The Tax Credit is gone so what now.  There are plenty of reasons to buy a home now (even without the tax credit).  The number one reason is that rates are still at historic lows.  Mortgage Interest rates continue to hover at 5%.  

Rates are still low – Just some interesting insight:

Let’s take a $200,000 mortgage:

Rates now around 5.00% - P & I Payment is $1,074

Rates increase to around 6.00% - P & I Payment is $1,199

Monthly savings is $125!  That’s over $45,000 saved over the life of the loan.  Wow!!

Rates increase to around 7.5% - P & I Payment is $1398

Monthly savings is $324!  That’s $117,000 saved over the life of the loan compared to 5%.  Wow!!

So, if you want to keep a payment of $1074 per month with the higher interest rates you will be limited to purchasing a home at $150,000.  That’s a big difference. 

Yes, the $8,000 tax credit was a great incentive for borrowers, but the math doesn’t lie if you take time to analyze it.   It was only a short few years ago that interest rates were between 6.5% and 7.5% and we thought they were good then.  But interest rates are predicted to rise to that again.

If you have any questions regarding your options, call TEAM DECELL at 214-975-3210.

For home buyers, Tax Credit is OVER!  For the most part this is a good thing because it abnormally inflated the value of homes below $200,000.

If you would like more information regarding your options please contact TEAM DECELL at 214-975-3210.

Mistake #1:  Choosing a real estate agent who is not committed to forming a strong business relationship with you.

            Avoid it:  Making a connection with the right real estate agent is crucial.  Choose a professional who is dedicated to serving your needs – before during and after the sale.  Make sure that they are full time agents not part time.  Part time agents will end up losing you money or worse messing up the deal because of their inexperience or have to work their other job.

Mistake #2:  Making an offer on a home without being pre-qualified.

            Avoid it:  Pre-qualification will make your life easier – take the time to talk with a bank or mortgage representative.  Their specific questions with regard to income, debt, and other factors will help you determine the price range that you can afford.  Also, this step will help your real estate agent determine how long it will take to go from writing a contract to closing on your new home.  It is one of the most important steps that you can take.

Mistake #3:  Not knowing the total cost involved.

            Avoid it:  Early in the buying process, ask your real estate agent or mortgage representative for an estimate of closing costs.  Title insurance and lawyer fees should be considered.  Pre-pay responsibilities such as homeowner’s association fees and insurance must also be taken into account.  Remember to examine your settlement statement prior to closing.

Mistake #4:  Limiting your search to open houses, ads or the internet.

            Avoid it:  Many homes listed in magazines or on the Internet have already been sold.  Your best course of action is to contact a real estate agent.  They have up-to-date information that is unavailable to the general public, and they are the best resource to help you find the home you want. 

Mistake #5:  Thinking that there is only one perfect home out there.

            Avoid it:  Buying a home is a process of elimination, not selection.  New properties arrive on the market daily, so be open to all possibilities.  Ask your real estate agent for a comparative market analysis.  This compares similar homes that have recently sold or are still for sale.

Mistake #6:  Not considering long-term needs.

            Avoid it:  It is important to think ahead.  Will your home suit your needs 3-5 years from now? How about in 5-10 years?

Mistake #7:  Not following through on due diligence.

            Avoid it:  Make a list of any concerns you have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions, etc.  Ask the important questions before you make an offer on a home.

Mistake #8:  Not having a home inspection.

            Avoid it:  Trying to save money today can end up costing you tomorrow.  A qualified home inspector will detect issues that many buyers can overlook.

Mistake #9:  Not examining insurance issues.

            Avoid it:  Purchase adequate insurance.  Advice from an insurance agent can provide you with answers to any concerns you may have.  Like the deductibles for wind and hail etc.

Mistake #10:  Not purchasing a home protection plan.

            Avoid it:  This is essentially a mini insurance policy that lasts about one year from the date of sale.  It typically covers basis repairs you may encounter.  A/C service plumbing issues etc.

If you have any questions please contact Team Decell your neighborhood realtors.  214.975.3210

WASHINGTON—The National Flood Insurance Program will be allowed to expire once again, a victim of a feud between the House and Senate over proposed legislative changes for NFIP.

The Senate adjourned today without passing an enabling measure to keep the NFIP in business past Sunday, when the current enabling law expires.

Last week the House passed H.R. 4851, legislation containing the temporary flood program extension until April 30. That action created an impasse between the House bill and a Senate bill which contains a provision extending the NFIP until Dec. 31.

At the time of the House action talks were underway with the Senate over the substance of tax cuts that would be extended under the legislation containing the NFIP extension.

House members feel the flood program legislation should contain specific provisions they want for their constituents.

An NFIP extension until Dec. 31 is contained in another House bill (H.R. 4213) which extends a number of tax cut provisions that expired at the end of last year. It was passed by the Senate last week and sent back to the House for further action.

The latest House bill, as does the Senate bill, extends the eligibility for a 65 percent government subsidy of COBRA health insurance premiums for laid-off workers. But the House extension would only be until April 30; the Senate bill extends the program until Dec. 31.

In reaction to the Senate’s latest move, Matt Brady, a spokesman for the National Association of Mutual Insurance Companies, said: “First it was a few hours, then a couple of days, and now we are looking at having the National Flood Insurance Program lapse for weeks—and each time for reasons that have little or nothing to do with the program itself.”

Flood coverage will remain in place for those who have it now under guidelines from the Federal Emergency Management Agency, which encompasses NFIP.

But, Mr. Brady warned, “this lapse could have a serious impact on those who are hoping to close on a home sale in the next few weeks. Once the program is reauthorized after Congress returns from recess, we hope lawmakers will take the time to enact a long-term extension with common-sense, bipartisan reforms that will ensure the financial stability of the NFIP.”

Information provided to you by Team Decell.