The process of planning your home can be daunting, especially if you’re a first-time homeowner, but it’s nothing new for LA real estate agents.
The key to success?
Make sure you know what’s going on with your property tax bill.
Here are five things you can do to make sure you’re on the right track.
1.
Understand the terms of the sale.
Landlords are required to sell their properties for 30 days at the latest.
That means that if you’ve just sold your home and need to make your tax bill less than 30 days old, you need to know what the terms are before you buy.
Landlord’s attorney Jeffrey Gelfond said you should call the property’s agent or appraiser if you don’t know what they’re asking for.
Gelford said you also need to check your tax return to make certain your mortgage is in order.
2.
Know what taxes are due.
Before you even get started, it’s important to know the full amount of the property taxes you owe.
That can make your life easier if you have to pay an additional property tax to help cover the difference.
Gefield said it’s also helpful to know where you’re living and how much you’re paying for rent.
Gafford said some people pay about $100 a month in rent, but some have to work two jobs to make ends meet.
If you have a significant down payment, Gelfong said you can make a down payment that’s about 20 percent lower than the normal amount of money you need.
3.
Check your mortgage.
If your mortgage lender says you owe taxes, check to make absolutely sure you have the correct amount.
Gifford said a lot of lenders don’t bother with this information.
If the mortgage company doesn’t have a letter from the bank showing you have enough money to pay the tax, you might have to file a claim with the IRS.
4.
Check if you qualify for a downpayment exemption.
Some lenders don.
If they do, Gaffrey said it can save you money.
Gfilder said if you can’t qualify, it may be wise to ask your mortgage company for help with the downpayment.
If a lender doesn’t know that you qualify, Gfield said you could try to find a different lender.
If that doesn’t work, you could also try to borrow from your parent or guardian.
5.
Take a closer look at your property.
Many people will say they can’t afford to pay property taxes, but that doesn and shouldn’t mean they shouldn’t be paying them.
If, for example, your home has a basement, a bathtub or a deck, you’re entitled to a tax exemption, according to Gelfield.
If those things are part of your property, you should be paying the tax on them, Gefengs said.
Glfield said if a property is your primary residence, it should be taxed at the same rate as any other dwelling unit, regardless of how many people live in it. 6.
Consider taking out a mortgage.
The good news is, there are ways to reduce the amount you owe on your home mortgage.
Galford said most lenders offer a downpay or even a free mortgage, but he said you need a down-payment from your lender to qualify.
If all else fails, you can take out a home loan, which can save money in the long run.
If not, Giffords advice is to get a home equity line of credit to help pay down the mortgage.
That way, you’ll still be able to pay back the full cost of your home in a few years.
Gafeston said he’s had clients pay down their mortgage with a $500 downpayment, but the loan doesn’t get paid back until they pay off the mortgage or sell the property.
He said he doesn’t recommend doing this, as there is a high risk of the loan being foreclosed on or worse, foreclosed entirely.
