$8,000 HOME BUYER CREDIT

A lot is being written about the home buyer credit.  Be sure that you have the facts in hand.  What was originally thought to be a $15,000 credit is now an $8,000 credit.  However, beware the caveats:  a first time home buyer who is someone who has not owned a home in three years or more.  The credit is UP TO$8,000.00 or 10% of the purchase price of the home whichever is smaller.  You qualify if your adjusted gross income is not greater than $150,000 (couples filing jointly) or $75,000 (individuals). 

However, as I’ve often said, a good lender can help you to navigate all the pros and cons.  Because lending money is tighter and the requirements to qualify are higher — actually what they should be — you have to make sure that you have all your ducks in a row prior to even going out to look at homes.  Your lender will pre-qualify you and give you an LSR (loan status report) so that when you find a home and you make an offer the seller knows that you will indeed qualify for that loan.