Archive for November, 2009

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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