Understand The Home Buyer Rebate

According to the U.S. Department of Justice, forty states, including California, allow real estate agents to give a home buyer rebate to their clients. The DOJ even condones negotiating rebates to increase competition among real estate agents. But what is a rebate? Is it the same thing as a first-time home buyer credit? The biggest benefit from a home buyer rebate is that it makes buying a home less expensive! You get to do whatever you want with the money.

Traditional Real Estate Commission

Real estate agent commission is typically split 50/50 between the agents who represent the buyer and seller. So, out of a gross 6% commission, your agent would only typically get 3% gross. The Internal Revenue Service has ruled that   rebate isn't taxable but is an adjustment to the buyer's basis in the house, which effectively lowers the home's  purchase price.

Use Crush Mortgage on the purchase of your home in conjunction with Crush Mortgages Approved Realtors and receive 25% of the real estate commission.

How Does The Home Buyer Rebate Work?

The Crush Mortgage approved agents offer home buyer rebates of 25% of the buyer's agent commission. You don't need to use Crush Mortgage and the approved realtor list in conjunction. You can use the agent separately from Crush Mortgage or even Crush mortgage separate from the approved Realtor list. The 25% commission rebate is offered when you use Crush for the mortgage and Crush Mortgage's approved realtors and close on our home.
The Department of Justice's article has a great diagram (below) showing how the savings can break down based on a hypothetical $300,000 priced home purchase with a 1% buyer rebate.

What's the difference between a rebate and a first-time home buyer credit?

Similar to a home buyer rebate, a first-time home buyer credit can take many forms. This mainly depends on the state in which it's offered. Many states have programs to help first-time home buyers. Most of those programs offer new buyers the option to put less money down without dealing with higher interest rates or mortgage insurance.

Crush Mortgage has a list of local agents ready to give up to 25% of the commission rebated back to the buyer.

Before you look at homes, you need to know whether you can afford to own one. Mortgage payments are generally higher than rent in most states. And even when the prices are close, there are other costs associated with owning your home instead of renting. Your property taxes will be added to your monthly mortgage payment. And if you put down less than 20% for a down payment, your lender will probably require you to pay for private mortgage insurance (PMI) as well. You'll also have to pay some costs that you might not have had to pay while renting: utilities, cable, garbage pickup, and any necessary repairs. Make sure you can comfortably afford not just your mortgage but also any additional expenses before buying your first home.

If you've run the numbers and decided that yes, you can afford homeownership, your next step is to meet with Crush Mortgage. You can discuss the different types of mortgages and decide which would be best for you. You'll also want to be pre-approved for a mortgage before you begin house-hunting. To get pre-approved for a mortgage, you'll have to share your financial and employment information with Crush Mortgage. We will require documentation such as tax forms, pay stubs, etc… Once we review and verify your information, we will determine whether to approve you for a mortgage. If we do, we will let you know your mortgage options and terms.