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West Coast homeowners would be affected most
As part of their attempt to overhaul the federal tax system, the GOP and Trump administration are writing legislation that would place new limits on the home mortgage tax deduction—one of the longest standing benefits for homeowners. The move would help offset revenue that would be lost by cutting corporate and personal tax rates.
Tax change could be one-two punch for California homeowners
Such a cut would have the biggest effect on owners in expensive urban centers around the U.S., as well as most of the West Coast, where home prices are among the highest in the country, according to The Los Angeles Times. This proposal is on top of another anticipated change in the tax code that would hurt Californians more than residents in any other state—the ability to deduct state and local taxes from federal taxes. Continue reading “Congress may cap mortgage interest deduction at $500K”
Although buying a new home can be INCREDIBLY EXCITING, there are admittedly a few less-than-exciting tasks involved in the process. One is the countless changes of address you’ll need to complete to ensure you’ll get the mail you need once you’ve made the move. (After buying a new home, the last thing you need is a late payment on your bills and a ding on your credit report!) So while you’re busy packing boxes and decorating your new space, don’t forget to notify the necessary people of your upcoming move. Here’s a handy list to to help you cover your bases:
- Credit card companies (including store cards)
- Memberships (e.g., Costco)
- Insurance (e.g., car, renters, health, life)
- Post office (for mail forwarding) https://www.usps.com/manage/forward.htm
- Mobile phone provider
- Cable/internet provider
- Utilities (PG&E)
- DMV https://www.dmv.ca.gov/portal/dmv/?1dmy&urile=wcm:path:/dmv_content_en/dmv/online/coa/welcome
- IRS (Change of Address form) https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/irs-procedures/address-changes/address-changes
- Government agencies (if you receive any government benefits)
- Magazine and newspaper subscriptions
- Children’s school
- Alma Mater
- Current landlord
- Family & friends (If you are moving during the holidays, you won’t want to miss any holiday cards. Make your notice creative. Send a postcard or an email with a photo of your new digs.)
- USCIS (for most non-U.S. citizens) https://www.uscis.gov/addresschange
Once a loan is preapproved, many homebuyers mistakenly believe their loan is a guarantee. Little do they know, mortgage lenders are still working to fully approve and push their loan through up until closing day. With these tips, a new homebuyer can help to avoid some common mistakes and sail through the loan process when buying a new home:
1. Don’t pack papers too early
Underwriters may ask for extra documents so until the loan actually closes, the safest approach is to keep personal financial documents readily available.
2. Don’t use a 10% appliance discount
Some stores offer an extra 10% off when clients open a new credit card. Applying for that card could cause your credit to be pulled again just before closing, causing your score to drop and possibly delaying the close.
3. Don’t make large cash deposits
Defer that $1,000 cash birthday gift until after closing. All “gifts” have to be verified with a detailed paper trail, so you should avoid making large deposits by cash or check during a home purchase.