Welcome to my Blog
Monday, November 3, 2008
Thursday, October 9, 2008
FEDS Emergency Rate Cut
Global Banks Unite in Unprecedented Rate Cuts
Ben Bernanke and the Fed brought financial aid to the streets, lowering the Federal Funds Rate and Discount Rate by 0.50%. In an unprecedented emergency move, central banks across the globe joined in lowering interest rates.
This move follows Washington's passing of the $700 billion Rescue Plan. From Wall Street to Main Street, a common concern has been heard by Washington. "We need money... no, let me rephrase that...we need cheap money."
Rates Could Rise From HereHome loan rates have benefited from the weakness in the financial markets. Fixed rate mortgages remain very attractive. However, the Fed lowers short term interest rates to shore up financial markets. This could cause home loan rates to rise in the coming weeks and months if confidence returns to the stock markets.
ARM Holders Take Notice! Anyone that has an Adjustable Rate Mortgage (ARM), take note. The London Interbank Offered Rate (LIBOR) has soared from uncertainty in financial companies...And six million home loans in the United States are tied to LIBOR which determines the interest rate at the time of adjustment.
Ben Bernanke and the Fed brought financial aid to the streets, lowering the Federal Funds Rate and Discount Rate by 0.50%. In an unprecedented emergency move, central banks across the globe joined in lowering interest rates.
This move follows Washington's passing of the $700 billion Rescue Plan. From Wall Street to Main Street, a common concern has been heard by Washington. "We need money... no, let me rephrase that...we need cheap money."
Rates Could Rise From HereHome loan rates have benefited from the weakness in the financial markets. Fixed rate mortgages remain very attractive. However, the Fed lowers short term interest rates to shore up financial markets. This could cause home loan rates to rise in the coming weeks and months if confidence returns to the stock markets.
ARM Holders Take Notice! Anyone that has an Adjustable Rate Mortgage (ARM), take note. The London Interbank Offered Rate (LIBOR) has soared from uncertainty in financial companies...And six million home loans in the United States are tied to LIBOR which determines the interest rate at the time of adjustment.
Monday, August 11, 2008
Sold
Wonderful Home in desirable tree lined street. New windows with UV barriers, hardwood floors under carpets, basement entrance, HUGE 12X40 garage/workshop. 2 furnaces, big closets, Room downstairs that can be a den or excercise room, has window. Bring an Offer and get in this darling home! Easy to see, call for a showing!
Seller is an inactive agent, Agent is related to the seller
Seller Down Payment Assistance Outlawed
The Bush administration had pushed for risk-based pricing as part of a larger "FHA modernization" package that, in various proposals put forward by lawmakers in recent years, would also have reduced or eliminated FHA's 3 percent minimum down payment requirement.
Instead, Congress ended up raising minimum down payment requirements for FHA-backed loans to 3.5 percent. Also, beginning in October, home buyers will no longer be able to rely on nonprofits that funnel money from homebuilders into seller-funded down payment assistance programs, as HR 3221 finalizes HUD's long quest to end the practice.
HUD claimed the practice artificially inflates home prices and triples the likelihood of default. HUD's attempt to end the practice through an administrative proceeding was thwarted by legal challenges filed by nonprofits that operate assistance programs.
Now that Congress and the Bush administration have agreed to ban the practice through legislation, that battle appears to be over, and home builders expect to see the pool of eligible buyers shrink.
According to HUD, seller-funded down-payment assistance was used on more than 35 percent of all home purchase loans insured by FHA in fiscal year 2007, compared to less than 2 percent seven years earlier.
Home builder Lennar Corp. relied on down-payment assistance for one in three mortgages it originated in the second quarter, the Wall Street Journal reported. Housing research firm Zelman & Associates estimates that eliminating seller-funded down-payment assistance could reduce the homebuyer pool by 10 percent nationwide, and by up to 25 percent in lower-priced markets where they are used more often, the Journal said.
Instead, Congress ended up raising minimum down payment requirements for FHA-backed loans to 3.5 percent. Also, beginning in October, home buyers will no longer be able to rely on nonprofits that funnel money from homebuilders into seller-funded down payment assistance programs, as HR 3221 finalizes HUD's long quest to end the practice.
HUD claimed the practice artificially inflates home prices and triples the likelihood of default. HUD's attempt to end the practice through an administrative proceeding was thwarted by legal challenges filed by nonprofits that operate assistance programs.
Now that Congress and the Bush administration have agreed to ban the practice through legislation, that battle appears to be over, and home builders expect to see the pool of eligible buyers shrink.
According to HUD, seller-funded down-payment assistance was used on more than 35 percent of all home purchase loans insured by FHA in fiscal year 2007, compared to less than 2 percent seven years earlier.
Home builder Lennar Corp. relied on down-payment assistance for one in three mortgages it originated in the second quarter, the Wall Street Journal reported. Housing research firm Zelman & Associates estimates that eliminating seller-funded down-payment assistance could reduce the homebuyer pool by 10 percent nationwide, and by up to 25 percent in lower-priced markets where they are used more often, the Journal said.
Thursday, July 31, 2008
New Home Buyer Tax Credit - FAQ
New Home Buyer Tax Credit Frequently Asked Questions
The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009, for new home buyers in Utah and other states.
The following questions and answers provide basic information about the tax credit.
Who is eligible to claim the $7,500 tax credit? First time home buyers purchasing any kind of home - new or resale - are eligible for the tax credit.
What is the definition of a first-time home buyer? The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
What types of homes will qualify for the tax credit? Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.
Are there income limits to determine who is eligible to take the tax credit? Yes. Home buyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI) is less than $75,000. For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer's modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009.
What is "modified adjusted gross income"? Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains. To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.
Can you give an example of how the partial tax credit is determined? Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.
Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit? In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.
I heard that the tax credit is refundable. What does that mean? The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit. For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).
What is the difference between a tax credit and a tax deduction? A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? No. The tax credit cannot be combined with the MRB home buyer program.
I am not a U.S. citizen. Can I claim the tax credit? Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
Why must the money be repaid? Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.
Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit? Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.
If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return? Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest? Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.
The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009, for new home buyers in Utah and other states.
The following questions and answers provide basic information about the tax credit.
Who is eligible to claim the $7,500 tax credit? First time home buyers purchasing any kind of home - new or resale - are eligible for the tax credit.
What is the definition of a first-time home buyer? The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
What types of homes will qualify for the tax credit? Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.
Are there income limits to determine who is eligible to take the tax credit? Yes. Home buyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI) is less than $75,000. For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer's modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009.
What is "modified adjusted gross income"? Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains. To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.
Can you give an example of how the partial tax credit is determined? Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.
Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit? In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.
I heard that the tax credit is refundable. What does that mean? The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit. For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).
What is the difference between a tax credit and a tax deduction? A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? No. The tax credit cannot be combined with the MRB home buyer program.
I am not a U.S. citizen. Can I claim the tax credit? Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
Why must the money be repaid? Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.
Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit? Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.
If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return? Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest? Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.
Wednesday, July 30, 2008
CC&R's, HOA - What does this mean?
I am now on my HOA board, I live in a single family residence without any common areas that we are upkeeping, so why an HOA you might ask? The city I live in requires that the developers sell the properties with CC&R's. We finally moved the HOA from the developer to the community and many people are asking why have an HOA?
There are pros and cons to having an HOA. The most common misunderstanding is that without the HOA the CC&R's will also be gone. That is not the case. CC&R's run with the land and as long as that piece of land is there, the CC&R's will be there. The HOA's duties are to make sure the community is following the CC&R's to there understanding, yes it does unfortunately go to there interpretation of the CC&R's. As we know you neighbor might interpret it differently then you or I. That is where the HOA comes in to play with an odd number on the board they can vote and see what the majority determines the meanings of any certain section is. By having an HOA board you are trying to eliminate the whole neighbor suing neighbor. Or the having one person in the neighborhood not keep his yard up (or put in in on new builds) and devaluing the community. It is important for the HOA to encourage residence to ask questions on updating there home making it nicer. A better looking house next door raises the value of your house to!
There are pros and cons to having an HOA. The most common misunderstanding is that without the HOA the CC&R's will also be gone. That is not the case. CC&R's run with the land and as long as that piece of land is there, the CC&R's will be there. The HOA's duties are to make sure the community is following the CC&R's to there understanding, yes it does unfortunately go to there interpretation of the CC&R's. As we know you neighbor might interpret it differently then you or I. That is where the HOA comes in to play with an odd number on the board they can vote and see what the majority determines the meanings of any certain section is. By having an HOA board you are trying to eliminate the whole neighbor suing neighbor. Or the having one person in the neighborhood not keep his yard up (or put in in on new builds) and devaluing the community. It is important for the HOA to encourage residence to ask questions on updating there home making it nicer. A better looking house next door raises the value of your house to!
Saturday, July 26, 2008
Wednesday, July 23, 2008
Builders Lender or Your Own?
RISMEDIA, May 22, 2008-The home loan packages offered by builders are often touted as being very convenient. But when it comes to evaluating the true benefits the picture is often quite different, according to the home buying specialists at the National Association of Exclusive Buyer Agents, (NAEBA). Recent difficulties in the mortgage marketplace bear this out.”Mortgage shopping can take a significant level of sophistication. In addition, negotiations with a builder’s mortgage company can sometimes be stressful and costly,” stated Barry Nystedt President of NAEBA. “Home buyers still need to compare the builder’s loan offerings to what is available on the open market. Complications arise when the buyer becomes obligated to the builder’s lender without being able to compare the rates and fees other lenders may offer months later when the home is complete.
Sometimes the builder’s lender takes advantage of a buyer by providing an overpriced loan, which the buyer accepts, not wanting to risk losing the builder’s incentives.”
Builders often offer cash or equivalent incentives to buyers for using a builder’s preferred lender. Often the builders’ lenders are related companies that are making a significant profit on this business. The builders’ incentives for the buyer can be in the form of additional landscaping options at no charge, cash credits to closing costs, or adding options to the home at a discounted price.
This is when the buyer needs his own advocate. “Ask your buyer’s agent to obtain for you all the incentives the builder is offering along with the right for you to choose your own lender when your agent negotiates your offer-to-purchase contract with the builder,” recommends Barry Nystedt of NAEBA.
“The first person you speak to normally says no, but often when you ask further up the management ladder you will get a decision maker to agree with letting you use your own lender.”
“If that is not successful, once you are close enough to completion to lock in your rate, you should compare at least 3 other Good Faith Estimates for the same loan type from three credible lenders in your market. To make an accurate comparison, you need to make sure the other Good Faith Estimates are for the same loan type, the same rate lock period, and are good for the same day. Decide objectively if the cash value of the incentives from the builder make up for the cost of any higher rates and fees the builder’s lender is charging. By law, RESPA regulations require that builders allow you to change lenders, but the builder would no longer be obligated to give you the incentives,” and, says Nystedt, “that may have been the reason you decided to purchase a home from this builder in the first place.”
Sometimes the builder’s lender takes advantage of a buyer by providing an overpriced loan, which the buyer accepts, not wanting to risk losing the builder’s incentives.”
Builders often offer cash or equivalent incentives to buyers for using a builder’s preferred lender. Often the builders’ lenders are related companies that are making a significant profit on this business. The builders’ incentives for the buyer can be in the form of additional landscaping options at no charge, cash credits to closing costs, or adding options to the home at a discounted price.
This is when the buyer needs his own advocate. “Ask your buyer’s agent to obtain for you all the incentives the builder is offering along with the right for you to choose your own lender when your agent negotiates your offer-to-purchase contract with the builder,” recommends Barry Nystedt of NAEBA.
“The first person you speak to normally says no, but often when you ask further up the management ladder you will get a decision maker to agree with letting you use your own lender.”
“If that is not successful, once you are close enough to completion to lock in your rate, you should compare at least 3 other Good Faith Estimates for the same loan type from three credible lenders in your market. To make an accurate comparison, you need to make sure the other Good Faith Estimates are for the same loan type, the same rate lock period, and are good for the same day. Decide objectively if the cash value of the incentives from the builder make up for the cost of any higher rates and fees the builder’s lender is charging. By law, RESPA regulations require that builders allow you to change lenders, but the builder would no longer be obligated to give you the incentives,” and, says Nystedt, “that may have been the reason you decided to purchase a home from this builder in the first place.”
Sunday, April 13, 2008
Need Foreclosure Help
If you are facing foreclosure or think you might be heading towards missing a mortgage payment be sure to get someone on your side who knows what they are doing. Be careful calling those foreclosure prevention companies that you might receive notices from or see on the television, they don't always have your best interest at heart and if they are asking for money? Then don't pay them a cent until you go through all of your options. Most mortgage companies at this time offer a free homeowner help line that you can call and get questions answered, they also will go through your situation and give you solid advise for FREE.
Also if you are thinking a short sale might be your only option or you've decided to sell the house before your credit gets ruined? Call a real estate agent that knows foreclosures and knows what they are doing. Even if you haven't missed a payment yet, an agent who knows your options when you are close will be able to help you decide the best course of action.
In Utah there is a lot of qualified help to those who need it. If you find yourself in a position where you need help, I will give you all your options so you can make the best decisions for you.
Also if you are thinking a short sale might be your only option or you've decided to sell the house before your credit gets ruined? Call a real estate agent that knows foreclosures and knows what they are doing. Even if you haven't missed a payment yet, an agent who knows your options when you are close will be able to help you decide the best course of action.
In Utah there is a lot of qualified help to those who need it. If you find yourself in a position where you need help, I will give you all your options so you can make the best decisions for you.
Tuesday, February 26, 2008
Tips to Spruce up your Home
1. Color your world. You can change the look of
a room in a matter of hours with paint, and we’re
not just talking about the walls. Ceilings, trim,
and chair rails can be punched up, and there are
many faux finishing techniques that are perfect
for the do-it-yourselfer.
2. Update window treatments. If your windows
need a makeover, lighten them up with simple
drapery panels. Lowe’s has a collection of drapes,
blinds, shades and swags in the latest colors and
fabrics.
3. Rearrange the furniture. Create a new look
without spending a dime! Map things out on paper
before you start moving pieces around, especially
the heavy ones.
4. Do you have a living
room or extra bedroom that’s not being fully
utilized? Turn it into an office, gym, media room or
playroom for the kids.
5. Accessorize! Little details can make a big
impact. If your current accessories have lost
their luster, replace them with decorative books,
candles, and interesting pieces that reflect your
personality and hobbies.
6. Don’t forget the floors. Nothing beats the smell
of fresh carpet, to give your home that “new
house” feel. Believe it or not, shag carpeting is
making a comeback!
7. New countertops can transform a kitchen or
bath, without having to remodel the entire room.
And you don’t have to spend a fortune: affordable
laminates now come in styles that look amazingly
close to real granite, marble and quartz.
8. Think spring. Add fresh cut flowers and new
house plants to green up your living spaces, and
remind you that spring is on its way!
9. Decorative moulding can add instant
glamour to any room, and it’s easier to install
than most people think.
Lowe’s offers a free step-by-step project guide http://www.lowes.com/lowes/
lkn?action=howTo&p=Improve/InstMld.html
a room in a matter of hours with paint, and we’re
not just talking about the walls. Ceilings, trim,
and chair rails can be punched up, and there are
many faux finishing techniques that are perfect
for the do-it-yourselfer.
2. Update window treatments. If your windows
need a makeover, lighten them up with simple
drapery panels. Lowe’s has a collection of drapes,
blinds, shades and swags in the latest colors and
fabrics.
3. Rearrange the furniture. Create a new look
without spending a dime! Map things out on paper
before you start moving pieces around, especially
the heavy ones.
4. Do you have a living
room or extra bedroom that’s not being fully
utilized? Turn it into an office, gym, media room or
playroom for the kids.
5. Accessorize! Little details can make a big
impact. If your current accessories have lost
their luster, replace them with decorative books,
candles, and interesting pieces that reflect your
personality and hobbies.
6. Don’t forget the floors. Nothing beats the smell
of fresh carpet, to give your home that “new
house” feel. Believe it or not, shag carpeting is
making a comeback!
7. New countertops can transform a kitchen or
bath, without having to remodel the entire room.
And you don’t have to spend a fortune: affordable
laminates now come in styles that look amazingly
close to real granite, marble and quartz.
8. Think spring. Add fresh cut flowers and new
house plants to green up your living spaces, and
remind you that spring is on its way!
9. Decorative moulding can add instant
glamour to any room, and it’s easier to install
than most people think.
Lowe’s offers a free step-by-step project guide http://www.lowes.com/lowes/
lkn?action=howTo&p=Improve/InstMld.html
Sunday, January 20, 2008
View of Your Home
Your House As Seen By:
Yourself...
Your Buyer...
Your Lender...
Your Appraiser...
Your Tax Assessor...
Home of the Month - December
SOLD!!!
Awesome Home in Very Desirable Area, across from Huge Community Park!
Congratulations Shane n' Nikki
Investment Duplex
SOLD
Great Investment Property in desirable Neighborhood, 3 Bedroom 2 bath each side
Home of the Month -November
SOLD!!
Congratulations Glen and Pauli!
Beautiful 3 bedroom Townhome with basement for room to grow
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