My lease is up in August and I plan to buy.

Asked by Matthew Clemens, 46375 Sat Mar 21, 2009

In order to get my timing right when should I begin the process of purchasing a home?
I likely will only qualify for an FHA loan.
Also as a first time home buyer, is there a deadline to buy in order to recieve the tax credit this year?

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Valarie Kubacki’s answer
Valarie Kuba…, , 46385
Mon Apr 6, 2009
Get your credit report first. Look it over for any errors or omissions. You have a little time and it takes about 60-90 days to straighten out problems. You can get 1 free copy of your credit report per year. Start there first that can be the difference of a saving on your interest rate and possibly which loans you would qualify for.

If you are handy do not rule out a 203k http://nhl.gov/offices/hsg/sfh/203k/203kabou.cfm there are A LOT of fixer uppers out there.

After you get your credit report straightened out head out to a GOOD loan officer and find out what you qualify for and how much no sense looking at 300,000 house if you qualify for 200,000.
Web Reference:  http://www.nwihomes4sale.com
0 votes
Dave Woodson, Agent, Valparaiso, IN
Sun Mar 22, 2009
You are starting early and that is good just in case there may be issues with your credit, and you want to make sure that you have all of your ducks in a row, find the best house for you and your family. I have a great home questionnaire on my blog that will help get you approved for a home loan and help the Realtor of your choice find the best hose for you.

Dave Woodson
The Indiana FHA Expert
0 votes
Michael Smit…, Agent, Schererville, IN
Sat Mar 21, 2009
Hi Matthew -

All these answers are very good and should help you with the process. Just wanted to add that, yes the deadline for the tax credit is December 2009, but if you close this year you are able to file an ammended tax return for 2008 in order to get the tax credit more quickly. In other words, if you close on August 1st you could file the ammended return and recieve the credit this year.

Hope this helps!

Michael
0 votes
Voices Member, , Benton County, OR
Sat Mar 21, 2009
Matthew, I think there are some things you can inform yourself about and tools you can use to help determine what you can afford. When you are ready to interview agents you have to be informed enough to help decide who will best fit your situation. Try checking these out and see any of them help you get ready.

http://www.hud.gov/buying/index.cfm ... http://www.fhaoutreach.gov/FHASelf/

http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p…

http://www.realtor.org/wps/wcm/connect/b6911d004d24c833931bf…

Hope some of this helps, Dunes
0 votes
Gina, , Crown Point, IN
Sat Mar 21, 2009
Matt,

Also to answer the rest of your question the $8,000 FTHB tax credit is being offered until December of 2009. I have posted some more info on my blog regarding the FTHB credit, so feel free to do some more research. With a FHA loan right now, Linda Z. was right and you will need to have a down payment of 3.5% of the purchase price, plus your closing costs. Your very first place to start is with a lender. It will give you your starting point and you can work off of it to what you can afford. Then in my option sit down with an agent that specializes in FTHB, who has a team of experts that do as well. I hope you find your perfect home; this is a great market to be a FTHB. Happy Hunting. Along with my blog my website is http://www.GinaBombin.com. Hope this points you in the right direction.
0 votes
Linda Zyla, Agent, Valparaiso, IN
Sat Mar 21, 2009
Matthew: As a first time home buyer using the FHA program you will be required to put down 3.5% of the purchase price as a down payment. You might be able to ask the seller to pay your closing costs which will be about $3,500 on a $175,000 home. I would get pre approved by a lender who specializes in FHA about 90 days prior to your lease expiration date, so say June 1, 2009. Then contact a real estate professional to assist you. As a real estate professional, it's more than just finding you a home. We help guide you through the home buying process, identifying details which you may not be aware of such as neighborhood covenants & restrictions, annual taxes, etc. Finding a property in your price range can take time, writing offers, negotiating deal etc. Once you have an accepted offer it can take 30 - 45 days to close the deal. For additional information, contact me at lindazyla@21alliance.com or 219 916 1213. Best regards.
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