Posts Tagged ‘homes for sale in prattville’

Three Bedroom Prattville Homes for Sale Under $200,000 in the Daniel Pratt Elementary School District

Friday, February 11th, 2011

Three Bedroom Prattville Homes for Sale Under $200,000 in the Daniel Pratt Elementary School District

 

     For military buyers who are relocating to Maxwell AFB and Gunter Annex in Prattville, Montgomery, and the River Region, finding reasonably-priced homes for sale in Prattville is important.  It can be hard to sift through so many houses on market, and many military buyers want to find nice, reasonably-priced homes near Maxwell AFB and Gunter Annex within the popular Daniel Pratt Elementary school district.

 

     Prattville is about a 20 minute drive from both Maxwell AFB and Gunter Annex.  That makes for a nice, easy commute on work days.  Many military buyers are making the decision to live in Prattville.  And being able to find several three bedroom Prattville homes for sale under $200,000 in the Daniel Pratt Elementary school district to choose from makes Prattville even more attractive.

 

     To make it easy for military buyers or anyone else to quickly find three bedroom Prattvile homes for sale under Easy as pie to search for homes for sale in Prattville$200,000 in the Daniel Pratt Elementary school district, I’ve created a simple page on our website that makes searching for these homes for sale as easy as pie.  All of the listed three bedroom Prattville homes for sale under $200,000 in the Daniel Pratt Elementary school district are shown on the page.  You don’t even have to search for them.  They’re right there.  The listings are updated constantly, so you can bookmark the page and come back to it as often as you like.  Easy as pie!

 

Click here to search for three bedroom Prattville homes for sale under $200,000 in the Daniel Pratt Elementary school district.

 

     If you want to see more houses on the market in different price ranges or in different areas, you can search for homes for sale in Prattville on our website.

 

Three Bedroom Prattville Homes for Sale Under $200,000 in the Daniel Pratt Elementary School District

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2

Thursday, February 10th, 2011

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2

 

In yesterday’s blog, we talked about the new Federal 3.8% Medicare tax on the capitol gains you make when you sell your home in Prattville, Montgomery, and the River Region, AL, and we used an example to see how the tax is calculated.  Then we asked what happens if the amount of capitol gains (profit) you make when you sell your home is over the $250,000 limit ($500,000 for married couples)?

That’s where another rule, the income limit, applies.  The law says this new Federal Medicare tax only applies to people IRS real estate tax in Prattville ALwhose AGI (adjusted gross income) is more than $200,000 per year ($250,000 for married couples). So if you sell your house and make a profit of more than $250,000, then you need to look at your income to see if you’ll have to pay the tax.  As long as your AGI, including the capitol gain you made when you sold your house, is at or under $200,000 ($250,000 for couples) then you won’t have to pay the tax.  Let’s look at an example:

Let’s say when you sell your house you make a capitol gain of $300,000.  This capitol gain is $50,000 more than the limit according to the law from yesterday’s post.  But you still might not have to pay the Medicare tax because the law allows you to keep $250,000 of the capitol gain without paying any tax on it.  So the other $50,000 profit you made gets counted as part of your AGI.  As long as your AGI, including the profit you made on selling your home, is $200,000 or less that year, you won’t have to pay the tax.

So let’s continue with the example we used above and start with the $50,000 amount of excess capitol gain you made when you sold your house.  Add this amount to your AGI.  If your AGI plus the excess capitol gain totals more than $200,000 then you will have to pay the tax, but only on any part that is over the AGI limit.  If your AGI plus the excess capitol gain totals $200,000 or less, then you won’t have to pay the real estate tax.  It’s that simple.  Consult your accountant or tax preparer for advice specific to you and your situation.

The new Federal Medicare tax on capitol gains from selling a home don’t go into effect until January 1, 2013.  And you’ll still be able to deduct your mortgage interest every year on your income taxes like you have previously been able to.

That nasty rumor about everyone having to pay a real estate tax when they sell their home really scared a lot of people.  But now, looking at some examples of how the new law applies, you can see that the new Federal real estate tax on excess capitol gains from the sale of a home is really not so scary after all.

Why would a real estate agent who works only for buyers write a blog about something that might happen when you sell your home?  The answer is simple.  When you buy a home for sale in Prattville, Montgomery, and the River Region, AL, you think about what might happen in the future when you sell your house.  Remember that as Guaranteed Buyer’s Agents, we help you buy smart so you can make a bigger profit when you sell your home later.

 

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2

 

 

 

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 1

Wednesday, February 9th, 2011

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 1

 

There’s a nasty rumor going around out there.  Recently someone started a rumor that soon every home owner will have to pay a real estate tax when they sell a home in Prattville, Montgomery, or the River Region, AL.  They claim that this real estate tax was hidden within the Federal health care bill.  They even called it a “sales tax.”

But it’s not true.  At least, not the way the rumor told it.  While it is true that there is a 3.8% Medicare tax that high income households MIGHT have to pay when they sell real estate, it only applies to people whose income and proceeds from the sale of their house are over the limits that already exist.  There are two tests that will apply.  The first is the capitol gains test, which looks at how much capitol gain (profit) you make when you sell your home.  The second test is an income test, and we’ll talk about that next time.

All of this might sound a little confusing, so let’s look at an example.

Right now, individual people who sell their homes don’t have to pay any tax on the capitol gains (or, in other words, the profit they make on selling their home) as long as the amount of the capitol gain is less than $250,000.  For married couples, the limit is $500,000.  So let’s say you bought your house 10 years ago and paid $100,000.  Let’s say that you want to sell it now, and that you are willing to pay 3% of the price toward closing costs and 6% of the price toward real estate commissions (real estate commissions and the terms of the contract are all negotiable are aren’t set by law). So if you sell this house you bought 10 years ago for $384,615 or less, you won’t have to pay the tax.  Here’s why:

Start with the sellPrattville & Montgomery Capitol Gains Taxing price of $384,615 and subtract the amount you have agreed to pay for closing costs.  Then subtract the amount you agreed to pay for real estate commissions.  This leaves $350,000.  Don’t forget to subtract the price you paid for your house 10 years ago, which is $100,000.  So after everything is subtracted, in our example you made a profit (or a capitol gain) of $250,000 when you sold your home.  Since the capitol gain you made is $250,000 or less, this means you won’t have to pay the new Federal 3.8% Medicare tax on the profit you made. Remember, these numbers are just an example. Your numbers may be different.

So what happens if you make a capitol gain MORE than $250,000 when you sell your house? We’ll cover that in the next post, “Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? – Part 2.”

 

 

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 1

 

 

 

Credit Score and Home Loans – Prattville, AL – Part 2

Thursday, September 2nd, 2010

Credit Score and Home Loans – Prattville, AL – Part 2

 

Yesterday we talked about two of the five categories that make up a credit score.  Today we’re going to talk about the other three categories and tie everything together.  Remember that having a good credit score is really important if you want to buy a home in Prattville, AL or anywhere else in the River Region.  Yesterday we talked about the first two categories, Payment History and Amounts Owed.

 

Credit Score and Home Loans - What Makes Up Credit ScoreThe third category that makes up your credit score is Length of Credit History. This category looks at the length of time each of your accounts has been open and also the time since your last activity on each account.  So your accounts that have been opened longer get a higher score in this section than the accounts that you have just recently opened.  Having too many accounts that have been opened recently may lower your credit score in this section, so the best advice for home buyers is don’t open any new accounts right before applying for a home loan.  The Length of Credit History category accounts for 15% of your credit score.

 

The fourth category that makes up your credit score is New Credit.  This category looks at the number of accounts you have recently opened, the number of inquiries into your credit report by creditors, and how long ago that you re-established positive credit history after a previous time of payment problems.  Having lots of inquiries by creditors on your credit report makes it look like you have gone all over town trying to find someone to give you credit or give you a home loan.  This can really lower your credit score in this category. 

 

The final category is Types of Credit Used, which looks at the different types of credit accounts you have, such as credit cards, store credit cards, auto loans or other installment loans, consumer finance accounts and other mortgages, and also looks at the number of accounts you have of each type.  Having too many of one type of account, such as consumer finance accounts, compared to the other types of accounts, makes your credit history look unbalanced, so your credit score for this category may be lowered if your credit accounts look unbalanced.  The New Credit and Types of Credit Used categories both account for 10% of your credit score.

 

So there you have it.  The most important thing you can do is pay your credit accounts on time every month.  Remember that Payment History accounts for 35% of your credit score.  The next most important thing you can do is keep your Amounts Owed under 50% of your available credit on revolving accounts such as credit cards.  Home buyers save money on home loansDoing these two things every month will help bring your credit score up dramatically in as little as six months to a year.  And when you’re eager to buy a home, having your credit score up as high as possible will help you get the best interest rates and open up the most home loans programs for you, which can possibly save you thousands of dollars over the life of your home loan.

 

Now that you know more about what goes into your credit score and how credit score and home loans are tied together, you can keep a closer watch on what you do with your credit cards, loans, and finance accounts every month, which will help you buy a home in Prattville, AL or somewhere else in the River Region.

 

Credit Score and Home Loans – Prattville, AL – Part 2

 

 

 

 

Credit Score and Home Loans – Prattville, AL – Part 1

Wednesday, September 1st, 2010

Credit Score and Home Loans – Prattville, AL – Part 1

 

Once you have ordered your own credit report and looked it over to make sure the information on it is correct, you might be wondering what goes into calculating your credit score.  After all, your credit score is going to affect what type of home loan you can get and even the interest rate you can get.   Credit score and home loans are tied together tightly.  So having a good credit score is really important.  And it’s important whether you’re buying a home for sale in Prattville, AL or anywhere else in the River Region.

 

FICO credit score percentage chartSo what factors go into calculating your credit score?  According to FICO, the Fair Isaac Corporation, your credit score is made up of five categories.  Each one of these categories carries a different weight, or different level of importance, in calculating your credit score. Even though lenders look at more than just your credit score when deciding whether to give you a home loan, such as your income and how long you’ve had your job, credit scores are a big part of the home loans process.

 

The first category in calculating your FICO credit score is your Payment History. This category is made up of all your credit accounts as well as public information such as bankruptcies and judgements.  So if you have other mortgages, credit cards, store credit cards, auto loans, student loans, or any other credit accounts, they will be included here.  If you pay these accounts on time, then the credit score for this category may be raised.  But if you have accounts in collections, accounts you pay late, or accounts you have defaulted on, then the calculation takes this into effect and lowers the credit score for this category.  The Payment History category accounts for 35% of your credit score.

 

Next is the Amounts Owed category.  This category looks at the amounts you owe on your accounts, the number of accounts that you owe balances on, and how much of your available credit you are using.  For instance, if you have a credit card that has a $5,000 credit limit, and you owe $3,000 on it, then the calculation thinks that you are using too much of your available credit for that credit card.  The general rule of thumb is that if you are using more than 50% of your available credit, then the calculation may lower the credit score for this category.  The Amounts Owed category accounts for 30% of your credit score.

 

This gives you a start on how your credit score is calculated.  In the next post, we’ll look at the other categories used to calculate your FICO credit score and look more closely at how credit score and home loans are tied together for buying a home for sale in Prattville, AL.  There is more helpful information on homes for sale on the Buyer’s Choice Realty website.

 

Credit Score and Home Loans – Prattville, AL – Part 1

 

 

Check Your Credit Report and Credit Score Before You Buy A Home in Prattville

Friday, August 6th, 2010

Credit scores, credit history, improving your credit, using your credit wisely, etc.  All of these have an impact on buying a home.  Home buyers, especially first time buyers, can be confused about how your credit affects your ability to buy a home.  If you’re wanting to buy a home in Prattville or anywhere else in the River Region, you’re going to need to know how your credit affects your ability to buy a home for sale, and how some things you do will help your credit, and some things you do will hurt your credit.

credit report and credit scoreHave you checked your own credit report and credit score?  Did you even know that you could do this?  Well, you can.  You can get your credit report for free at www.annualcreditreport.com.  Just fill out the online application and you can instantly view and even print out your own credit report.  Federal law allows you to get one copy of your credit report for free each year.  There are three credit reporting agencies, and you’ll pick which agency you want the credit report from.  You can get one agency’s report or get all three of them – it’s your choice.  It’s important for you to check your own credit before trying to buy a home.  In fact, it’s important to do this before you even start looking at homes for sale.

If you want to see your credit score, you will be charged a small fee.  The credit score is calculated by the credit reporting agency.  A credit score is a number that lenders and creditors use to help them decide whether to offer you credit or loan you money.  If your credit score is high, then creditors and lenders will see you as a good risk.  If your score is low, then they will see you as a poor risk.

But here’s something that a lot of home buyers don’t know.  The credit score you pay for may be different from the credit score that a lender will see.  In fact, usually the credit score that a lender sees is lower than the credit score you get when you order your own credit report!  Why is this?  Well, it’s all due to the way the credit score is calculated.  Lenders and other creditors use a different calculation than the calculation used for the credit score you pay for yourself.

The highest overall credit score you will see is the one that you pay for yourself.  This is because it is for your information only and isn’t based on someone offering you credit or a loan.  The next highest overall credit score will be for a creditor like a credit card or an auto loan.  This credit score is lower because they are putting more weight on parts of your credit score, like your payment history or whether or not you’ve been late on any accounts recently.  Since they are considering giving you credit or financing an auto loan for you, they want to know that you will pay your account in full and on time.  The lowest overall credit score is going to be for a mortgage loan.  This is because the mortgage lender is going to put more weight on many more parts of your credit score than other creditors will.  They will want to know how much of your credit you’re using (for instance, they want to know your outstanding balance on a credit card compared to how much available credit you have on that card) and whether or not you’ve had accounts go to collections or have had several accounts paid late. A mortgage lender is going to want to know that you will pay your house payment on time before they will give you a loan to buy one of the homes for sale on the market.

So if you order your own credit report before you buy a home (which is a really good idea for first time buyers buy a home and first time home buyerand for any home buyers) and pay for your own credit score, you’re probably going to find that the credit score your mortgage company uses is lower than the one you paid for yourself.

Oh, and let’s clear up a myth before we go any further.  There’s a myth going around that if you order your own credit report, then that will automatically lower your credit score.  This is not true!  Your credit score is never lowered just because you ordered your own credit report!  If you order your own credit report, then your credit score will not be affected at all.

The next article is going to be about what goes into calculating your credit score.