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Tuesday, February 16, 2010

First Time Homebuyers: Things you probably didn't know. . .

Dear First Time Homebuyers,

One of the most frequent questions that we are asked by our spehere of influence and previous clients is "How is the market?". The Answer: "It depends, are you looking to buy or sell". The real estate market is never the best time for every activity for every consumer. However, right now is a GREAT time for you to decide you want to buy your first house. Of the numerous first time homebuyers that we have worked with, the most common concerns are always a detering factor in one of our clients moving forward with purchasing a home. If you have your doubts, keep reading!

Myth: I just graduated college and do not have the job history to get approved.

Truth: Many graduates have purchased a home using an offer letter from a secure company and a copy of their most recent transcripts showing they completed classes, along with a copy of their diploma. You would need to show 30 DAYS of pay stubs, just one month. Of course this is pending decent credit and at least 3.5% down.

Myth: I have decent credit and a good job, but the amount of money that I would need for a downpayment seems unachievable.

Truth: With an FHA loan, you only need to put down 3.5%. With the median sales price for a single family in Santa Clara County for 2009 falling around $673,000 you would need about $24,000 for downpayment. In addition, the City of San Jose has a first time homebuyers program that allows a 3% interest rate fixed loan for $25K downpayment assistance with NO PRE-PAYMENT PENALTY.

While the market will not recover dramatically and prices will not increase overnight, most economists have projected that interest rates will be up nearly 1.5 points by the middle to end of 2011. In addition, the homebuyer tax credit expires in April. Low interest rates, declined prices and the homebuyer tax credit incentive provide great opportunities for you to take advantage of!

If you would like to further review the process of buying and home and the importance of seeking the guidance of a real estate agent, visit our website at