For most couples, buying a home is the most significant purchase they will ever make together.  While the prospect of owning a home is exciting, it can often seem overwhelming, especially for those who are new to the real estate process.   From selecting a neighborhood to deciding how to use a spare room, navigating the world of homeownership together requires some extra work.

For those couples looking to purchase a home, here are seven tips that will ensure a “harmonious house hunt” without rocking the relationship:

Get pre-approved for a loan. There are few things worse than finding the perfect home, only to find out that it costs more than one can afford. Before beginning the house hunt, I recommend getting pre-approved for a loan. A pre-approval will let couples know where they fall financially while informing the mortgage company that they are ready to buy. Additionally, being pre-approved for a loan can help speed up the closing process once an offer has been accepted.

Set a budget. Beyond income and savings, there are a number of other financial elements to consider before setting a price range for the new home. Once a couple has decided on a location, they should consider its proximity to their family, jobs and schools for children and gauge travel costs. The next step is to add up monthly bills, including the couple’s car payments, phone bills, insurance, groceries, and credit card payments. This total estimated cost of living should be factored into the couple’s overall budget.

Get on the same page. Whether it is a quiet neighborhood or a two-car garage, everyone has their own “must haves” when it comes to the home of their dreams. For a couple looking for a home to share, it is important to discuss each of their essentials before beginning the search. Keep in mind that agreeing on all of the features of a future home will likely be impossible, so be prepared to compromise. Once the list of “must haves” is finalized, contact a real estate professional who can determine if the expectations are realistic given the homes currently on the market.

Allocate additional funds. The down payment on a new home is just one of the significant financial aspects of a move.  Even after both people’s belongings are combined there will likely still be a need to purchase furniture and other items like a washer and dryer which will require additional budget. The last thing a couple will want to do is start out their life together with nothing in the bank!

Be patient. A recent Coldwell Banker Real Estate survey found that women are likely to make up their minds faster than men. Almost 70 percent of women surveyed decided the day they walked into the house that it was right for them, while 32 percent of men needed two or more visits. It will likely take multiple trips to the home before both members of the couple decide it is “the one.” If a spouse needs more time, be patient and try not to pressure them.

Take inventory of everyone’s belongings. Before moving into a new home together, each person should make a list of the furniture they plan to keep and compare it with their partner’s. There may not be a need (or a place) for three televisions and two kitchen tables in the new house. Consider selling unwanted pieces of furniture online, or holding a garage sale. The money made is sure to be put to good use on purchases for the new home.

Sign a contract. For a couple who has yet to walk down the aisle, it is important to contact an attorney before closing on a home. A contract should be drawn up outlining who is responsible for what expenses and how assets will be divided in the event of a split.

Barbara Corcoran, a consultant for NBC’s  Today show, named Topeka as the number three city in the country to buy a home, right behind South Bend, Ind. and Akron, Ohio.  Locations were picked based on local real estate markets, size and value of houses, job growth and quality of education.

“Home prices haven’t gone down by more than 1 percent,” Corcoran said of Topeka. “Unemployment is only 6 percent. And it’s a great family area.”

Top 10 top cities to get the most bang for your buck:

1. South Bend, Ind.
2. Akron, Ohio.
3. Topeka, Kan.
4. New Haven Conn.
5. Tuscon, Ariz.
6. Minneapolis.
7. Portland, Maine.
8. Miami.
9. Kingston, NY.
10. Trenton, NJ.

See the video here:

Visit msnbc.com for breaking news, world news, and news about the economy

Buying a first home is one of the most important decisions a person can make, but it can be a complex process. Coldwell Banker Griffith & Blair American Home in Topeka, Kansas offers tips for first-time homebuyers with a checklist of the 10 essential steps to help make the process smooth and successful.

Step #1—Ask Your Lender About Available Mortgage Programs: An experienced mortgage company should be able to work with you one-on-one to determine exactly which mortgage programs will meet your individual needs and what you can qualify for based on your personal information. Applicants with higher credit ratings and/or higher levels of financial reserves generally receive more competitive mortgage rates. But with hundreds of available mortgage programs, there is usually one to meet the needs of almost any homebuyer. For those with excellent credit, there is even a way to get a mortgage with 0% down.

Step #2—Research the Terms of the Mortgage: Different mortgage lenders have varying price structures that can affect the amount that you pay for your home. An annual percentage rate (APR) includes the actual interest rate on the loan, as well as certain fees and costs associated with the loan. Because a customer may be paying points and other closing costs, the APR disclosed may appear to be higher than the actual interest rate quoted for the loan. Not all lenders calculate APR identically; however, it does give customers a relatively fair method of comparing price on their potential loans.

Step #3—Get a Pre-Qualified Loan Commitment: Even before the house hunting begins, homebuyers need to determine how much they can afford. Mortgage companies or other lending institutions provide pre-qualified loan commitments. Sellers often don’t take an offer seriously unless the prospective first-time buyer has some assurance of creditworthiness from a mortgage company.  A pre-approval with a reputable lending institution means more because a full credit report is ordered on the customer so that a true loan decision can be made the same day a customer applies. Shopping for a home with a pre-approved mortgage enables a customer to negotiate as a cash buyer and submit an offer on a home with confidence that the mortgage will be issued and the sale will be completed.

Step #4—Do Your “Homework”: Be sure to acquire home buying information from sites such as coldwellbanker.com to check for listings, neighborhood information, current mortgage information and home ownership services. The right amount of research will help you to better understand the marketplace and homes available in your price range when you’re ready to work with a real estate professional.

Step #5—Make a Checklist: To help make the home buying process a little easier, homebuyers should create a checklist of the important features they want in a home. Location and the number of bedrooms and bathrooms are usually important. Other important questions to answer: What will the commute to work be like? Are there shopping centers, parks, and schools located near the home?

Step #6—Find a Buyer’s Agent: A buyer’s agent represents the buyer’s interests and helps identify homes that are for sale and in the right price range. The agent also can help with such tasks as writing contracts, negotiating the asking price, and closing the purchase.

Step #7—Make an Offer: Once you find the right house, make an offer. Make sure that your offer is contingent on two items: 1) You’re able to obtain adequate financing (if you haven’t done so already), and 2) you can pull out if the property doesn’t pass the home inspection, and the owner can’t come to terms about how to fix the problem. Be prepared for counter-offers from other buyers and some negotiation with the seller. Make an earnest money deposit, which is a check that you’ll give your agent to indicate that you’re serious about buying the house. The check will apply toward the sales price if the deal goes through; if not, you get it back. You should also set a time limit with your agent that the offer you’ve made is good for three days. If an offer is accepted, it goes to the contract phase.

Step #8—Hire A Home Inspector: Making an offer contingent on an inspection by a registered home inspector can save thousands of dollars by avoiding unseen problems. Inspectors will check the house for any structural damage. In the contract with the seller, it should state any necessary repairs that must be made before closing on the house. Prior to closing, walk through the house and check that such repairs have been completed.

Step #9—Buy Homeowners Insurance: Lenders require homeowners insurance to protect the new homebuyer’s interests as well as their own. There are many providers so shop around for the best rates.

Step #10—The Closing: This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized. Congratulations, you achieved the American dream and you are now a homeowner!

New Legislation Extends the Federal Tax Credit for First-Time Home Buyers and Expands the Incentive to Current Homeowners

(TOPEKA, KS) – For many Americans, home ownership is a key step towards achieving the American Dream.  Bryon Schlosser, CEO of Coldwell Banker Griffith & Blair American Home, said, “It’s a great time to be buying or selling a home in Topeka.  Prices and inventories are stable, mortgage rates are at historic lows, and for the next few months we have new government incentives.”

On November 6, 2009, President Obama signed “The Worker, Homeownership, and Business Assistance Act of 2009,” bringing that dream one step closer to reality.

To help consumers who are considering purchasing a primary residence, Coldwell Banker Griffith & Blair American Home has summarized the details of this new legislation and what it means for those thinking about entering the market:

• Eligibility: The tax credit is now available for first-time home buyers and repeat homeowners. A first-time home buyer is defined as an individual who has not owned a principal residence during the three year period prior to the purchase.  For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.

A repeat homeowner is defined as someone who has owned and resided in a home for at least five consecutive years within the last eight.

• The federal tax credit amounts to 10 percent of the cost of the home, up to a maximum credit of $8,000 for first-time homebuyers and $6,500 for current homeowners.
  
  • e.g., If a home costs $60,000, the allowable credit for both a first-time homebuyer and a current homeowner would be $6,000. If a home costs between $80,000 and $800,000, then the allowable credit for a first-time homebuyer would be $8,000 and for a current homeowner, $6,500.

• Individuals whose Form 1040 filing status is “single” are eligible for the tax credit if their income is no more than $125,000. Individuals who file a joint return are eligible if they have no more than $225,000 in income.

Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

• The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed on or before April 30, 2010 will also qualify for the tax credit provided closing occurs on or before to June 30, 2010.
• The tax credit is refundable. A refundable credit means that if the amount of income taxes a home buyer owes is less than the credit amount he / she qualifies for, the government will send a check for the difference.  In essence, the credit is a dollar-for-dollar reduction in what taxpayers owe for the calendar year they purchase their home but the taxpayer may also amend the prior year’s return to claim the credit more quickly.
  • e.g., A first-time home buyer who qualifies for the full $8,000 tax credit and owes $5,000 in federal income taxes would owe nothing to the IRS and receive a $3,000 payment from the government.  A repeat buyer who qualifies for the full $6,500 tax credit and owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If the repeat buyer is due to get a $1,000 refund, he / she would get $7,500 ($1,000 plus the $6,500 move-up buyer tax credit).

The tax credit is a true credit. It does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.   In that case, the full credit amount will be recouped on the sale.  There are exceptions in the event of the homeowner’s death or if a sale results in a loss.

For further understanding of how the extended tax credit differs from the previous version and how it can benefit first-time and repeat homebuyers additional information can be found on CBKansas.com.

This is based on information available as of November 2009 and is not meant to be tax or legal advice.  As with any tax law change, consumers should check with a tax advisor regarding availability, eligibility and possible timing of any tax credit.

Jeanine Wells, president of the Topeka Area Association of Realtors, said Friday she was “very pleased” President Barack Obama had signed a $24 billion economic stimulus bill that, in part, extends tax incentives to prospective homebuyers.

The bill, signed by the president Friday, builds on provisions in the $787 billion stimulus package enacted this past February. It also includes tax cuts for struggling businesses and extends unemployment benefits to the longtime jobless.

“The tax credit is working locally,” Wells said, explaining that home sales grew 17 percent from September through October. “We’ve had five months in a row of steady improvement.”

Wells said home sales in February were down 20 percent to 22 percent from February 2008. Since then, the year-to-date gap has been narrowed to 11 percent.

The bill extends the popular $8,000 credit for first-time homebuyers included in February’s stimulus package. Wells said the credit, which was to expire Nov. 30, will be available through June as long as the buyer signs a binding contract by April 30.

The program was expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years. She said the new home’s price is capped at $800,000.
Wells said adjusted gross income guidelines for those purchasing a new home were increased to $125,000 from $75,000 for a single person and to $225,000 from $150,000 for a married couple.

“That should include 75 percent of the population,” she said.

Prolonging the life of the homebuyer credit has been a priority of the real estate industry, which says it has been instrumental in beginning to turn around a market that was a major cause of the economic downturn. About 1.4 million first-time homebuyers have qualified for the credit through August, and the National Association of Realtors estimates 350,000 of them wouldn’t have purchased their homes without the credit.

About a month ago, regional Internal Revenue Service spokesman Michael Devine told The Topeka Capital-Journal that 13,789 Kansas taxpayers had filed claims for the first-time homebuyer tax credit.

In addition to real estate companies, Wells said home sales also benefit other businesses in the community, such as appraisers, title companies, lenders and home repair providers. For each home sold, she said, $63,000 is pumped back into the local economy.

Wells said she expects no more extensions of the tax credit to be approved.

“If you’re thinking of buying a home, act now,” she said.

Wells said more than 1,300 residential properties are on the market in the Topeka community, and interest rates are low, about 5 percent on a 30-year loan.

Courtesy of and written by JAN BILES of the Topeka Capitol Journal
The Associated Press contributed to this report.

Reprinted from Residential Real Estate Examiner – Michele Lerner

First-time homebuyers may think they have until the end of the year to take advantage of the federal tax credit of up to $8,000 for first-time homebuyers, but this tax credit is scheduled to expire December 1, 2009. While it may seem as though there are three months left to take advantage of this government incentive, many people do not realize that the tax credit is only available if the transaction is completed on or before the expiration date. Keeping in mind that the closing process could take up to two months, first-time home buyers have just over 30 days to find their dream home and sign a contract.

Diann Patton, consumer spokesperson for Coldwell Banker Real Estate, offers six essential steps to help consumers go into closing by September 30th:

Find A Qualified Real Estate Agent. A real estate agent will arrange showings; keep track of the properties visited, and can help indentify suitable lawyers, mortgage lenders and home inspectors. Remember, an agent is an expert that can negotiate the best price and incentives on a home. They can also keep the process on track to ensure that closing on the new home occurs within the deadline for the $8,000 tax credit.

Know before you go. Separate the “must haves” from the “wants.” Free online tools such as Coldwell Banker On Location (http://www.youtube.com/coldwellbanker) and the recently launched mobile application for iPhone and Android devices are available to help consumers compare home prices, learn about neighborhoods and view what is on the market.

Get your credit report in order. Lenders today are looking at prospective borrower’s credit reports more closely than ever, so it’s important to examine your credit report for mistakes and eradicate any “toxic” debt (such as overdue credit-card payments) before the home shopping begins. Rectifying mistakes is easy but can be time consuming, so be sure to address any errors as soon as possible.

Compile your paperwork. Lenders require a number of items from potential home buyers so it’s best to be prepared. Pull together the following documents for yourself and any co-applicants on the loan:

· Verification of employment form
· Two most recent pay check stubs and bank statements
· Copies of the last two W2 forms received from employer
· Copies of any asset statements including those for retirement accounts, stocks, bonds or mutual funds
· Copy of social security card

Get Your Pre-Approval. “Pre-approval” means that a lender has verified the borrower’s credit and other credentials and is committed to making a loan. Getting this early green light will put you in a stronger position with sellers by demonstrating that you are serious and well-qualified.

Shop for the most favorable mortgage option. It’s imperative for home buyers to educate themselves on the risks of the different types of mortgages and select the right one for his / her family. A difference of even half a percentage point can mean a considerable savings over the life of a loan.

Survey Finds that While Couples Make Real Estate Buying Decisions Together, Women Make Up Their Minds Significantly Faster than Men

PARSIPPANY, N.J. (August 17, 2009) – It often seems as though men and women are from different planets, but every day millions of couples navigate through day-to-day and even life-altering decisions. Because a home is the biggest purchase most people will make in their lifetime, Coldwell Banker Real Estate LLC surveyed 1,000 individuals to discover how much men and women differ in the home-buying process.

The real estate company engaged a third-party research firm, International Communications Research (ICR), to delve into the innerpsyche of men and women, asking questions such as “How long did it take for you to know that the last home you purchased was right for you?” and “If you found the home of your dreams but had concerns about its security, would you still be interested?” Coldwell Banker Real Estate also surveyed couples on additional topics, such as “Who wears the pants in the relationship?” when it comes to making major financial decisions.

“The results were surprising,” said Diann Patton, the Coldwell Banker consumer real estate expert. “Not only did we uncover some of the inherent differences between men and women, but we also pinpointed a number of ways that the two genders are actually the same. For example, both men and women are increasingly concerned with having a space to work in their homes – something we would not have seen 40 years ago.” She continued, “We also found that feeling insecure about a home’s safety is a deal-breaker for most people, regardless of gender.”

Patton noted this topic is particularly timely given that many first-time homebuyers are hoping to take advantage of the $8,000 tax credit before it expires on December 1, 2009.

Below are some key highlights from the Coldwell Banker Real Estate study:

Women may be inclined to make up their mind more quickly than men …

• When asked how long it took before they knew their home was “right” for them, almost 70 percent of women had made up their mind the day they walked into the house, vs. 62 percent of men. Conversely, significantly more men needed two or more visits: (32 percent of men vs. 23 percent of women).

Women would rather live closer to their extended family than to their job …

• 55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37 percent of men.

A home’s security is a deal-breaker for both men and women …

• 64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51 percent).

Couples say that no one “wears the pants in the relationship” in terms of major financial decisions …

• When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70 percent of respondents living with their significant other said it’s actually mutual.

• However, 23 percent think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26 percent vs. 20 percent, respectively).

Men and women agree on how they would use a spare room, for the most part …

When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses:

• Bedroom: 25 percent
• Office/Study: 15 percent
• Family Room / Den: 11 percent

However, men really do want a “Man Cave”…

• Interestingly, out of the 8 percent who indicated they would turn that spare room into an entertainment center, it was a preponderance of men leading the charge. In fact, four times as many men as women said they would use the extra space for recreation / entertainment.

In addition to providing background on the survey results, Patton is able to offer tips for couples who are currently going through the process of buying a home. “These results further validate how critical it is for couples to recognize each other’s differences and work together, from deciding a neighborhood to how to use a spare room,” she said. “Online tools and the expertise of a real estate professional can be particularly helpful for couples, especially if they work together step-by-step along the way.”

Methodology: Coldwell Banker Real Estate engaged ICR to conduct an omnibus survey via telephone in May 2009, among more than 1,000 respondents.

About Coldwell Banker Real Estate LLC
Since 1906, the Coldwell Banker® organization has been a premier full-service real estate provider. In 2008, Franchise Times magazine’s prestigious Top 200 issue ranked the Coldwell Banker system No. 1 in real estate for the ninth straight year and 12th among franchisors in all industries. The Coldwell Banker System has approximately 3,200 residential real estate offices and approximately 100,000 sales associates in 47 countries and territories. The Coldwell Banker System is a leader in the industry in residential and commercial real estate, and in niche markets such as resort, new home and luxury property through its Coldwell Banker Previews International® division. It is a pioneer in consumer services with its Coldwell Banker Concierge® Service Program and award-winning Web site, www.coldwellbanker.com. Coldwell Banker Real Estate LLC is a subsidiary of Realogy Corporation, a global provider of real estate and relocation services. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated.

This “Two Minute Expert” video from This Old House shows you how to do a precursor inspection of a home when you’re thinking of making an offer on a home before calling in a professional.

When you are buying a home in the Topeka area, your REALTORS at Coldwell Banker Griffith & Blair always recommend that you have professional inspectors looks at any home you choose to purchase.

When it comes to the $8,000 tax credit for first-time homebuyers, it seems there’s a new program every week to help tap that money today.

The credit can be claimed on 2008 or 2009 tax returns. Homebuyers who get a loan backed by the Federal Housing Administration can use the money to cover closing costs and other fees, and at least 10 states offer ways to use the tax credit faster.

“There are some real neat tax planning strategies you can apply now,” said Bob Meighan, vice president of TurboTax.

To be eligible, a buyer cannot have owned a home in the past three years. So if you’re ready to buy, here are some tips:

INCOME CONSIDERATIONS: The tax credit, for home purchases made through end of November, comes with income thresholds, $75,000 for individuals and $150,000 for joint filers. After those limits, the credit begins to phase out. If you bought a home this year and expect your 2008 income to be lower than next year’s, it makes sense to file for the credit this year using a 2008 amended return.

However, if you think your income will decrease, due to job loss, wage cuts or hour reductions, it makes more sense to file for the tax credit on your 2009 tax returns to get the most out of the credit, Meighan said.

TAX WITHHOLDING: Another benefit to waiting until 2009: You can increase your take-home pay. By taking the credit next year, you can change your tax withholding status with your employer now and get more on a paycheck-to-paycheck basis, Meighan said.

You’ll be giving up a “fatter” tax refund next year, but each month you’ll have more change in your pocket.

Also, don’t forget to reduce your federal and state tax withholding to account for the tax deduction you can take on the mortgage interest and property taxes you pay.

BRIDGE LOANS: Ten states (and the list keeps growing) are offering so-called “bridge loans” for the federal tax credit, so homebuyers can take advantage of the $8,000 before the 2010 filing season. Qualified homebuyers in Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania and Tennessee can receive a loan with little to no interest and repay it with the tax credit refund next year.

“I see it as an upside,” Meighan said. “It gives homebuyers more flexibility,” with the money.

Each state program varies and some require a minimum down payment contribution from the buyer.

Some nonprofit organizations like NeighborWorks America are also offering bridge loans for the tax credits.

California also enacted its own one-time home buying credit for newly built homes purchased between Feb. 28 and March 1, 2010. The nonrefundable credit, which is for all buyers, not just first timers, is equal to 5 percent of the purchase price up to $10,000. It can be claimed over a three-year period. The property must be a single-family residence, the principal residence and eligible for the property tax homeowners exception.

A California resident can take both the federal and state tax, according to Kathleen Thies, a state tax analyst at CCH Inc. However, only $100 million has been put aside for the state credit and that money is expected to run out this month or next. And there are no plans to add more funding to the program.

“It’s on a first-come, first-serve basis,” Thies says.

ADVANCE CREDIT: Last month, the FHA said its borrowers can receive advances on the $8,000 first-time homebuyer tax credit from lenders, so they don’t have to wait to get the money next year from the Internal Revenue Service.

Borrowers will still have to come up with the FHA’s required 3.5 percent down payment, but the advance from the tax credit can be applied toward closing costs, fees or to increase the down payment.

John W. Roth, a senior tax analyst at CCH, believes some lenders won’t participate. The process involves more work for lenders, but lenders can only charge an additional 2.5 percent fee for that.

“How many qualified FHA lenders will offer this option to their borrowers will be interesting to see,” he said.

Roth advises homebuyers to wait and receive the money in next year’s 2009 tax return.

Said Roth: “There’s always those initial expenses when you move in that are more than you expect.”

Copyright 2009 The Associated Press.