Many people take advantage of first time home buyer credit. You can deduct up to $ 8,000 on the purchase of new homes. Unfortunately the program has ended. The good news is that there are still many first time home buyer programs are available for help, you just need to know where to look.
Many government agencies like Fannie May, the Housing and Urban Development, VA and FHA all offer some type of housing assistance for first time home buyers. The programs are appropriate will vary from one another institution as will the requirements for each program.
A good place to start is by searching online. Go to each agency and see what programs they have and what the requirements. You most likely will find some that you qualify for. Some of them will require you to be pre-approved for a home loan from your local lender. Make sure you follow the instructions perfectly so you do not slow the process.
Here is some general information for first time home buyers:
1. You, and only you, can determine how much home you can afford. Bank will look not only at your finances your lifestyle. If you enjoy spending two weeks every year in Europe, do not yield on your mortgage payments. Many people mistakenly think that if their banks agree to a certain amount of it is what they are capable.
That does not always happen. Once again, the bank just see numbers and not your lifestyle. You should always save a little space between what you must pay and what you really afford.
2. There are many things that should be factored into the monthly payment. Not only will you pay principal and interest mortgage loan, you also must include your home owners insurance premiums and property taxes (this is what is called: PITI).
So even if you can afford your principle and interest you have to make sure that you too can buy your property taxes and insurance as well. I once had a house where the property tax portion of my monthly payment is more than the actual number of home loan! Needless to say, I do not live in that country again.
3. Do not pass inspection. If you hire a qualified inspector you can save yourself a lot of grief down the road. While not fool proof, and examination will give a very good idea of what problems, if any, of your new home. If the electrical pipe or needs to be improved in the near future are likely to be found by inspection.
If you find a problem with a house that does not always mean it’s a deal breaker. Many times you can use a bit of a problem as a negotiating tool to lower the price.
Although the tax credit has expired, it’s still a good time to buy because there are still many first time home buyers programs help around.