“For Sale” signs are a very not uncommon item these days. Drive through virtually any neighborhood, from the backwoods, to the upscale and affluent, and you’ll see them, and hanging at the bottom, you’re likely to find a smaller sign that reads “foreclosure”. This sad story is one we’ve heard all across this nation, people having to leave their homes vacant and move on. The story, however, need not have a sad ending. An empty home is a home waiting for a new owner, someone who will be able to care for it, love it, make it shine in the neighborhood, and that someone could be you, and at great price to boot!

If driving around neighborhoods isn’t your thing, consider using an online listing service. These “home finding powerhouses” work for you, as you enter in information you’re looking for such as, location, price range, type of home, etc. They then periodically will send you notifications of homes that fit your requirements. You can also check out your local newspaper, and you can even go straight to the bank or real estate office and request a listing of their foreclosed homes. They’ll be happy to give you a copy.

Once you’ve done your searching, you’ll probably be surprised to find just how many fantastic deals there are out there right now. You’ll need to know the steps to take to make your move on purchasing one of those great homes. Try these:

Grants from the government come in all shapes and sizes. If you think you do not qualify, you may be pleasantly surprised at what just a little bit of effort might turn up.

Before You Start Your Search

As a first time homebuyer, not only will you get a handsome tax break at the end of the year, you may be partially funded by Uncle Sam to help you buy that house you have always dreamed of. Yes Gertrude, our government really does want to see you succeed, and they are willing to help you, too.

The first thing that you need to do is sit down with a pencil and piece of paper and figure out exactly what you make yearly, both before, and after taxes. Get your last year’s tax return and look it over very carefully. If you had it professionally prepared at one of the hundreds of income tax preparation services nationwide, chances are you are at less risk of having it questioned.

After you have finished figuring out what you bring in, the next step is just the opposite. Gather up all your bills and figure out what your expenditures are each month. Multiply that by twelve, and there you have a good idea of your yearly expenses.

Finally, check your credit score with one of the big three credit agencies. You are allowed one free credit report from each per year. Take advantage of them.

Searching For That Government Funding

So, now that you are armed with your basic financial information, where do you start looking? Fire up that computer and point your browser to www.usa.gov. That is the United States Government official information website. Here, you can search for many programs that are geared exclusively for first time homebuyers. There you will find information about the HUD homebuyer assistance program, as well as state sponsored program information specific to your locale.

Down Payment Assistance Grants

Just about every down payment assistance program, tax credit, and housing grant program offered to first time homebuyers runs under an F.H.A. loan. The first step is to use all that information about your finances that is sitting in front of you to help you prequalify into a program. Look for a grant that is related either to H.R.3221, which is going to be the program that will help you get a grant, or as a first time homebuyer, a government down payment assistance grant.

Many local and state agencies run what is known as bond programs, which generate funds to help many individuals, and families with a down payment in getting into that new home you’ve been dreaming of.

The current Presidential Administration wants to see you succeed in being a first time homebuyer and owner. To that end, they are happy to provide you with a huge tax credit, and with government grants geared exclusively to the first time homebuyer.

Posted By Lewis Van Tassel
Lewis is the Education Manager for MDJustlisted.com
specializes in Columbia Md Real Estate
and Baltimore Md Real Estate

During this event we will be going over the following items:

* First time home buyers tax credit
* How to buy short sales and foreclosures
* Renting vs. Buying
* Where to begin
* Low money down loan programs for First Time Buyers
* Home buying Tips
* The Settlement Process

Date: Saturday April 25, 2009
Time: 11:00am - 12:30pm

Location:
Kahler Hall (Harper’s Choice Community Center)
5440 Old Tucker Row
Columbia, MD 21044

** Meetings are open to First Time Home Buyers only, No Realtors please.

PLEASE RSVP Today, Seating is limited to the first 100 to RSVP:

http://www.mdjustlisted.com/seminar

Home prices have been falling for some time, with home values at 40-50% of their peak in some markets. That means that right now you’re going to get the best deal available in years. Combine this with the recent drop in mortgage rates, and the prediction that soon rates will be at 37 year lows, you are sitting in one of the best buyers markets imaginable. The ability to get a home for a low price and not have to spend a great deal a month paying interest means you will pay off your home faster. As well, there are great incentives for buyers, ensuring you will not have to pay your closing costs in many cases, because the seller is so intent on moving the property.

The fact is, circumstances are unique, and its the perfect opportunity to get a great deal. Combine that with some of the incentives and other programs being offered by the government, more of which are likely to come with further bailouts early this year, and you couldn’t be more ready to make your home purchase. A good real estate agent can help you tap into the government programs, as well as help you find the best value at the moment, so start your search as soon as possible and have the chance to be involved in a uniquely good time to buy a home in America.

First, you should look into your credit rating. Your Fico score is an analysis of each of the major credit monitoring companies numbers, and can be found through a number of services, including myfico.com. Your credit score is based on the amount of outstanding debt you have, whether you regularly pay bill late, etc. Your credit score will determine how much money you can borrow, as well as what interest rate you will be able to get. If your credit score isn’t good, the current loan climate isn’t exactly friendly for finding a loan, so keep that in mind when beginning your home purchase.

Once you know your credit status, you need to figure out what you can afford. This means you should start using online calculators, as well as calling credit organizations to determine what they would be comfortable loaning you. As well, you need to ensure you have a down payment ready. While you can get financing from Freddie Mac or Fannie Mae if you aren’t able to raise enough capital, it is extremely hard to get a good rate these days without a fairly high down payment. As well, you will have to pay insurance on your loan to insulate the provider from potential failure to make payments. By agreeing to such a condition, you will likely be paying a decent amount of money toward insurance each month.

Once you have cash lined up, and an estimate of what you can afford, you are ready to start working on your home purchase. Finding the right home is another matter altogether, but in the current market, altogether easier than a few years ago. The important thing is not to stretch your finances too far, after all, that’s what got the country into the mortgage crisis in the first place.

While the housing bubble lead to a market where buyers were at a severe disadvantage, the buyer has now reclaimed the position of strength in negotiating a home sale. A home inspection with guarantees to replace parts is just the beginning; you can now get a myriad of inspections covering environmental concerns like radon and lead paint, as well as inspections of home infrastructure. You can get a lot more out of a home buyer when they are worried about whether the home they have invested so much into will be able to sell.

When negotiating a sale, look into any and everything you can get the seller to cover, anything about the house you want replaced. The home inspection process isn’t the only part of the sale where you can get serious concessions, these days most home sellers agree to pay closing costs up front in order to guarantee a home sale. Since these costs are substantial, this removes much of the upfront cost of a home purchase. Truly, there isn’t anything that is too far to ask for these days, but be careful, because if a home seller simply cannot meet a demand, you are going to prevent a purchase that may already be a great deal. What’s the lesson? In this market, it never hurts to see how far a seller will go.