look at my blog below. It shows a lot of things to look out for.
I love this! How smart to ask the question. Now is the perfect time for you since the 1st time homebuyer tax credit (up to $8,000) may be available to you if you qualify. Your first deadline is at the end of April to find a home. Potentially, that means a check sent to you by the government simply for buying a home. It doesn't get any better than that!
I think that I read your question as should you pay cash and purchase a property outright. If that is the case, I am fully in favor of owning paid in full, debt free real estate. If you think about it, everyone wants to pay their mortgage off. Debt equals risk. Can you imagine how secure you would feel if you have a home that is paid off and lose a job, or have another financial setback? You will not have to worry about making the mortgage payment, or possible foreclosure. Lower stress. With real estate being one of the best, and relatively safest investments - you can't really go wrong regardless of how you pay for it.
One of the biggest arguments that people give for financing property is that you would get the mortgage interest deduction. That is a really good benefit if you must finance it. But, if you have a choice, instead of simply paying the bank - let's say $4-5,000 a year just to get that deduction, why not write a check to your favorite charity for $4-5,000 and get the benefit of a charitable contribution to someone that can really use it. Either way, you can still deduct your property taxes and other costs when it's time.
While I happen to be a real estate agent, (& even if I weren't), my position would be the same. Find someone that you can trust to protect and guide you through the process since it may be the largest financial investment of your life. Then, if you can - pay cash for your American Dream. Good luck and have a great 2010!
Have you been preapproved? Have you even talked to a lender? I believe you need to do this so you know what you qualify for. Cash..How much? 3.5% will get you an FHA loan with the seller helping with the closing costs. There is so much to buying a property. I believe you also need to surround yourself with a knowledgeable Realtor that will take good care of you through the entire process. Together, the lender and the Realtor will lay out your options on what would be best for you Erika. My name is Becky Alumbaugh, The Diva Team, Reece and Nichols, #18 in the 2009 Kansas City Business Journal of The Top 25 Realtors. My website is http://www.kcdiva.com....email@example.com or 913-526-9313. Good luck!
The first step to do is to contact a realtor who can guide you through the whole process: get a pre-approval letter, submit an offer, inspection, following up with all the parties to make sure that you will be able to close on the house smoothly and on time.... If you need more explanation or if you have any question, feel free to contact me (NO OBLIGATIONS!!).
My name is Kevin Evans and I am a Realtor with Keller Williams Diamond Partners. The first step that you would need to do is contact me either by email at firstname.lastname@example.org or call me on my cell at 816-560-4095 so that I can meet with you and get you an approval from a lender if you are needing that assistance. The first time homebuyer tax credit is available until April 30th and that consists of up to an $8,000 tax credit based on the sales price of the home. I can explain this in more detail once we are able to sit down and meet and I can share with you everything involved in buying one of the homes that you like.
Kevin Evans, ABR, CRS
Keller Williams Diamond Partners, Inc.
which property are you interested in, how many bedrooms and what part of town. Those a only a few of the questions you will need to ask before jumping in to purchase a home. Please feel free to contact me if I may be of assistance.
D. Ben Edsall
Turn-Key Properties LLC