During this current economic crisis, the number of foreclosures amount to approximately 8 million. Moreover, the value of homes has been on the decline. If you are thinking about moving to another state after you retire, and are considering buying a new home, it may be more advantageous to do so now than ever before.
With the new Stimulus Package about to be voted on next week, one of the amendments passed allows for anyone wishing to buy a home a $15,000 tax credit on the purchase of the home. This certainly is a welcome change to the previous $7500.00 tax credit that was in effect. In addition, this would allow the homebuyer to claim this on their 2008 income tax return.
Now this is all well and good providing that the entire Stimulus Package passes, and that this particular amendment is not removed during the Conference portion, that is, a meeting between the Senate and the House.
Considering the positive affect it will have on future homebuyers in general, and retirees in particular; and considering that home prices have declined about 40%; buying a home this year is a goal that can be achieved.
However, there are other criteria required to be able to purchase a home in today’s credit crunch. A FICO score of 720 or more as well as a down payment of at least 20% will afford you the opportunity to become a homeowner.
Remember, banks are not willing to lend money for home purchases due to the overwhelming number of toxic mortgages they currently hold. Therefore, now is the time to begin the process necessary to ensure you can both afford the home and have a credible institution to work with.
First, check your credit reports and FICO scores. If you plan on purchasing a home this year, save as much as you can for the down payment. Make a list of mortgage lenders and banks and begin calling them to ascertain what interest rates they are offering.
At a time when foreclosures are at an all-time high, the good news is that you can take full advantage of this opportunity to retire in any city you choose and, if you qualify, buy a new home. What better way to begin your retirement and, at the same time, help to stimulate the economy?
By: Charlotte Demontigny