5 Reasons You Should Buy A Home Right Now

Ten Steps to Home Ownership

#1 Getting Ready To Buy

Preparing to buy a home can be exciting and terrifying at the same time. Luckily, Bray Real Estate is ready to lead you in the right direction toward the home of your dreams. You first may want to ask yourself:

1. What are you looking for in a new home?
2. How much cash do you want to invest in your purchase?
3. Have you talked with a lender regarding qualifying and obtaining a mortgage?

You may want to make a list or brainstorm about the features and amenities that you find most appealing in a new home. 

#2 Finding a Realtor

When choosing a Realtor, do not be afraid to meet with many different agents. They are, after all, competing for your business. This competition is what makes the real estate industry successful.Feel free to ask them the following questions:

1. How many years of experience do you have in this industry?
2. What is your selling experience in my community?
3. What professional certifications do you hold (Accredited Buyer Representative (ABR), Certified Residential Specialist – CRS, Graduate REALTOR® Institute (GRI))?
4. What services will you provide for me as my agent?
5. How will you represent me as a buyer?
6. Can you provide as much information as I need about homes in the area that fit into my price range?
7. What is the fee for your services?
8. Explain the paperwork that I need to sign
9. What is my contracted timeframe for using you as my agent?

Once you have chosen an agent, it is important to establish specific goals that you would like to meet. Communication with your agent is key! 

#3 Starting the Loan Process

It is important as a buyer that you establish some kind of financing before you make any serious home offer. The "pre-approval" process allows lenders to take a look at your finances and credit history in order to make a general assumption about your loan amount.
The pre-approval process is when a lender looks at all of your finances and determines the amount of money you could afford for a mortgage.
In order to get pre-approved for a loan, you need to contact a lender. Your agent can help you help you find a lender that you feel comfortable with, and that offers programs best-suited to your needs. 

#4 Starting Your Search

Now it is time to start the exciting search for homes!
You may want to narrow down your search by asking yourself the following questions:

1. Where do I want to live?
2. What is the neighborhood like?
3. What is the crime rate?
4. Would I be moving into a good school district?
5. Are there any zoning restrictions?
6. How far is this home from my job?
7. What is my price range?
8. How many bedrooms and bathrooms do I want?
9. What style of house am I attracted to?
10. What amenities do I desire (ex. pool, fenced-in yard, etc.)?
11. Does this home have potential to increase in value?
12. Is there room to expand if we need to in the future?

Searching for a home is becoming easier than years ago. We now have the Internet as a powerful "home finding tool," as well as the MLS (Multiple Listing Service) and print advertising. 

#5 Finding Your New Home

Beginning the search for your new home can be a great feeling. It is important that you directly communicate with your real estate agent about the desires you have for your new home.
You may want to first begin by making a list of the features and benefits that are most important in your pursuit of finding a home.
These could be:

1. Location
2. Affordability
3. Size
4. Style
5. Design
6. Amenities

Looking for a home in an area where you feel comfortable is key. If appropriate, instruct your real estate agent to look for homes in the specific areas you have designated. 

#6 Making an Offer on a Home

Selecting a home should be relatively easy once a home falls somewhere in your criteria and the property is desirable for purchase.
You will want to inform your real estate agent what you like about the house and make a list of your likes and dislikes with the property. Though you will most likely have done this already in a general sense, it is important to do it again for specific homes you have in interest in.
In the negotiation process you may accept the seller's asking price and have your agent write up the contract or reject the seller's asking price and have your agent make a different offer. 

#7 Financing

Doing your homework about loans will save you time and money. There are thousands of loans out there to choose from, but it is important to keep in mind several key factors that will help you along the way:

1. How much money should you put down?
2. How is your credit?
3. Is this your first home?

Receiving a loan requires completion of a loan application and specific financial documents including pay stubs, rental checks and/or tax returns. You can receive a loan from a number of different financial institutions, namely: commercial banks, credit unions, mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks and insurance companies. 

#8 Insurance

Insuring your home is like making an investment in your future. You work hard to have a home; homeowners insurance protects you and your family from someone or something taking it all away.
There are many different forms of insurance:
Title Insurance - Protects you in the event that the title on your property has a lien, unpaid taxes, or other legalities that would make it invalid.
Homeowners' Insurance - Protects your home from fire, theft and other liable coverage.
Flood Insurance - Protects your home from flood damage.
Home Warranty - Offers buyers and sellers the peace of mind that should anything unexpected happen (due to normal, every day wear and tear) of the home's appliances, heating, air conditioning, plumbing, and electrical systems, it will be repaired (or replaced in some cases) for you without costly fees. 

#9 Closing Procedures

The closing process is always changing. It is even referred to as "settlement" or "escrow" in different parts of the country. With increased technology, most closings are completely automated and both parties do not have to be present at the same time to sign.
Closings usually occurs about 30 days after a contract is signed by both parties. This mainly depends on the buyer's financing availability, successful home inspection completion, and various lender conditions (ex. title search, title insurance, termite inspections, surveys and appraisals).
The closing process is the transfer of the title of the property from the buyer to the seller. The buyer will receive the keys to the home or the deed to the land, while the seller receives payment for the property. The amount the seller receives is based upon the amount that is still owed on the mortgage, any outstanding fees or taxes, and any additional closing costs.
All legal papers are filed with the local record office.
Prior to closing, it is important as the seller to take a final walk through the property to make sure the property's condition as not changed. It is equally important for both the buyer and seller to make sure the paperwork they are signing reflects the agreement of the original sale. 

#10 Settling In

You have unpacked your boxes, arranged your furniture, and feel complete with your moving task.
What's next?  Enjoy your new home!      

Steps To Get The Best Mortgage Rate

If you're in the market for a mortgage, chances are you've been instructed to shop around for the best rates. But just because you've been told to shop around doesn't mean you know how.First, you'll need to contact a lender to get your credit scores. Craig March, a personal mortgage consultant with Inlanta Mortgage in Janesville, Wis., says you should share your credit scores with other lenders rather than letting each one you contact pull your credit history, because multiple inquiries could lower your scores.
 "There are so many different credit score models that the score you see as a consumer may not be the same as the one a mortgage lender sees, so it's important to get your score from a lender," says Mark Richards, a senior mortgage loan officer for TD Bank in Washington, D.C.
Brian Martucci, a mortgage lender with GetLoans.com in Washington, D.C., says every borrower must be prepared to answer the following questions before a lender can provide an accurate mortgage rate quote:

• How large is your down payment? Interest rates vary according to your loan-to-value ratio.

• Are you buying a single family home or a condominium? Martucci says a borrower purchasing a condominium with a loan-to-value ratio above 75% will pay a one-quarter percentage point higher interest rate.

• Are you refinancing or purchasing? Interest rates may be higher on a refinance, especially if you are taking out cash, which could raise your rate by one-eighth of a percentage point.

Your plan for the best rates

No. 1: Establish a baseline. Get a referral from someone you trust and contact the recommended lender to obtain your credit scores and discuss your loan options. Your lender can help you compare Federal Housing Administration and conventional financing, as well as various loan terms, so you can make an informed decision on which loan program and terms you want before you contact other lenders.

No. 2: Contact a mix of financial institutions. Interest rates fluctuate constantly for a variety of reasons, including the occasional promotion of a particular loan product by a financial institution. For example, some lenders who are eager to generate more purchase loans might offer the best mortgage rates for homebuyers but not for refinancing homeowners, says Martucci. Sometimes a credit union or bank will introduce a new loan product and offer better mortgage rates in order to entice borrowers, says March.
"It's best to diversify and try a mix of places, such as a direct lender, a regional bank, a credit union, a community bank and a national bank," says March.

No. 3: Decide when you want to close. The length of your lock-in period will impact your mortgage rate, so discuss your target close date with each lender and ask about the charges for different loan-lock periods.
"Make sure you tell the lender when you expect the closing to be, because you want to lock in the interest rate for the right length of time," says Richards. "Many lenders charge one-eighth percent more if you must lock-in the loan for 60 days. If you need a 90-day loan lock, your interest rate could be as much as one-third percent higher."

No. 4: Ask about fees. The variation in fees associated with a loan are one reason why you shouldn't comparison shop solely based on the best advertised interest rate. Sometimes a mortgage at a lower advertised rate can end up costing you more because of all the fees associated with it.
"Some lenders blend all their fees into a loan preparation fee, while others separate them out, so be sure to ask for the total amount it will cost to close the loan," says Martucci.
Generally, a mortgage with higher fees should have a lower interest rate, says March.
If you're refinancing, use HSH.com's Tri-Refi Refinance Calculator to compare your options for paying closing costs. Experiment with the options to find out if you should you wrap the closings cost into the loan amount, pay them in cash or choose a "no-cost" mortgage.

No. 5: Consider whether you should pay points. One of the largest expenses can be the points attached to a particular loan. Each point is equal to one percent of your loan amount.
"You need to make sure you discuss with each lender how the loan will be structured in terms of whether you are paying points or not," says March.
If you intend to stay in the home for the long term, such as 10 years or more, you may want to pay points to keep your interest rate as low as possible for the life of the loan. If you plan to sell in a few years, paying a lot of cash upfront to pay points may not be worth it, says Richards. A lender can show you the difference in interest and monthly payments to help you decide whether worth it to pay points.

No. 6: Call lenders on the same day. Because mortgage rates fluctuate constantly, you should call lenders as close to the same time as possible on the same day to compare rates, says Martucci.
"If possible, call within the same timeframe, because a bond rally could mean that mortgage rates have dropped dramatically from the morning to the afternoon," he says.
After you have organized your financial information, follow the six steps above to ensure that you get the best mortgage rate available.ge rate available.

The Old Rules Don't Apply

5 Ways to Beat Out the Competition

As the real estate market starts to pick up in many parts of the country, real estate agents from small towns to the big cities are blogging, tweeting, ranting and raving about multiple-offer situations.
A seller’s asking price is just that: an asking price. The seller may choose to price their home above, at or well below what the actual market will bear. Then, with luck, come the offers from buyers. Sometimes, there are multiple offers all under the asking price. Other times, all offers come in right around the asking price.
But in some situations, there are more than six offers coming in over asking price. Depending on where you live, you, as a potential buyer, may be forced to compete with other buyers in a bidding war. Here are five steps you can take to beat the competition in a multiple-offer situation.

Hire a good local agent

In most communities, 80 percent of the business is done by 20 percent of the agents. These agents are experienced in the local market and have relationships with other agents as well as inspectors, contractors, mortgage brokers and appraisers. More than anything, these 20 percent of agents “get” it.
A seller is looking for a sure thing and a smooth, clean escrow. With stakes high, who wouldn’t want a sure thing? In fact, the last thing the seller (or their agent) wants is to enter into escrow with an inexperienced or out-of-the-area agent.
That’s why, when faced with multiple offers, a seller, guided by their agent, may choose to work with a lower-priced offer because that buyer has a good agent. Many times, a lower priced offer will be countered up to match the price of a buyer with an unknown agent.

Get your financial ducks in a row before making an offer

Before you can make a strong and winning offer, you need to have your finances in order. This means being pre-approved for a loan and staying in regular contact with your lender or mortgage broker. Have an auto email alert set up from your real estate agent’s MLS. Know the new listings as they hit the market and be prepared to visit them right away. Be ready to make a move when the right house comes along.
An informed buyer has been in the market for some time. They’ve seen multiple properties, either at open houses or private appointments. They come to the multiple-offer situation fully prepared, knowledgeable of the market and ready to present themselves as a strong, motivated buyer. The seller and their agent will appreciate that.

Don’t wait

Many times, a new listing is sold before the first open house. If a desirable property hits the MLS on a Tuesday, you need to see it Tuesday night or Wednesday morning. As agents tell sellers all the time, your first buyer is likely your best buyer. The buyers who don’t rest on their laurels get the home. They show that they are on it, they’re motivated and they really want the property. This often translates into a successful deal or smooth escrow for the seller and the listing agent.
If you’re serious about buying and have your financial ducks in a row, don’t wait for the open house. As soon as you see the listing, let your agent know you’re interested or have them start doing the research.

Make a ‘clean’ offer

There’s an assumption that the successful bidder simply pays the most money. But this isn’t usually the case. While price is a huge factor, the terms and conditions are as important, if not more so.
To make your bid the most compelling, be as flexible as possible to the seller’s needs. If you know the seller needs a quick escrow because they just bought a place, give it to them. If they just had a baby and need some extra time, go with a longer close or offer to close quickly but give them a “rent-back.” If you’re going to have inspections, check with the inspector and see if you can get an appointment soon after getting your offer accepted. That way you can remove your inspection contingency quicker.
The same holds true with an appraisal. If your lender is able to pre-schedule an appraisal or at least check their schedule, it can only help. The last thing a seller wants is to accept an offer, only to wait 14 or 21 days to discover the buyer can’t get a loan or the leaky roof scared them away. Make your offer clean with swift timeframes for contingencies. There have been times when a seller leaves 2 to 3 percent on the table; just to be sure the deal will close “cleanly.”

Present yourself in the best possible light

Presentation can’t be emphasized enough. Make sure your agent presents your offer to the seller in a professional way. The offer should, when possible, be presented in person. A contract should be typed, not handwritten. Without a doubt, a pre-approval letter from your bank or broker should be attached to the offer. A cover letter from you or your agent presenting you, as buyers, to the sellers should always accompany your offer. If there are disclosures presented to you prior to your making an offer, sign off on them. Make it clear to the seller that you’re serious, motivated and ready to move ahead should they choose to work with you.

Strong and clean is the way to go

It’s the common sense stuff that will help differentiate you from the pack. Be up front, show that you’re motivated and look at the big picture of your offer — not just the dollar amount.
Of course, many times the highest bidder wins. But every day, there are dozens of buyers who kick themselves because they would have paid the price that it took to win the bidding war. Presenting yourself and your offer in the strongest and most clean way will go a long way to assuring you come out on top.

Five Tips to Win a Multiple Offer Situation on a Home

Don’t lose your game face. Though multiple offers aren’t quite the jungle they were back in 2012, homes in popular neighborhoods continue to face stiff competition. In August 2013, 60.5% of offers written by agents across the country faced bidding wars, a drop from 63.3% in August 2012. It signals a welcome trend for buyers, but tight inventory conditions and relatively low mortgage rates mean that multiple offer situations are still a reality. 

1. Be realistic

If you’re looking for a home in a sought-after neighborhood, be aware that a winning offer will likely be at or above asking price. This knowledge will help you construct a competitive offer at the outset that is still within your comfort zone. In early 2013, many buyers waived inspection and financing contingencies in an effort to win the bid. This approach can be effective, but it can also be an uncomfortable level of risk for some buyers. Knowing what you’re willing to do in advance will make it easier to make decisions when the timing demands it.

2. Prepare your financing

Whether you’re planning to get a mortgage or are paying in cash, make sure you have financial documentation ready to send. If you’re getting a mortgage, you’ll need a pre-approval letter. Being pre-qualified doesn’t cut it, since it doesn’t formally verify your income, assets and credit. If you’re paying in cash, be ready to submit proof of funds, which can be an original bank statement, open equity line of credit, copy of a money market account balance, or certified financial statement. Pre-approval or proof of funds need to be available at a moment’s notice and are expected, not optional. In addition, offering earnest money (often 1-3% of the purchase price) is another signal to the seller that you’re serious, so think about how much you’re willing to pledge.

3. Do a pre-inspection

In the past, inspections typically happened right after a seller accepted a buyer’s offer. However, the rise of bidding wars prompted savvy buyers to schedule inspections before placing an offer, giving them more knowledge about the home and making it easier to waive inspection contingencies. Doing a pre-inspection can put you ahead of other buyers by removing complexity from your offer, and also shows a seller that you mean business.

4. Be flexible

Selling a home can be a whirlwind. Any flexibility a buyer can offer a seller has the potential to reward them. Being lenient on closing or possession dates might make an offer more palatable to a seller in the midst of one of life’s most stressful times; moving.

5. Personal touch

Though it isn’t standard practice in every market, personal notes from potential buyers can humanize a transaction and tip the scales in your favor. I’ve seen several instances where offers were accepted based on the letter, even though they weren’t the highest. This works particularly well if the sellers are attached to their home, but not always so well for estates, where family members may have competing priorities and be less emotionally attached to the home.
If you’re anticipating a multiple offer situation, be sure to discuss your strategy and the risks involved with your real estate agent. With the right attitude and approach, you can get the house you’re looking for. 

Why Buy?

Tax Deductions for Homeowners

What's Deductible? -- A to Z

Acquisition debt. See Mortgage interest.

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Boats as homes. A boat that has eating, sleeping and sanitary facilities can qualify as a first or second home, so you can deduct mortgage interest paid on the loan secured by the boat to buy it. However, if you are subject to the alternative minimum tax, this write-off is not allowed.

Cancelled debt on foreclosure or short sale. Generally, when a debt is canceled or forgiven, the borrower is considered to have received taxable income equal to the amount of the canceled debt. However, through 2012, up to $2 million of debt discharged on a mortgage on a principal residence -- in a foreclosure, for example, or short sale -- can be tax-free.

Casualty loss. If your home was damaged or destroyed -- by fire or storm, for example -- you may be able to get financial help from Uncle Sam by deducting a casualty loss on your return. Your deduction for a 2010 loss is generally the total of your unreimbursed loss reduced by $500 100 and further reduced by 10% of your adjusted gross income.

Depreciation on home. Profit due to depreciation claimed on your residence before May 7, 1997 -- because you had a home office, for example, or at one time rented out the property -- qualifies for the rule that lets you treat $250,000 of home sale profit as tax-free income. (The limit is $500,000 if you're married and file a joint return.) Profit due to depreciation after May 6, 1997, is taxed at 25%, unless you're in a lower tax bracket, in which case that rate applies.

Discharged debt. See Cancelled debt on foreclosure or short sale.

D.C. first-time homebuyer credit. If you bought a home in the nation's capital during 2010, you may be eligible for a $5,000 tax credit. It doesn't really have to be your first home ... just a home you purchased in the District of Columbia after not owning one in D.C. for at least one year. It doesn't matter if you have owned a home elsewhere. This break phases out as income exceeds $70,000 on single returns and $110,000 on married filing jointly returns. See first-time homebuyer credit. If you bought during the part of 2010 when the nationwide homebuyer credit was available (see below), you must choose between the two credits. You can’t claim both.

Energy credits. You can earn a 2009 tax credit for installing energy-saving home improvements such as new doors, new windows, energy-efficient furnaces, heat pumps, hot water heaters, air conditioners, etc. The credit is 30% of the cost of installing such energy savers, up to a top credit of $1,500. For windows and doors, the credit is based on the cost of the materials; for furnaces and air conditioners and the like, you can count the cost of installation, too. A bigger credit is available for more ambitious projects – like solar hot-water heating systems, geothermal heat pumps and, yes, even residential wind energy systems. Start generating your own power and Uncle Sam will rebate 30% of the full cost of your system…with no dollar cap.

First-time homebuyer credit. If you bought a home during the first four months of 2010, you may qualify for either an $8,000 or $6,500 home buyer credit. And, you don’t really have to be a first-time home buyer to qualify for either credit. To qualify for the $8,000 credit you (and your spouse if married) must not have owned a home in the three years leading up to the purchase of your new home. The credit is 10% of the purchase price of the home, up to a maximum credit of $8,000. No credit is allowed for homes that cost more than $800,000.

To qualify for the $6,500 credit, you must be a long-time homeowner, defined as owing and living in the same principal residence for five of the eight years leading up to the purchase of your new home. The credit is 10% of the purchase price of the home, up to a maximum credit of $6,500. No credit is allowed for homes that cost more than $800,000.

Timing is everything. To qualify for either credit, you must have signed a binding contract on your new home before May 1, 2010, and you must have closed on the deal by September 30, 2010.

Unlike a first-time home buyer credit available in 2008 – which had to be paid back over 15 years by adding $500 in each of those years to the taxpayer’s tax bill – the 2010 credit does not have to be paid back, as long as you live in the principal residence for at least three years.

First-time homebuyer credit repayment. The $7,500 first-time homebuyer credit that was available for qualifying purchases after April 8, 2008, and before January 1, 2009, must be repaid starting with your 2010 tax return. To repay this “interest-free loan”, you must add $500 each year to your tax bill until the full $7,500 is repaid. If you sell or otherwise stop using the house as your home before the credit is fully repaid, any remaining balance must be repaid with your tax return for the year of the sale.

Foreclosure. See Cancelled debt on foreclosure or short sale.

Home-equity debt. Interest on up to $100,000 of debt secured by your first or second home -- using a second mortgage, say, or home equity line of credit -- can be deducted, regardless of how the money is used. The use of home-equity debt gives homeowners an opportunity to skirt the rules that generally block the deduction of debt used to buy automobiles, for example, or pay for vacations.

Home-office deduction. You can deduct the costs of a home office that you use exclusively and regularly for business. This includes depreciation, utilities and insurance for the office portion of your home. To qualify for the tax break you must either meet with clients there regularly, or the home office must be your principal place of business (unless it is not attached to your house).

Home-sale exclusion. Up to $250,000 of profit from the sale of your home can be tax free; $500,000 if you are married an file a joint return. To qualify, you must own and live in the house for periods totaling two years out of the five years leading up to the sale. A reduced exclusion is available if you fail the two-year test due to unforeseen circumstances such as a move resulting from a job change, for example, or divorce. You can use this exclusion any number of times but no more frequently than once every two years.

IRA payouts for first-time homebuyers. You can withdraw as much as $10,000 from a traditional IRA before age 59½ without penalty if the money is used to buy the first home for yourself, a child or grandchild, or your parents or grandparents. Although the payout avoids the normal 10% early-withdrawal penalty, it is taxed. Different rules apply to tapping a Roth IRA for the purchase of a home. See Roth IRA payouts for first-time homebuyers.

Loan prepayment penalties. If your lender charges you a penalty for prepaying your mortgage early, the charge is deductible as mortgage interest.

Mortgage interest. You can deduct interest on up to $1.1 million of loans used to buy or build or improve your first or second home and secured by the property. Up to $1 million of such debt is called acquisition debt, which must be used to acquire or improve the property, and up to $100,000 more is called home equity debt, which can be used for any purpose.

Mortgage interest credit. If you received a mortgage credit certificate from a state or local governmental agency, you can claim a tax credit of up to $2,000 of mortgage interest paid.

Moving expenses. If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods. If you drive your own car, you can deduct 24 16.5 cents a mile for 2009 2010 moves. (For 20102011, the standard mileage rate for moving is 16.519 cents a mile.) If you moved to take your first job, the 50-mile test applies to the distance between your old home and your new job. The deduction is allowed even if you do not itemize deductions.

Parsonage allowance. For members of the clergy, the value of a home provided by the church is a tax-free fringe benefit. A housing allowance is also tax-free.

Points. Points you pay to get a mortgage for your principal residence are generally fully deductible in the year paid, even if you persuade the seller to pay your points for you. They are not deductible if paid as part of a refinancing a mortgage on your principal home or on a second home; in that those cases, you deduct the points over the life of the loan.

Presidentially declared disaster. If your home was damaged or destroyed in an area that the President declared a disaster area, special rules apply to the casualty loss deduction. For one thing, for 2009 losses the law waives the requirement that you reduce your loss by an amount equal to 10% of your adjusted gross income to arrive at the deduction. And, youYou may choose to deduct your loss in the year it occurred or the previous year, whichever is more advantageous. If you claim a 2010 loss on a 2009 amended return, for example, you’ll get your tax savings via a refund check from the IRS.

Property taxes. See Real estate taxes.

Real estate taxes. You can deduct state and local real estate taxes paid during the year on any number of personal residences you own. (A 2009 break that allowed homeowners who claimed If you choose to claim the standard deduction rather than itemize deductions, you canto boost their standard deduction to include some of the property tax they paid was not renewed for 2010.)add $500 if single or $1,000 if married filing jointly to the regular standard deduction amount if you paid at least that much in state and local real estate taxes. If you own rental properties, real estate taxes on them are deducted on Schedule E where you report rental income.

Real estate taxes when you buy a home. If you bought a home during the year, check to see if the seller had prepaid property taxes for a period you actually owned the home. If so, include that amount in your property tax deduction for the year . . .even if you did not reimburse the seller.

Recreational vehicle. If your RV has cooking, sleeping and sanitation facilities, interest on a loan used to buy it can qualify as deductible mortgage interest on a first or second home. If you are subject to the alternative minimum tax, interest on an RV loan is not deductible.

Refinancing points. Generally, points paid when refinancing are deducted over the term of the loan. But if you refinanced a loan that you previously refinanced, you can deduct in full the as-yet-undeducted points remaining on the prior loan. There's a catch, however: If you refinanced with the same lender, the remaining points must be amortized over the term of the new loan.

Rehabilitation credit. If your residence is certified by the government as a historic building, you can claim a tax credit for 20% of the cost of renovating it. The renovation must be substantial, and the expenses must be incurred within a 24-month period.

Reverse mortgage. Amounts received under a reverse mortgage -- either a lump sum payment or periodic payments -- are tax free. Interest that accrues on a reverse mortgage is not deductible until it is paid, and then only interest on up to $100,000 of debt can qualify.

Roth IRA payouts for first-time homebuyers. Because the rules for the Roth IRA allow you to withdraw contributions at any time without penalty, the Roth can be a powerful tool for saving for a first home. Say you and your spouse each put $5,000 a year into a Roth for five years. The entire $50,000 could be withdrawn tax- and penalty-free for a down payment and, because the accounts have been opened for at least five years, up to $10,000 of earnings can be withdrawn tax- and penalty-free if used to buy your first home.

Serial refinancers.If you refinanced in 2010 and paid off a home mortgage you acquired when refinancing to pay off an earlier mortgage, any as-yet-undeducted points on the previous refinancing may be deductible on your 2010 return. See Refinancing points.

Tax-free profit. See Home sale exclusion.

Tax-free profit on vacation home. Because you can use the home-sale exclusion repeatedly, it's possible to make profit on a vacation home tax free. If you move into the place and live there for two of the five years prior to selling it, you can qualify to claim up to $250,000 of profit tax free (up to $500,000 if you are married and file a joint return).

A recent change in the law, however, has diluted the potential value of this break. For vacation homes converted to principal residences after December 31, 2008, a portion of the gain will be taxed. The taxable part will be based on the ratio of the time after 2008 when the house was a second home or a rental to the total time you owned it.

Tax-free rental income. If you rent out your home for 14 or fewer days during the year -- when there's a major sporting event or political convention in your hometown, for example -- the rental income is tax-free, regardless of how much you make.

Vacation home. Mortgage interest on your second home is deductible, just as it is for your principal residence. Property taxes can be deducted on any number of homes. If you rent the place for 14 or fewer days during the year, the rental income is tax-free to you. If you rent it for more than 14 days a year, you must report the income, but also may claim deductions for rental expenses.

A Year-Round Guide for Home Maintenance

Homeowners know the satisfying, deep pleasure of a house that's in good order—a house where appliances are working, the paint is not chipped, and that dust under the refrigerator is gone (at least temporarily).

A regular home maintenance program will keep your house fresh and clean, help prevent expensive repairs and ensure your house is as safe as possible, For a newbie, it can be a steep learning curve figuring out when to clean which filter, how often you're supposed to clean out a chimney and what, exactly, a sump pump is. Sticking to a year-round home maintenance schedule will break the tasks up and will keep you on track with repairs and upkeep. Since most of the big jobs have to be tackled one, two or four times a year, grouping task by season is a good way to create a maintenance routine.

With every season change or clean filters on the air conditioner or heater unit. Vacuum or dust indoor vents.

Clean and freshen the kitchen garbage disposal using ice cubes or small bits of lemon peel. Running a few small ice cubes through the disposal will knock debris from blades and a few small pieces of citrus peel will keep it smelling fresh. For maximum results, make ice cubes with pure lemon juice and run them though the machine.

Test fire extinguishers to check their pressure and inspect to make sure they're accessible and not broken or missing parts.

Wipe down the washing machine and clean the interior by running an empty load with a cup of bleach, a cup of white vinegar OR laundry detergent. Use the machine's hottest setting.

Test all ground-fault circuit interrupters.

Every spring and fall

Clean and repair roof gutters. Make sure downspouts are in good repair and aiming at least 2 feet away from your home's foundation.

Change smoke detector batteries.

Flush out the water heater. Remove sediment that has collected by opening the drain valve and letting water run until clear.

Wipe down refrigerator inside and out. Clean drawers and shelves with hot soapy water and dry thoroughly. Toss mystery freezer items and expired condiments. Sweep underneath and vacuum condenser coils.

Wash windows and screens.

Check drains and clear of debris. To clean a drain, pour ½ cup of baking soda down the drain, followed by a cup of white vinegar. Let it sit for 15 minutes, then rinse with a pot of boiling water.

Clean faucet aerators and shower heads. To remove mineral deposits from shower heads, detach and submerge them in white vinegar for a few hours.

Clean the inside of the dishwasher with hot soapy water and a scrub brush. Clear the drain bin of debris and rinse it off. Run the machine empty on the hottest setting with a cup of white vinegar on the top rack. (You can also put a pack of unsweetened lemonade mix in the soap cup or sprinkle a cup of baking soda on the over the bottom of the tub and run empty.)

Clean the grills and coils on air conditioning units and clear the surroundings of debris and overgrown plants.

Give your grill a thorough cleaning. Soak the grates in soapy water and scrub with steel wool. Check hoses, hinges, and knobs, and remove rust with a wire brush.

Fall

Take a walk around the exterior of the house and give it a thorough visual inspection. Look for leaks, termite damage, rodent nests, cracks in the foundation and rot. Seal cracks and gaps in siding and around windows. Repair siding where necessary. Touch up paint on exterior and trim.

Power-wash the exterior of the house.

Clear lint from dryer hose. Use a vacuum or long flexible brush.

Clean carpets and have floors re-polished or sealed.

Check electrical cords and make sure they're in good repair.

Check door and window locks, door knobs and handles and cabinet hardware. Tighten, replace or repair as needed.

Check indoor and outdoor air vents and make sure they are not blocked by debris.

Trim back trees and shrubs and make sure they aren't touching the house, roof or gutters.

Spring

Dust blinds and vacuum or wash curtains.

Replace storm windows with screens. Repair damaged screens.

Clean kitchen and bathroom exhaust fans.

Clean light fixtures and ceiling fans.

Inspect your chimney and fireplace, looking for obvious cracks or leaks. Check the chimney cap or spark arrester to make sure it's intact and free of nests or other blockage. Spring is a good time for a professional chimney cleaning because it's off-season. You'll need a cleaning every 2-3 years or after a burning a cord of wood.

Go through kitchen and bathroom cabinets and clear out expired foods, cosmetics and medications.

Check the roof for missing or damaged shingles and worn or exposed areas. Make repairs immediately to avoid messy and expensive damage.

Reseal wooden decking and outdoor furniture with UV-resistant sealer.

Test pressure relief valve on water heater.

Examine your bath and shower areas and re-caulk as needed.

Lubricate garage door springs

If your house has a sump pump, make sure there aren't any leaks and remove any debris. To test to see if it's functioning property, pour about five gallons of water into it and make sure it turns on.