So the question is, who is eligible? Are you?

• * You’re eligible if this is your first time buying a home and you enter into a binding contract to buy a home on or before April 30, 2010 and close on the sale by June 30, 2010.
• * You’re also eligible for the full credit of $8,000 if you make less than $125,000 a year for single filers. The original income ceiling was $75,000. Married couples filing jointly can now receive full credit if they make less than $225,000. The original ceiling was $150,000.
• * You also qualify for the credit even if you’ve owned a home before, just not as your principal home during the three years prior to your home purchase.
• * It should also be noted that married couples do not qualify for the credit unless both have not previously owned a home or owned a primary residence in the past three years.
• * You’re only eligible if you’re 18 years or older or your spouse is 18 years or older.
• * The first-time home buyer credit is equal to 10% of your home’s purchase price with a limit of $8,000 and if your home costs more than $80,000, you’re not eligible for the credit.
• * Additionally, if you buy the home from a relative, you’re not eligible for the credit.
• * It should also be noted that military personnel and some federal employees serving outside the country have an additional year to qualify for the credit.
• * If you bought your home at any time during 2009, you can claim the credit when you file your 2009 taxes in 2010. And if you purchased your home on or before November 6, 2009, you can amend your 2008 tax return and claim the credit.
• * Finally, if you purchase a mobile home or trailer they both qualify for the credit, as long as they’re your principal home. Motor homes and RVs do not qualify for the credit.
• * The first time homebuyer credit is paid it’s applied to the taxes you owe, thus lowering your income taxes by up to $8,000. If you are in a low income bracket or income tax exempt, you can still file for the credit and receive it in the form of a refund.

If you haven’t taken advantage of the first-time home buyer credit and are in the market for a new home, you still have time. However, time is running out. Go out and find the home of your dreams!

There are many new first time home buyers in the market today. Many of them have not been given any home buying steps that could save them time and money. In fact, many steps are bypassed by first time home buyers because they’re too excited to get their hands on their new home. The very first step, in fact, is THE most important – who is your realtor?

There are many horror stories about shady realtors out to make a quick buck. With so many foreclosures and short sales on the market, it’s almost like the heady days of old. A shady realtor sees a newbie buyer and quickly shuffles him / her through a few properties, urging them to make a deal quickly before the next buyer comes along. Just think about the power of information that they have and you generally don’t. So, your home buying steps should always first include finding a reputable realtor to work with.

Another step often overlooked by new home buyers is deciding where you want to live or own a home. Often homebuyers both experienced and not, are captivated by good looking homes. But, remember you can have the best home in a bad neighborhood. And, what do you still have? A bad neighborhood. Trust me, this one is a killer. Here’s the reason why. Unless the neighborhood is going through serious gentrification, the surrounding bad homes will keep the value of your home down … and likely for a long time. Remember what your mom or dad told you a long time ago … location, location, location.

Another of the home buying steps that many people miss is what’s happening in the community? For example, do you know the local politics, what types of permits are required to do renovations, how many rentals per homeowner ratio are allowed? Let’s take that first one. Local politics could mean that the people who make the decisions in your community resist homeowners adding too many bedrooms. How might that apply to you? You may want to add a 4th bedroom, but what if the local politics limits the bedrooms to three. What do you do?

Permits are other contentious issues for many communities. If you’re buying a foreclosure or short sale property, chances are the properties need some type of renovation. New home buyers and investors don’t necessarily bother to check local planning department requirements for permits. Some communities even require homeowners to get permits just to put in simple ceiling fans.

The issue of rentals to homeowners could be one that bites you. If you do not have this on your home buying steps and you plan to rent out the home that you buy, you should really look into your local city requirements. For example, you may be intending to rent out your new purchase. But, the city has imposed a limit of rentals to homeowners and you have exceeded that limit. Guess what? You’re stuck.

There is no one check list that fits all, but having a guide for home buying steps is a good first start. There are plenty of people who have owned properties without an issue, but there are also those who have lost their shirts. Don’t be one of them.

One important thing to remember when buying a HUD house is that the process is quite different from the purchase of traditional home loans. In fact, this is quite a unique process as far as home purchases go. HUD houses are typically listed online. The listings are handled through an outside agency and not HUD itself. If you wish to place a bid on one of these properties it is important that you keep in mind that HUD offers no guarantees about the condition of these properties and will make no improvements. In other words, have a thorough inspection performed before placing a bid or buying a HUD house and make your bid accordingly.

The road to buying a HUD home is a rather tricky road indeed. It is required that you go through a Realtor if your plans involve purchasing a home that is owned by HUD. This is not a bad thing however as a Realtor can help you navigate the muddy waters of home ownership with far less effort than it would have taken you to find your way on your own. Realtors can also help you learn about the local schools, important information about the neighborhood and community, help you find honest inspectors and appraisers as well as providing assistance with the more confusing paperwork aspect involved in buying a HUD home.

Some people greatly prefer the process of buying a HUD home as there is no back and forth haggling over the price and the properties typically close rather quickly in 30-60 days. I can attest to how great that is considering our house took 6 months to finally close. A quick close is particularly helpful to those trying to get into their new homes during a certain time period (such as before a new school year starts for their children) or certain sporting seasons. It is also good for those who try to plan their moves during certain weather. We were planning our move for early spring and wound up moving during the hottest month of the year-that was a lesson in frustration.

In addition to the quick close I also mentioned the no haggling aspect. The thing to remember is that HUD homes are generally sold to the highest qualifying bidder. This means that your chances of getting a better price are greatly improved if the home has been on the market for an extended length of time. When buying a HUD home take in all the facts, discuss them with your Realtor, rely on his or her advice, and make your bid accordingly. If you follow these steps you should very soon be in a HUD home of your very own with a little money to spare that can go a long way towards making it the home of your dreams.

Of all the government and community programs that exist, these programs for first time home buying are some of the best and most beneficial to the population at large. There is a certain amount of pride that comes along with the ownership of your home and communities hoping to build value in their neighborhoods and cities are well aware of this and want to encourage people to own their own homes.

You should really discuss with your realtor all the possibilities that exist for first time home buying. I believe you will find the possibilities quite to your liking, particularly if you are purchasing a qualifying home. In fact, the programs available may have a significant impact on the home you ultimately select. Your realtor, if he or she is worth her salt, should have an extensive list of people that you can contact for grant information, down payment assistance, special loan programs, and any number of other helpful first time home buying goodies that may be available in the community in which you are hoping to purchase your home.

One of the many things you should consider when first time home buying is the potential room for growth in your new home and new community. This is particularly true if you are just starting out and aren’t quite finished with the family building process. As your family grows, so will your needs as far as housing goes. Beginning building equity in a home and ties in a community is a great place to start, but it is only a beginning and I hope you’ll choose a home and a community that will be ideal to grow right along with your family and your growing family’s needs.

First time home buying involves so much more than just choosing a house and moving in. Don’t forget to envision the future when selecting your home and choose a place that is a great place to build not only your dreams, but also the dreams of your future children. A sense of community is important and shouldn’t be overlooked in the world today. More and more often you’ll find neighbors that never meet. It’s really kind of sad but there’s no sense of unity any more. If you are fortunate enough to find a neighborhood like those from our childhood when first time home buying, then you’ve found a community worthy of your investment. You’ve also find a place to live that will feel so much more like home.

Of all the dots and details, facts and figures, and information you can learn about a home during the process of becoming a homeowner, perhaps the most important thing is that the house you choose really does feel like a place you can call home. Some prefer ultra modern while others are more comfortable with a country atmosphere or a home that reminds them of another time and place. Whichever home ultimately floats your boat, when you are first time home buying, make sure that you feel the house you are buying is a home you and your family can fill with love and you should have the very home of your dreams.

photo credit: eyeliam

Perhaps the very best new home buying tip anyone can give you is not to rush into it. Buying a home is for most people the largest single investment they will make during the course of their lifetimes. As a result, it is a decision that should not be taken lightly. There are so many steps involved in the home buying process that it makes perfect sense to sit back, get all your ducks in a row and pay close attention to proper planning rather than rushing into a house that might not be all it seems at first glance.

You will find that many people are more than willing to give you their version of the perfect home buying tip, the thing to remember is that this is your home. It is your money on the line and your family that will be living in the home you purchase. Even if you don’t yet have a family, chances are that some day there will be someone you wish to share your home with. Prepare for that day and be sure you find a home that will be suitable for your needs rather than what others feel your needs should be.

Have your finances well in hand before you even consider buying a home. The better your financial outlook the less interest you will pay on your home loan. The lower your interest rate, the less you will ultimately pay for your home. I don’t know about you, but the less I can get away with paying, the better I feel about the deal. You’d be surprised at the number of incorrect or outdated items that might show up on your credit report. It is important that you know what your credit reports say about you before you apply for the financing you will need with which to purchase your home.

Another great new home buying tip is to learn about the area in which you plan to buy before you make an offer. You want to buy in an area that is in a state of growth rather than one that is in a state of decline. You should really check out the area surrounding the home you are buying and look for signs of life, new business, and most importantly-crime. You want to avoid buying a home in a high crime area whenever possible. Remember that it isn’t just about getting the best deal or the lowest price. Your home should be a safe haven for you and your family as well as an investment for the future of your family.

When checking out the neighborhood positive signs are new businesses, new or well-kept entertainment, great playgrounds, and good schools. This is particularly important if you plan to have children attending schools in the area. Whether you are buying your first home or your last home, these are all fairly good indications that a neighborhood is in a state of growth and therefore a decent area in which to invest and raise your family.

Perhaps the best new home buying tip of all is that you should by the home that you can envision you and your family living in for years to come. I promise you, the home buying process isn’t one you want to go through too terribly often (particularly the packing everything up and moving it part). Find a home in which you honestly feel that you and your family will have plenty of room in which to experience the growing pains that most families inevitably endure and you should have a happy home for many years to come.

photo credit: Orin Optiglot

One thing you will find throughout the home buying process is that just when you thought you were finished with the paperwork, there is more paperwork. Some may laugh or chuckle about this while others want to quite literally pull out their hair. There is so much paperwork involved in this process that you will at some point begin to wonder if you aren’t filling out paperwork about the paperwork. The good news is that once you are ready to actually close on the house is when the real paperwork begins.

You will find that there is paperwork required in order to find out about your credit history and get your finances in order. There is paperwork involved when applying for loan pre approval. There is even more paperwork involved when you actually get around to making an offer on a house. But that is really just the beginning of the great paper trail involved in the home buying process. You’ll find that much like breadcrumbs you’ll be dropping bits and pieces of paper all along the path to your home ownership.

Once you’ve made an offer on your home you’ll have papers to fill out for appraiser and inspectors and you’ll be getting quite a bit of paper in return. You’ll have paper coming out of your ears before you ever make it to the closing table. And once you make it to that point, you’re really committed. At least it would seem so on paper.

Closing is the point at which the actual ownership of the home changes hands. This is for most people, the most exciting part of the home buying process. Now, the bad news is that this takes about two hours (minimum) of nothing more than paperwork. Go into the closing prepared for hand cramps and bring something to drink with you, as you will be there for a while. The entire closing is basically you and the previous owner or their proxy in a room going over the details that you have previously discussed and arranged, assuring that you are in complete agreement and hoping that all the details were appropriately conveyed before coming to the closing table.

Many real estate deals have been made and lost at the closing table purely as the result of minute misunderstandings. Try not to let this happen to you. If there are any problems make sure they are dealt with before closing in order to save a great deal of time, heartache, and ill will when it comes time to close.

One common problem that arises upon closing is the actual date of departure if the home is currently occupied. Many buyers would like to take possession immediately upon the close of the sale and many homeowners or renters (if the home is rented) need a little more than 24 hours notice for evacuation of the home. I know I certainly can’t move that quickly. Thirty days is a somewhat standard time frame for possession of an occupied house however that can be a negotiating point and should be hashed out before closing. Some buyers put a clause in the closing papers that requires the current owners pay a penalty for each day they are late moving out. This helps greatly to establish a sense of urgency on the part of those leaving the house to get out, as the penalty fees are generally quite steep.

Don’t let the paperwork involve frighten you away from the home buying process. When you think about it, a few dozen signatures is really is a small price to pay for such a great reward.

photo credit: ProgressOhio

First steps to buying a home are often very important steps. Many people overlook so many things during the home buying process. Among those things that is vitally important is establishing a budget that your family can live with while also managing the added expenses that are part and parcel to home ownership.

The truth of the matter is that most people concentrate on the obvious things while searching for a home and simply assume that if the bank will loan them ‘x’ amount of dollars, then surely they can pay that back. The truth is that there is much more involved in the process of actually purchasing a home than merely repaying the loan from the bank.

Renters do not have to worry with many of the issues that are simply not optional for those who own their homes. For first time homebuyers and those without a substantial monetary down payment, most lending institutions will require what is known as private mortgage insurance. This is basically insurance to protect the bank if you happen to default on your home loan before you’ve managed to build up at least 20% equity in the home you are purchasing. In other words new homeowners are required to pay the premium on the banks insurance. It’s understandable however as the bank is the one taking the risk.

In addition to private mortgage insurance, there is homeowners insurance to consider. Most mortgage lenders now require that you provide a certain amount of insurance placed in escrow (it was one years worth for our mortgage but it varies according to the company) in addition to adding on the amount of one month’s insurance in each month’s mortgage payments. This means that you are always paid one year in advance on your insurance and if something happens, the insurance company won’t find themselves in dire straits because you’ve allowed the insurance to lapse or simply canceled the policy. It’s another instance of the lender insuring themselves against potential irresponsibility on behalf of those purchasing a home.

Then there are taxes. No lender wants the property that they are covering confiscated and auctioned off to cover the price of taxes. Many lenders have gone the wise route and decided to require one years worth of taxes be escrowed as well. Depending on the area in which you live and property taxes in that area, this can be quite a hit up front. Add to that the fact that you are also paying monthly 1/12th of the taxes owed on your property in addition to all of the above mentioned fees each month and you could have a hefty addition to your mortgage payment.

Of course, now is probably not the best time to tell you that you should also consider that things breaking and falling apart are now completely and 100% your responsibility to fix, repair, or replace. You will not have the luxury of a landlord or maintenance staff when you own your own property and things will need fixing and replacing along the way. So you need to begin an earnest savings account in order to maintain and in some cases enhance your property.

I’m telling you all of these joys of home ownership not to frighten you off from the prospect but to encourage you to establish a realistic budget that your family can live with when estimating how much house you can really afford. If you have all the facts in front of you it’s much easier to be honest with yourself and plan according to what you can realistically afford and not the amount the bank is willing to lend.