Whew! Tax Day Was Yesterday!

Since tax day has passed, I feel compelled to advise those of you who are getting a tax refund and do not own a home a piece of free advice. That refund (on average $3000) can help you get into a new home of your own. The payment will likely be less than your present rent if you get a home of comparable size. You may not even have to use your refund, but even so you will probably need new drapes a new grill and will have moving expense. You may not have to use it because in spite of what you have heard on the media, you might get into a home for little to no cash. I am reading everywhere that the housing recovery is here. That will most certainly drive interest rates up.


Here is a surprising statistic. The P and I on $150,000 at 3.75% (today’s FHA rate) is $696. If rates go up 1% which is a good probability that same payment will only finance $133,300.

So it doesn’t pay to wait to see if prices might drop some.

These payments are Principal and Interest only, not the total payment. Call me at 777-4663 for details or email me at george.margrave@migonline.com . 

Buy a Home Without the Stress

1. Be prepared. You know you are going to have to supply a box full of documents to your lender. When the thought that you might buy first hits you, start organizing and saving any paperwork anyone could possibly ask for. (I can give you a heads up. Just e-mail me at george.margrave@migonline.com or call 615-777-4663.

2. Plan ahead so that a day or two delay won’t have you paying furniture storage fees and/or living on the street. There are all kinds of things that can cause delays.

3. Pre-approve the other parties at the bargaining table. Is the seller upside down? Does he have the money to close? Does a bank have to approve the short sale? Are there title problems? Will the property meet the guidelines of the lender? And on and on.

Just don’t get caught here.