So with much fanfare we have the 'new' tax credit that should be signed shortly by the President. This post was written by Claudette Millette from Ashland MA and I think that this post gives most of the guidelines that you will need.
So the deadline for this tax credit will be: Purchase contract by April 30th and close by June 30th, 2010.
Let's get out there and start looking today! I know where there are some fantastic deals I'd love to show you!
The much-anticipated extension to the home buyer tax credit has finally been approved. The Senate's vote yesterday resulted in a 98-0 win and today it was passed in the house. The bill now moves to the President's desk for a final signature.
First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year's economic stimulus package. The newly backed program will expand the credit to include existing home owners.
Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home. To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30.
The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers.
The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) have been lobbying hard for the extension and expansion of the tax credit. NAR claims that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.
The tax credit is also set to be extended for another year for military personnel serving outside of the United States until June 30, 2011.
Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "This is probably the last extension."
But, is this really true? When April 2011 comes around and the housing market is still not in full recovery mode, will the politicians be able to let this go and actually come to an end, or could it possibly become a more permanent subsidy?
I received my 'Paw Prints' newsletter from the shelter, Almost Home Foundation where we adopted my dog 1.5 years ago now. The top article was something that I didn't know and wanted to share with you.
Black dogs or black cats are the hardest to get adopted! I couldn't believe it and here is the article:
"That is really all it is. The negative myths that are associated with black cats and dogs have no truth to them yet the stereotypes still persist, which is why black cats and dogs have the highest euthanasia rate in high-kill shelters, but have the lowest adoption rate."
"They watch their lighter-colored foster siblings come and go while they are repeatedly overlooked by adopters. At the adoption shows, the black cats sit patiently in their cages while people pass right by them so they can admire the non-black kitties sitting nearby. The black dogs sit at the end of their leash, wishing someone would inquire about their personalities too."
"And they start to wonder why no one wants them. They try twice as hard to prove their worthiness. This is why black cats and dogs are the biggest love bugs of all. They're just bursting to share their affection with some lucky person! They are exceptionally loyal companions, because they know that their owner gave them a chance when no one else would. They've got charisma and an endless enthusiasm for life, seeing to it that every day counts."
"Due to their tough beginnings, these black pets are loaded with compassion and determination, all the while maintaining a humble outlook. They are very intuitive and always know when their owner needs comforting or a good laugh. True to their giving nature, they'll be first to provide snuggles or entertaining antics. They are amazing gems, but they are completely unaware of it!"
"We currently have dozens of black cats and dogs at Almost Home Foundation. Please give them a chance."
How about it?
Please raise awareness! Get the word out and tell everyone you know about Black Dog or Black Cat Syndrome.
Roselle Illinois Market Update by Price Range - July, August, September 2009
Diligently trying to keep both buyers and sellers educated on the local Roselle IllinoisHome Sales and housing market has been my goal with these regular posts. This market update gives you the number of homes that have sold by price range so you get a feel for the current sales activity.Which is up giving encouraging news!
35% over the last 3 months!
Isn't the $8000 Tax Credit making a difference? Isn't the lower interest rates making a difference? Maybe the great values in the area? I honestly can't say the reason for this quarterly upswing but for once it's good news that sales are inching forward. Homes in Illinois have made a 3% increase not seen since March 2006! Average days on the market for closed sales is at 184. The listing price to selling price ratio is 5% which means the amount that a buyer gets off the list price of a house.
Now what I find interesting is a new figure called the 'Sales Price to Old List Price'. This comes in at 89% which shows that sellers are still putting their homes on the market too high and then coming down and eventually selling. This is not the market to test a price!
Currently for the Roselle IllinoisHome Sales from July to September 2009 you can clearly see that over 50% of the closed sales have been under the $250,000 price range. The lowest sales price was $125,000 and the highest sales price was only $650,000.
How can you use this information if you are a buyer? The price range that you are thinking of purchasing in, is it one of the more active price areas of the market? It would be telling you that there are many other buyers also in your price range all looking for that 'deal.' Hey that single family home that sold for $125,000 I would call a 'deal'.
How can this information help you if you are a seller? If you are planning on selling your home soon, you can see which price ranges are most active. Clearly the price range above $300,000 has been non-existent and rarely sales have occurred. You might have to plan accordingly for extra market time, but Roselle has faired well with 5 homes selling over the $400,000 price point. As a seller, you have to be sure that your homes curb appeal and presentation is 'spot on'. in a market like this. Possibly some extra updates and staging might be required before you put your home on the market. Do you know what the average market time is for your price range?
Hey Lyn, what about foreclosures? Of those closed 33 total sales only 8 were foreclosures and 2 were short sales. So much for the media telling you all about all those foreclosures out there.
I sell in the Northwest Suburbs of Chicago. If you are thinking about purchasing or selling your home in the communities of Schaumburg, Hoffman Estates, Elk Grove Village, Roselle, Palatine, Medinah, Itasca, Bloomingdale, Carol Stream, Bartlett,Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and more importantly, want to work with a local area expert, contact me immediately.
Disclaimer: All data and information provided on this blog is for informational purposes only. Lyn Sims makes no representations as to accuracy, completeness, correctness, suitability or validity of any information on this site and will not be liable for any errors, omissions, or delays in information or any losses, injuries, or damages arising from it’s display or use.
Resources: MRED MLS of Northern IL, my little calculator and golf pencil.
Light at the end of the tunnel? I hope so. Here is some positive information and numbers from the 'egg heads' that crunch numbers for Illinois.
Illinois Home Sales Show First Increase in Over Three Years
Statewide Illinois home sales increased year-over-year in the month of September for the first time since March 2006 with first-time buyers driving the rebound in sales. According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include single-family and condominiums) in September 2009 reached 10,350 homes sold, up 3.3 percent from September 2008 sales of 10,018.
The Illinois median price in September 2009 was $160,000 down 9.3 percent from $176,450 in September 2008. The median is a typical market price where half the homes sold for more, half sold for less.
According to Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois: “There are signs that the housing market may be signaling a change in direction, although the prospect of continued large numbers of foreclosed properties will continue to exert downward pressure on prices in a market in which supply still significantly exceeds demand. The news on the sales front is encouraging and even the price declines seem to be moderating. However, the prospects of a jobless recovery from the recession will continue to exert restraint on a more robust recovery of the housing market. Illinois tends to enter recessions later than the U.S. and take longer to recover.”
Illinois’ official unemployment rate in September reached 10.5 percent and was above the 9.8 percent national unemployment rate.
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 5.06 percent in September 2009, down 0.21 from the 5.27 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in September it averaged 6.05 percent.
In the city of Chicago, September total home sales (single-family and condominiums) were up 5.8 percent to 1,918 sales compared to 1,813 homes sold in September 2008. The city of Chicago median price in September 2009 was $225,000 down 16.2 percent compared to $268,600 a year ago in September 2008. “While we see a significant increase of sales, we continue to see distressed properties moving the marketplace,” said Genie Birch, president of the Chicago Association of REALTORS®
According to the IAR report, total home sales (single-family and condominiums) comparing September 2009 to the same month in 2008 were up in 39 of 99 Illinois counties reporting including Champaign, up 15.7 percent; Cook, up 9.2 percent; DuPage, up 6.6 percent; Kankakee, up 2.9 percent; Lake, up 1.2 percent; Rock Island, up 3.6 percent; Sangamon, up 13.5 percent; and Will, up 4.6 percent.
Sources: IL Assn of Realtors; Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Great advice in this post from Chantel Saucier on what NOT to do when you are looking for a home! Sometimes first time home buyers decide on that new couch with catastrophic results.
These 10 Commandments home buyers must follow may seem like common sense to many. Buyers, however, can sometimes forget with all the excitement surrounding the buying of their new home. In the past couple of weeks, I have heard of two separate buyers who saw their home loan turned down, and their dream shattered, a few days before closing because they had bought furniture for their new home before it actually became their home. Both of them now have beautiful furniture with no home to put them in.
These two buyers were not my clients but it always hurts when I hear of transactions falling apart for reasons that could have been avoided. These 10 commandments (from KWU) are part of the buyer packet I give all my clients when we first meet and I always stress that once they get pre-approved and the process is started, they can't do anything that might affect their credit.
1. Thou shalt not change jobs, become self-employed or quit your job.
2. Thou shalt not buy a car, truck or van (or you may be living in it)!
3. Thou shalt not use credit cards excessively or let your accounts fall behind.
4. Thou shalt not spend money you have set aside for closing.
5. Thou shalt not omit debts or liabilities from your loan application.
6. Thou shalt not buy furniture.
7. Thou shalt not originate any inquiries into your credit.
8. Thou shalt not make large deposits without first checking with your loan officer.
9. Thou shalt not change bank accounts.
10. Thou shalt not co-sign a loan for anyone.
If you are in the process of buying a home, remember that your credit must not change or be affected in any way until you actually sign the paperwork and get possession of your new home. Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again and again) before they let you sign the mortgage. If you want to buy new furniture for your home or change jobs, just be patient. There will always be time to do it after the closing.
16x12 BR'S, 2BA'S, Vaulted Ceilings all for $194,900
Location: GLENS OF SCHAUMBURG
This place offers the largest BR's in Schaumburg! Vaulted Greatroom, skylites, large kitchen with oak cabinets, pantry, newer appliances included. BR's are totally separated for roommates or that pesky teenage kid of yours! Oversized balcony view, 1 car garage, low taxes, Close to Elgin-O'Hare Access and Schaumburg Train Station for commuters. Value priced!
This is a manor home/coach home styling where there are 4 homes in a building. This home is an end unit and the largest 2BR in the area, there is no one living above you for privacy. Totally secure updated building.
Do I need one? Do I want one? Should I get one? It's the newest trend in spicing up the exterior of your home!
Personally, I love how they look! Chimneypots were traditionally unglazed terracotta pots with a tapered shape, designed to increase the draft of a chimney while providing an ornamental cap to a building. Their use is first recorded in the thirteenth century, and they were an important aid to heating during the time when fireplaces were the main source of warmth.
Belying the name pot, chimneypots are available in a wide variety of sizes, shapes, styles -- important because they must fit the flue. They are available in a range of colors and designs to suit and highlight various architectural styles on a home. Although one may purchase antique or reproduction chimneypots either to fit the house architecture, from an appreciation of history, or for beauty, the new array of patterns means that chimneypots are no longer associated exclusively with Tudor Architecture. Among the shapes available are chess pieces, octagonal columns, and those shaped like gun or cannon barrels.
Chimneypots fitaround the outside of the flue, but inside the chimney, so proper measurement is important to getting a good fit. Securing a piece of wire mesh over the top of the chimney pot can keep both leaves and small animals out, as well as keeping sparks in. Local fire code determines the requirements for spark arrestors so checking with the village before installation is important.
Didn't know what a Chimney Pot was? Now you do! See you've learned something today!
The photo at the right is an incorrect way to use a Chimney Pot! So don't even try it in my neighborhood!
All data and information provided on this blog is for informational purposes only. Lyn Sims makes no representations as to accuracy, completeness, correctness, suitability or validity of any information on this site and will not be liable for any errors, omissions, or delays in information or any losses, injuries, or damages arising from it’s display or use/
I think that shopping for a mortgage lender is one of the hardest things to do but Bill Ladewig from San Diego gives you great advice and a few tricks. Ask each lender for the same information so that you can shop them comparatively!
Educate yourself before you begin shopping and don't forget to ask alot of questions if you don't understand. And then keep asking questions until you do and feel comfortable with the process.
Realtors, We Must Teach Your Clients to Properly Shop for Rates. Life is better for all concerned when Your buyers know how to select competent lenders
FIRST, Two VERY IMPORTANT Rules:
Mortgage Rates, Points and Lender Fees are interdependentparts of every rate quote. If any part is missing the Quote is worthless.
Do not fall for "I must have your credit report and financial information before I can quote you a my rate" because this an absolutely outrageous lie. Move to the next lender no matter whojust lied to you. In my opinion this is predatory lending.
Important Mortgage Rate Shopping Tips.
Know your credit score before you begin shopping. Loan availability and the cost of your loan depend on your credit score. Most conventional lenders require a 720, or better, mid score, above 80% loan to value, and most FHA and VA lenders require a minimum 620 to 640 mid credit score. Do not allow any lender to run your credit until You select them as your lender.Credit reports run by several lenders will lower you credit score. If you do not already know your credit score, there are several Internet companies that will provide a free credit report and FICO scores for an additional Fee.
VERY IMPORTANT, Shop all lenders on the same day and time period. MortgageRates change every day, sometimes several times a day.
Insist that each lender price the exact same Rate.You pick a rate to shop. The rate does not really matter as long as it is currently available because you are looking for lender for the lowest total cost for the rate you are shopping. Once you establish the lowest cost lender you can zero in on a rate-point-fee combination that works best for your situation.
All lenders offer a range of rates and points for each of their loan types. Rate and points are interrelated, lower mortgage rates cost more points... higher rates cost less points. Create a "Rate Baseline" by asking each lender for the same mortgage rate and then compare their points and fees for that rate.
Shop for a specific loan type, because each type is priced differently. i.e: FHA, VA and Conventional loans, conforming and jumbo have different mortgage rates. Insist that each lender quote rates for the same loan type. Some lenders may present you with other options but insist they also provide a quote for the loan you are shopping for to establish a pricing base line.
Shop each lender for the same mortgage rate lock time period.You must ask every lender to tell you the lock period for the rate they are quoting.Mortgage Rates increase incrementally for each longer lock periods. I suggest shopping rates for a 30-day lock period. Lock periods can vary but most lenders provide locks for 15, 30 and 45 days. Some lenders quote their 15 day, least expensive price, which is not available until after the loan is approved. If you find a lender initially quoting a 15-day rate, it would prudent to eliminate that lender from your short list.
If the Loan to Value is greater than 90% and the spread between the interest rate and APR are less than 0.75% the APR has been misstated.
Insist the lender provide a detailed Good Faith Estimate before you complete an application. You have a right to know to know the price of the loan before you apply. A few lenders, even some large well-known lenders, falsely claim rates cannot be quoted until they have all your personal information. This is an absolutely bogus sales technique, these lenders know that borrowers do not want their personal information spread all over town and their credit score lowered by several credit reports AND they know once a borrower provides their personal information they are likely to stop shopping. Do not apply to any lender before you receive a Good Faith Estimate.
Will the lender allow you to lock your mortgage rate today? You should be able to lock your rate on the day you submit your signed application as long as the signed application is received by the lender prior to 3:00 PM PT. Most lenders stop locking loans at 4:00 PM PT this time is not universal so check with each lender for their lock cutoff. I am not necessarily advocating an immediate lock unless market conditions indicate it is needed. By allowing the lender think the borrower may immeditally lock the lender may provide a more accurate quote.
Effective for all case numbers assigned on or after January 1, 2010, the validity period for all appraisals on existing and proposed and under construction properties will be 120 days.This change aligns FHA’s requirements pertaining to the validity of an appraisal with current industry practices.
This is a change from the current validity periods of six months for an appraisal of an existing property that is complete, and 12 months for proposed and under construction properties.
How will this effect you as a buyer?
Not much, except in occurances where the property you purchase has an existing FHA appraisal. That appraisal is valid and 'stays with that property' for the 4 month period. Good news is, you won't need a new appraisal. Consider it streamlining of the process.
How will this effect you as a seller?
Bad news is if you are investigating into this your property probably didn't appraise out at the contract price. That appraisal 'stays with that property' for the 4 month period as mentioned with no exceptions. Now if the property values have declined in your area, you must still use that existing appraisal price and you'll come out ahead! If values have increased you might consider only accepting conventional financing on your home which would then exclude a large percentage of the buyer pool.
Another alternative negotiation would be for the buyer to come up with extra down payment dollars to cover the difference between the appraisal and the purchase price. This can be a problem because, let's face it, most FHA buyers have the minimum 3.5% down payment and rarely any extra cash. OR
The seller can adjust the sales price to the appraisal price of the home thus allowing the buyer to proceed with the minimum down payment.
All data and information provided on this blog is for informational purposes only. Lyn Sims makes no representations as to accuracy, completeness, correctness, suitability or validity of any information on this site and will not be liable for any errors, omissions, or delays in information or any losses, injuries, or damages arising from it’s display or use.
Market comments and news about the surrounding communities of Schaumburg, Hoffman Estates, Elk Grove Village, Roselle, Medinah, Bloomingdale, Bartlett, Streamwood, Hanover Park and Carol Stream. Illinois Real Estate, Northwest Suburban Chicago IL homes.
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.
The much-anticipated extension to the home buyer tax credit has finally been approved. The Senate's vote yesterday resulted in a 98-0 win and today it was passed in the house. The bill now moves to the President's desk for a final signature. 
gems, but they are completely unaware of it!"
encouraging news!
crunch numbers for Illinois.
us - this stuff is fabulous!
These 10 Commandments home buyers must follow may seem like common sense to many. Buyers, however, can sometimes forget with all the excitement surrounding the buying of their new home. In the past couple of weeks, I have heard of two separate buyers who saw their home loan turned down, and their dream shattered, a few days before closing because they had bought furniture for their new home before it actually became their home. Both of them now have beautiful furniture with no home to put them in.
Bill Ladewig, Your FHA Guru
;)
;)
