Breaking news last week is that the credit to purchase a home has been extended and expanded. Now you have until 04/30/2010 AND you don't need to be just a first time home buyer. If you have owned your existing home for the past 5 years and intend to buy a new home, you will qualify for up to a $6500 tax credit. The dollar amount of the credit for first time buyers is still $8000. Home values are still extremely low and interest rates are at 50 year lows. NOW is truly one of the best times to think about purchasing a new home. If you've considered buying, there are many reasons to do it now. I have a found a link from the National Association Of Home Builders that will answers many of your questions. Like all credits, terms and conditions apply. Read these FAQ's and see if you qualify. Minnesota homebuyers should "get moving" as the credit will disappear soon.
Venture Development, Inc., Minnesota's Premier Mortgage Broker, would like to say Thank You to all the Brave men and women who have served our Country. We realize that your time served was not without sacrifice. It is not enough to simply to say thank you for the freedom that we enjoy everyday in this great country.
We specialize in working with the VA loan which offers 100% financing to Veterans. Please click on the link below for more information on the VA Loan.
The first time homebuyer tax credit has been extended into the spring! Qualifying homebuyers just need close on their home before May 1, 2010 to get a tax break. Homebuyers who are selling a home that they have owned for at least five years will also receive a tax credit.
Minneapolis homebuyers who are buying their first home (or who have not owned a home in the last three years) will qualify for a tax credit up to $8000. Minnesota Homebuyers who have owned their current for at least five years and buy their new home before the May 1, 2010 deadline will qualify for up to $6500.
This is a great opporunity to use Minneapolis and St. Paul MN's local down payment money for Twin Cities neighborhoods in addition to the tax credit. Imagine using a Minneapolis or St. Paul Homebuyer program that helps with your down payment and getting the tax credit for making the purchase after the fact.
Homebuyers in the Edina MN, Woodbury MN, Richfield MN, and Minneapolis Minnesota could get that extra help they have been waiting for to make the move to homeownership.
Visit my website www.VentureLoanApp.com for the tools that will help get you started toward your home purchase. We have added the IRS tax credit form along with questions and answers as a quick resource for consumers.
Minnesota Homebuyers can learn more about how our FHA, VA, Rural Development, and Conventional programs can work for you by calling me, Patti Mazzara, at 952.285.4319. If you have less than perfect credit and you aren't sure of what steps to take to become ready for homeownership we have resources that can help guide you to better credit and better credit habits.
Tax Credit Expires 11/30/09 - Don't Get Left Behind
MN Mortgage Broker, Patti Mazzara, warns MN First time home buyers not to miss out on the first time home tax credit that is about to expire. The first time home buyer tax credit which can be used on a Minneapolis home loans when Minneapolis home buyers close before November 30, 2009.
Unless you have either been under a rock for the past 12 months or you never work with first time homebuyers (FTHBs), you are no doubt aware the clock is ticking on the IRS tax credit for FTHBs. My purpose here is to give you some additional information on what you can do to move listings, motivate buyers, and more importantly close deals.
General Points to Consider - Buyer and Seller The expiration date of the tax credit is November 30, 2009. Close December 1, as of now, and any qualifying buyer will not receive the tax credit. With the 30th falling on the Monday following Thanksgiving, where possible work towards a closing date of November 24th. This will provide some cushion if anything pops up in the closing process that could delay a closing.
Recent legislation mandates that if the Annual Percentage Rate or APR changes outside acceptable tolerances from the initial application, some documentation needs to be re-disclosed and time needs to pass before the closing can occur. Items that can impact APR can include a change in interest rate or fees required to close. If a buyer delays locking the application and interest rates increase during the loan process, this could delay the closing. This is just one reason to plan accordingly and schedule an earlier closing date than the last possible day.
Protect your clients on both sides with extended closing dates of 45-60 days. Expectations are high that more FTHBs will be going under contract in the next month. Interest rates have fallen to levels not seen since May. The result is that many lenders' pipelines will be swelling with people seeking to take advantage of lower rates and the tax credit. Where feasible, work to get people under contract soon and plan accordingly to allow for any processing delays that could result.
Seller Points to Consider Many FTHBs are motivated to purchase but may lack the necessary funds to close or may fall short in qualifying income. One way to assist with either or both situations and make the property more attractive is to promote that the seller will pay to reduce the borrower's interest rate and/or closing costs. In many cases, this will not only cost the seller less than a price reduction but also bring additional prospects to consider the house.
Most FTHBs today are choosing to obtain loans that are guaranteed by the FHA, VA, or USDA. In the case of both FHA and USDA loans, the seller can pay up to 6% of the sales price or appraised value. For VA loans, the maximum seller concession is capped at 4%.
Recent Federal legislation can impact your closing date. When completing your Purchase Agreement, even if you areprepared to move forward and close quickly, a more conservative timeframe of at least 30-45 days from the time of the contract acceptance would be a more realistic expectation at this time.
Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.
HVCC: Home Valuation Code of Conduct HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC:
The appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter timeframes, conservative expectations are warranted.)
Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.
HERA: Housing and Economic Recovery Act HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance. Under HERA:
No fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days.
Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.
Edina, MN - Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.
Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you're helping them make their mortgage payment.
The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won't benefit when the property value goes up!
However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage commitment to go down.
In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to glean feedback on your behalf.
To find the loan program that is right for you, Patti Mazzara, a Twin Cities Mortgage Broker will evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.
Venture Development offers both FHA and VA loans which have minimal down payment requirement. VA loans allow for "no" down payment while FHA requires the borrower to provide just 3.5 percent of the purchase price as down payment. FHA lenders rule that the mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31 percent of your gross income, and the PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.
Housing is an expense that takes a big bite out of the monthly budget. If you are a renter and feel that "home" is more than just someplace to hang your hat, think about the advantages of purchasing real estate. It may be time to take the step into building your personal net worth as a home owner.
On the AARP they recently featured a 30 minute video that explains a reverse mortgage. It is excellent and gives the an expanded explanation on the product and how it works. There are several ways to utililze a reverse mortgage proceeds-lump sum, monthly payments, or drawing on a line of credit. There is mandatory counseling, so you can't get this loan until you sit with HUD certified counselor. We are able to broker reverse mortgages, so if you think this might be of benefit to you or you'd like to learn more, simply call us at 952-285-4319
10 THINGS YOU CAN DO IMMEDIATELY TO SLASH DEBT AND SPENDING
Any financial planning process begins with a change in financial behavior and expectations. The degree of change varies based on financial priorities, but in the end, it's about adopting new habits and abandoning others.
Before you take any of the following steps, it makes sense to talk to an expert who can help you see your whole financial picture. A CERTIFIED FINANCIAL PLANNERTM professional can examine all your sources of income and expenses and find the most efficient ways to cut expenses, pay off debt and boost the money you have for saving and investing.
In the meantime, here are some ideas:
Refinance if you can: Mortgage rates are still at historically low levels. You'll need at least 10 percent equity (20% of equity will save you the PMI insurance cost) in your home and a credit score exceeding 720 to qualify for the best rates. Visit us online at http//www.VentureLoanApp.com
Track your spending for a week: Either on paper or on the computer, write down every dollar you spend in the average week (and cut off credit card use during that week). At the end of that week, start marking out non-essential items just to see how much you could live without. Start with coffee and restaurant or carryout meals and work backward from there.
Make a budget: Once you've established how your income covers the essential expenses you must plan for, and a few inexpensive treats that should stay in, build a budget that includes specific amounts you can allocate toward debt. Keep a running total of your spending going forward, and revisit how that budget is working on a monthly basis until you start to see some positive results, and then you can review the performance of that budget a little less frequently.
Reset your entertainment expectations: Find ways to save money with friends - cook more meals at home or rent a movie instead of going out to see one. Also, get used to checking entertainment listings for free events that interest you.
If you can do it safely, take over home and auto maintenance yourself: The do-it-yourself movement is in a new phase with the economic downturn. For any home or auto maintenance chores you may have during the year, learn as much as you can about those tasks and estimate the cost of materials and your time before doing them yourself. Previous generations made do-it-yourself a necessity. See if that option is right for you and you might save considerable money doing it. Also, for bigger jobs, pair up with friends and family and you can help each other save money.
Set a new gift policy with your adult friends and family: Does everyone on your gift list over the age of 21 really need a present for birthdays and major holidays? Suggest to family and friends to have a gift drawing, a budget limit, a moratorium on gifts, or some other alternative where you trade off gifts for quality time. Even though the holidays are a few months away, it's not too early to think about reining in the traditional holiday overspending.
Go debit: Debit cards wearing a bankcard logo are typically welcome at most stores where credit cards are accepted. This way, you pay cash without carrying cash. If you don't have such a card, you can get one from your bank to replace your traditional ATM card, but remember to tell them to limit your buying power on the card to only what you have in your account. And use the overdraft protection to avoid fees.
Revamp your shopping list: Give this a shot: start a central weekly shopping list on a single piece of paper and add a dollar value for each. Write everything you think you need to buy on that single sheet, from groceries to clothes for the kids. That way, you'll see all your proposed spending in front of you, and you can get a closer look at what your true priorities are. You'll be surprised at all the "essentials" that are not really that essential that you can cross off before you spend.
Talk to your family about spending: When you're talking to kids about budgeting and lowering your expenses, you have to walk a fine line between discipline and fear. But setting money priorities is part of growing up, and it's essential to discuss and agree upon them as a family.
Buy used for yourself: Make someone else's poor luck your good luck. If you need clothing, a car or a new watch to replace the old one that's past fixing, it might be worthwhile to buy second-hand. The best places to find these gems are on the internet on places like craigslist. Plenty of people have unloaded items in relatively good shape to bring in cash during the recent downturn. You might do very well, and if anyone asks, don't call it used; call it "vintage."
October 2009 - This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by John Mazzara http://www.Investments.mn 952-929-2577, a local member of FPA.
If you missed the last opportunity to refinance your mortgage into a low 30 yr fixed rate NOW is the time to refinance. Conventional, FHA and VA mortgages are low and won't be staying low for long.
Venture Development Inc, a MN Mortgage Broker offers competitive interest rates and we close loans. Work with a long time Twin Cities Mortgage Broker for a refinance experience that will not only get you into a low fixed payment but provide service throughout the process and get your loan closed. Patti Mazzara and John Mazzara of Venture Development in Edina MN help make sense out of what came seem like a complicated process.
Visit www.VentureLoanApp.com to apply online and call us directly to see why we are Minnesota's Premier Mortgage Broker.
If you are looking for help with a down payment on your home purchase consider the following areas of Minnesota that have help for home buyers.
Brooklyn Center
Brooklyn Park
Champlin
Crystal
Edina
New Hope
Richfield
Woodbury
Each area's program is a little different so MN Mortgage Broker Patti Mazzara will help you to make sure that your income and property type/location fit the guidelines. Some of these programs require the applicant to be a First Time Home Buyer buying a foreclosed property but there are programs that do not. Some areas of the Twin Cities are actually offering money from more than one program allowing home buyers to qualify more down payment money than one program might allow.
Call Patti Mazzara at Venture Development Inc. located in Edina MN and visit www.VentureLoanApp.com. We have a link on our website to fill out an application online.
Learn about the Twin Cities real estate, minnesota real estate, minnesota home financing, minnesota mortgages, FHA, VA, Reverse Mortgages, Debt Consolidation, refinancing, first time buyer programs, interest only loans, Edina, Minneapolis and St Paul. Visit our mortgage site at http://www.ventureloanapp.com or http://www.edinamortgage.com
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.
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