As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extended the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Recent news:
Who Qualifies for the Extended Credit?
First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.

Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

If you purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?
Each home buyer’s tax credit is determined by two additional factors:
*The price of the home.
*The buyer’s income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

1. Homes are bought by comparison. I have a large inventory at my disposal through MLS while you have an inventory of one.

2. I am very familiar with competitive houses so I can help you position your home well.

3. It is hard negotiating for yourself. I have lots of experience in writing contracts and can negotiate aggressively on your behalf.

4. Buyers are not always forthright about their financial situation. I insist on pre-qualifying before I even bring you an offer.

5. My lender contacts and mortgage experience help buyers get the financing they need.

6. Most buyers don’t want to tell the seller why they don’t make an offer. I can probe the buyer or his agent for that information.

7. Any follow up you do with a buyer can be seen as desperation. I follow up as part of my job so that you are not perceived in a compromising light.

8. I can showcase your improvements better so that you don’t appear like you are “selling.”

9. Most sellers who spend their time as a For Sale By Owner end up by listing in the end. A recent NAR survey found that only 11% of sellers nationally ended up selling by owner. Why spend your time and money if in the end you will hire a REALTOR?

10. Unqualified buyers can tie up your home. I make sure that doesn’t happen.

11. Personality conflicts with a buyer can get in the way. I come between the buyer and the seller so that personalities don’t enter in.

I wanted to touch base on one of the major issues people deal with when trying to make a major purchase such as a home.  The interest rate you are quoted when purchasing a home is based on your credit score that is pulled from the 3 major Credit Reporting agencies. These agencies get this calculated information from different companies who lend credit and if paid on time it gives you a rating, the higher the better!  With help from Wikipedia I want to get the word out to individuals how important it is to try and maintain your credit.

Credit ratings are determined differently in each country, but the factors are similar, and may include:

• Payment record – a record of bills being overdue will lower the credit rating.
• Control of debt – Lenders want to see that borrowers are not living beyond their means. Experts estimate that non-mortgage credit payments each month should not exceed more than 15 percent of the borrower’s after tax income.
• Signs of responsibility and stability – Lenders perceive things such as longevity in the borrower’s home and job (at least two years) as signs of stability. Having a respected profession can improve a credit rating.
• Credit inquiries – An inquiry is a notation on a credit history file. There are several kinds of notations that may or may not have an adverse effect on the credit score. Soft pulls don’t affect the credit score and are characteristic of the following examples:

A credit bureau may sell a person’s contact information to an advertiser purchasing a list of people with similar characteristics, like homeowners with excellent credit. A creditor can check a person’s credit periodically. Or, a credit counseling agency, with the client’s permission, can obtain a client’s credit report with no adverse action. Each of the preceding examples are commonly referred to as a “soft” credit pull.

However “hard” credit inquiries are made by lenders. Lenders, when granted a permissible purpose by a borrower for the purposes of extending his credit, can check his credit history. Hard inquiries from lenders directly affect the borrower’s credit score. Keeping credit inquiries to a minimum can help a person’s credit rating. A lender may perceive many inquiries on a person’s report as a signal that the person is looking for loans and will possibly consider that person a poor credit risk.

• Credit cards that are not used – Although it is believed that having too many credit cards can have an adverse effect on a credit score, closing these lines of credit will not improve your score. The credit rating formula looks at the difference between the amount of credit a person has and the amount being used, so closing one or more accounts will reduce your total available credit. And the lower the percentage of available credit, the more the credit score will drop. The credit formula also factors in the length of time credit accounts have been open, so closing an account with several years of history is another avoidable credit mistake.

Consequences

The information in a credit report is sold by credit agencies to organizations that are considering whether to offer credit to individuals or companies. It is also available to other entities with a “permissible purpose.” The consequence of a negative credit rating is typically a reduction in the likelihood that a lender will approve an application for credit under favorable terms, if at all. Interest rates on loans are significantly affected by credit history—the higher the credit rating, the lower the interest while the lower the credit rating, the higher the interest. The increased interest is used to offset the higher rate of default within the low credit rating group of individuals.

In the United States, in certain cases, insurance, housing, and employment can also be denied based on a negative credit rating.

Note that is not the credit reporting agencies that decide whether a credit history is “adverse.” It is the individual lender or creditor which makes that decision, each lender has its own policy on what scores fall within their guidelines. The specific scores that fall within a lender’s guidelines is most often NOT disclosed to the applicant due to its nature as a trade secret. In the United States, a creditor is required to give a reason for denying credit to an applicant immediately and must also provide the name and address of the credit reporting agency who provided data that was used to make the decision.

Credit Bureaus

Several credit reporting companies: Equifax, Experian, TransUnion .

I know that this is a lot of information to take in, but the lower the interest rate the more home you can purchase. I will let you absorb this information and then blog more on the various mortgage notes based on the interest rate.

If you have guestion email me at pattimace@sbcglobal.net.  Hope to see you subscribe to my blog at www.pattimace.com.

Chat again soon,

Patti