First Time Homebuyers

Gail E. Vinnal - Broker Associate

Your North Jersey Real Estate Professional

First Time Homebuyer's are now eligible for a Federal Tax Credit!

The tax credit is available for first-time home buyers only and must be used on a primary residence
The maximum credit amount is $8,000 or 10% of the homes purchase price, whichever is lower.
The credit is available for homes purchased on or after February 1, 2009 and before December 31, 2009 This is a credit, not a loan and appears as and increase in your tax return of $8,000.
For More Information regarding the tax credit: www.federalhousingtaxcredit.com/2009

Tips for Finding the Perfect Neighborhood

Your neighborhood has a big impact on your lifestyle. Follow these steps to find the perfect community to call home.

· Is it close to your favorite spots? Make a list of the activities — movies, health club, church, etc. — you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engage in your most common activities.

· Check out the school district. This is especially important if you have children, but it also can affect resale value. The Department of Education in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, visit schools in the neighborhoods you’re considering. Also, check out www.schoolmatters.com.

· Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type — such as burglaries or armed robberies — and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?

· Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?

· See if you’ll make money. Ask a local REALTOR® or call the local REALTOR® association to get information about price appreciation in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good of an investment your home will be. A REALTOR® or the government planning agency also may be able to tell you about planned developments or other changes in the neighborhood — like a new school or highway — that might affect value.

· Make personal observations. Once you’ve narrowed your focus to two or three neighborhoods, go there and walk around. Are homes tidy and well maintained? Are streets quiet? How does it feel? Pick a warm day if you can and chat with people working or playing outside.

Contacts



Gail Vinnal
Email Gail

Phone:	(973)580-8335
Cell:	(973)239-1126
Fax:	(973)239-1194
Address:	6 Pompton Ave, Suite 23
City:	Cedar Grove
State:	New Jersey 07009
Country:	United States

BUYING YOUR FIRST HOME?

Approaching the task of buying your first home can be overwhelming, there’s so much to know. Buying a home is one of the largest financial transactions in your lifetime, yet we don’t teach about it in school. You’re just supposed to pick it up along the way.

The purpose of this page is to inform and educate you about the home buying process. If you have any questions that you cannot answer through the information you find here please feel free to contact me.

10 Tips for the First Time Homebuyer

1. Be picky, but don't be unrealistic. There is no perfect home.

2. Do your homework before you start looking? Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs

4. Don't wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don't ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as type of mortgage terms that suit you best.

8. Don't let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don't be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR® as a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. And often, buyer's reps are paid out of the seller's commission payment.

Pros and Cons of Going Condo

Condominiums and townhouses offer an affordable option to single-family homes in many markets, and they’re ideal for those who appreciate a maintenance-free lifestyle. But before you buy, make sure you do your legwork. These are some of the important elements to consider:

· Storage. Some condos have storage lockers, but usually there are no attics or basements to hold extra belongings.

· Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you dread yard work, this may be the perfect option for you.

· Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.

· Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home — good news if you like to travel.

· Security. Keyed entries and even doormen are common in many condos. You’re also closer to other people in case of an emergency.

· Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees decided by the condo board, whether or not you’re interested in the amenity.

· Resale. The ease of selling your unit may be dependent on what else is for sale in your building, since units are usually fairly similar.

· Condo rules. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets, or don’t allow owners to rent out their units. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

· Neighbors. You’re much closer to your neighbors in a condo or town home. If possible, try to meet your closest prospective neighbors.

Contacts