Jerry LaRose, ABR, GRI, e-PRO, CLHMS's Blog

Orlando First-Time Home Buyer Tax Credit – FAQ’s

Mon, 01 Sep 2008 11:19:40 -0500

The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009.

1. Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

4. What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

5. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

6. What is "modified adjusted gross income"?

Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

8. Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

9. Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

10. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

11. I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

12. What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.

14. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.

15. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

16. Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

17. Why must the money be repaid?
Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

18. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

19. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

20. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

21. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

*****************************************************************

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of Real Estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.JerrySellsOrlando.com for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

P.S. If you are listing your home as a short sale in Orange County Florida and Orlando, Windermere, Winter Garden, or Ocoee Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 407-580-7011 to find out more about Orange County Short Sales and Orlando Area Short Sales.

Orlando, Winter Garden Fl. Market Conditions

Mon, 14 Jul 2008 09:18:32 -0500

For first-time buyers, often the first thought that comes to mind is, "I need a down payment." This is often followed by the question, "Now, where do I get that down payment?"

Depending upon the loan type, a home mortgage typically requires 3 to 5 percent down. If you have the money, then you're set. But what if you don't? What if you're renting? You can afford a mortgage within your means, but coming up with the down payment money needed to begin the transaction can be challenging. So, where can you turn?

One of the most overlooked sources of down payment funds is likely right under your nose-in the form of government bonds and local grant programs.

These programs either provide outright monetary grants for down payment or money to buyers in the form of a forgivable loan. In essence, the government will help you buy your home and you typically only have to pay back the money if and when you sell that same property.

In the past it was challenging to find these special programs, but now all you need is your agent, a computer, an Internet connection, and a search portal such as Google or Yahoo. Enter the search terms "down payment assistance (followed by your city, state or province)" and see what pops up! It might just be the answer to helping you buy your first home.

Taming the Jumbo Mortgage - Financing Solutions for Orlando Real Estate

Wed, 11 Jun 2008 12:31:13 -0500

The Orlando Real Estate Voice is happy to offer a great article on jumbo loans from David Reed - the author of Mortgage 101 and Mortgage Confidential:

Everyone knows the jumbo loan market has been out of whack for nearly 18 months. "jumbo" loans, those amounting to more than $417,000, took it on the chin when mortgage investors stopped buying subprime and alternative loans. For that reason, jumbo rates can be as much as 1.50 percent higher than conforming rates. Historically, jumbo rates were only about a quarter of a percent higher than a conforming rate, but this new spread has kept many out of the housing market: especially those that I call, "just jumbo."

So what exactly is "just jumbo?" It's a loan amount that just exceeds the conforming limit of $417,000 and typically reflects a sales price in the $500,000-$600,000 range. Many local markets offer homes in this price category, but the marked difference in rate from conforming to jumbo is slowing down sales. What is the difference in payment between a conforming loan at 6 percent and a jumbo loan at 7.50 percent? On a $500,000 jumbo loan, mortgage payments jump from $2,997 to $3,496 a month. That's almost $500 more!

Fortunately, with some changes in strategy, we can put a major dent in that increase in payment by buying a property with two loans - a first mortgage and a second. With the first mortgage at or below the conforming limit, the second mortgage then eliminates the need for private mortgage insurance, or PMI. And still, with only 10 percent down on a $500,000 sale.

For example, let's say we have a sales price of $500,000 and you put 10 percent down. With a jumbo loan at 7.50 percent, the monthly payment on a 30-year note is $3,146 plus a PMI payment of about $188, for a total of $3,334. Using a 40 percent debt ratio means that you need to make about $9,700 per month to qualify.

Now, let's make the first mortgage for $400,000 at 6 percent (conforming) with a second mortgage at 7 percent on a $50,000, 30-year note. The mortgage payments would be $2,398 and $332 respectively, for a combined total of $2,730. That's a savings of over $600 per month, and now the income to qualify is almost $1,500 less at $8,200 per month! Do you think that has an impact on affordabilty? I do.

Here's another idea: sellers can carry back that second note to provide some additional income, providing an even better second rate for the buyer!

Written by David Reed
Author of Mortgage 101 and Mortgage Confidential.
Visit Reed's Website

Orlando Florida Market Conditions

Wed, 11 Jun 2008 12:30:06 -0500

As buyers sit on the sidelines in the housing market -- how does the rental market fair? The two markets are more closely related than some may think. Both are strongly affected by local and national economic trends.

The recent downturn may be affecting speculators and investors as well as homebuyers. According to a May 30th report from the National Association of Home Builders, builder confidence in the rental apartment market dropped sharply in the first quarter 2008.

"The economic downturn affects the rental market as well as home building," said NAHB Chief Economist David Seiders. "Rental Vacancy Rates are rather high and the demand for rental apartments is being held back by various economic conditions -- including a weakening job market and record-high prices of food and energy."

Less demand equals fewer new projects.

But it's not all bad news in the rental arena. The renters themselves may be getting the last laugh, at least slumping markets such as California and Florida.

Said an AP release by CNN, "Apartment vacancies are edging up in many areas of the country as frustrated sellers instead try to rent out their homes and condos in once red-hot housing markets. And that is making it harder for landlords to raise rents. In the toughest markets, apartment owners are even offering lease incentives to snag renters."

Swimming Pool Season Safety Tips Orlando Florida

Wed, 11 Jun 2008 12:28:46 -0500

Drowning is the leading cause of unintentional death in children aged 1 to 4. Drowning deaths involving children younger than 5 in pools and spas is up and the number of emergency room treated pool and spa submersion injuries numbers remains in the thousands every year.

And a new 2008 Consumer Product Safety Commission (CPSC) report also says the majority of water related deaths and injuries occur in residential settings and involve children ages 1-2.

A new federal pool and spa safety law the "Virginia Graeme Baker Pool and Spa Safety Act" was signed by the President Bush on December 19, 2007 to improve public pool safety. It also brings attention to private pool safety. It was named for the granddaughter of former Secretary of State James A. Baker, III, who at the age of 7, died in a spa after the powerful suction of a drain entrapped her under water.

The goal of the law is to improve the safety of all pools and spas, public and private, by increasing the use of layers of protection and promoting uninterrupted supervision to prevent child drownings and entrapments.

If your home has a pool, it behooves you to take recommended steps that will not only keep members of your household safe, but also improve the value of your home as a safe pool home.

A child can drown in less than five minutes, in two inches of water and not make a sound.

Drowning occurs most often when children get access to the pool during a short lapse in adult supervision. To reduce the risk of drowning, pool owners should adopt several layers of protection, including physical barriers, such as a fence completely surrounding the pool with self-closing, self-latching gates to prevent unsupervised access by young children. If the house forms a side of the barrier, use alarms on doors leading to the pool area and/or a power safety cover over the pool.

"I encourage all parents to contact their local American Red Cross chapter and ask about the many services offered," said Suzy DeFrancis, Chief Public Affairs Officer for the American Red Cross.

"From CPR and First Aid training to the Learn to Swim program, the Red Cross can be your greatest resource to preventing any pool and spa accidents this summer," DeFrancis added.

In addition, parents should use these tips to help prevent drowning deaths:

If a child is missing, look in the pool first. You may have only seconds to save a child's life.
Recognize your legal responsibility to provide a safe environment for children and adults alike. Be proactive in preventing accidents. All family members should learn to swim, they should know how to use safety equipment and they should take classes in cardiopulmonary resuscitation (CPR). It can be a lifesaver.
Despite what your local building codes may or may not require, put a fence or wall around your pool. It should be at least four feet high and installed completely around the pool. Gates should be self-closing and self-latching. The latch should be out of a small child's reach. If your home forms one side of the barrier to the pool, doors leading from the house to the pool should be protected with alarms.
For above-ground pools, steps and ladders to the pool should be secured and locked, or removed when the pool is not in use.
Install a power safety cover and always use it when the pool is not in use. The covers also help prevent evaporation, they help keep heated pools warm and they help cut down on cleaning maintenance. Do not allow children in a pool or spa with missing/broken covers. Inserting an arm or leg into the opening can result in powerful suction and total body submersion/drowning.
Keep rescue equipment by the pool including life preserver and reaching pole or other device. Also keep a phone poolside. Keep essential life saving gear accessible, visible, and in proper working condition.
Remove the diving board from your private backyard pool. The risk of injury is too great. Everyone should walk, not run around the pool. Avoid pushing, shoving and horseplay in or around the pool.
Use pool alarms as another layer of protection. Include remote alarm receivers so the alarm can be heard inside the house or in other places away from the pool area.
Allow no one, child or adult, swimmer or non-swimmer, to enter the pool unless a responsible person is accompanying them. Never leave an accessible pool unattended. Non-swimmers should wear approved safety vests at all times in and around the pool. Flotation devices are not a substitute.
Never let intoxicated guests enter your pool.
Regularly maintain your pool so it doesn't become an mosquito (West Nile Virus) breeding ground. Inspect pools and spas for missing or broken drain covers. Don't leave toys and floats in the pool that can attract young children and cause them to fall in the water when they reach for them.

FHA abandons 74 year Policy – Orlando Real Estate

Fri, 23 May 2008 07:59:22 -0500

The Federal Housing Administration shook up Washington's mortgage and real estate leaders last week by announcing that it's shifting its entire production line to risk-based pricing -- starting this summer.

FHA plans to abandon its 74-year policy of charging all borrowers the same insurance premiums and interest rates, and to move to a system where applicants who present high risks -- low credit scores and low down payments -- pay higher premiums.

Though private mortgage insurers have been using this approach since the mid-1990s, it's a big move for FHA. Currently the agency charges a standard one and a half percent up front premium, and a half percent annual renewal premium -- all of which are folded into monthly mortgage payments.

Under the new system, applicants with FICO scores below 560 and down payments below five percent, will be charged a two and a quarter percent premium up front and 0.55 percent annually.

Low risk borrowers will almost all pay less than they do today: A 1.25 percent premium up front, and annual renewals of half a percent with down payments of 10 percent or more. High FICO borrowers with score above 680 making down payments of less than 5 percent will also save on upfront premiums, paying one and a quarter percent.

The switch should be good news for the majority of FHA new customers. Officials say the FHA program in 2008 is attracting a bumper crop of higher credit quality applicants with scores in the high 600s and 700s.

FHA's volume is also booming -- it's doubled in the past six months and could hit a 20 percent market share this year, according to mortgage banking industry analysts.

Though some Democrats in Congress and private mortgage insurance competitors have criticized FHA's risk-based pricing plan, the agency says it has both the legal authority and the business "imperative" to prevent losses to its insurance fund caused by low-FICO home buyers, especially those using seller-funded down payment "gifts."

In its official outline of its plans in the Federal Register last week, FHA rejected criticism that low-income borrowers will pay more. To the contrary, a statistical analysis of FHA's 2007 vintage of customers found that applicants with lower incomes had higher FICO scores on average than applicants with higher incomes.

All of which means that anybody with solid credit -- irrespective of income -- should get a better deal from the new FHA approach than they would have gotten under the old system.

In the current credit crunch, that's gotta be good news.

Why Should the Government Bailout Homeowners? - Orlando Housing

Wed, 14 May 2008 15:11:16 -0500

I just don't understand the course we're on.

Since when is it OK to just walk away from your responsibilities when things don't work out the way you wanted them to? Many people treated their homes like a day-trade on the stock market. Now that their ‘gamble' isn't working out, they seek government bailouts (not unlike their lenders and mortgage companies at my expense as a taxpayer) or the ability to just walk off into the sunset to live a carefree stress-free life. What about all the people that WERE responsible, who didn't wipe out every penny of their equity, who didn't run out buying three and four condos, who lived within their means? Why is it now our responsibility to bail these clowns out? It's just not right.

I find myself having a hard time feeling sorry for all these people, especially when Washington wants to tap my tax dollars to bail all these irresponsible people out of their irresponsible decisions. And I'm not falling for all the whining. "Oh, I didn't KNOW what was happening ... Oh, I had NO idea my loan was adjustable ... Oh, I didn't know housing prices would EVER go down..." Are you kidding me? Please spare me the melodramatics.

The marching masses of consumer zombies need to wake up and smell the toast burning, which just might be the two brain-cells they have left to rub together. You can't just live buying everything you want, the minute you want it, and spend more money than you earn. Many people now live like indentured slaves. They owe more than they will ever be able to payoff in a lifetime. Hopefully, they learned their lesson and will encourage others not to make the same mistakes they made.

I don't know how this is all going to end, but I can tell you it won't be pretty, and it will be a very long time until this whole mess is straightened out. You should forego your "now's the time to buy" campaign in lieu of a re-education program that explains to people what they can and can't afford on their salary - not some pie in the sky delusion on a suicide-loan with the hopes that the real estate market is going to take-off again at any moment. You're perpetuating an already bad situation.

Owning a home is NOT a given ‘right,' it's a ‘privilege' - one that has to be earned and that includes responsibilities. That's the message you need to be sending.

WILL YOU WEAR BLUE? - Winter Garden Fl. Real Estate

Thu, 08 May 2008 09:59:36 -0500

Will you wear blue?

International Picture of the Year

Here are two very touching photos honored this year.

First Place:

First Place
Todd Heisler
The Rocky Mountain News
When 2nd Lt. James Cathey's body arrived at the Reno Airport , Marines climbed into the cargo hold of the plane and draped the flag over his casket as passengers watched the family gather on the tarmac.

During the arrival of another Marine's casket last year at Denver International Airport , Major Steve Beck described the scene as so powerful: 'See the people in the windows? They sat right there in the plane, watching those Marines. You gotta wonder what's going through their minds, knowing that they're on the plane that brought him home,' he said

'They will remember being on that plane for the rest of their lives. They're going to remember bringing that Marine home. And they should.'

Second Place :

Second Place
Todd Heisler
The RockyMountainNews

The night before the burial of her husband's body, Katherine Cathey refused to leave the casket, asking to sleep next to his body for the last time. The Marines made a bed for her, tucking in the sheets below the flag. Before she fell asleep, she opened her laptop computer and played songs that reminded her of 'Cat,' and one of the Marines asked if she wanted them to continue standing watch as she slept. 'I think it would be kind of nice if you kept doing it,' she said. 'I think that's what he would have wanted.'

PLEASE KEEP THIS GOING!
'No arsenal, no weapon in the arsenals of the world, is so formidable as the will and moral courage of free men and women.'
-- Ronald Reagan
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Blue Fridays
Very soon, you will see a great many people wearing blue every Friday. The reason? Americans who support our troops used to be called the 'silent majority.' We are no longer silent, and are voicing our love for God, country and home in record breaking numbers. We are not organized, boisterous or overbearing. Many Americans, like you, me and all our friends, simply want to recognize that the vast majority of America supports our troops.

Our idea of showing solidarity and support for our troops with dignity and respect starts this Friday -- and continues each and every Friday until the troops all come home, sending a deafening message that every red-blooded American who supports our men and women afar, will wear something blue.

By word of mouth, press, TV -- let's make the United States on every Friday a sea of blue much like a homecoming football game in the bleachers. If every one of us who loves this country will share this with acquaintances, coworkers, friends, and family, it will not be long before the USA is covered in BLUE and it will let our troops know the once 'silent' majority is on their side more than ever, certainly more than the media lets on.

The first thing a soldier says when asked 'What can we do to make things better for you?' is ... 'We need your support and your prayers.' Let's get the word out and lead with class and dignity, by example, and wear something blue every Friday.

IF YOU AGREE -THEN SEND THIS ON.
IF YOU COULDN'T CARE LESS -- THEN HIT THE DELETE BUTTON.

IT IS YOUR CHOICE.

WE LIVE IN THE LAND OF THE FREE,

ONLY BECAUSE OF THE BRAVE.
God bless all our soldiers

I've learned that people will forget what you said, people will forget what you did, But people will never forget how you made them feel.

It's your attitude and not your aptitude that determines your altitude.

Winter Garden Fl. Real Estate - Mortgage Preparation Made Easy

Wed, 07 May 2008 08:18:19 -0500

Buying a home is probably the single largest investment most people make in a lifetime. By preparing yourself and your credit profile before a home purchase, you can ensure a smooth finance process and can potentially save thousands on your loan.

Start by checking your credit reports from TransUnion, Equifax and Experian

* To get the best possible mortgage rate, make sure your credit history is healthy and accurate. Aim to raise your credit score above 650 in order to qualify for most prime loans.

* If your credit score is not quite 650, focus your efforts on paying bills on time, reducing your debt balances, avoiding new inquiries and clearing negative inaccuracies from your credit report. It is possible to improve your credit score quite a bit over a few months.

* Make sure the information on your credit report is correct and fix any problems you discover. Give yourself 30-90 days for correcting inaccuracies. You can learn more about the dispute process in the "dispute" section of this Learning Center

* Found an error while reviewing your credit with the lender? Ask about the "rapid rescoring" process where your lender can submit a dispute and potentially improve your credit score in 72 hours.

* For a complete understanding of your credit history, check your 3-in-1 Credit Report and Credit Scores online.

Figure out how much you can afford

•· The rule of thumb is that most borrowers can afford a home that runs about two and a half times their annual salary.

•· Calculate your loan-to-value ratio to see how much you can afford to borrow by dividing the loan amount by the property's value. If your loan-to-value ratio is above 80% your rates may increase significantly. Find a less expensive home or save up for a down payment to lower this percentage.

•· Calculate your debt-to-income ratio by adding up your monthly debts and dividing by your monthly income. A debt-to-income ratio under 20-30% is usually considered good and will help you be perceived as financially stable.

•· Don't be afraid to start small. Just because you may qualify for a large loan doesn't mean that it is a smart financial decision to buy as large a home as possible. Take a careful look at your family budget and your housing needs before you decide how much you can really afford.

Pick a mortgage to fit your finances

•· Fixed rate mortgages have a set monthly payment that remains constant through the life of the loan. The interest rates tend to be a bit higher on fixed rate loans.

•· Adjustable rate mortgages give you a lower initial interest rate with the risk of it rising in years to come. If interest rates decrease you will have an advantage over fixed rate borrowers. Setting a rate cap about 5-6% above your initial rate will protect you from extreme jumps in interest rates

•· Short term mortgages are loans with terms less than 30-years long. While these mortgages offer lower interest rates, they have higher monthly payments and more difficult qualification standards.

•· Long term mortgages are loans with terms of 30-years or more. These mortgages have slightly higher interest rates but lower monthly payments, allowing for easier qualification

Improving your finances before you start to shop can help you save thousands on your mortgage. Reducing your loan rate by just half a point can potentially save you a whopping $22,000 over the life of a $200,000 loan.

Winter Garden FL. Real Estate - Getting Your Clients to Buy Now

Thu, 01 May 2008 08:42:45 -0500

Have you been feeling frustrated at clients who don't seem to be able to make a decision? At the beginning they seem interested in buying, either they've contacted you or you contacted them. Then as they see some homes and may begin listening to the news about today's marketplace, they start to get cold feet.

They don't return your phone calls or e-mails, and when you finally reached them they say, "I'm not sure this is the best time to buy. I've heard prices may get lower."

At this point you can either get exasperated and give up or you can give them a good reason to buy now, one that they can't refuse.

This is a simple three step process:

First, say to them, "Did you know that Donald Trump is buying up as much real estate as he can right now?" Client, "No, really? Why?" You respond with, "Donald Trump is a very smart businessman, wouldn't you say? What he knows that other people don't know is that this is the best time in history to buy. Prices are at an all-time low and so are interest rates. It doesn't get any better than this. So he is getting great deals all over the place." After this, your client will probably say, "Wow I didn't know that." You respond with, "If you're excited about this, then let's get you a deal."

Notice the invitational quality of your last statement. Who can resist a deal? Isn't this an irresistible statement? You are offering to partner up with them to help them make money.

Watch how quickly your previously "indecisive" clients start taking action. You've done your job to tell them the facts. You've backed that up with an offer to help them make money in the same way that Donald Trump is making money. There may be objections that come up.

Here is the KEY: if you are convinced that this is the best time to buy, then they will be too. People can sense the depth of your conviction, so convince yourself first and then you will be attracting your ideal clients

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://www.jerrysellsorlando.com/ for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

"I'm Mad as Hell ... and I'm not going to take it anymore." Windermere Fl. Real Estate

Mon, 28 Apr 2008 18:52:01 -0500

"I'm Mad as Hell ... and I'm not going to take it anymore." That's a quote from the movie Network, from 1976... Great Clip from that movie is below. Ya know, I’m tired of the Media slamming this market and saying how bad it is. If the media would just put a positive spin on things once in a while I think we’d all be better off. I recently heard that 1 out of 538 homes are in some sort of foreclosure in Florida and the media makes it sound like the world is coming to an end. OK, let’s do the math. 1 divided by 538 = .18587 I interpret that as .2% that means 99.8% of the market is not in foreclosure. We should be cheering. Anyway, this is how I feel today about the media. Watch the video and enjoy.

Winter Garden Fl. Real Estate Outlook: Index Says Positive Growth Underway

Thu, 24 Apr 2008 08:56:21 -0500

You might not hear much about them on TV or in the papers, but there are some economic signs popping up right now that are -- at the VERY least -- encouraging for housing and real estate.

Take the gold standard of all forward indicators for the U.S. economy -- the Conference Board's "Index of Leading Indicators," which is based on a broad survey of industry data and predicts economic activity three to six months down the road.

The latest Conference Board index registered its first increase in six months. Now I know that all we hear about these days is recession: it's either already here or it's about to happen. But the index suggests that there should be positive growth underway in the second half of the year, if not sooner. Look at the stock market, it's starting it's upward trend again.

The National Bureau of Economic Research which found that industrial production in the U.S. showed an unexpected uptick in March.

Here are some other noteworthy developments this past week:

Applications for mortgages to buy houses were up again, it was the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by three and a half percent -- and conventional purchase applications rose 2.1 percent.
The federal government reported that house prices nationwide stopped their slide between January and February -- and actually increased by six tenths of one percent.
Interest rates remain well under 6 percent, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74 percent and 15-year loans at 5.27 percent. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market -- those are for high cost areas that really need some stimulus right now, like California.

Now, positive-sounding economic developments are not ballgame-changers for real estate. We've still got lots of housing inventory to sell before calling an end to the down cycle -- and total sales dipped 2 percent in March, according to the National Association of Realtors.

We're still dealing with a lack of confidence on the part of some consumers who are afraid that maybe prices still have a ways to fall.

But here's the point: It's undeniable that there are some glimmers out there that the underlying economy and financing marketplace, which after all are what support real estate activity, finally may be headed in a positive direction.

Winter Garden FL. Real Estate - Monthly housing sales increase as median price drops

Wed, 23 Apr 2008 11:03:26 -0500

Orlando's housing marketing experienced a month-over-month increase in the number of home sales, an increase in the number of pending sales contracts, and a decrease in the amount of inventory - all baby steps toward a market balanced between buyers and sellers.

The monthly statistical reports released by the Orlando Regional Realtor® Association revealed some additional interesting tidbits for the month of March:

the sales of homes costing upwards of $1 million more than doubled in March compared to last month;
the sales of duplexes, town homes, and villas have increased in each of the last three months; and
the majority of condos sold have fallen into lower and lower price categories for each of the last three months.

The median sales price of a single-family home in the Orlando area decreased by 1.35 percent ($3,000) from $223,000 in February 2008 to $220,000 in March 2008. The median sales price for March 2008 is 8.33 percent below that of March 2007 ($240,000).

The decrease in the median home price to $220,000 means that the area's affordability index increased in March to 102.35 percent. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $51,506 can qualify to purchase one of 10,980 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $225,170 or less.

The first time homebuyer affordability index held steady in March, at 72.78.

The number of sales in the Orlando area declined by 39.29 percent in March 2008 compared to March of last year (1,080 to 1,779), but the number of sales that took place in March 2008 increased by 13.56 percent compared to the number of sales that occurred in February 2008 (951).

There are currently 2,398 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 1,731 in January and 2,175 in February. The number of homes newly under contract increased by 142 in March, and the increase from January to February was 298.

The area's average interest rate was 5.94 percent in March 2008, up from 5.87 percent in February but down from 2007's high of 6.60 percent in August.

Homes of all types spent an average of 130 days on the market before being sold in March 2008; the average home sold for 93.53 percent of its original asking price. In March 2007 those numbers were 90 and 95.87 percent, respectively.

The majority of single-family homes (223) that changed hands in March 2008 were sold for between $200,000 and $250,000. Another 129 homes sold in March for between $250,000 and $300,000. Two hundred eighty-four homes sold for less than $200,000 in March, and 260 sold for more than $300,000. On the far ends of the scale, 31 homes were sold for $1 million or more (double the number sold in February) while only 10 homes sold for less than $50,000.

About the author:

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Summerport home for sale, WIndermere FL.

Sat, 19 Apr 2008 18:50:52 -0500

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011

5019 River Gem Ave., Windermere, FL

LOCATION! LOCATION! LOCATION! IN SUMMERPORT. FANTASTIC 3 BR/2BA W/TRAY CEILING IN THE MASTER BEDROOM & DINING ROOM. THIS HOME IS READY FOR NEW OWN

3 Bdrm Single Family House

offered at $258,900

Year Built	2005
Sq Footage	1,895
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	2
Lot Size	Unspecified
HOA/Maint	$47 per month

DESCRIPTION

LOCATION! LOCATION! LOCATION! IN SUMMERPORT. FANTASTIC 3 BR/2BA W/TRAY CEILING IN THE MASTER BEDROOM & DINING ROOM. THIS HOME IS READY FOR NEW OWNER NO WORK NEEDED OR USE AS AN INVESTMENT PROPERTY TENANT IN PLACE UNTIL AUG.08. WELL BUILT QUALITY HOME. GREAT SUBDIVISION FEATURES A COMMUNITY POOL, PARKS, PLAYGROUNDS, LAKES AND MORE. A MUST SEE, WON'T DISAPPOINT. GREAT FLOOR-PLAN TO INCLUDE EAT-IN KITCHEN & FAMILY ROOM, SEPARATE FORMAL LIVING/DINING ROOMS, CROWN MOLDING, SUMMERPORT HAS IT ALL. FITNESS CENTER, RECREATIONAL BUILDING, COMMUNITY POOL, BIKE TRAILS, SAND VOLLEYBALL, BASKETBALL COURTS, PLAYGROUNDS AND PARKS, LAKE ACCESS FOR MOTORIZED BOATS. ALL THIS 2 1/2 MILES FROM THE FOWLER'S GROVE SUPER SHOPPING CENTER & THE 429 AND DO NOT FORGET A WINDERMERE ADDRESS

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Tile floor	Family room	Dining room
Breakfast nook	Dishwasher	Refrigerator
Stove/Oven	Microwave	Yard

COMMUNITY FEATURES

Lake

Playground

ADDITIONAL PHOTOS

Seller contact info:

Jerry LaRose

Keller Williams Classic Realty

jerry@jerrylarose.com

407-580-7011

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 19, 2008, 2:22pm PDT

Stoneybrook West home for sale, Winter Garden Fl.

Sat, 19 Apr 2008 18:49:14 -0500

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011

13924 Fox Glove St., Winter Garden, FL

WOW!..... Golf Couse Frontage at this Price? Yes, Don't Walk, Run to get this fabulous Deal. Guard Gated community. Enjoy your morning coffee or you

4 Bdrm Single Family House

offered at $325,000

Year Built	2003
Sq Footage	2,475
Bedrooms	4
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	Unspecified
HOA/Maint	$144 per month

DESCRIPTION

WOW!..... Golf Couse Frontage at this Price? Yes, Don't Walk, Run to get this fabulous Deal. Guard Gated community. Enjoy your morning coffee or your evenings favorite beverage on the screened enclosed patio overlooking this spectacular Arthur Hills design 18 hole golf course. Garage extended by 4 feet & currently set up for an office, can easily be converted back to full 2 car garage. Guard Gated, Basketball & Tennis Courts, Lakefront Community & Fitness Center, Playground, Inline Skating Rink, Arthur Hills designed 18 hole Golf Course, Fishing, Boating, Skiiing on Beautiful 325 Acre Black Lake, Events for both children & adults & much more. Located with easy access to the major highways, Highly rated Schools, new mall, Winter Garden Village at Fowler Groves, Theme Parks and Disney.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Hardwood floor	Tile floor	Family room
Living room	Dining room	Breakfast nook
Dishwasher	Refrigerator	Stove/Oven
Microwave

COMMUNITY FEATURES

Fitness center	Golf course	Lake
Playground	Gated property	Secured entry

OTHER SPECIAL FEATURES

Golf Course Frontage

ADDITIONAL PHOTOS

Seller contact info:

Jerry LaRose

Keller Williams Classic Realty

jerry@jerrylarose.com

407-580-7011

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 5, 2008, 11:26am PDT

East Orlando home for sale

Sat, 19 Apr 2008 18:47:29 -0500

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011

14 Vanna Ct., Orlando, FL

Great Location - Great Value, Hurry Won't Last at this Price! Minutes from downtown. Tile roof, Great one owner home, well maintained home with Pond v

3 Bdrm Single Family House

offered at $200,000

Year Built	2000
Sq Footage	1,315
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	Unspecified
Parking	2 Car garage
Lot Size	Unspecified
HOA/Maint	$20 per month

DESCRIPTION

Great Location - Great Value, Hurry Won't Last at this Price! Minutes from downtown. Tile roof, Great one owner home, well maintained home with Pond view. Perfect for the first time buyer. Great community easy access to408, airport, Valencia and UCF. One Year Home warranty will be provided by Seller to Buyer. Other neighborhood homes have sold for $40,000-$50,000 more. Hurry to get this GREAT Price. This home won't last!

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Tile floor	Family room	Breakfast nook
Dishwasher	Refrigerator	Stove/Oven
Microwave	Laundry area - inside	Yard

OTHER SPECIAL FEATURES

Tile Roof

ADDITIONAL PHOTOS

Seller contact info:

Jerry LaRose

Keller Williams Classic Realty

jerry@jerrylarose.com

407-580-7011

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 5, 2008, 11:26am PDT

Lakes of Windermere home for sale, WIndermere Florida

Sat, 19 Apr 2008 18:46:28 -0500

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011

12636 Cragside Ln., Windermere, FL

Seller will pay $5,000.00 toward buyer Closing Costs or Interest Rate buy-down-(pre-paids) FANTASTIC DEAL in highly sought after Windermere. Owner Re-

4 Bdrm Single Family House

offered at $349,000

Year Built	2004
Sq Footage	2,774
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	2 Car garage
Lot Size	Unspecified
HOA/Maint	$75 per month

DESCRIPTION

Seller will pay $5,000.00 toward buyer Closing Costs or Interest Rate buy-down-(pre-paids) FANTASTIC DEAL in highly sought after Windermere. Owner Re-Locating. Impressive kitchen - family room: 42" cherry cabinets. Formal Living and Formal Dining Rooms . Family room opens to kitchen dining area and has access to rear covered porch. Bonus Room-upstairs, use as a media center office. Master suite features tray ceiling, oversized bath with garden tub, separate shower, his and her vanities. Inside utility room with laundry sink. Outside: irrigation system, impressive landscaping & curb appeal. Covered rear porch has tiled floor and landscaped for privacy & screened. Rear entry 2 car garage with opener. Community parks include pool, pavilion, sport court, barbeque area, tot lot. Charming and peaceful neo-traditional street scapes. Community fishing dock. Great family community. !! Central Park w/ soccer fields, volleyball, playground, tennis, pools etc. Can fish off the dock. LOCATION, LOCATION, LOCATION! Public BOAT RAMP to Butler Chain of Lakes approx. 2 miles. New Shopping Village, The Grove, is only 10 minutes away. 429 EXPRESSWAY approx 10 min....Quick closing ok. Priced for QUICK SALE!

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Fireplace
Walk-in closet	Tile floor	Family room
Living room	Office/Den	Dining room
Dishwasher	Refrigerator	Stove/Oven
Microwave	Stainless steel appliances	Laundry area - inside

COMMUNITY FEATURES

Swimming pool(s)	Tennis court(s)	Lake
Playground

ADDITIONAL PHOTOS

Seller contact info:

Jerry LaRose

Keller Williams Classic Realty

jerry@jerrylarose.com

407-580-7011

For sale by agent/broker

Equal Opportunity Housing

Posted: Mar 5, 2008, 10:16am PST

Stoneybrook West Home for sale, Winter Garden Fl.

Sat, 19 Apr 2008 18:45:08 -0500

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011

12749 Holdenbury Ln., Windermere, FL

FANTASTIC DEAL in highly sought after Windermere. Owner Re-Locating MUST SELL! Impressive kitchen - family room: 42" cabinets, granite counter t

4 Bdrm Single Family House

offered at $349,000

Year Built	2004
Sq Footage	2,960
Bedrooms	4
Bathrooms	3 full, 1 partial
Floors	2
Parking	2 Car garage
Lot Size	Unspecified
HOA/Maint	$69 per month

DESCRIPTION

FANTASTIC DEAL in highly sought after Windermere. Owner Re-Locating MUST SELL! Impressive kitchen - family room: 42" cabinets, granite counter top work island, glass top range, side-by-side stainless steel refrigerator, separate butler pantry plus walk-in pantry. Formal Living and Formal Dining Rooms . 2nd floor loft Bonus Room. Master suite features tray ceiling, oversized bath with garden tub, separate shower, his and her vanities. Master and 2 guest rooms offer walk-in closets. Rear entry garage. Community parks include pool, pavilion, sport court, barbeque area, tot lot. Charming and peaceful neo-traditional street scapes. Community fishing dock. Great family community. !! Central Park w/ soccer fields, volleyball, playground, tennis, pools etc. Can fish off the dock. LOCATION, LOCATION, LOCATION! Public BOAT RAMP to Butler Chain of Lakes approx. 2 miles. New Shopping Village, The Grove, is only 10 minutes away. 429 EXPRESSWAY approx 10 min....Quick closing ok. Priced for QUICK SALE! ****NEGOTIABLE****BRING ANY AND ALL OFFERS!*****

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Tile floor	Family room	Living room
Bonus/Rec room	Dining room	Dishwasher
Refrigerator	Microwave	Granite countertop
Stainless steel appliances	Washer	Dryer

COMMUNITY FEATURES

Swimming pool(s)

Lake

ADDITIONAL PHOTOS

Seller contact info:

Jerry LaRose

Keller Williams Classic Realty

jerry@jerrylarose.com

407-580-7011

For sale by agent/broker

Equal Opportunity Housing

Posted: Apr 19, 2008, 2:23pm PDT

Stoneybrook West home for sale Winter Garden Fl.

Sat, 19 Apr 2008 18:43:42 -0500

Jerry LaRose | Keller Williams Classic Realty | jerry@jerrylarose.com | 407-580-7011

14730 Masthead Landing Cir., Winter Garden, FL

Great Price under $150 per sq.ft. Want it for Less? Make an Offer. Big House with a Heated Pool for a small price. You've waited long enough, Here's

4 Bdrm Single Family House

offered at $425,000

Year Built	2004
Sq Footage	2,835
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	2 Car garage
Lot Size	Unspecified
HOA/Maint	$144 per month

DESCRIPTION

Great Price under $150 per sq.ft. Want it for Less? Make an Offer. Big House with a Heated Pool for a small price. You've waited long enough, Here's the deal! Wonderful Golf community of Stoneybrook West, features a 24 hour Guard Gated community. Beautiful patio extra large deck and heated pool is perfect for Entertaining! Stoneybrook West community offers Resort-Style Amenities - Guard Gated, Basketball & Tennis Courts, Lakefront Community & Fitness Center, Playground, Inline Skating Rink, Arthur Hills designed 18 hole Golf Course, Fishing, Boating, Skiiing on Beautiful 325 Acre Black Lake, Events for both children & adults & much more. Located with easy access to the major highways, Highly rated Schools, new mall, Winter Garden Village at Fowler Groves, Theme Parks and Disney.

see additional photos below

PROPERTY FEATURES

Central A/C	Central heat	Walk-in closet
Tile floor	Family room	Living room
Bonus/Rec room	Dining room	Dishwasher
Refrigerator	Swimming pool

COMMUNITY FEATURES

Clubhouse	Fitness center	Swimming pool(s)
Golf course	Lake	Playground
Gated property	Secured entry

ADDITIONAL PHOTOS

Seller contact info:

Jerry LaRose

Keller Williams Classic Realty

jerry@jerrylarose.com

407-580-7011

For sale by agent/broker

Equal Opportunity Housing

Posted: Mar 21, 2008, 3:24pm PDT

Winter Garden Fl. Real Estate - Why Selling Now Makes Sense!

Fri, 18 Apr 2008 07:13:59 -0500

Homeowners reluctant to sell because prices have fallen should do the math and realize that the market downturn could work in their favor.

"People are finding houses at prices they thought they'd never see again,"
I would like to point out that to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer's own home also has lost 20 percent of its value.

In general, the toughest will be for people who bought within the last three years, at the height of the market. But even for these homeowners, selling now may make sense as long as they can at least break even, or their trade up property is down more than their current property. (ie., that $500,000 home 3 years ago that may be now worth $400,000, considering it's down 20%, when your home 3 years ago was worth $450,000 and is now worth $390,000 down only 13%. That's nearly an even trade considering you would be getting a bigger home in potential a better neighborhood.

Almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district but on a busy street. Or it may in a great neighborhood, but it's a 2 story, not a 1 story. These are "unchangeables."

It's a good time to sell if a seller can get rid of the most negative unchangeables in his current home and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house.

About the author:

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Basic Information on the Stimulus Payments for My Orlando Florida area readers

Tue, 15 Apr 2008 20:46:11 -0500

Basic Information on the Stimulus Payments

You've heard about it. Now find out how to get yours.

What is it? It's an economic stimulus payment that more than 130 million households will receive starting in May. It's not taxable, and it won't reduce your 2007 or 2008 refund or increase the amount you owe when you file your 2008 return.

Are you eligible? The vast majority of people who file a 2007 income tax return qualify, and many who don't regularly file a tax return may qualify as well. You're eligible if you have a valid Social Security Number (SSN), can't be claimed as a dependent on a tax return and have either an income tax liability or "qualifying income" of at least $3,000. Qualifying income includes any combination of earned income and certain benefits from Social Security, Veterans Affairs or Railroad Retirement. Additional information is below, and a full legal description is available in Revenue Procedure 2008-21.

Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment - if only one has a valid SSN, neither can receive the payment.

Can you use an ITIN instead of an SSN? Taxpayers with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible to receive a stimulus payment. Both people listed on a "married filing jointly" return must have valid SSNs to qualify for the payment - if only one has a valid SSN, neither can receive the payment.

Not eligible at the current time? If your circumstances change and you become eligible after you file your 2007 federal tax return, you can always file an amended return using Form 1040X. File the form after April 14, 2008, and allow 8-12 weeks of processing time before making any inquiries about your payment. See a sample with instructions.

If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return.

How do you get it? Just file a a federal tax return for 2007, even if you normally don't have to because your income usually doesn't meet the filing threshhold. You can't get it if you don't file.

How much will you get? The actual amount depends on the information contained on your tax return. Eligible individuals will receive between $300 and $600. Those who are eligible and file a joint return will receive a total of between $600 and $1,200. Those with children will get an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number. We have various examples for you check out.

The payments phase out at certain income levels, so those with higher incomes may receive a reduced payment or even no payment.

Can you estimate your payment? The IRS has created an online calculator that will allow you to answer a few questions and get a quick estimate of your payment amount.

How will you receive the payment? Be sure to choose direct deposit when you file your tax return, even if you aren't due a regular tax refund on your tax return. That way, the stimulus payment will go right to your bank account. Otherwise, we'll mail you a check.

When will you get your payment? Starting May 2, payments will be electronically transmitted to direct deposit accounts. Paper checks will be mailed starting May 16. The payments are based on the last two-digits of the mail filer's Social Security number. The IRS has issued a schedule for payments as direct deposits or paper checks.

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting May 2. Paper checks will be put in the mail starting May 16.

PAPER CHECK

Last two SSN digits:	Payments will be mailed by:
00 through 09	May 16
10 through 18	May 23
19 through 25	May 30
26 through 38	June 6
39 through 51	June 13
52 through 63	June 20
64 through 75	June 27
76 through 87	July 4
88 through 99	July 11

People who file a return after April 15 will receive their economic stimulus payment, but probably about two weeks later than the schedule shows. A return must be filed by October 15 in order to receive a stimulus payment this year. See the online calculator for an estimate of the amount you will receive.

For more information go to:

http://www.irs.gov/newsroom/article/0,,id=179211,00.html

Hope this answers a few questions.

Winter Garden Fl. Florida Real Estate - 99.8% of U.S. Households NOT in Forclosure - Amazing but True!

Tue, 15 Apr 2008 18:56:13 -0500

Just a note on perspective for some of the foreclosure news you are seeing.

Is it rough out there? Well consider this, in a news article today (see below) there are apparently frightening numbers on forclosure rates - " U.S. Foreclosures Jump 57%" . Awful state of affairs - right? How about this headline for the same article - "99.8% of U.S. Households NOT in Forclosure" Amazing? Can't be true? Check the math.

Use the numbers provided in the article - "More than 234,000 properties were in some stage of foreclosure, or one in every 538 U.S. households... ". Pull out your calculator and work out the percentage - .001859 or .1859% (1 divided by 538). Yep - that is LESS than two-tenths of one percent.

Well that is the national number, you might say, but Florida is much worse. You are absolutely right! Here is what the article says " Florida had the third-highest rate, one filing for every 282 households...". Yes much worse - .003546 or .3546%. LESS than four-tenths of one percent. So the Florida headline should read - "99.6% of Florida Households NOT in Forclosure".

This is not to diminish the real pain and financial peril faced by tens of thousands of homeowners in or facing foreclosure. There is a serious financial and market correction underway in housing and the broader economy. But it is not the end of the world. If you really want to see what a crisis is all about check the numbers from the Great Depression. Nearly 1 in 10 owners was in foreclosure in 1932 and 1933. In the 1920's there were over 40,000 real estate licensees in Florida - by 1941 the number was 1,200.

In 2008 there is no doubt we face a tough and challenging market. Is success still possible? YES. It will take very consistent, very focused, and very hard work to produce results. You CAN do this! But not if you let the headlines drag you down.

About the author:

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Winter Garden Florida Real Estate - Mortgage Pre-Approval versus Mortgage Pre-Qualification

Mon, 14 Apr 2008 08:23:07 -0500

Is there a difference between a Mortgage Pre-Qualification letter and a Mortgage Pre-Approval letter?

The reality is that most all buyers need to obtain a mortgage loan to purchase a home. Since mortgage approval is such an integral aspect of a home purchase, wouldn't it make sense that REALTORS® have a better understanding of the mortgage pre-approval process, since so few buyers are able to buy a home and pay cash.

These terms appear to be similar, but can be quite different. Not only do they cause confusion for home buyers, there seems to be many interpretations from those in the real estate and mortgage industry as well.

Speaking as a REALTOR®, the difference is in documentation and verification. In other words, is the buyer providing copies of income paystubs and bank account statements to the Mortgage Lender or is the Mortgage Lender simply relying on verbal information provided by the buyer? More often than not, the difference between the two terms is that one is issued without any verification of information and the other starts with the buyer providing written documentation of all information provided. While neither is a considered to be a mortgage commitment, nor a written mortgage guarantee, obtaining a Mortgage Pre-Approval letter is more preferred than obtaining a Mortgage Pre-Qualification letter.

Mortgage Pre-Qualification is generally a process where a buyer contacts a Mortgage Lender/Mortgage Representative, often on the telephone, who then asks the buyer to provide some information. The information requested involves a current address and how long living there, a social security number and permission to order a credit report, annual income and hopefully the amount of down payment.

After the credit check is ordered and received by the Mortgage Lender, the Mortgage Rep then estimates the amount of mortgage the buyer can afford and sends (via fax or email) a letter to the buyer with the title Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ or Congratulations, You Are Pre-Qualified, for a mortgage loan in the amount of $__ and a purchase price of $__. This is usually done within a half hour or so of the initial phone call, and at best can be described as an estimate of potential mortgage ability and purchasing power, and not Mortgage Pre-Approval.

The pre-qualification letter always includes varying type disclaimer information, such as: Subject to a formal mortgage application and payment of an application fee, subject to verification of employment, subject to verification of assets, subject to credit review, subject to mortgage underwriting guidelines, interest rate to be the prevailing rate of interest for the mortgage type applied for, among many other "subject to"-like statements. In other words, we will give you a mortgage when we see that the information you provided is correct and meets certain qualifying standards.

What problems could arise when a formal mortgage application is submitted by a buyer after they've obtained a Mortgage Pre-Qualification letter like that? The mortgage application process involves somewhat standard underwriting criteria and guidelines for each particular type mortgage, whether the mortgage is VA, FHA or Conventional. The varying underwriting criteria involves guidelines, whether Fannie Mae, Freddie Mac or the Lenders specific qualifying criteria, for verification of income, income qualifying ratios, verification of down payment, cash reserves after closing, credit check scores and work history, among others.

Yes, it is possible that the buyer provided correct information, and will obtain a mortgage commitment when a mortgage application is submitted. However, there are many circumstances where even though the information verbally provided is accurate, certain other details are not mentioned which may have a negative impact on the mortgage approval process. Details like income being received off the books, down payment being borrowed (not gifted from a family member), and savings for the down payment but no other assets for closing costs or inconsistency in work history, to name just a few situations that can cause problems in obtaining mortgage approval.

While Pre-Qualification letters like the previous example are common, not all Mortgage Lenders provide them in that manner. Many Mortgage Lenders require a more thorough process in providing Mortgage Pre-Approval. In addition to obtaining a credit report, many Lenders require the buyer to provide proof of two years of work history, pay-stubs or income tax forms, copies of bank statements for source of funds verification and copies of charge card statements.

When the documentation is provided, it is then submitted to the Mortgage Underwriter for review and approval. The Mortgage Pre-Approval letter is worded something like this: Congratulations, You Are Pre-Approved for a mortgage loan in the amount of $__ and a purchase price of $__ subject to a Contract of Sale and a satisfactory Bank Appraisal on the home being purchased. While more time consuming than the previous pre-qualification practice discussed above, it is more thorough and more reliable, shortens the formal mortgage application and approval process and provides the ability for a fast closing if one is desired.

Consider the advantages of this type Mortgage Pre-Approval. First of all, the buyer and REALTOR will have confidence in a price range and confidence in obtaining mortgage approval. In submitting offers, sellers will know they have a serious buyer who has taken the time to arrange for mortgage financing first. And just as important, the buyer will be more relaxed in spending money to hire an Attorney for contract review, providing the earnest money deposit, hiring a home inspector to perform the home inspection, termite inspection, radon inspection plus any other required inspections and paying for the mortgage application and appraisal fee. Why? They are concentrating on the home they have purchased, and not worrying about the mortgage approval process.

Needless to say, I can't even count the number of real estate transactions I've noticed fall apart after a buyer has paid all those fees for the home they hoped to purchase, only to find out they were not able to obtain mortgage approval, even with a Pre-Qualification letter. These are the financial ramifications for a buyer, but what about the ramifications for the others involved in a lost real estate transaction, the selling agent, the listing agent and the seller. Consider the time, energy, emotional strains and on and on. Real estate is a people business, a service business. Not much good can occur when a real estate transaction is cancelled for mortgage denial, especially when it occurs a month or so after contract acceptance.

Provide better service to your buyer clients, review their Mortgage Pre-Qualification letter with them, and don't be afraid to ask questions. Provide better service to your seller clients, read the Mortgage Pre-Qualification letter the selling agent is providing at the contract presentation, and don't be afraid to ask questions. Better yet is require a Pre-Approval letter when you receive an offer for your seller. Believe me in this market today it is very difficult to obtain a mortgage, so ask for the pre-approval up front.

About the author:

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

Orlando, Windermere Fl. Real Estate - 2008 The Best Year to Buy a Home in 35 years

Fri, 11 Apr 2008 16:21:02 -0500

"2008-the Best Year to Buy a Home in 35 Years!"

In April of 1973, mortgage rates were about the same as they are today. Since that time, we have only had mortgage rates this low during 2001 and 2002, the height of the seller's markets where there was little inventory. In the last two major buyer's markets, one in the early 1980s and the other in the early 1990s, the rates were much higher. In 1978, interest rates were at 9.75 percent, en route to 18 to 21 percent in 1980. In the early 1990s, the rates were hovering in the 11 to 12 percent range. Thus, today's buyer's market, with exceptionally low mortgage rates plus a substantial supply of inventory, is the best time in decades to purchase.

About the author:

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

What's your Website Worth?

Fri, 11 Apr 2008 16:19:35 -0500

I Just Stumpled upon a website that will tell you what your website is worth. After 3 years and countless hours of working on it it's only worth $3,082.00

WOW, That's a little disappointing. Check it out and see what your's is worth. I'll let you know when I reach $1,000,000. Then it's for sale. lol:)

This website is worth
What is your website worth?

Here's the Link to check your out. http://directory.sootle.com/website-worth/ Good Luck