Linda Talks Mortgages

Tax Credit extension

linda — Tue, 15 Jun 2010 16:48:02 +0000

There is a possibility of an extension coming down the pipe. Stay tuned! I believe in the next week or so we will be hearing from congress their decision.

Credit Report- Fact or Fiction

linda — Mon, 03 May 2010 22:40:47 +0000

Fiction: Once you’ve paid a past-due debt, it will drop off of your credit report.

Fact: Late payments and other negative information remain on your credit report for seven years from the date of the initial late payment. Bankruptcies typically stick around for 10 years from the bankruptcy filing date. While that black mark may continue to soil your credit report, however, its effect on your credit score will lessen over time.

Fiction: Practicing a cash-only policy will help your credit score.

Fact: Having good credit is a function of having credit available to you and using it responsibly. If you don’t have or use credit, you may have no credit history at all and if you do, your credit score won’t be as good as someone who consistently demonstrates responsible use of credit over time.

Fiction: All credit reports and credit scores are the same.

Fact: You have three main credit reports – one from Experian, Equifax and Transunion – plus a variety of credit scores. The information listed on each of your credit reports may vary and your credit scores – even if based on a single report – may also vary. No one credit report or score is better than the others. They all seek to document your credit history and assess your credit risk.

Fiction: How responsibly you manage your checking, savings and investment accounts will impact your credit score.

Fact: Like income, your checking, savings and investment account activity is not reported to the credit bureaus and does not affect your credit score.

Fiction: Closing credit card accounts will help your credit score.

Fact: When you close a credit card account, you may be affecting your “credit utilization.” Credit utilization is simply how much credit you use (balances) compared to how much credit is available to you (credit limits). Closing a credit card account lowers the amount of credit that’s available to you, which may increase your credit utilization percentage if you maintain balances on any of your other credit cards. A higher credit utilization may negatively impact your credit score.

Fiction: Pulling your own credit report will lower your credit score.

Fact: When you pull your credit report for your own educational purposes, it’s considered a “soft inquiry” and will not affect your credit score. On the other hand, when a creditor or lender pulls your credit report for the purpose of extending you credit or a loan, it’s a “hard inquiry” and may negatively impact your credit score. (Learn more about credit inquiries.)

Fiction: If a bill or debt isn’t generally reported to the credit bureaus, missing a payment won’t affect your credit score.

Fact: Any time you pay a bill late or don’t pay at all, that activity can be reported to the credit bureaus. Different companies have different policies about reporting late payments or negative information, but never assume that just because you’ve never seen a particular bill listed on your credit report that it can’t negatively impact your credit score if you don’t pay it.

Fiction: Disputing accurate information will remove it from your credit report.

Fact: You can only dispute information on your credit report that is inaccurate. When you dispute information on your credit report, the credit bureau has 30 days to investigate. If it finds the dispute to be valid, it will remove the inaccurate information. If, however, the dispute claim is found to be false, that information will not be removed from your credit report. Beware of credit repair companies claiming that they can get negative – albeit accurate – information removed from your credit report. This practice is illegal and these companies are generally scams.

Any other questions or comments, call me at 408-802-1546

Happy New Year

linda — Wed, 20 Jan 2010 01:39:50 +0000

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.

Happy Holidays

linda — Tue, 22 Dec 2009 23:50:51 +0000

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

Is this how you feel???

linda — Thu, 19 Nov 2009 19:51:03 +0000

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.

Tax credit improvements and extension!!

linda — Fri, 06 Nov 2009 17:10:55 +0000

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.

___

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

possible extension of tax credit

linda — Tue, 20 Oct 2009 19:07:08 +0000

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

I need Help!!!!!

linda — Tue, 22 Sep 2009 16:39:07 +0000

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.

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

linda — Mon, 21 Sep 2009 20:36:51 +0000

“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.

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.)

What is this about foreclosures and credit issues…

linda — Mon, 21 Sep 2009 02:48:33 +0000

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.