A new tax credit for homebuyers has been enacted and there are some changes. Income limits have been increased and it is no longer restricted to First Time Homebuyers.
I have included a chart below from the National Association of Realtors. This is the best illustration I have seen so far and will help answer many questions. I have heard positive feedback from those that have called the IRS from the phone numbers found on their website, irs.gov. Hold times are short and you can easily get to a human being!!
The effective date of this new credit is November 6, 2009 as that is the day this was signed into law!!
I hope this is helpful for those with questions.
As you can see, the income limits were increased to include more participants in the program as well as the inclusion of buyers who have previously owned a home.
When Credit Card Companies Lower Your Credit Limit
Has this happened to you? It may have happened and you didn't know it because it was tucked into the fine print of your recent bill. But if you aren't using the full limit..... Does this action by the credit card company help you or hurt you!?!?!?!?
It will hurt!! Plain and simple.
There is a term used by the experts in credit scoring.... And that word is Utilization. We are referring to how much of your revolving credit lines that you are currently using. And this is about 30% of your FICO Score. So how can this hurt? Let's start with an example:
Joe owes $750 on his Visa card. The limit is $2500. Joe is currently using 30%(750/2500) of his credit limit. Experts agree that you should strive to keep that utilization % below 30% and the lower the better. Why? Because once you start approaching the higher percentages.... The FICO Scoring Method sees you as a great risk. Think about it.... Someone with 30% utilization vs someone with all of their credit cards maxed out.... Who is the better risk? Well, FICO knows.... and the person with the high utilization will have a much lower FICO Score as a result.
Ok.... So Joe is being responsible. His hot water heater breaks and he put that purchase on the card to the tune of 30% utilization. But then the credit card company lowers Joe's limit to $1000 to reduce their exposure to risk. Overnight, Joe went from a responsible 30% to utilizing 75%(750/1000) of his credit limit. Ooooops!!! Now what? Well, it is quite possible that Joe's respectable 720 credit score falls into the high 600s. Let's say 660 or so. What is the impact? Go try and buy a car with a 660 FICO and 720 FICO and see what interest rate difference you get. Try to buy a home on a conventional mortgage with a sub 680 FICO Score and see the if you are eligible for PMI.
But, Tom, I pay off the balance in FULL each month? So this doesn't affect me!! Not so fast.... If you put $800 travel expenses on that $1000 limit credit card and that gets reported to the credit bureaus on the 4th of the month..... Yet you pay your bill on the 5th.... What number will FICO use? That's right, they will assume 80% utilization and dock you many points for it right then and there.
So, how can you protect yourself? Keep more than one credit card. Spread out large expenditures over a few cards. Open a store card for that one time purchase(hot water heater example) Know when your credit cards report your balance and pay history to Experian, Equifax & Transunion so you can pay off/down those cards before you apply for that big purchase like a car or new home.
Note: FICO says that it adds up all of your limits and all of your balances to calculate FICO. However, I have seen people suffer greatly by maxing out one card when they had 3 other cards with zero balance. Don't ask me why... This has been experienced by me more than once.
This credit scoring tip has saved many of my clients thousands of dollars... And it could save YOU many thousands too!!!
Did you know: That if a credit card company raises your interest rate that you have a right to cancel the card and pay it off under the old terms**?
** Remember: If you close that account, it lowers your total revolving credit available balance and could raise your 'utilization' which we discussed.
We've been preaching it for a very long time...Real estate professionals need high quality video content on their website. It helps with SEO results, it portrays a more professional image and retains viewership some 70-percent longer than a website without video.
But let’s get real. Times are tough and high quality video production can be expensive. Well, we have the solution. The Video Connector , is sending out an early holiday gift... FREE VIDEO!!
It’s simple. Just log on to TheVideoConnector.com/FreeVideo and cut and paste the embed code, put it on your site and reap the benefits!
What a great fundraiser! And what a great State Agency. Texas Parks & Wildlife does a fantastic job with conservation, not to mention what they do with all of the fantastic parks and lake acces facilities. I am a huge fan of Texas Parks and you should be too!!
What a great gift idea for that hunter/fisherman in your family.... And it only costs $5 to enter.
This is your chance to win a Lifetime Super Combo License, giving you the right to hunt and fish in Texas without ever having to buy another state license or stamp.
Only $5 per entry and you can enter as many times as you like!
Purchase your entries wherever Texas hunting and fishing licenses are sold.
Drawings will be held December 30, 2009 and June 30, 2010. Enter by December 27, 2009, and you will be eligible for both drawings! Entries for the June 30, 2010 drawing must be purchased by June 27, 2010.
All proceeds from the Lifetime License Drawing fees go directly to the Texas Parks and Wildlife Department for on-the-ground conservation efforts that help make Texas one of the best places in the country to hunt and fish.
How to use your blog to enhance relationships with existing prospects and clients
Do YOU use your activerain blog catalog to reach out to existing clients and prospects? Here is what I have done.
I have used extensively my article on FHA Streamline Refinances. I get questions by email and thru discussion forums about the FHA Streamline Refinance Loan and 99% of them can be answered with this article. I have pasted a link to this article on a prospect's facebook wall and pasted a link to the same article to answer many questions on the Trulia Answers q&a.
I can think of other occasions that I have linked a potential client to 'my' articles when that article was really only a re-blog of some very well written content. I simply state that "a friend of mine wrote a great article about this" and send the link and follow up with a phone call.
I also use my Happy Hour Announcements on facebook. Posting a couple of times during the week about the upcoming event or posting a link right on the page of who I really want to see come out. <= This isn't clients, but realtors are the target!! I know, I am a sneaky guy!!
I write off topic articles sometimes too. I like to really promote those because it reminds people that I do have a blog. While they may not want to read an article about Fannie Mae Guidelines Changing they might jump over to activerain to see a little article about my 8yr old's baseball team..... Hey, I got them there.... now they can look around.
My First Time Homebuyer Tax Credit Quick Reference Chart got leveraged big time. A short article with a chart or an example whether it be a photo or a diagram is a great way to get a few cliks and pass along answers to frequently asked questions!!!
I wish I could say that it has been more exciting than this but it isn't really all that sexy. It is just using my best content over and over again.... To save me time. And I really do feel like it brings a little prestige to me as I am a 'published author'. LOL.
I like a challenge.... And when Bob Stewart is giving away a ridiculous amount of points for accepting the challenge then that just makes it all the sweeter.
Here are a few ways I have leveraged MY content to enhance relationships with prospects and clients.... What ways have YOU leveraged your catalog of articles?
Educating Real Estate Agents On How To Use Modern Technologies To Better Their Business Will Never Be The Same!
On November 17th, 2009 dozens of the most respected educators in the real estate industry converge to host the first of its kind, Virtual Real Estate BarCamp.
Virtual Real Estate BarCamp is a 1-Day Learning Extravaganza. From 9am until 4pm PST, three concurrent webinar "rooms" will each host 9 different sessions, for a total of 27 different presentations. There is something for everyone and everything for someone, and best of all, IT IS FREE and attendance is unlimited!
Attendance is projected to be at least 1000 agents, nationwide. Do not miss out on being part of this ground-breaking event.
Session topics include:
Social Media Risk Management
Flickr for Real Estate
Developing Your Brand
Online Advertising Secrets
Facebook for Real Estate
WordPress Training
Daily Goal Tracking
Starting a Real Estate Blog
...and much more, with new sessions being added every day.
And if that wasn\'t cool enough, individuals from around the country are volunteering to host In-Real-Life MeetUps for after the event. Learn all day, and then meet to have a beer with local participants. This is going to be a blast!
Real Estate & Mortgage Industry Networking Event for Realtors, Lenders, Builders & Vendors.
AMP Networking promotes & provides FUN events, education and travel opportunity to deepen business and social relationships, improve networking, and further career opportunities for real estate and mortgage industry professionals. Our member invitation list is over 10,000, and 500 people attend our Mortgage Industry Networking events every month in Dallas, Plano, Tarrant County, Houston & Austin.
Bring your BUSINESS CARDS for ENTRY!
Share food, drinks & networking with friends in the Real Estate & Mortgage business
The 9 words that strike fear in the heart of every Loan Officer
“We're using a Realtor we found on the Internet”
Buyers have the right to use any Realtor they want for their transaction. But when one of my pre-approved borrowers tells me that they will be using the Realtor they found on the internet…. I cringe!!!
You see, when I pre-approve my borrowers I am happy to refer them on to one of my ‘Preferred Realtors’.I know that my Preferred Realtor will be responsive and go to closing and explain all of the intricacies of home buying from a professional’s perspective.
I know what will NOT happen when my client uses my Preferred Realtor, that happens all too often with the “Internet Realtor”.
I know that my clients will benefit from fair and accurate comps being used in the negotiation at MY CLIENT’s best interest.
I know that they will not be stranded at closing.
I know that there will be no sneaky little transaction fee inserted on the HUD-1 without my knowledge.
I now that they will not be badgered into signing up for the bad Realtor's MLM scheme.
You see…. Internet Realtors promise great service with a ride in a fancy car from a bright smile and freshly perfumed holder of a real estate license. They offer % cash back to entice even the wiliest of buyers into their lair. Yet, the Internet Realtor actually brings little to the transaction and leaves both the client and myself stranded and disappointed.
You see... As a professional Loan Officer I KNOW that an Internet Realtor must be bad because.... well... They were found on the internet!!
Thanks to the 4,281 passionate mortgage professionals who participated in Thursday's State of the Union Address with NAMB President Jim Pair and NAMB Government Affairs Chair Harry Dinham.
We plan on conducting these webinars much more often and will ensure that for futures we have enough capacity for everyone who wishes to participate. There were a lot of questions pertaining to the future of YSP, so be on the lookout for another Webinar on that topic. We'll be sure to send you an invitation very soon.
Thanks again to everyone who took the time to participate in the discussion and have a great weekend!
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!
Emergency State of the Union - Live Q & A With NAMB President Jim Pair TODAY October 1st
This is a FREE Live Webinar. Please re-blog this article to your sphere.
The National Association of Mortgage Brokers is the voice of the mortgage broker industry, representing the interests of mortgage brokers and homebuyers since 1973. But this webinar is open to all of us in the industry.... Bankers and Realtors too!!
You do not need to be a member to join this webinar.
I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Retail Loan Officers
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