Happy New Year

Posted by linda in Uncategorized on January 19th, 2010

Happy New Year to all! I believe that it will be a challenging year this year but will work out well for all in the Real Estate industry in the end. “Patience” is the word for the year.

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Happy Holidays

Posted by linda in Mortgage Updates on December 22nd, 2009

Happy Holidays to one and All.  I am grateful for the year that I have and I hope that my blog has helped you in some way this year.  I am looking forward to a new exciting year and working with you to acheive your goals.  Take the time to spend this time with your family and friends and above all, take the time to be grateful for all we have and all we are.  These days, it is so important to always be reminded of the gifts we receive everyday.

Have a wonderful and safe Holiday Season.  My best wishes to you and your family.

Linda

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Is this how you feel???

Posted by linda in Uncategorized on November 19th, 2009

I got an email from a client today and wanted to share their feelings with you.  This is a great example of how many people feel these days and I think it is a great learning tool to use for anyone else out there that feels the same way and is afraid to say it.

Here is an excerpt from the email:

 

“I was talking with some friends about housing costs and fees and got completely confused. They told me to check with you and to thoroughly understand them.

I’m sure we probably went over this during our meeting, but could you please provide the following information to us in writing:

- A list of all the fees/costs that we should expect and an explanation of each fee.
  Your Mortgage Professional should always get you this information before any signing happens

- What is a good faith estimate and will we be getting one?

This document shows all the estimated fees you will pay to get the loan for the property you are purchasing


- What are “points”?
 Points are percentage points ex. 1.00% that are added to your fees to get the rate you want.  This should be discussed between you and your loan agent before you lock your rate.

Do you receive commission from the bank where we get our loan?
Yes and no..  It is a decision you make with your loan agent and all loan agents must disclose any fees paid to them by the lender.

- You said you charge a fee. Could you put in writing the options on how we can pay this charge?
Yes.  It should be with your application.

- Are there other things that we should be aware of that I haven’t asked?
Yes.  Just ask everything that comes to mind

 Also, if we decide to go with another agent, when would it be too late for us to do so.

You should work with someone you trust and feel comfortable.  It is never a good idea to switch once you have made your decision.  It can affect your transaction and you could potentially lose your property.

And do you charge a fee if we do decide to go with someone else?
No.  No one should charge a fee for that. Although, keep in mind that there is a lot of work put into filling out applications and meeting with clients.  Please make sure you want to work with this professional before you put them to work.  You wouldn’t want your boss to put you to work without pay, would you?


Sorry for all the questions, but after I spoke with some friends they got me all paranoid. Thanks for your time!”

 

Paranoid, Paranoid Paranoid, that is what happens when you over think things and ask to many opinions.  Trust your gut!

 

These are very common questions and concerns even after a meeting with a Mortgage Professional.  My best piece of advice is to work with a Mortgage Professional you Trust and are comfortable with.   If they were referred to you by a family member, friend or another professional and you trust the person who referred them to you, you should trust them.  Also, ALL BANKS charge fees and ALL LOAN AGENTS charge a fee.   It just depends on how the professional packages the loan for the client.  YOU HAVE A CHOICE.  Work with your professional and ask questions!!!  If they are good, they will work with you and answer all of your questions, no matter what.

 

NOW GO GET THAT HOME!!!!

 Call me with any questions.  I am always here.

The lender with Your Best Interest in Mind.

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Tax credit improvements and extension!!

Posted by linda in Uncategorized on November 6th, 2009

Buying a home is about to get cheaper for a whole new crop of homebuyers — $6,500 cheaper.
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the House voted 403-12 Thursday to extend and expand the tax credit to include many buyers who already own homes. The Senate approved the measure Wednesday, and President Barack Obama is expected to sign it.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn’t owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
“This is probably the last extension,” said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.
The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that was included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.
“We are still in a world of economic hurt, and Congress must continue to act boldly and creatively,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. “With the right mix of tax breaks and investments we will get through this recession and get folks working again.”
The real estate industry has been pushing to extend and expand the housing tax credit. About 1.4 million first-time homebuyers have qualified for the credit through August. The National Association of Realtors estimates that 350,000 of them would not have purchased their homes without the credit.
Extending and expanding the tax credit for homebuyers is projected to cost the government about $10.8 billion in lost taxes. While the measure passed the Senate by a 98-0 vote, Sen. Kit Bond, R-Mo., questioned its efficiency in stimulating home sales.
“For the vast majority of cases, the homebuyer tax credit amounted to a free gift since it did not affect their decision to purchase a home,” Bond said. “And for the small minority of buyers whose decision was directly caused by the credit, this raises the question of whether we are subsidizing buyers who may not have been able to afford buying a home in the first place.”
The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000.
The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.
Expanding the tax credit for money-losing companies is projected to cost $10.4 billion.
The business tax break would allow money-losing companies to use current losses to offset taxable profits earned in the previous five years, giving them refunds of taxes paid in those years. Under current law, businesses with annual gross receipts of more than $15 million can claim losses back only two years.
The tax break would help industries suffering losses in 2008 or 2009, including retailers, homebuilders and newspapers. Congress included a scaled-back version of the tax break — for companies with revenues of $15 million or less — in the economic recovery package enacted in February. The new tax break would be available to companies of any size, providing a quick source of cash.
The U.S Chamber of Commerce has been a big backer of the tax break for money-losing companies.
“It frees up capital that they can use to maintain jobs and potentially even hire new people as the economy returns,” said Caroline Harris, senior tax counsel for the U.S. Chamber of Commerce.
The tax breaks would be paid for largely by delaying a tax break for multinational companies that pay foreign taxes. It was passed in 2004 and originally was to have taken effect this year, but would now be delayed until 2018.
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The bill is H.R. 3548.
If you have owned your home for 5 years or just purchased a new home you may qualify between $6500-8000.  You income as single is $125,000 or jointly is $225,000, you may qualify.  Check with your Tax professional about your qualifications.
Call me with any questions.  408-802-1546

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possible extension of tax credit

Posted by linda in Uncategorized on October 20th, 2009

It is not all bad news out there.  Actually, portfolios are getting better, people are actually looking at their statements now and home buying is still going on.  The tax credit that everyone has been worried about missing looks like it will get extended and possibly at a higher rate.  Time will tell.  Stay tuned.

In the meantime, fall is finally here and is hitting hard all over the country.  My advice is to get your home ready for winter if you have not already.  Call the repair people you need to get ready because they will all be busy in the next few days and weeks.  Think positive and be happy for winter clothes and fireplaces.  Enjoy them.

till next time…..

Linda

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I need Help!!!!!

Posted by linda in Uncategorized on September 22nd, 2009

Yes, it is crazy out there! 

Yes, there are a lot of questions!

Yes, I need help and where do I go?

With this ever changing Mortgage Market you need someone you can trust and count on to answer your questions.  It is most important when dealing with purchasing a property to have a Realtor and a Mortgage professional that work well as a team.  If they don’t know one another, they can do the job, but it could be the difference in closing your deal and not closing your deal.  You know that in your own job, you need a good team of either your fellow workers or a combination of you and your clients to make that team.   Do not work with anyone you cannot count on!  If you are refinancing, you and your Mortgage professional become your team.  Make sure it is someone you have been referred to by a friend, work friend or family member.  If you trust your friend, you would trust their referral.

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Do you qualify for a tax credit?????

Posted by linda in Uncategorized on September 21st, 2009

“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”

The short answer? Yes,

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

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What is this about foreclosures and credit issues…

Posted by linda in Uncategorized on September 20th, 2009

In 2008 there were about 1 million bankruptcy filings.  This means that in the US one in three hundred people declared bankruptcy.  But a bankruptcy is still, for the most part, considered a last-ditch option for dealing with overwhelming debt.  Most of your assets go away, and your credit rating takes a fall (a bankruptcy for ten years, whereas a foreclosure remains on it for seven).  Most homeowners will avoid a Chapter 7 bankruptcy and instead file for Chapter 13 if they want to avoid a foreclosure. 

A Chapter 7 filing can wipe out unsecured debts, but secured debts are tied to a specific asset, such as a mortgage secured by a home  which reverts to the creditor.  A Chapter 13 bankruptcy doesn’t actually wipe out the debt but can shield debtors from their creditors for several months during the forbearance period until a court-ordered repayment schedule can be worked out.  During this time most homeowners try to work out a loan modification program.

Many clients have asked me about credit counseling and how or if it affects their credit.   Here is what I know… According to Fair Isaac, counseling is not a ding on your credit.  It does, however, appear on your credit report as an inquiry to your credit.   Of course, what you do with the information, like stop paying your bills, can affect your FICO score.
The FICO score helps the creditor understand the borrower’s likelihood to repay a debt. Your FICO score is composed of your payment history and  the length of credit history, along with looking to see if  are you adding additional credit and what your current credit line limits  and type.   After having said that, many lenders will look at your credit and when they see that you have used  credit counseling, is can throw up a red flag for them.  They may not use it against you but could.  My advice is always call your credit card companies first on your own and work with them.  They would rather work with you instead of a counseling company.  You can very often get as much done as they can and that will never affect your credit.  It will also save you some money.  My two cents…
Have a great week and remember, if you have any questions or have any friends or family that need any assistance , feel free to  call me at 408-802-1546.

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What is happening in our crazy world of Mortgages???

Posted by linda in Mortgage Updates on September 14th, 2009

Crazy though it may seem, our economy is recovering and in an upswing.  I know it is hard to believe with the unemployment numbers being at almost 10% and foreclosures being at an all time high but we are riding it out and slowly but surely we are headed in the right direction.  Keep you eye on the Retail numbers that will be out on Tuesday.  We believe they will be a bit worse than expected which will affect the Bond Market therefore lowering mortgage rates.  We shall see.  I will keep you posted. 

The Mortgage Industry is continually changing and this is on a daily basis.  There are new programs and guidelines that come out almost everday and usually make it a bit more difficult to get loans through.  So we make adjustments to allow borrowers to qualify for loans.  This usually involves a lot more patience on both the Mortgage Broker and the borrower.  It also means that if you are dealing with a purchase, it is more important than ever to have a great team working with you.  This means a Realtor and Mortgage professional working with the borrower to be a great team!  Loan turnaround times are exceptionally long these days.  What was a 30 day loan close is now minimum of 45 days. 

The most important part of my job now is to educate my borrower to what is happening in our industry and how it affects them.  This is not a bad thing but a good thing.  Education is a good thing but will take more patience on all of our parts.  We are still refinancing and still buying homes.  THIS IS GOOD NEWS!!  Let’s all remain positive and work together and we shall overcome!.

Have a great week.

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WHAT IS HAPPENING TO THE RATES??

Posted by linda in Mortgage Updates on June 5th, 2009

You are noticing rates going up and up.  The reason for all of this is that we continue to have bad news added to our already bad news on the economy.  There is some disagreement between the leading economists as to whether the economy is recovering or not.  Stay tuned to the market to see what happens.  I wish I had a crystal ball!!! But….what makes sense is that the Real Estate industry and market is very important to the recovery of our economy.  If rates continue to increase, there will be less activity therefore the recovery will not take place as quickly as expected.  We are hoping for the rates to go back down for a bit so borrowers can take advantage of programs that The President has put in place to refinance and purchase the properties that have gone to foreclosure.  If the rates continue many people will not refinance or qualify for a purchase.  I will keep you posted… Stay tuned.  Please add your comments.

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