NGU Skyliner

Career services offered a seminar on April 14 to inform students about buying their first homes, the process of home buying and establishing credit.

Mark Kingsbury and Alonso Llano from the Carolina Team, part of REMAX Real Estate, were there to help students with the many decisions and questions that come with buying their first home. Silas Tolles, a mortgage consultant with South Carolina Mortgage Associates, was also there and discussed the ins and outs of building credit. Tolles assists Kingsbury and Llano by helping their clients get the best loans for their potential new homes.

Kingsbury said that there has never been a better time to buy a home. He discussed the reasons it is a good time to look into purchasing a home. Home prices and interest rates are lower than they have been in awhile. Some people have been able to get interest rates as low as 5 percent.

Also, first time home buyers are eligible to receive up to an $8,000 tax credit. They must buy a home before December 1, 2009, and they cannot have owned a home in the previous three years. Homebuyers must also be citizens of the United States and make less than $75,000 a year per person. For a married couple, the limit would be $150,000 a year.

The tax credit will be 10 percent of the home’s price with a maximum of $8,000.

Unlike some tax credits, buyers can use this $8,000 for anything. It is advised that those who receive the credit put the money towards their home loan. Putting that money towards the loan can save the homeowner several thousand dollars in interest payments.

Kingsbury shared several examples of couples he helped take advantage of the deals that are available. He also said that the Greenville area market is one of the few markets that has stayed stable in price during these uncertain economic times.

Kingsbury also discussed the home buying process. The first thing potential homebuyers should do is to prequalify for a loan. Once they are told how much of a loan they will qualify for, buyers can then set a price point and begin the search for their perfect home at the perfect price for them.

The realtor they hire will be essential in finding the right homes to look at. When the buyers find a home they like, the realtor will also help them negotiate with the sellers on price, closing costs and other various things that come up during the home buying process.

During Tolles’ talk about how to build credit effectively, he discussed the importance of having and keeping a good budget. Having a budget and sticking to it will help students learn to pay things off on time and keep their credit score high.

Tolles offered several great tips for students looking to build their credit correctly. He advised that students use generic credits cards that can be used for anything. He also advised that, when using a credit card for the first time, one should start small and use a card with a low limit.

Of course, with any credit card, being responsible and paying the bill on time will help you build the strong credit score you will need to make big purchases in the future. Having a good credit score will help you get a lower interest rate on a home when it comes time to buy.

Kingsbury and his team were very informative and they gave very helpful advice they gave to the students who attended.

If you were not able to attend but you have questions about building credit or buying a home, feel free to visit theCarolinaTeam.com or wesellGreenville.com for more information.

For additional information on the tax credit for first-time home buyers, visit www.federalhousingtaxcredit.com.