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Monthly Archives: February 2022
Monthly Archives: February 2022
If you’re thinking of buying a home in Carlsbad, CA, you probably already know just how tight the competition is. Since the start of the coronavirus pandemic, Carlsbad housing prices have gone up 36.1 percent!
While purchasing and owning your first home can be intimidating, you should know that it’s an attainable goal. With the help of tax breaks and first-time homebuyers programs offered by the federal and California state governments, that goal is more attainable than ever!
To qualify as a first-time homebuyer in Carlsbad, CA, you must prove adequate income, good credit rating, obtain a mortgage, and provide a minimum down payment of 3 percent.
To help you out, let’s discuss all the basics of first-time homebuyer requirements in San Diego, California. Before we do that, though, let’s clarify what it means to be a first-time homebuyer.
Let’s get started!
You might be surprised to find out that “first-time home buyer” isn’t as restrictive as you think.
Generally, a first-time homebuyer extends to people who have already bought a home in the past. The catch is that the person should not have owned a home in the past three years to be considered a first-time buyer.
To qualify as a first time home buyer in Carlsbad, CA, you must fulfill these requirements:
Individuals who have owned a principal residence for three years cannot be considered first-time homebuyers.
Aside from having not owned or co-owned a residence in the past three years, you will also need to qualify for a mortgage to be a first-time homebuyer.
A lender will require you to meet a minimum credit score and a maximum debt-to-income ratio to qualify for a mortgage. You will also need to prove financial stability with your monthly income, cash reserves, and employment status.
How much your housing budget is will depend on several factors. Hence, you must determine a price range for your future Carlsbad home before you look for a home and apply for a mortgage.
The median home price for a home in Carlsbad has risen to $1.3 million, which is more than the average buyer can afford in San Diego.
To figure out if buying a home in Carlsbad is right for you and your budget, you should consider:
After figuring out the state of your finances, you can then figure out how much mortgage you can afford.
Thankfully, first-time homebuyers have many options when it comes to purchasing a home. These include Federal Housing Authority loans and programs that specifically target first-time buyers.
Many first-time buyer loans offer a minimum down payment of as low as 3 percent, opening a world of opportunity to buyers who have only come across the standard 20 percent down payment.
If you qualify as a first-time homebuyer, make sure to look into these mortgage options.
Before I introduce you to some of these loans, remember that qualifying will still depend on the lender (more on that later!):
Before qualifying for mortgage loans, you must determine exactly how much mortgage you are eligible for.
You might have set your eye on a home, but lenders may only be willing to give you a portion of that based on your debt-to-income ratio, monthly income, and current employment status. Lenders will also take into account loan factors:
A general rule of thumb is that lenders estimate mortgage payment affordability (interest, taxes, principal, insurance) to be 28 percent or less than the borrower’s gross monthly income.
In many cases, you won’t be entertained by sellers and even real estate agents if you haven’t been pre-approved for a mortgage.
Generally, Carlsbad, CA homes for sale get 5+ offers and sell in about 12 days. Since competition for Carlsbad homes is high, getting approvals from multiple lenders will show your buyer how financially secure and prepared you are to purchase a home.
Your real estate agent can give you a list of recommendations, or you can consider the options on Bankrate or Zillow.
You will need to provide the paperwork to show your financial stability, including:
Lenders will determine if you are qualified for their loan options based on these factors:
A qualified San Diego real estate agent can help you find a home that meets our needs and budget requirements.
Call me, Dennis Smith of San Diego Senior Real Estate, at 760-212-8225 to assist you in the entire buying process. From negotiating an offer to getting a loan and completing paperwork, I will be happy to be part of your journey in purchasing your first home.
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Some mistakes in life can be costly, and one example of that are tax filing mistakes. You may incur penalties, or worse, invite an IRS audit.
Mistakes happen unintentionally when filing tax returns, so it's crucial to steer clear of such errors by carefully filling out the forms and taking note of the following mistakes you'll want to avoid:
I hope these simple tips made you feel more confident and prepared for this tax season.
If you also have questions regarding buying, selling, or investing in real estate, please call me, Dennis Smith, at 760-212-8225.
With proper knowledge, filing your tax return can be a breeze this spring!
The pandemic has so many changes, and it may not be as easy to keep up with the new updates for this tax season 2022.
But stress no more because I have created a brief overview of this year’s tax policy highlights. I’m also letting you know that since the production of this piece, the tax deadlines have changed. Please check IRS.gov for the most up-to-date information.
I’ll be happy to help you get a head start on your taxes by answering your questions or connecting you to a skilled professional in my network.
If you also have questions regarding buying, selling, or investing in real estate, please call me, Dennis Smith, at 760-212-8225.