Should You Plunge into Today's Housing Market

I thought that I would share part of an article that I read in Realty Times today. It speaks about the incentives for buying a home today, mostly for the first time home buyer or for someone that has not owned a home in the past 3 years. I have been reading and gathering material about the Government Stimulus Package for the First Time Home Buyer .

Before anyone takes the first step to Buying a home I recommend that they make sure that their job is secure. The second step that one should take is to have their banker check their credit score. Sometimes there are errors attached to our credit scores that could cause us great harm. Third, make sure that you have at least 20% down and do not look outside of your comfort zone. DO NOT ALLOW YOURSELF TO BE HOUSE POOR! Make sure that you budget your payments to allow yourself to live and have extra money for any extras or emergencies that may arise. Lastly, plan on staying in the house at least 3 years. Remember, you can always start small and simple and then move up in the future.

Here is the excerpt from the Realty Times:

What You Need to Know to Buy a Home Today

by Phoebe Chongchua

Don't let a sluggish economy get you down. There are reasons to shop for personal items—including a new home. I recently saw an advertisement for a new car that said you could return the car in the first year if you lose your job. While there may not be that incentive for homes yet, some other perks might give you reason to start your housing search.

If you can afford to buy, consider making homeownership a goal this year, especially if you haven't owned a principal residence in three years prior to buying. The new stimulus package sweetens the deal for homebuyers who purchase a residence on or after January 1, 2009, and before December 1, 2009. The incentive is for first-time homebuyers who remain in their home for at least three years. It provides a credit for 10 percent of the home purchase price, up to an $8,000 limit. The credit can be taken on your 2008 or 2009 tax return.

If you close on a home after the April 15 tax deadline, you can apply for an extension provided that you close on your home before the extension deadline of October 15. If you're extra speedy and have already filed your 2008 return, don't worry—you can file an amendment to claim the credit. You have three years to do that. You'll need IRS Form 1040X to do that.

Taking the credit on your 2009 return or getting the benefit now, before filing your return, by adjusting your income wage withholding are also options.

The full credit applies to those first-time homebuyers whose modified adjusted income is less than $75,000 or $150,000 (filing jointly). The credit amount drops as your income rises. And if your income is over $95,000 or $170,000 (filing jointly) then you're out of luck—the credit is eliminated.

Be sure to speak to experts to ask questions as some other qualifications apply.

Remember it is a Buyers Market and you will get more for your money today!