How to Get the Tax Incentive Before It’s Gone!
Even with everything that has happened with the economy, there is still no better time to buy a home. If you are even considering home-buying, you would be wise to move from consideration to serious action.
The Home Buyer Tax Incentive is still in effect; however, as the title of this article states, time is ticking away. Homes must be under a contract by April 30, 2010, and closing must occur by June 30, 2010, in order for homebuyers to receive the tax incentive.
Remember, also, that this tax incentive program is different from the “first-time home buyer tax credit” that was being offered during 2008 and 2009. Both first-time homebuyers AND those who have lived in the home they currently own for a period of five years consecutively out of eight years are eligible.
So, with all that in mind, this is a good time to sit down and take a good look at your current credit status. If you are like most people, you may not even know where to begin, so we’ve provided a checklist of things to look at when you are examining your credit records and history, to help you with your home buying decision.
First, obtain a copy of your credit report. TransUnion, Experian, and Equifax are the three credit reporting companies who have this information. You can obtain a separate copy from each one, or there are websites and other locations that will let you obtain all three with just one request.
Once you have your credit report, sit down and review it thoroughly. This is not at hard as it may sound, as clear explanations are given on each report regarding how to read the report.
You are looking for three things: errors, inaccuracies, and suspicious entries. Errors can include paid off and/or closed accounts still showing open or with an open balance. Inaccuracies can include reports of late payments when there were none, or inaccuracy in reporting the amount of payments. Suspicious entries are those accounts which you do not readily recognize or know for certain that you never opened or applied for.
If any part of your credit report is inaccurate, take steps immediately to correct them. Go to the website of the credit reporting company where the error appears, and submit a request for correction of your credit report. The company must, by law, review your submission, and, if necessary, correct any errors or inaccuracies.
If you do have to file a correction request, make periodic contact with them. You don’t want too much time to pass before the corrections, if any are needed, are made.
Next, look at your current debt-to-income ratio. You should have no more than 20% of your income going towards paying bills. If it is more than that, you will want to immediately start lowering that percentage.
If, after doing all this, you realize you are in a position to buy a home, please “Mouse-Over” the “Move In Inventory” tab on the left-hand side of our website and you will see a number of locations with homes that are ready for immediate occupancy. We look forward to seeing you in your new Freedom Family Home.
