It might be possible for you to exclude any profit you make from the sale of you main home from your income. Your main home would be you primary residence.  In order to qualify you have to meet the following conditions.

• Owned your home for at least 2 years prior to the sale
• Used that home as your primary residence for at least 2 years prior to the sale

You can find out more from the Internal Revenue Service website

Coming up with an amount to offer on the home you want can be tricky. Do your homework, your Realtor should be able to offer you “Comps” in the neighborhood. Comps are what houses comparable to the one you want sold for in the recent past. These are freely available public records so you should be able to access them even without a Realtor.

Ideally a home buyer or seller will talk to many different Real Estate Agents before finding one that suits their needs. It doesn’t always happen that way though. Most people end up using the first agent they meet. The fact of the matter is though that their are agents the specialize in buying and those who specialize in selling. An agent can represent either but they typically focus their efforts on one or the other.So be sure and do your homework when finding the agent that’s right for you.

If you are planning on obtaining a mortgage in the near future put a hold on moving you money around. When you apply for a mortgage the loan officer will probably want to see a paper trail for large amounts of cash that have been deposited or withdrawn. It might seem like a hassle but it helps mortgage lenders detect fraud and helps them validate that you have the ability to pay a loan back.

When making an offer on the home you want don’t forget all of the fees associated with obtaining a mortgage. You have to consider closing costs for the loan, buying your interest rate down with points, paying PMI (private mortgage insurance) if you won’t have 20% down, moving expenses, and the list goes on. Your Realtor should be able to help you with what to look out for.

The next time you come into some money, either through a raise, a bonus, or if you manage to save some money, you should fight the instinct to spend the cash you’ve accumulated. Don’t let it burn a whole in your pocket. In the current economic climate it’s even more important to have a sizable down payment if you are planning on obtaining a mortgage. You should set up a budget and decide how much you need to put 20% down on your home.

1. Step 1: Check Your Credit Report and Score
2. Step 2: Figure out How Much You Can Afford
3. Step 3: Find a Real Estate Agent
4. Step 4: Look for the Right Home
5. Step 5: Make an Offer on the Home
6. Step 6: Get the Right Mortgage for Your Situation

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