You may qualify to exclude from your income all or part of any gain from the sale of your main home. Your main home is the one in which you live most of the time. Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. This means that during […]
One of the most complex and important financial events in peoples’ lives is the purchase or sale of a home or investment property. Because of this complexity and importance, people usually seek the help of real estate brokers and sales agents when buying or selling real estate. Real estate brokers and sales agents have a
Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who’s already living in the home. These circumstances are the exception, not
Once you’ve found the home of your dreams, it’s time to make an offer to buy it. Before deciding how much to offer, HUD urges you to get a professional inspection. It can also be helpful to find out how long the home has been on the market-if it’s been for sale a while, the
Before you buy a home, you’ll want to know exactly what it is you’re getting. An inspector checks the safety of your potential new home. Home Inspectors focus especially on the structure, construction, and mechanical systems of the house and will make you aware of only repairs,that are needed. The Inspector does not evaluate whether
These tips will help you get the very best deal and write the best possible offer. Always remember to have the home inspected – you can deal off any flaws! Ask for advice! A seasoned real estate agent can help you with all three of these items. They’re experienced negotiators and have written hundreds (thousands?)
The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA,monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment,
Escrow – A neutral third party holds documents and money for a real estate transaction and ensures that all conditions of a sale are met. Also refers to a special account that a lender uses to hold a borrower’s monthly payments on property taxes and insurance. The amount of money that you will be required
There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following: Attorney’s or escrow fees (Yours and your lender’s if applicable) Property taxes (to cover tax period to date) Interest (paid from date of closing to 30 days before first monthly payment) Loan Origination
The purchase – The IRS says you can deduct interest in the year that it is paid, and that is usually part of each monthly loan payment. Mortgage interest – In general, you can deduct interest charged on a loan used to acquire or improve your principal residence in the year that it is paid.
