Don’t Let Credit Score Myths Get In The Way When Buying A Bradley Beach Home

The most important piece of a person’s financial life is their credit score. Whether buying a new Bradley Beach home, applying for a job, refinancing your Bradley Beach home, paying off debt, or getting utility service, your credit score will drive the outcome. One would think that Americans are all aware of what the scores are measuring and what factors play a part. But, most Americans do not know enough about the three digit rating or what is involved. Do not let these credit score myths get in your way when preparing for the purchase of your next Bradley Beach home.

Myth: Checking a credit report can either damage or lower your score. A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.

Jersey Shore Home Ownership Tax Benefits

New tax code changes create benefits for owners of a Jersey Shore home. For years, many people have usually turned away from considering taking on the financial responsibilities of being a homeowner. Renters and prospective home owners are well aware of all the financial stress that comes with owning a home, which makes them hesitant to make the big step and commitment. What might not be known is that homeowners are receiving more tax benefits now than ever before. The Internal Revenue Services, known as the IRS, has made owning a Jersey Shore home a more favorable option in several ways. 

Monthly house payments bring the biggest tax benefit to home owners. The interest included in the monthly mortgage payments is tax deductible as long as the loan is for less than a million dollars. IRS guidelines also allow deductions for interest on refinancing and home equity loans. However, they do put limits on how much is actually allowed to be deducted. Borrowing against the equity of your Jersey Shore home is an option renters do not have. Renters also do not have the ability to file federal tax deductions on their monthly rental payments. 

Are Lower Bradley Beach Real Estate Prices Worth The Wait

Buyer’s often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Bradley Beach real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop. 

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Bradley Beach real estate at an advantage over those trying to sell. People have best described this as a buyer’s market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Bradley Beach real estate prices are not always worth the wait. 

Things To Know About $8000 Tax Credit

The “American Recovery and Reinvestment Act of 2009,” which was signed into law recently by President Obama provides an $8000 tax credit for first-time  home buyers. Below are important things for Bradley Beach home buyers to know.  

1. It is a tax credit to home buyers, not a loan as in last year’s program.
2. It is only for first time home buyers, defined as someone who has not had an ownership interest in a principle residence in the 3 year period prior to the date of the 2009 purchase.
3. The buyer must remain in the home for a minimum of 3 years.
   
4. It is applicable to purchases between January 1, 2009 and December 1, 2009.
   
5. Full credit is available to those with adjusted gross income of $75,000 or less ($150,000 for married filing jointly). The credit is phased out entirely for those with adjusted gross income over $95,000 ($170,000 for married filing jointly).

If you bought a Bradley Beach home last year under the old $7,500 tax credit rules, those rules still apply to your 2008 home purchase. 

If you purchased a home after January 1, 2009, or are thinking of buying a Breadley Beach home this year and want to learn more about the $8,000 tax credit, give me a call or visit PatrickParkerRealty.com.

Issues you will want to consider are the definition of adjusted gross income, how to apply for the credit, what happens if your total tax liability is less than the credit, definition of ‘principle residence’, and other issues. I am happy to advise you as to how you can benefit from the tax credit.

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Bradley Beach NJ Real Estate: Fannie & Freddie Roll Back Fees

Bradley Beach NJ Real Estate: Fannie & Freddie Roll Back Fees

Fannie Mae and Freddie Mac have both announced they will not impose the loan fee increase scheduled to go into effect this month. Fees were to have increased from .25% to .5%, making it even more difficult for Bradley Beach NJ home buyers. The biggest obstacle many ­­­­­­­­­­­­­­­­home buyers face is the necessary cash needed for a down payment and closing costs.

Both companies, now controlled by the federal government, had decided to increase fees to boost their finances during difficult times.

Freddie Mac, however, will raise fees next year for riskier loan products, including mortgages that allow interest-only payments for the first few years. Freddie also will require higher credit scores for “piggyback” loans that allow borrowers to make smaller down payments by taking out two mortgages.

Taken together, Freddie Mac said the changes would provide “some relief from the challenges in the current market environment,” but added that it is following lending practices “that are prudent and largely applicable in all market conditions.”

Learn more about Bradley Beach NJ real estate at PatrickParkerHomes.com or give us a call, 201-788-6182.

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Jersey Shore Real Estate Tip: Questions To Expect From Your Lender

Before lending you a large sum of money to purchase a piece of Jersey Shore real estate, it is understandable that your lender will want to know a little bit about you and your ability to pay back the loan. If you are a first-time homebuyer, or if it has been a while since you last spoke with your lender, it is helpful to be prepared for some of the questions you may be asked and to have some responses in mind. Below are some general examples of questions you may expect to hear when applying for a home loan:

Employment and Income

•  Where do you work?

•  How much do you make?
 
•  How long have you been at your job?
 
•  How is your income derived — steady salary or irregular income? (if it’s the latter, plan on providing more details so that you get a favorable interest rate)

Outstanding Debts