Standard real estate purchase agreements generally contain language that releases the purchaser from the contract if they are unable to obtain financing within a specified period of time. In this instance the buyer is usually given a full return of their earnest money deposit. If you are buying a home, you should read the financing clause carefully and be sure that you fully understand the terms of the agreement.
You are usually required to apply for your loan promptly and to comply with the requests from the lender for any documentation needed to complete the loan application. The contract will also set a time limit by which you must have loan approval. If your lender cannot meet the financing deadline and the needs additional time to complete the loan, you must ask the sellers for a written extension. Your real estate agent can help you communicate your request to the sellers and negotiate the extension that will allow your lender to finalize loan approval.
I will be glad to help or assist you with your real estate needs. Call me at (336) 629-7415 or e-mail me at john@thegatlinteam.com.
TAXPAYER RELIEF CONTINUES
One of the highlights of the tax law signed in 1997 was a significant capitol gains tax cut that allowed American taxpayers to unlock home equity and end the spiraling cycle of “investing up”. First-time buyers have also seen expanded rules for Individual Retirement Accounts (IRA) and 401(k) plans, allowing penalty-free withdrawals to purchase a home.
Every two years, married homeowners who file joint federal income tax returns are allowed a $500,000 exclusion from capital gains tax on the sale of their home. Single taxpayers are allowed $ 250,000 in tax-free profits. In order to qualify for the exemption, the home must have been the taxpayer’s primary residence for two out of five years prior to the sale.
The jobs and Growth Tax Relief Reconciliation Act has guaranteed that after May 6, 2003, if your home sales profits exceed the limit, you will be taxed at a new rate of between 5% for lower income taxpayers and 15% for those in the higher income bracket.
Consult your tax advisor for your particular circumstance.
For professional advice on all aspects of buying or selling real estate, call me or e-mail me at john@thegatlinteam.com.
Your youngest child has just left home! Your present house now seems enormous. Your “empty nest” has prompted thoughts of selling your home and moving to a smaller, more manageable house.
Before you make a move, you should consult two important professionals-your real estate agent and your tax planner. A good Realtor will be able to tell you the value of your current home and the availability of houses in your preferred area. Buying a smaller home can have important advantages, such as lowering your property taxes, simplifying property maintenance, and generating cash that can be put into income-producing investments. You will also want to consider the tax laws passed in August of 1997, which allow capital gain exclusions whether you ” buy up” to a more expensive home or “buy down” to a less expensive one. You’re Realtor and your tax planner can provide valuable information to assist you in making such decisions.
As a professional real estate agent I can advise you on all aspects of buying and selling real estate. You can reach me at (336) 629-7415 or email me at john@thegatlinteam.com
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