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The VA funding fee is required by law. The fee, currently 2.15% on no down payment loans for a first-time use, is intended to enable the veteran who obtains a VA home loan to contribute toward the cost of this benefit, and thereby reduce the cost to taxpayers. The funding fee for second time users who do not make a down payment is 3.3%. The idea of a higher fee for second time use is based on the fact that these veterans have already had a chance to use the benefit once, and also that prior users have had time to accumulate equity or save money towards a down payment.
For purchase and construction loans, members of the regular military fall into the category of first time user or subsequent user.
For first time users, no down payment requires a 2.15% fee, up to 10% down payment requires a 1.5% fee, and 10% or more requires a 1.25% fee.
For subsequent users, no down payment requires a 3.3% fee, up to 10% down payment requires a 1.50% fee, and 10% or more requires a 1.25% fee.
Can the VA Funding Fee be used as a tax write-off?
No... but it adjusts the cost basis upward, so if the sale of the property is taxable, then it would reduce the gain and therefore the tax.
Happy House Hunting!
~Blalock & Associates
www.gohomesearching.com
Monday, May 17, 2010
Wednesday, May 12, 2010
Buy a Home around Fort Benning!!!
According the the Fort Benning Housing website:
Purchase a Home
Financial Freedom comes from having cash flow to do what you want, when you want. Owning a home is one of the surest ways to build wealth. You may want to consider using your BAH to invest in yourself through home-ownership. Both officers and enlisted personnel have used this approach to reduce their tax burden, provide a house for their family, increase their net worth and choose where they would like to live rather than being told "where to live".
A good place to start is by looking at our local realtor's website www.gohomesearching.com where you can get a ton of helpful information and browse both new home subdivisions and resales in the Fort Benning area. Also check out www.jefflindseycommunities.com for more information about a popular local builder.
As always, Happy House Hunting!
~Blalock & Associates
www.gohomesearching.com
Purchase a Home
Financial Freedom comes from having cash flow to do what you want, when you want. Owning a home is one of the surest ways to build wealth. You may want to consider using your BAH to invest in yourself through home-ownership. Both officers and enlisted personnel have used this approach to reduce their tax burden, provide a house for their family, increase their net worth and choose where they would like to live rather than being told "where to live".
A good place to start is by looking at our local realtor's website www.gohomesearching.com where you can get a ton of helpful information and browse both new home subdivisions and resales in the Fort Benning area. Also check out www.jefflindseycommunities.com for more information about a popular local builder.
As always, Happy House Hunting!
~Blalock & Associates
www.gohomesearching.com
Top 7 Tips for Buying New Construction Homes
Top 7 Tips for Buying New Construction Homes
By Eric Bramlett
New home communities are more popular than ever! With good reason – new home builders are using popular, open floor-plans, including appliances, sod, and blinds, and helping make it easier than ever to get into a new home with little or no money. New home transactions typically seem a lot easier, as well. If a buyer chose to, they could get through a new home transaction without contacting anyone except the on-site sales agent! However, this would open you up to HUGE losses. Take these simple steps to protect yourself in a new home transaction, and to ensure that yours is a success.
Use a Realtor Who Has New Home Sales Experience
Many people think that they can save money by not using, or don’t need the services of a Realtor when buying a new construction home. This couldn’t be further from the truth! New homebuilders typically try to monopolize a transaction – they only give you their attractive incentive packages if you agree, in writing, to use their lender, their title company, and sometimes even their insurance company! A Realtor will walk you through the transaction and will make sure that you’re protected every step of the way. If you’ve agreed to use the builder’s lender, your Realtor will make sure that you get a fair interest rate & fair closing costs. Your Realtor will know what the industry standards are, and will make sure that the builder doesn’t try and stretch beyond these. And best of all, a Realtor with a lot of new home transactions under their belt will have established relationships with your homebuilder. Because of this, the homebuilder will be on their “best behavior.” The homebuilder doesn’t want to run the risk of getting a bad reputation in the Realtor community, who can potentially bring the builder lots of homebuyers in the future. It really just comes down to the trust level you do or don't build with the realtor's in the subdivisions.
Don’t Sign ANYTHING Until You’ve Worked Out Every Detail of the Sale
Buying a home can be very emotional – and it should be. You’re not simply picking out a house; you’re picking out where you’ll spend the holidays next year, where your parents will come visit you, and where you might raise your children. However, the on-site sales agent will try and play on this emotion and get you to “write up the contract so that no one else can get your house.” That’s just fine, as long as you understand what you’re signing, and everything is okay with you. Just remember – no matter what is said, everything will be done as it is outlined in the contract.
GET A HOME INSPECTION!!!
Most people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper to bumper” warranty that includes everything, and many homebuyers feel that they can find out if there are any construction flaws during those 12 months. The problem with this mindset is that many problems won’t surface until well after the 12 months. Remember, your home was built by humans, and humans make mistakes. And, no matter how much experience and reputation a builder brings to the table, it’s still next to impossible for that builder to double check every part of the job their subcontractors have completed. A licensed inspector will go through a very thorough checklist to make sure that everything has been accounted for. At the very least, get an inspection so that you can sleep soundly at night, knowing that an independent third party has given your new home their stamp of approval.
(Preferred Lenders
A lot of builders offer incentives for using preferred lenders. Make sure you check into the details of what it will cost YOU to use that lender, and weigh out your options of benefit versus cost. As always... do your research!)
Research the Builder
Most builders are “good” builders. They take simple steps to protect their neighborhoods. Research your builder, or ask your Realtor if your builder takes these simple steps to make sure that your neighborhood won’t instantly go down in value:
1) Limit the # of investor purchases – this makes sure that the neighborhood doesn’t turn into a “rental” neighborhood & allows the “pride of ownership” to shine through.
2) Continues to build equal or greater value homes in the same and surrounding neighborhoods. Builders who avoid doing this create a “vacuum” in home prices and instantly devalue new home purchases.
Choose Your Appraiser
You’re going to pay for an appraisal one way or another! The lender will require that you have an appraisal in order to loan you the money for the home! Additionally, most appraisers charge about the same of money for the service – so why not choose your appraiser? Ask around until you’ve been referred to a good appraiser and request that they perform the service. Ask for a copy of it and read it! Call your appraiser if you have any questions. This will give you an in-depth knowledge of the market area – and it’s something you would pay for, regardless!
Research City Plans
New neighborhoods are typically on the outskirts of town – the land is readily available and less expensive, which means that you can buy a bigger house for the same amount of money. In these outskirt communities, it’s very important to know what the city has in store in the way of roads, zoning, public transportation, parks, and schools. These factors will dictate whether your new neighborhood will become the next “big thing,” or the next “cheap thing.” If you’ve decided to use a reputable Realtor, your job will be easy! Simply ask your Realtor and he/she will be able to provide you with lots of information about city plans that have been approved, and city plans that are still being talked about.
Happy House Hunting!
~Blalock & Associates
www.gohomesearching.com
By Eric Bramlett
New home communities are more popular than ever! With good reason – new home builders are using popular, open floor-plans, including appliances, sod, and blinds, and helping make it easier than ever to get into a new home with little or no money. New home transactions typically seem a lot easier, as well. If a buyer chose to, they could get through a new home transaction without contacting anyone except the on-site sales agent! However, this would open you up to HUGE losses. Take these simple steps to protect yourself in a new home transaction, and to ensure that yours is a success.
Use a Realtor Who Has New Home Sales Experience
Many people think that they can save money by not using, or don’t need the services of a Realtor when buying a new construction home. This couldn’t be further from the truth! New homebuilders typically try to monopolize a transaction – they only give you their attractive incentive packages if you agree, in writing, to use their lender, their title company, and sometimes even their insurance company! A Realtor will walk you through the transaction and will make sure that you’re protected every step of the way. If you’ve agreed to use the builder’s lender, your Realtor will make sure that you get a fair interest rate & fair closing costs. Your Realtor will know what the industry standards are, and will make sure that the builder doesn’t try and stretch beyond these. And best of all, a Realtor with a lot of new home transactions under their belt will have established relationships with your homebuilder. Because of this, the homebuilder will be on their “best behavior.” The homebuilder doesn’t want to run the risk of getting a bad reputation in the Realtor community, who can potentially bring the builder lots of homebuyers in the future. It really just comes down to the trust level you do or don't build with the realtor's in the subdivisions.
Don’t Sign ANYTHING Until You’ve Worked Out Every Detail of the Sale
Buying a home can be very emotional – and it should be. You’re not simply picking out a house; you’re picking out where you’ll spend the holidays next year, where your parents will come visit you, and where you might raise your children. However, the on-site sales agent will try and play on this emotion and get you to “write up the contract so that no one else can get your house.” That’s just fine, as long as you understand what you’re signing, and everything is okay with you. Just remember – no matter what is said, everything will be done as it is outlined in the contract.
GET A HOME INSPECTION!!!
Most people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper to bumper” warranty that includes everything, and many homebuyers feel that they can find out if there are any construction flaws during those 12 months. The problem with this mindset is that many problems won’t surface until well after the 12 months. Remember, your home was built by humans, and humans make mistakes. And, no matter how much experience and reputation a builder brings to the table, it’s still next to impossible for that builder to double check every part of the job their subcontractors have completed. A licensed inspector will go through a very thorough checklist to make sure that everything has been accounted for. At the very least, get an inspection so that you can sleep soundly at night, knowing that an independent third party has given your new home their stamp of approval.
(Preferred Lenders
A lot of builders offer incentives for using preferred lenders. Make sure you check into the details of what it will cost YOU to use that lender, and weigh out your options of benefit versus cost. As always... do your research!)
Research the Builder
Most builders are “good” builders. They take simple steps to protect their neighborhoods. Research your builder, or ask your Realtor if your builder takes these simple steps to make sure that your neighborhood won’t instantly go down in value:
1) Limit the # of investor purchases – this makes sure that the neighborhood doesn’t turn into a “rental” neighborhood & allows the “pride of ownership” to shine through.
2) Continues to build equal or greater value homes in the same and surrounding neighborhoods. Builders who avoid doing this create a “vacuum” in home prices and instantly devalue new home purchases.
Choose Your Appraiser
You’re going to pay for an appraisal one way or another! The lender will require that you have an appraisal in order to loan you the money for the home! Additionally, most appraisers charge about the same of money for the service – so why not choose your appraiser? Ask around until you’ve been referred to a good appraiser and request that they perform the service. Ask for a copy of it and read it! Call your appraiser if you have any questions. This will give you an in-depth knowledge of the market area – and it’s something you would pay for, regardless!
Research City Plans
New neighborhoods are typically on the outskirts of town – the land is readily available and less expensive, which means that you can buy a bigger house for the same amount of money. In these outskirt communities, it’s very important to know what the city has in store in the way of roads, zoning, public transportation, parks, and schools. These factors will dictate whether your new neighborhood will become the next “big thing,” or the next “cheap thing.” If you’ve decided to use a reputable Realtor, your job will be easy! Simply ask your Realtor and he/she will be able to provide you with lots of information about city plans that have been approved, and city plans that are still being talked about.
Happy House Hunting!
~Blalock & Associates
www.gohomesearching.com
Tuesday, April 20, 2010
How to Sell Your Home: STAGING
If you ask a lot of Realtors what sells a home, they may say "A nice house will sell itself". So what exactly constitutes a "nice" house? Here are some great tips on how to get your home Ready to Sell:
1.Disassociate Yourself With Your Home.
You are selling a HOUSE not your HOME... Home is where the heart is right?! Say your Good-byes once you decide to sell, and strictly look at it as a financial decision from that point forward.
2.De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars (maybe).
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.
5. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
6. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.
10. Check Curb Appeal.
If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.
Information gathered from http://homebuying.about.com/od/sellingahouse/ht/homeprep.htm
Happy House Hunting!
~Blalock and Associates
www.gohomesearching.com
1.Disassociate Yourself With Your Home.
You are selling a HOUSE not your HOME... Home is where the heart is right?! Say your Good-byes once you decide to sell, and strictly look at it as a financial decision from that point forward.
2.De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."
3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.
4. Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars (maybe).
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.
5. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"
6. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.
7. Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!
8. Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.
9. Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.
10. Check Curb Appeal.
If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.
Information gathered from http://homebuying.about.com/od/sellingahouse/ht/homeprep.htm
Happy House Hunting!
~Blalock and Associates
www.gohomesearching.com
Thursday, April 15, 2010
How Much House Can You REALLY Afford?
So, we are all aware of the housing crisis that our country has been experiencing in the recent years. One of the big reasons so many people have been finding themselves in foreclosure is because they were not smart about their money when buying their home. In essence, their eyes were bigger than their wallets! So do yourself a favor, and don't get caught up with the masses and find yourself struggling to pay your mortgage.
Here is a great site for figuring out what you realistically can afford!
http://www.hsh.com/calc-howmuch.html
Remember, just because you get approved for $X doesn't mean you have to max out your budget!
Buy Smarter now to be Happy later!
Happy House Hunting :)
~Blalock & Associates
Here is a great site for figuring out what you realistically can afford!
http://www.hsh.com/calc-howmuch.html
Remember, just because you get approved for $X doesn't mean you have to max out your budget!
Buy Smarter now to be Happy later!
Happy House Hunting :)
~Blalock & Associates
Friday, April 9, 2010
The Homebuyer Tax Credit- Military Exemptions
It's Tax Time!
The new and improved First Time Homebuyer Tax Credit has caused a lot of people to buy in the previous year- many of them Military Families. Normally, if you move from this within 3 years of purchase you will owe back your $8000 or $6500 (whichever you received from the IRS). However, things are a bit different for the Military.
Moral of this story?- BE CAREFUL! This tax credit is great for many many people, but MAKE SURE you are PCSing before you give up your home!
The new and improved First Time Homebuyer Tax Credit has caused a lot of people to buy in the previous year- many of them Military Families. Normally, if you move from this within 3 years of purchase you will owe back your $8000 or $6500 (whichever you received from the IRS). However, things are a bit different for the Military.
GOOD NEWS!
If you receive orders to PCS somewhere at least 50 miles away from your Primary Residence (the address you claimed the credit for), you DO NOT have to pay back your refund credit money! This applies whether you sell the current home or rent it out.BAD NEWS :(
True Story- Consider this scenario that happened to a family right here at Fort Benning, GA- A soldier received orders to PCS to Fort Drum, NY. He had claimed the tax credit for buying his home, and they decided to rent it out when they moved to New York. He moved his family ahead of him, and was soon to join them when his orders were cancelled! His home at Fort Benning had already been occupied by his new tenants, so he and his family could not move back into their home. Because they no longer had orders for more than 50 miles away, and could not move back into their Primary Residence they had claimed on their taxes, they had to PAY BACK the $8000!!!Moral of this story?- BE CAREFUL! This tax credit is great for many many people, but MAKE SURE you are PCSing before you give up your home!
In the meantime,
Happy House Hunting :)
Thursday, April 1, 2010
Things to Think About When Choosing a Floor Plan
So you've found the neighborhood you've been searching for. Now What?
The next and perhaps most important step in the new home buying process is
Choosing a Floor Plan.
Here are some things to consider when picking your plan:
- Layout vs. Square Feet- Choosing a layout that fits your lifestyle is way more important than overall square footage. Most people like to compare numbers, so they like to see square footage side-by-side comparisons. Unfortunately, they may be making a mistake. Distribution of space can make a world of difference, and you may be able to get away with a smaller and more affordable plan, as long as those square feet are used where you need them most. Why pay for space you don't need?
- Lot Size vs. House Foot Print- In general, if you are looking at two plans with identical square footage, but one is 1-story and the other 2-story, the 1-story home will take up more space on your lot, leaving you with less yard. So if a larger yard is more important, you may want to go with the 2-story in that scenario. Also think about where the house will be placed on the lot, since that determines how large your front and back yards become.
- More Bedrooms vs. More Entertaining Space- If you know you are stuck in a certain size range due to lot size or financial restrictions, you may be forced to choose between priorities. A tip- Always remember that a spare bedroom can be used for many purposes- game room, office, hobby room, etc. For example, many new homes are offering spare bedrooms above garages that are advertised as bedrooms, but it may be the perfect spot to close-off noisy game room fun!
For great floor plans in the Georgia and Alabama areas, check out these great sites:
www.jefflindseycommunities.com
We hope this will help you in the process of buying your new home!
Happy House Hunting!
~Blalock & Associates
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