Even though buying your first home may be incredibly exciting, there are some things you should do before considering visiting any mortgage lender. For many first time home buyers, this will be the largest investment of their life. But there is no disputing the fact that buying a home is a sometimes an emotional process because of the amount of time and paperwork that is normal with any home purchase.

Even if you are just venturing out to look at homes or if you already know what you prefer to buy, purchasing a home requires some research and effort. Any time that you spend in the preparation is worth the effort because it will help both the lending and closing processes proceed smoothly.

Before you ever contact a mortgage lender, you need to go ahead and get a copy of your credit report. After you get a copy, double-check it for any errors or potential problems. If you discover an error, you need to contact the creditor to make sure that erroneous items get fixed on your report. Even if you have a low credit score, it does not mean that you cannot get a home loan, but you may have to pay a higher interest rate.

Organize your Efforts

After you have determined which lender you would like to deal with as well as the mortgage rates you anticipate getting, your lender will request a Verification of Employment form. What you can do is ask your human resources department to keep an eye out for this form. Then you can rest assured that your very important document is not simply buried in in a stack of mail or on top of a fax machine. If human resources is expecting the document, they are much more likely to complete it quickly.

You will also need a minimum of one month’s worth of pay stubs or payment records from your present employer. Make copies of these and retain the originals. Find the most recent W2 forms that your employer sent you for the last two calendar years. Your lender requires these wage and tax statements from you as well as from your spouse or other person with whom you are applying for the mortgage. Find your federal tax returns and make copies of the documents. Use the two most recent years of tax returns if you have not yet filed your return for the the just-past calendar year.

Gather All Necessary Documents

There are more pieces of paperwork that your lender is going to need. Most lenders want at least three months worth of checking or savings account statements. Also bring copies of any assets like retirement accounts, stocks, bonds, mutual funds and so forth. Your lender is also going to have to confirm your identity, so that means that a copy of your driver’s license or passport is also needed.

The final thing that you need to do is to make a financial inventory. Calculate how much debt you owe and make a list of each account. This includes all loans, other real estate purchases and credit cards. Your lender will ask for copies of statements of all of these accounts.

You will also want to determine how much money you will have remaining after you have paid the down payment and the remaining closing costs. A copy of your social security card is also required. Gathering all of this paperwork really is the difficult part, so being proactive in gathering the necessary documents is of great benefit.

Home Loans for New Home Buyers – Video

Tips for Choosing the Right Mortgage Lender

A decision that is almost as important as which house to buy is which mortgage lender to use. It is important that the entire transaction is handled efficiently and professionally.

How Much Do I Need for a Mortgage Loan Deposit?

There are a number of very important decisions to make when buying a home, and with each comes a variety of options. When deciding how large of a down payment to make, there are a number of different factors that must be taken into account.

The World’s Real Estate Crisis

It’s been blatantly obvious for some time now that our credit-fueled prosperity party has now come to a rather abrupt end.

The New and Improved First Time Home Buyer Tax Credit

Basically the tax credit for first-time home buyers went from $7500 to $8000, with the difference that the tax credit now does not have to be repaid at all. Before, it was to be repaid over a 15 year period.

Mortgage Refinance Advice

Once you get a mortgage quote you like shop it around to other potential mortgage lenders. This increases your odds dramatically of that lender meeting or beating the quote you showed them.

If you are a first time buyer you may qualify for a tax credit to help you buy a home. Discover why the government is offering first time home buyers an amazing incentive. This is your best time ever to enter the home buying market.

The US Congress wants to help you buy a house to live in.

As you read every word of this article you will discover why the government is offering first time home buyers an amazing incentive to buy a home. You will also learn four reasons why this may be the best time ever to enter the home buying market.

President George W. Bush signed into law the Housing and Economic Recovery Act of 2008. This newest act for the weakened housing market is a reaction to the SOS being sent out by plummeting home prices.

Included in this Act is the temporary tax credit for first time home buyers. If this describes you, be sure to check out the incentive.

One of the most intriguing features in this Act is the temporary tax credit for qualified first time home buyers.

The $7500 tax credit amounts to a dollar for dollar reduction of what the taxpayer owes. Even though you may owe taxes less than the credit, you will still get the difference sent to you by the government.

Here are some of the details.

The tax credit is for first time home buyers only. But don’t quit reading simply because you owned a home in the past. The government has its own definition of first time home buyer.

According to the government if you haven’t owned a home 3 years prior to the purchase of your next home, you qualify as a first time home buyer.

If you are like me, you are probably skeptical when the government wants to give you something. Is there a catch? There is. Keep reading and by the time you reach the end of this article you will know what it is.

My first question regarding the tax credit qualifications was what kind of home can I buy and still receive the credit? Can I buy a new home? The answer is yes. How about a resale home? The answer is yes again.

I began to think this was starting to sound pretty good but before getting too excited I thought I’d better check out some more details.

The maximum credit amount is $7,500. The government wants to credit you $7500 for going out and buying a house. Why? Is it because they are a bunch of really nice people up there in Washington DC? Well, I am not going to answer that question but the US Congress has a definite reason it wants you to buy a house soon.

Here is why this first time buyer credit is important to all of us and may be something you want to take advantage of.

This recent downturn in the housing market has been brutal for many homeowners. Real estate values have fallen. Credit has tightened. Less money is available for homeowners and home buyers. So the government is helping the market get its footing by offering incentives to home buyers. The tax credit to first time buyers is one of those incentives.

To qualify for this government incentive you need to act soon. The offer which began on April 9, 2008 is not open ended. If you want to own a home this may be your window of opportunity but you must act before July 1, 2009.

Most likely we are seeing the formation of a bottom in the housing market. House prices may retreat a little more before we see an absolute national bottom. But in several cities and metropolitan centers, real estate values have remained steady.

If you are a first time buyer you have a lot of things going for you.

First, home prices are low. You may never see such affordable housing again. Prices have slid for now but the fact remains that as long as the United States continues to grow and prosper, the value of our homes will increase over the long term.

Second, interest rates are also low. The last time that we had this type of housing crunch was in 1979. The market conditions were very similar to today except for one thing. Interest rates were high. In fact mortgage rates skyrocketed as high as 18%. Compared to that market, today’s interest rates are cheap.

Third, the cost of homeownership becomes even more affordable for those who itemize income tax deductions.

Fourth, the government is offering you money in order to motivate you to buy a home.

You can qualify for this tax credit up to the full amount if you are a single tax payer with an income up to $75,000. Married couples are allowed $150,000. But you can qualify for partial credit even if your income exceeds the limits.

Now here is the catch I mentioned above. The tax credit works like an interest free loan and must be repaid over a 15 year period.

Essentially the tax credit is a tax free, interest free loan from the US Government to help make buying a home more affordable. The only thing the government asks is that you return the money over the next 15 years or when you sell the house.

Not a bad deal!

More about the $7,500 Tax Credit for New Home Buyers – Video

Good Time to Buy: Home Buyer Tax Credits Equal Savings

An $8000 federal tax credit for first-time home buyers is one of several residents should be aware of when filing their taxes this year, local tax professionals say.

Home Buyer Tax Credit Information

Those reading here over the past week know we’ve been obsessing over the about-to-become-law tax credit for first time home buyers. Several iterations were bantered about Congress before the dust finally settled.

First-Time Home Buyer Tax Credit Will be $8000

If you are a first time home buyer in Columbus and you purchase a home before December 1, 2009, you will receive an $8000 tax credit. If you have already.

Stimulus Package Modifies First-Home Buyer Tax Credit

According to the NAR website, the bill provides for a $8000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

The Homebuyer Tax Credit

The Senate has apparently kept the $15000 homebuyer tax credit in the stimulus package. The tax credit sponsors, Senators Johnny Isakson and Joe Lieberman, estimated the cost would be $18.5 billion.

$8000 First Home Buyer Tax Credit in 2009 Economic Stimulus Plan

Unfortunately certain tax breaks, including the homer buyer tax credit, were scaled back to $8000 (from the proposed $15000) to get sufficient support for the stimulus bill’s approval. This is $500 more than the current home buyer tax.

For additional secrets to buying a home with US tax credits, discover why FHA home loans are your key to homeownership.

As always, consult your financial adviser for more information regarding this program and your own personal financial situation.

Good Luck.

Related Blogs

• Credit Score Model Affects Mortgage Rates and Qualifications …
• Debt Reduction to Canceled is the Best Kind of Debt Elimination …