Tips On Buying a Tyler Texas Area Home

The Tyler TX area  is a wonderful place to raise a family and right now you can get a lot of home for your money. The downside of the buyer’s market? There are a lot of people looking to buy Tyler real estate, and the rules for getting a Tyler home mortgage are revised. Don’t worry though, Town South Realty is  here to help!

Take advantage of these Tyler TX Home Buying Tips to ensure you have a smooth and easy road to home ownership:

• Get pre-approved
• Know how much you’re comfortable paying each month
• How long do you think you will own this home?
• In which direction are interest rates going and how quickly?
• Is your income expected to change (up or down) in the near future, which will impact how much money you can afford to pay to your mortgage?
• Make sure you understand what pre-payment privileges and payment frequency options are available to you.
• Using a mortgage expert can save you time and money so make sure you shop around for thats right one for you.

These tips only skim the surface of things to do before you buy a Tyler area property, so before you start the Tyler home buying process, or search for Tyler area homes for sale, be sure to contact me, your Tyler Texas Real Estate Expert and I will have the answers to all your Tyler home buying questions.

Until next time,

Steve

First though, you need to learn the details to the tax credit, and make sure you qualify for it, and that taking the tax credit is the best choice for you and your home buying situation.

Details of the Tax Credit for Tyler Texas Home Buyers

Are there restrictions on the type of home? What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse. Please consult with your tax advisor for more information. Also see IRS Form 5405.

I read that the tax credit is “refundable.” What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

What if I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?

Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.

Search the Tyler Texas MLS

Ready to start searching for Tyler Texas homes for sale? Take advantage of the Town South Realty comprehensive price point search to find the perfect home for you:

0-100K, 100K-120K, 120K-130K, 130K-140K, 140K-150K, 150K-160K, 160K-170K, 170K-180K, 180K-200K, 200K-220K, 220K-240K, 240K-260K, 260K-280K, 280K-300K, 300K-330K, 330K-350K, 350K-400K, 400K-500K, 500K-600K, 600K-800K, 800K and up.

Start Your Tyler TX Home Search Here!

When you find a few Tyler Texas homes for sale that fit your needs and dreams, contact me, Steve Winston, your Tyler Texas real estate agent, to set up home tours and learn more about the $8000 Tax Credit.

Until next time,
Steve