Spotlight on Boston real estate: Tax Credit Used for Down Payment?

A recent article on WashingtonPost.com looked at a new use of the First-Time Homebuyer Tax Credit: a down payment. Yes – it looks like qualified buyers with FHA-insured loans will be able to use the $8,000 tax credit as a down payment. This may make it a little easier for interested buyers to get financing. In fact, officers at the National Association of Home Builders estimate that the number of sales stimulated by the credit may double!

To read the complete article, go to WashingtonPost.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Spotlight on Boston real estate: Preparing to buy a home?

A recent article on msnbc.com explored the current climate for purchasing a home and created a very helpful list for first-time homebuyers who are looking to take advantage of the federal tax rebate. If you are preparing to buy your first home, there are a number of things that you can do to better prepare yourself for it. From polishing your credit report to considering the maintenance costs of a particular property, there is much that a new homeowner can do to avoid unpleasant surprises.

To read the complete article, go to msnbc.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Boston Real Estate Update: Local banks move into the mortgage biz

A recent article on Boston.com detailed an interesting change in the mortgage market. Many nationwide companies who offer mortgages have been hard hit by defaults and tightening restrictions. In some cases, the local banks were not hit nearly as hard and are now able to offer more beneficial loans. So, if you are in the market for a new home, try stopping by your local bank to see what they can do for you.

Read the full article on boston.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

House values are under scrutiny

If you are looking to sell your home or to buy a new one, you might be surprised at the increasing scrutiny that lenders are putting on home values. An article in the San Francisco Gate says that many banks are often demanding more thorough appraisals to be sure that their investment in your home (the money lent for a mortgage) is a safe investment.

Read the rest of this article on sfgate.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Mortgage interest rates, the rate spread and what it all means

One thing that tends to confuse home-buyers is mortgage interest rates. While the Fed (Federal Reserve Bank) can change the short-term interest rate, fixed rate mortgages are actually based on the “long bond” or 10-year Treasury bond.

Recently, there has been an unusual difference between the long bond and the fixed rate mortgages. Why, you ask? Well, the lending institutions are sort of hedging their bets. To protect their interests during this challenging time, many are essentially increasing the cost of mortgages. For more information, read this helpful article on usatoday.com or this one on CNNmoney.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Only corporations will benefit from the bailout… right? WRONG.

A recent article on Boston.com explored how individual taxpayers can benefit from the federal bailout – the Economic Stabilization Act of 2008. Nine different examples offer relief based on new legislation that provides tax relief, including changes to debt forgiveness – which may assist homeowners facing foreclosure.

Read the full article on Boston.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.

Prepping your credit for a future purchase

A recent article on MarketWatch.com offers tips on preparing your credit score for next year’s real estate purchase, including:

- Check your credit report. Find out if there have been changes to your account limits, and make sure there aren't any errors. Look for any negatives on your report -- many negative items should be removed after seven or ten years.

- Don't get close to card limits. About 30% of your FICO is based on the ratio of the amount that is owed on active cards to your available credit. But utilization on individual cards is important too; getting close to the limit on one card will also reflect negatively on your score. Pay down balances as much as possible.

- Keep accounts active. Accounts get closed when there hasn't been activity on them for a while. Make small purchases on cards a couple of times a year -- then pay them off right away -- to keep accounts active and your available credit up.

- Pay bills on time. This should an easy one, but could prove challenging for people who could lose their jobs in the months ahead. Be proactive, and contact the credit-card company as soon as possible if you're having problems paying your bill. Payment history counts for about 35% of your credit score.

- Don't apply for new cards. Store cards are tempting when they offer discounts at the register, but don't bite. Applying for that card will have a negative effect on your score in the short term.

Read the full article on MarketWatch.com.

For more information on the Boston real estate market, go to Gibson Sotheby's International Realty, Boston's real estate experts.