If you are purchasing a home for the first time the lending portion is often the scariest part to start. There are many programs that are available to you as a first time home buyer. The Mortgage Credit Certificate is one of those programs.
Here are some tips about the program from one of our favorite lenders, Chris Long from Equity Resources.
What is an MCC Credit
The Mortgage Credit Certificate or MCC is a program specifically for 1st time homebuyers that is a government tax credit equal to 30% of the annual interest paid on your mortgage. There is a max of $2,000 per year. Most of our clients do get the maximum credit allowed.
**Please note - This must be completed at time of purchase so if you are working with a lender that does not know what this is please give us a call as this Cannot be added after closing.
Basic MCC Credit Requirements
You must be a 1st time Homebuyer (meaning you haven’t owned a home in the last 3 years). Purchase price under $245,000. Total household income limits – which will depend on the county in which you are looking to purchase.
How do I apply for one
The only action required by you is to sign 3 forms – 1 to be signed in front of Notary.
How long does it stay in effect
The MCC Credit remains in effect every year you own the home. In fact even if you refinance the note you can transfer this credit to the new loan so it will remain in effect.
Remain in the home for 30 yrs. you can get up to $60,000 of cash reflected as a tax credit on your tax returns
Don’t miss out on your tax credit. Call Chris Long at 919-615-3152 or email firstname.lastname@example.org
Equity Resources, Inc. * 1330 Saint Marys St, Ste B050 * Raleigh, NC 27605
Licensing Information: Corporate NMLS 1579, NC L-134393-102. Chris Long NMLS 108499.
Have you recently started to look for a home to purchase? You have probably done your research online, found some homes, and maybe even visited an open house or a new home community. At one of these places you have definitely come in contact with a local real estate agent. They have asked you a bunch of questions and you may have given them your info....maybe you gave them the cold shoulder or your alias name. I often get asked, "Why should I work with an agent when buying a home?" Well, here you go:
Reason #1: In the state of North Carolina a Realtor needs to represent someone in a transaction. By default, that person is the seller. Keep this in mind when you are out and about. The job of a seller's agent is to obtain the best possible price for their client. This does not mean that they can hide material facts from you. They still need to tell you about the lead-based paint or anything that might affect the purchase of the house. However, you don't want to let that new home agent know that you are hoping to spend around $350,000 but that you are qualified up to $500,000 and that you need to be in that new house ASAP because you don't want to re-sign your lease and need to make a decision in the next 3 days!
Reason #2: I often have people say that they want to go it alone because they can find out all the information that they need to know on the internet. It's true....there is an amazing amount of information out there. However, there is also information that can be hard to find, or new communities that are going to be coming in the near future, or information about a landfill that has been proposed in the backyard but has not yet hit the news. A Realtor keeps up with all of this information daily. I am out touring properties that are on the market, finding out about the monthly incentives being offered by new construction, and know what is happening in the Triangle. I can give you the extra information that you need in order to make the most informed decision.
Reason #3: When it is time to write an offer it is great to have a pro on your side. The real estate forms that are used to buy and sell homes are constantly changing. I am up to date on all the changes that have happened as well as any other changes that might be upcoming. The current NC Offer to Purchase contract is 9 pages long with 23 different sections. I pull comps to help formulate the best possible offer. I know that Zillow will give you an "zestimate". Look at the details though. I recently had a listing and the range that they offered was between $159K - $296K. That's quite a broad window. Don't get me wrong....it's a great website for finding out information about property taxes and other homes in the area.
Reason #4: Once under contract this is where I really take over so that you can just have to worry about packing and choosing the new paint colors for your home. I account for all the monies passed throughout the transaction. I coordinate all of the inspections and the closing attorney. I hang out at the inspections to gather information for you so that you can go to your job. I have wonderful painters, handyman, power washer, carpets cleaner and anyone else that we might need to get an estimate from. I work with a rock star team. How does this benefit you? You do not need to worry about the quality of the people you use or spend time interviewing different people for the jobs. I make sure that all the correct forms are to whom they need to be with and manage the transaction for you.
Find out what other buyers had to say about working with me. Reach out to me today if you are looking for someone to help you in this process.