Buying a home for the first time, or any time, can be an
exciting adventure, as well as a scary one.
On the other hand, there’s also the pleasure of participating in
the American dream of owning your own home. No more having to be
quiet because other tenants might complain. No more having to
fight for a parking spot nearby. No more dealing with landlords.
The advantages of home ownership are both personal and
financial. On the personal side, there’s the very real pleasure
of being master of your castle. You can put a nail in the wall
to hang a picture without worrying that you might not get all of
your cleaning deposit back. In short, there’s a kind of freedom
that comes with home ownership that tenants never get to
experience.
In addition, there are financial rewards. You get to deduct (in
most cases) all your mortgage interest and your taxes. When you
sell, you can often defer your gain from immediate taxation by
rolling it over into a more expensive home. And when you reach
the age of 55, you may be eligible for a big “gift” from Uncle
Sam — you may not have to pay taxes on up to $125,000 of the
profit on the sale of you home. If you have an office at home,
you may even be able to take a deduction for it.
With Christmas just weeks away, one might wonder if the American
dream of a family owning its own home could become a reality by
Christmas day. Is it still possible to buy, close and move into
a new home by Christmas, and if so, how does one prepare to make
the dream come true?
Most developers surveyed in the Dade and Broward County area
unequivocally agreed that it is not only possible to move into a
new home by Christmas, but the feat has been accomplished many
times.
It borders on a myth that home owners always experience a two-
to three-month wait on a new home closing. The developers
questioned reported that a mortgage can be arranged, approved,
and the property inspected in less than two weeks. Most
developers have finished homes which are ready for immediate
occupancy as soon as the loan is approved.
Some developers in the area offer in-house financing, or have
lenders they work with very closely which promotes a speedy loan
approval process. “It makes the mortgage process much easier and
much more efficient. It can save the buyer money and he could
move in in a timely manner,” said Traci Phillips, marketing
director for Lennar’s Dade County Division.
Another way for a home buyer to speed up the loan process is to
pre-qualify before he or she goes house-hunting. In recent
years, mortgage lenders, real estate agents, and financial
planners, all have endorsed pre-approval or pre-qualifying.
It only makes sense to figure out how much home you can afford
before you begin to plan your house hunting. “Consult with a
real estate expert, an attorney or broker to help with this
process,” suggests Bob Krieff, chief operating officer for
Breakstone Homes.
It’s a good idea to have all the necessary documents on hand.
Some of the documents a lender will request include the
following items: • Recent paycheck stub. • Two years of income
tax forms (if you are self-employed). • A copy of your bank
statement, usually for two months. • Verfication of deposit
(from a bank showing you have the necessary down payment in your
account). • Any other documents the lender may need, such as
proof that you have paid off old loans that may show up in your
credit report as unpaid.
As with any major transaction, complications could surface which
could preclude a home buyer from purchasing a home in time for
Christmas.
These might include credit problems (a poor credit score), tax
liens, the unavailability of sufficient funds for the down
payment, and insufficient or inaccurate information provided to
the lender.
“If the buyer purchases a completed home, the only thing that
can complicate closing is the mortgage process,” said Diana
Ibarria, senior vice president of sales and marketing for
Westbrooke Companies, Inc.
Rita Roig, director of closing for UAMC, Lennar’s mortgage
company adds, “Buyers must make sure that the information they
provide on the application is accurate. Being honest facilitates
a quicker process, and a possible denial can be avoided.”
Finally, some area developers offer a variety of incentives to
buyers moving in by Christmas, including qualifying for the
Homestead exemption if the buyer closes before year’s end.
“Builders always like to end the year with additional sales,
especially during a traditionally slow month,” says Krieff.
About the author:
Amy Young is a freelance writer based in Palm Bay, FL She can be
reached at LadyWriter0227@aol.com URL: www.young-impressions.com
Professional writer, editor and newspaper columnist. Author of
12+ ebooks.
|
|
