Fish On A Hook
Ms. Lank: After four months of our buyer trying to get financed the last hurdle for him is to wait another two months for clearance on his work visa. We don't want to lose this fish on our hook. He wants to rent until the lender will close. What terms should we impose to make sure the deal goes through? -- Via e-mail
Answer: Letting the buyer move in before closing is seldom recommended. I don't have space to list all the things that can go wrong. If you do it, be sure a lawyer who specializes in real estate draws up the rental agreement.
But if the visa doesn't come through, or the lender ends up refusing the loan, I don't see how you could force the deal to go through.
Fixing Her Up
Dear Edith: I have a house that I am not using currently. It needs some work and I cannot decide should I fix it up to rent or sell it as a fix-her-upper? -- Via e-mail
Answer: First you need to know just how bad "she" is, and what it might take to fix "her" up. Call a couple of local real estate brokers and ask them to come out and give you some free advice. It's possible "she" could just be put on the market as is.
Unless you're really ready to take on the demanding job of being a landlord, perhaps you should just forget about renting "her" out.
Eating Up The Credit
Ms. Lank: I will be transferring to another city (working for the same state agency at the same job) within the next few months. I am a first time homebuyer and have already found a home that I like.
Is there any way to be able to purchase the home now, even though I won't be living in the area yet? I want to take advantage of first-time homebuyer tax credits. -- C.
Answer: Certainly, people buy houses before they've moved into town all the time. A mortgage lender just wants to see a firm written contract for the new job. But it can be difficult to keep insurance on a vacant house, and my guess is that the costs of maintaining it for a few months (mortgage payments, property taxes, minimal utilities) could eat up much of your tax credit anyhow.
On the other hand, of course, you'll need to close on your new home before December 1 to qualify for the credit at all.
Bought In February
Dear Edith: After reading your column regarding first-time buyer tax credit, I am wondering if my husband and I are eligible.
The last time we owned a home was in 2002. We purchased a small condo in February of this year for the amount of $76,000. My husband has a part-time job and we have Social Security. We are in our 70s.
If we are eligible, how do we go about looking into it? -- M. and B.