Graclyn's Blog

2008 First-Time Buyer Tax Credit: A Great Reason to Buy Now

Graclyn Goldstein (Remax Integrity) — Sat, 11 Oct 2008 12:59:43 -0700

Daily Real Estate News | October 8,

2008 First-Time Buyer Tax Credit: A Reason to Buy Now

The homeownership tax credit that the federal government created earlier this year is a hard-won tool at your disposal to encourage your customers to jump off the fence and get into the home buying market.

When you combine the tax credit with today's continuing low interest rates, large selection of for-sale inventory, and low home prices, many of the pieces are in place for your customers to buy now.

How the Tax Credit Works

The First-time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on July 30 and targets any individual or household that hasn't owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if they bought their house this year after April 9.

It's worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if your customers wait to buy in the first half of 2009 they can take the credit on their 2009 tax return.

The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so your customers can get 10 percent of the home price credited against their tax liability, up to a maximum $7,500.

Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn't more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.

Any house is eligible as long as it's a primary residence and is in the United States.

Buyers Have 15 Years to Pay Back

To help keep the program cost effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.

There's one restriction on the type of financing that your customers can use if they plan to take the credit. That restriction is on tax-exempt mortgage financing. That only applies if your clients are using below-market interest-rate financing from a public agency or nonprofit that's funding the loan using proceeds from a tax-exempt mortgage-revenue bond issue. For most buyers, this won't be an issue. It's mainly an issue for low-income buyers using special mortgage financing.

Be a Resource for Clients

NAR Government Affairs has created two helpful documents that you can share with your clients to help them learn more about how the tax credit works. The documents are on downloadable and printable PDFs:

The IRS Web site also offers tax-credit guidance in an article that provides answers to many frequently asked questions.

And don't forget about REALTOR.org, which is a great source for more information on all aspects of the Economic Stimulus Bill passed July 30.

6 Things You Must Know Before You Buy

Graclyn Goldstein (Remax Integrity) — Thu, 11 Sep 2008 12:03:39 -0700

6 Things You Must Know Before You Buy

"Subtle changes in the way you approach mortgage shopping, and even small differences in the way you structure your mortgage, can literally cost or save you thousands of dollars and years of expense."

Mortgage Regulations Have Changed . . .

Mortgage regulations have changed significantly over the last few years making your options wider than ever. Subtle changes in the way you approach mortgage shopping and even the small differences in the way you structure your mortgage can literally cost or save you thousands of dollars and years of expense.

Get the Right Information

Whether you are about to buy your first home, or are planning to make a move to your next home, it is critical that you inform yourself about the factors involved.

Industry research has revealed 6 common mistakes that most homebuyers make when mortgage shopping and they can have a significant impact on the outcome of this critical negotiation. If handled correctly, these issues could result in a mortgage that will cost you less over a shorter period of time.

6 Things You Must Know Before Obtaining a Mortgage

Before you commit your hard earned dollars to monthly mortgage payments, consider these 6 issues. Effective consideration of these important areas can make your payments work much harder for you.

1. You can, and should, get pre-approved for a mortgage before you go looking for a home

Pre-approval is easy, and can give you complete peace-of-mind when shopping for your home. Your local lending institution can provide you with written pre-approval for you at no cost and no obligation, and be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application and a certificate, which guarantees you a mortgage to the specified level when you find the home you're looking for.

2. Know what monthly dollar amount you feel comfortable committing to

When you discuss mortgage pre-approval with your lending institution, find out what level you qualify for and also pre-assess for yourself what monthly dollar amount you feel comfortable committing to. Your situation may give you a pre-approval amount that is higher (or lower) than the amount of money you would want to pay out each month. By working back and forth with your lending institution to determine what this monthly amount is, and what value of home this translates into at today's rates, you won't waste time looking at homes that are not in your price range.

3. You should be thinking about your long term goals and expected situation, to determine the type of mortgage that will best suit your needs

There are a number of questions you should be asking yourself before you commit to a certain type of mortgage; How long do you think you will own this home? What direction are interest rates going in and how quickly? Is your income expected to change (up or down) in the near term, impacting how much money you can afford to pay to your mortgage? The answers to these and other questions will help you determine the most appropriate mortgage you should be seeking.

4. Make sure you understand what prepayment privileges and payment frequency options are available to you

More frequent payments (for example weekly or biweekly) can literally shave years off your mortgage. By simply structuring your payments so that they come out more frequently, it will significantly lessen the amount of interest that you will be charged over the term.

For the same reason, authorized pre-payment of a certain percentage of your mortgage, or an increase in the amount you pay monthly, will have a major impact on the number of years you will have to pay and could shorten your payment term considerably.

These two payment options can cut years off your mortgage, and save you thousands of dollars in interest. However, not every mortgage has these pre-payment privileges built in, so make sure you ask the proper questions.

5. Ask if your mortgage is both portable and/or assumable

A portable mortgage, where available, is one that you can carry with you when you buy your next home and avoid paying any discharge penalties. This means that you will not have to go through the entire mortgage process again unless you are making a move up to a much more expensive home.

An assumable mortgage is one that the buyer for your home can take over when you move to your next home. This can be a very powerful tool at the negotiating table, making it much easier and more desirable for a buyer to buy your home, and again saves you any discharge penalties.

6.You should seriously consider dealing with a Mortgage Expert

Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make a significant difference in the cost and effectiveness of the mortgage you obtain. For example they can make the process faster thereby avoiding costly delays. Typically there is no cost or obligation to inquire.

Top 5 Smartphones.

Graclyn Goldstein (Remax Integrity) — Thu, 07 Aug 2008 11:15:57 -0700

We all know that being in the Real Estate business requires of staying in touch with your business 24/7. No matter where we are, we need to be up to date with E-mails, appointments, closing dates, contacts etc.

But is it possible to have all this things together in one simple device? Well fortunately we live in a world full of technology, and nowadays it is possible to have all those things together in one piece of equipment: A Smart Phone. For those of you who don't know what a smart phone is, a smart phone is simply a mobile phone offering advance capabilities beyond a typical mobile phone such as PC-like functionality.

Now, knowing this comes with another and more important question: Which one is the best smart phone out there? Here I present the top 5 Smart Phones in the industry right now.

•1. TILT (AT&T)

What's good: Slide out keyboard, tilting screen, GPS, e-mail compatibility, AT&T music and video.
What's bad: Low speaker phone quality, low talk-time battery.

•2. Blackberry Curve 8320

What's good: Integrated Wi-Fi, good call quality, sleek design.
What's bad: Camera can't record videos, no 3G support.

•3. Samsung SCH-i760

What's good: Touch Screen, Windows Mobile 6.0, Integrated Wi-Fi, Bluetooth, real time e-mail delivery.
What's bad: Bulky, no support with Verizon V-Cast Services

•4. Nokia N95 North American Edition

What's good: Long battery life, 3G, Wi-Fi, GPS, and 5MP Camera.
What's bad: Quite expensive, speaker phone quality isn't great.

•5. Palm Centro (Sprint)

What's good: Very light, compact smart phone; Bluetooth, and a lot of productivity apps.
What's bad: The keyboard is very cramped, lacks of Wi-Fi.

So there you have it, I hope you guys find this information useful.

Warmest Regards,
Graclyn Goldstein

New to Active Rain

Graclyn Goldstein (Remax Integrity) — Tue, 05 Aug 2008 09:36:57 -0700

Hello Everybody !

My name is Graclyn Goldstein. I am a licensed Remax Integrity broker. I live up in North Raleigh by Falls Lake, and my office is located in Cary. I've been in the Real Estate business for over two years now, and prior to this i developed 50 Franchise restaurants throughout the country including 26 in North Carolina. Raleigh, Cary and surrounding areas are the market i know the best.

If i can be of any help, please feel free to contact me, my contact information its on my profile.

Warmest Regards
Graclyn J. Goldstein.