Compare Before Deciding on the Standard Deduction
The TCJA of 2019 dramatically increased the standard deduction so that many homeowners benefit from taking that rather than itemizing their deductions. Taking the standard deduction may result in a larger deduction even if you have no expenses that qualify for claiming itemized deductions. Another thing reinforcing taking the standard deduction was low rates at the time and the interest plus property taxes were less than the standard deduction. In 2022, mortgage rates more than doubled, so, anyone who purchased a home or refinanced at the higher rates might benefit from itemizing rather than...
Read MoreNegotiate a Buydown to Get into a Home Now
If you are a prospective homebuyer, things have changed in the past year. Most notably, mortgage rates have more than doubled which has created an affordability gap that has taken approximately 15 million buyers out of the market. Inventories are growing but it isn’t because more people are deciding to sell their homes; it is because it is taking longer to sell properties because less people are qualified. Current housing inventory is a little more than a quarter of what it was in 2008. Buyers are wondering when the market will return to normal, as if mortgage rates at three and four...
Read MoreIf you’re on the sidelines, at least get ready…
If you’re on the sidelines to buy a home, there are things you can do to be ready when you do get back in the game. Improve your credit score to qualify for the best mortgage rate available which are reserved for those with the highest scores. Get a copy of your current credit reports from all three of the main credit bureaus: Equifax, TransUnion, and Experian. You can get them at AnnualCreditReport.com without paying for them. While you won’t see a credit score on these reports, you will see a history of your available credit accounts. According to the Federal Trad Commission,...
Read MoreNegotiating Your Position
The seller wants the most for their home and the buyer wants to pay the least possible. From the very beginning of the homebuying process, there are adversarial positions between the principals. If you happen to be in a multi-offer situation, it just complicates things further. Then, there are the emotions that tend to cloud the decision making on both sides of the transaction. Sellers have lived in the home for years, possibly, with cherished family experiences and maybe, having put considerable effort and money into capital improvements. On the buyer side, they may have lost out on several...
Read MoreTurn Back Time
As the expression goes, "if I could turn back time", maybe you’d would do some things differently. If you’re wanting to buy a home, the regret may come from not getting a mortgage when rates were half of what they are today. There may not be a way to literally "turn back time" but you may still be able to get a mortgage with last years’ rates. Let’s say a home was sold in the fall of 2021 for $350,000 with a 3% FHA loan. Today, winter of 2023, the home is on the market for sale at $400,000. There are buyers who have $40,000 for a down payment, who...
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