that could influence your decisions

· use reasonable skill, care and diligence, and

· account for all monies they handle for you.

Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer's agent, they may not give any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer's agent, you should avoid telling the agent anything you would not want a seller to know.

3. How a Buyer’s Agent is Paid

When a buyer’s agent helps to represent you in the purchase of your new home they are compensated by the listing company. The listing company has a listing agreement with the seller that states a specified commission that will be paid to the listing company. The listing company then advertised the property in the MLS system and agrees to pay a buyer’s agent a certain portion of the commission they are receiving.

Frequently Asked Questions:

Question: Will I get a better deal if I go directly to the Listing Agent?

Answer: Many times a buyer thinks they will get a better deal if they deal directly with the listing agent. But in reality the listing agent will just end up getting the entire commission and will not be paying any portion of the commission to a buyer’s agent. In the end the same amount of commission is paid by the seller.

Question: How do I know an agent has the experience to represent me and help me avoid potential pitfalls?

Answer: Real Estate Agents in the last several years have increased in numbers dramatically. Almost everyone knows a friend, family member, or friend of a friend who is a Real Estate Agent. In the last year though, there have been a large reduction in the number of agents in the business do to the current economic situation and the increase in education that is now required to be an Active agent. When choosing an agent to help you I would recommend picking someone who has been steady in the business for many years and they do real estate as a full-time profession. There are many agents who do real estate part-time and try to help there friends and family when their real estate needs arise. This is OK if you feel confident that they stay on top of the real estate industry and are very knowledgeable of the latest forms, contracts, and potential problems that are arising in today’s market. The market today is changing on almost a daily basis and you need an agent that is dedicated to the profession. Would you have a doctor perform surgery who did not have the past experience, is up to date on the latest techniques, or only occasionally performed surgeries? I don’t think you would want to make the same mistake with the most likely largest purchase you ever make. Find someone with experience......and by the way – even you couldn’t guess, I highly recommend the Alice Ray Team with RE/MAX Hometown!

4. Dual Agency

Dual Agency comes about when the agent representing you as your buyer’s agent shows you one of their own listings or one of the listings their company has listed. Sometimes Dual Agency is not the best option for a buyer. If you are working with a reputable agent who has been in business for a while you probably do not have anything to worry about as that agent will be able to represent both sides the correct way and will not risk their reputation and credibility at the sake of one side or the other. Even though your agent is showing you a listing that is listed by their company there is a good chance that they are unfamiliar with the seller or any of the details of the listings. You can have the agent represent you as a designated agent in this case and you pretty much have the same relationship as you would with a buyer’s agent.

Here is an excerpt from the Working With Real Estate Agents brochure on Dual Agency:

Dual Agent

You may permit an agent or firm to represent you and the seller at the same time. This "dual agency relationship" is most likely to happen if you become interested in a property listed with your buyer's agent or the agent's firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer's agent will ask you to sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.

Some firms also offer a form of dual agency called "designated agency" where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each "designated agent" to more fully represent each party.

If you choose the "dual agency" option, remember that since a dual agent's loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of

· what your relationship is with the dual agent and

· what the agent will be doing for you in the transaction.

This can best be accomplished by putting the agreement in writing at the earliest possible time.

Conclusion

Find an agent with experience, good reputation, and is full time. They can end up saving you money in negotiations, delays, choosing the right loan, repairs, etc.

Click here to go to the next topic – Searching for Homes

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First Time Homebuyer Section 5 - Making the Offer!

tripp@aliceray.com (Tripp) — Mon, 20 Apr 2009 19:42:03 GMT

Making the Offer!

You have your pre-approval letter in hand, have done your home searching, viewed your favorites with your Realtor, and have made a decision on the house you are ready to make an offer on.

How do you know what to offer?

Depending on the market you will want your Realtor to pull up comparable homes in the neighborhood or area that have sold in the last 6 months. They will be able to provide you this information from the MLS system and the tax records. This will help give you an idea on what comparable homes have been selling for and what is realistic. You Realtor will be able to help you decide what to offer and help go over all of the terms of the Standard Offer to Purchase and Contract form. There are many addendums available to go with the offer that your Realtor can recommend if they fit your situation. This is where having an experienced Realtor who is a good negotiator is crucial. They will be able to help negotiate the best terms for you and keep everything running smoothly.

One thing you will need to keep in mind is that you will need to present and Earnest Money Deposit with your offer. The Earnest Money Deposit is generally written to the Listing Company and they will hold the money in their Trust Account until closing. At closing the amount of your Earnest Money Deposit goes towards the purchase price of the home. Depending on the price of the home you are purchasing this can range from as little as $250 to $10,000 and up. Most of the times for first time homebuyer’s it is in the $500 to $1,000 range.

Once you have looked at the research your Realtor has gathered for you and have completed the Offer to Purchase and Contract form, your Realtor will present the offer along with a copy of your earnest money check and pre-approval letter to the listing agent. Many times the Seller will end up submitting a counter-offer back to you. At that point you can either accept the seller’s counter-offer or choose to send them another counter-offer back. This can go back and forth several times but an experienced Realtor will be able to get to an acceptable point for both parties without too many counter-offers. For common Questions & Answers on Offers & Acceptance visit this link: Questions & Answers on Offers & Acceptance

Once an agreement is reached any changes from the original offer will need to be corrected and then signatures from both sides will be needed. At this time the Listing Company will deposit your Earnest Money Check into their Trust Account.

More than likely your contract will read that you are able to do various inspections at the home. The most typical ones are the following:

Home Inspection – The most common inspection you will perform is the Home Inspection. If you do not already know of a Home Inspector you would like to hire your Realtor will be able to provide you with a recommendation. The home inspector will inspect the home and let you know of any problems they recommend being fixed. They will generally provide you with a report that includes descriptions and pictures of any problems. For common Questions and Answers on Home Inspection click on this link: Questions and Answers on Home Inspections

Radon Test – A Radon Test is also recommended. Radon is a colorless, odorless, tasteless, naturally occurring, radioactive noble gas that is formed from the decay of radium. The majority of times Radon is a problem is in a home that is built with a basement or on a slab foundation. If you are purchasing a home that has either of those you will probably want to get a radon test. There are homes with crawl spaces as well that have high radon levels so just because you are purchasing a home that has a crawl space does not mean you may not have a radon problem. Many times the home inspector you choose is also able to perform the radon test for you. For more information on Radon visit this link: Radon Information from the EPA

Termite Inspection – A termite inspection is also recommended. Many homeowners will keep a termite bond on their home with a Termite Company who guarantees to keep the home free of termites and will treat the home if any termites appear. The homeowner pays an annual fee that is typically 1/10 the price of having your home treated. The company will typically allow for the bond to be transferred for a small fee so that is something you will want to look into if the seller already has a termite bond in place. If the homeowners do not have a termite bond in place it is definitely recommended to have the property inspected.

Water/Septic Inspection – Depending on the type of water & sewer system the home you are purchasing has you may want to have them tested. If you are on a county or city sewer and water system you more than likely do not need to worry. If you have a private well and septic tank it may be a good idea to have a Water Test and also a Septic Inspection. Your Home Inspector can probably perform the Water Test, but it is recommended to have a licensed septic installer inspect the septic system. Your Realtor can recommend one to you.

After all of the inspections are completed your contract typically allows for you to request for the seller to repair any items that are not doing their intended function. This sometimes will end up being another negotiation item that your Realtor will be able to help you with. If you are purchasing a New Construction home it is generally not a problem to have all the items fixed that may come up in the inspections and you will also do what is called a punch list walk-through with the builder. This is where you are able to get even cosmetic items like paint touch ups fixed.

This covers the basics of making an offer on a home and into the first few steps of working towards closing. There are other items that your Realtor will help you complete between acceptance of your offer and closing, but for now if you have further questions about the process feel free to contact us and we will be happy to answer your questions! You can email us at alice@aliceray.com or call Alice directly at 919-906-5794!

Click here to go to the next section called Savings of Owning versus Renting

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First Time Homebuyers Section 6 - Savings of Buying versus Renting

tripp@aliceray.com (Tripp) — Wed, 01 Apr 2009 20:11:22 GMT

Savings of Owning versus Renting

You have to consider a number of things if you are wondering whether you would be better off renting versus owning. One of the biggest things is how long you plan to stay in the home you buy. If you are only planning to be in the home a year or two, renting may be your best option. If you plan to stay in the home 5 years or more you will probably be better off buying.

Here are several links to some research that was done to help you decide what is best. These links take you to the Government National Mortgage Association (Ginnie Mae) website:

Buying Versus Renting

Buying Versus Renting Comparison Chart

Buying Versus Renting Calculator

If you play around with the calculator you can see that there is a huge advantage to owning a home versus renting if you plan to stay in the home for a while. If you have further questions about this feel free to contact us at alice@aliceray.com or by calling Alice directly at 919-906-5794.

Click here to go back to the Main Blog page showing all of the First Time Homebuyer Sections

$8,000 Tax Credit for First Time Homebuyers. Do you qualify as a first time home buyer and can you receive the $8000 credit?

tripp@aliceray.com (Tripp) — Fri, 06 Mar 2009 15:30:41 GMT

Homebuyer Tax Credit of $8,000!

>> >

The $787 billion stimulus bill that President Barack Obama signed into law Tuesday includes an $8,000 tax credit to first time homebuyers. The good news about this credit is that it does not have to be repaid like the previous $7,500 tax credit required. Here are a few points to remember about the tax credit:

The credit applies to first time homebuyers. To qualify as a first time homebuyer you need to be someone who has not owned a primary residence in the past three years. If you have owned an investment property but not a primary residence then you will still qualify.

The credit only applies to first time homebuyers who purchase a home between January 1, 2009 and November 30th, 2009. So, if you made a purchase as a first time homebuyer anytime so far this year you qualify to receive the credit!

There are income limits on who can receive the credit. As a single buyer your modified adjusted gross income must be less than $75,000 and as a married couple the limit would be $150,000. People who make over these amounts may qualify to receive a partial credit.

In order to not have to repay the credit you must own your home for at least 3 years.

Even if you do not owe much in taxes you can still take advantage of the credit since you are able to receive it as a tax refund!

The tax credit is 10% of the purchase price up to $8,000. Therefore any home purchased over $80,000 will receive the full $8,000 tax credit.

I do not know of a time that has been better than now for a first time homebuyer to purchase their first home. Even without this $8,000 tax credit the timing would still be perfect with the low interest rates available and low home prices. Now with the $8000 tax credit it almost does not make sense not to purchase a home!

If you would like more information about the tax credit, mortgage options, and what homes are on the market please give us a call at 919-556-6459 or email us at alice@aliceray.com. The Alice Ray Team has helped first time homebuyer’s for over 30 years purchase their new home and have the knowledge you need to make sure you make the best choice for you and/or your family. Start your home search today in the Raleigh, Wake Forest, and surrounding areas by clicking here.

Are you a current homeowner in the Raleigh, Wake Forest, and surrounding areas who is wanting to take advantage of the low interest rates and low home prices? Call us to provide you with a free Comparative Market Analysis on your home. Now may be the perfect time to put your home on the market for a potential first time homebuyer to purchase and then you can move up and buy that bigger home! Email Alice today at alice@aliceray.com or give us a call at 919-556-6459.

Tax Time - Find out how owning a home can help!

tripp@aliceray.com (Tripp) — Fri, 30 Jan 2009 15:00:44 GMT

Tax Time

Update - Read about the new first time buyer tax credit of $8,000 here that has replaced the $7,500 tax credit talked about in this article.

Are you renting when you would be better off owning a home? Now may be the perfect time to talk with us and your accountant about the benefits of home ownership. Historically low interest rates, best home prices in years, and the tax advantages available are too good to not take advantage. First time home buyer's can even take advantage of a tax credit up to $7,500!

Please call or email us today to advise you on purchasing a home. We can show you every home on the market that is listed with any company. We will be glad to set you up with a home search directly from the MLS system that gives you the same exact information that realtors see - you can't get this from any other search online! Every day homes that match your search will automatically be uploaded to your custom webpage and an email will be sent to let you know to view them. Go here to see an example and to fill out your information to get your search set up today: My Custom Search!

Visit our last two blogs to find out why you need us to buy or sell your next home in the Wake Forest, Rolesville, Raleigh, Youngsville, and surrounding Wake, Franklin, Granville, and Durham County Areas.

I Want You to Buy a Home!

Call Alice at 919-906-5794 or email at alice@aliceray.com!