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Obtaining a home inspection is one of the most important steps in purchasing a home. A qualified inspector can point out potential costly problems with the home you are considering buying, and a good inspector will give maintenance advice and ultimately give you peace of mind about your home investment. All home buyers -- whether they are buying an older home or building a new one -- should have the home inspected by a professional after making an offer and before closing. There are a few things you need to know before hiring a home inspector. First, the home inspection industry is becoming more professional and regulated. There are professional organizations with codes of ethics, like the National Association of Home Inspectors and the American Society of Home Inspectors, but membership is voluntary. The average home inspection costs $300, which is paid on the day the inspector examines your home. Lower or higher fees do not necessarily reflect the expertise of the inspector. Finding

A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis. Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today: Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage. Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing. Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical. Include a maintenance budget. Even new homes need upkeep and repairs. Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really wa

If you are a First-Time Home Buyer and purchase a home before December 1, 2009 you can take advantage of the 2009 First-Time Home Buyer Tax Credit. Here's what you have to do to get your benefit: Close on your home purchase by November 30, 2009, Ensure that you are a qualified first-time buyer under IRS guidelines, Decide which year to file under, 2008 or 2009, File an amended 2008 return or choose to apply the credit to your 2009 tax return. Deciding When to Apply the Credit If you want the benefits of your credit as soon as possible: You might choose to file under your 2008 tax year. Since April 15 has already passed, you would have to file an amendment to your return. However, if you've already filed for an extension of your 2008 return, then you can simply claim the credit when you submit your return. If you anticipate a drop in income next year: You can wait to claim the credit as part of your 2009 filing. In some cases the value of the credit might be higher, particularly

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income. 2. Develop your home wish list. Then, prioritize the features on your list. 3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety. 4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment? Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price. 5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments. 6. Determine your mo

If you haven’t owned your own home in the past 3 years, you may qualify for MaineHousing’s Gift of Green . For a limited time, MaineHousing is offering eligible borrowers who use a MaineHousing mortgage: Up to $5,000 (not to exceed 4% of the mortgage amount) to help with the cash needed for closing, such as any required down payment, closing costs, and prepaids. A coupon worth up to $500 for a 2-part home energy audit. The Gift of Green is a gift, which will not be added to the loan amount, and it never has to be paid back . Because the Gift of Green promotion is part of MaineHousing’s mortgage program, you also may be able to use the Purchase Plus Improvement Option to fund home energy improvements as part of your mortgage. MaineHousing mortgages even come with payment protection for unemployment . Total Financial Incentives of Up To $15,000! Add the Gift of Green grant of up to $5,500 to the federal First-Time Homebuyer Tax Credit worth up to $8,000. This, in turn, lets you invest

A friendly reminder for you first-time home buyers out there... In order to qualify for the government’s $8,000 gift in the form of a tax credit, your deal must close by Dec. 1, 2009. It's not too late! You should have a purchase contract signed by early October, so you have 45 to 60 days to arrange financing and safely close the deal. For more information on the First-Time Home Buyer $8000 Tax Credit, click here .

Many states have already started making bridge loans available to households who want to claim the First-Time Homebuyer Tax Credit! With the announcement earlier this week that the U.S. Department of Housing and Urban Development will allow consumers to obtain a bridge loan, repayable with proceeds from their tax credit, to help cover their down payment, consumers are anxious to "get movin’". HUD Secretary Shaun Donovan stated that guidelines for the new policy will be released shortly. But even before the announcement, nearly a dozen states were one step ahead of the department by providing similar bridge loans through their housing finance agencies. Many state REALTOR® associations were behind these proactive efforts and worked with state officials to set up programs. The Washington REALTORS® association was able to convince treasury officials that the money loaned to home buyers would not only be paid back when tax credits took effect, but also increase the state’s funds.

The U.S. Department of Housing and Urban Development announced this week that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment. Previously, most buyers could not receive the funds until after they filed their tax return, and that deterred some people from using the credit. If consumers have access to the home buyer tax credit funds when they close on their home loans the cash can be used as a down payment. Now FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. At this point there aren’t yet any procedures in place to accommodate the “bridge” loan. But this should be available shortly. For those of you who qualify for the First Time Home Buyer Tax Credit should start looking for a home now. This should prove to be a significant benefit to the Real Estate purchase

New income limits for the USDA Guaranteed Rural Housing Program went into effect on April 20th. This includes an increase in the income limits nationwide, as well as the implementation of the new “2-Tier” income limit structure, which will simplify program requirements and the qualification process. Previously, income limits for many counties, including Cumberland & York Counties, depended on the number of persons. There was a different income level for each additional person. The new structure only has two income levels (1-4 persons and 5-8 persons). This increases the maximum income level for most families. Cumberland & York County: $73,600 for 1-4 person household $97,150 for 5-8 person household Portland Metro: $83,250 for 1-4 person household $109,900 for 5-8 person household This is great news for many buyers! Here is the link to look up the Rural Development income limits for your area.

There are many factors to take into consideration when answering this question. One of course is interest rates, which have already reached historic lows (at least in the last 20-25 years) and continue to drop even lower. This won’t continue to happen forever! The foreclosure inventory continues to grow, keeping the majority of the prices low. Prices on homes right now are the lowest they have been in years. The programs that are available to first-time home buyers make it easier than ever to get a mortgage. Many of the programs offer low to no down payments, assistance with closing costs and options for the seller to contribute toward costs. Combine these three factors with the new home owner tax credit that the government has bestowed on first time home buyers ($7500 in your pocket) and it creates a an ideal situation. Put simply, there are a lot of good reason to buy right now! Many people believe that this is the golden age for buying real estate because everything is in the buyer’

Avoiding common mistakes can make the home buying process simpler and less stressful. Keep the following in mind to help improve your home-buying experience: Do Your Homework - Enter the market well-prepared by researching location, school district, deed restrictions and taxes. Don't Try To Make a Shrewd Investment - Focus on finding the best place for you and your family to live rather than trying to predict the real estate market. Location, Location, Location - Consider what part of town you would like to live in and avoid homes located on busy streets. Don't Overlook an Inferior Floor Plan for an Attractive Exterior - Choose a great floor plan over a great exterior because you'll spend far more time inside the house than outside. Don't Overlook How the Home Will Function For Your Family - Consider features that are most important to your family and choose a home that will meet those needs. Always Have the Home Properly Inspected When Buying a Resale - Hire a state-li