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@garyvee wiredforwine.com is using your name on FB ads…is this your company? cinderella type format of 1 deal/day
Interest Rates are at rock bottom. Give Jay a call for a free review of your situation now at 651.210.9593.
Ok–we are going back to credit basics on this post. Fannie Mae just announced the lenders funding the loan will be pulling a last minute credit check. Similar to a verbal verification of employment to make sure you are still working when you get your mortgage the banks will make sure you haven’t opened up any new debts that could adversely affect your ability to repay.
So what does this mean? Read on carefully for all the details but in a nutshell, if you are applying for a mortgage loan in Minnesota (or anywhere else) DO NOT buy a new car or take out ANY other type of consumer debt. EVEN for furniture.
1) Three months prior to securing your mortgage, DON’T apply for, close, or pay off any credit cards, loans, or other kinds of credit without speaking to your mortgage professional first. Any one of these actions, as innocent as they might seem, could seriously affect your credit score, adding significant costs to your mortgage should your score suddenly drop.
2) If you have a credit card account with an excellent credit history, DO use it – but use it strategically. In other words, use it only for small purchases that you can easily pay off completely at the end of the month. Remember, creditors like to see evidence of stability, so the goal here is to keep the good reports coming month to month without falling into the same financial traps that led to credit challenges in the past.
3) If you don’t have a credit card, DO get a secured credit card. This is a great way to rebuild or establish credit quickly. Because this account is secured by funds that you deposit (typically between $100 and $400) you’re not seen as a great risk to the card issuer because of your initial investment. Again, use this card strategically to build a strong credit history. Pay your bill on time every month, and it won’t be long before you qualify for an unsecured credit account.
4) Finally, DO monitor your credit. Ask your mortgage professional to refer you to a professional credit repair company you can trust. Having an experienced professional on your side will allow you to focus on your long-term credit goals without having to make reestablishing your credit a second career.
If you or anyone you know has any questions about credit scores or what can be done to repair them, please don’t hesitate to call me at 651.210.9593. We’ll be glad to review your credit and see what, if anything, needs to be done to help meet your financial goals and needs
http://www.mnrefinancing.com/uncategorized/now-that-the-tax-credit-has-expired-what-should-buyers-do/ http://bit.ly/ahamU7
Ok. Check this. What causes prices to go up? Either reduced supply or increased demand. Would you agree? So, now that everyone with a rich uncle or generous grandparent has bought their house to take advantage of the tax credit what does that mean to you, the buyer who “missed out” on the 8,000 “obama tax credit”?
Let me tell you why I feel this 2nd half of 2010 is going to be a ROCK STAR time to buy your first home or even dip your toes into purchasing investment properties. Ready? Here goes.
With the tax credit expired, there will likely be LESS buyers to compete with. Pretty cool, right? If you talk to anyone who’s purchased a home, it’s not uncommon for them to have bid on multiple homes because of the increased competition. In fact, the tax credit made it more of a “sellers market” than people will ever admit.
Ok, so we have fewer buyers to compete with. That’s good. Now, how bout financing? Even though the Fed has halted their mortgage buying, rates barely budged. Why? I guess you could say it’s a flight to “safety”. You see, the stock market’s had huge gains and the international debt market (i.e. the PIGS you hear about on CNBC) in shambles, the market place is still digging owning mortgages yielding around 5% because their costs of funds are so low.
Ok, so less competition. Good financing. Last but not least? There’s STILL ample supply of foreclosures and short sales coming down the pipeline INCREASING supply of homes. So if I were a betting man I would bet that the 2nd half of 2010 is going to be a GREAT time to get into your first home or investment property whether it be a condo in DT Minneapolis or St Paul or a big shack out on Minnetonka or the St Croix.
Got questions? Give me a call at 651.210.9593.
P.S. Sorry for the delay in updating the blog…been busy helping those getting the tax credit with their financing 
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As many of you are aware, a lot of the homes right now on the market are short sales and foreclosures. I have many people ask me about buying a home after a short sale occurs. Here are the current guidelines for FHA loans.
As most of you know, the current deadline for both the “First time buyer” tax credit and the “move up buyer” credit is to have an offer in writing by April 30th with a closing by June 30th. One exception is for members of the military and here are the specifics from the irs.gov website:
Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
So if you or someone you know qualifies for the military extension (or don’t qualify and want to get in on the original offer for civilians) give me a call right now at 651.210.9593. Thanks and Happy Friday! Jay Dacey
Can you believe we are only a week away from St Patricks Day 2010? Me neither! Here are some important dates and if you are “on the fence’ you should give me a call at 651.210.9593 so you get in before the deadlines.
FHA closing costs are changing from a maximum of 6% right now to a maxium of 3% on case numbers assigned on and after April 5, 2010. A case number is an FHA “identifier” of you and the property. Typically 3% is sufficient to cover most closing costs but on smaller loans I see some 6% seller paid files.
Second, FHA Upfront MIP is going from 1.75% to 2.25% on case numbers assigned on or after April 5th. ON a 100,000 loan that is 500 dollars. On 300,000 it’s a whopping 1500. If you are in the market you need to be proactive and get in before this goes up.
Lastly, for the First Time Home Buyer and the Move Up Home Buyer, you need to have your offer accepted by April 30, 2010 and close before June 30, 2010.
Now a lot of people are asking me “will Obama extend the tax credit” and the answer is I don’t know.
The clock is ticking on the federal homebuyer tax credit. Will you get yours?
You still have time to buy a home and meet the deadlines, but you will need to act soon and be proactive throughout the transaction.
The homebuyer tax credit is worth 10 percent of the home’s sale price, up to $8,000 for buyers who haven’t owned a home in the previous three years and $6,500 for buyers who have owned and occupied a principal residence for at least five consecutive years during the eight-year period that ends on the day the new home is purchased.
Here are some tips for last-minute buyers:
Tip: The buyer must enter into a binding contract to purchase the home on or before April 30, 2010. The term “binding contract” isn’t defined in the homebuyer tax credit law and may be subject to interpretation. Generally, the term refers to an agreement that’s signed by both parties and has a deposit in escrow.
Tip: The purchase must close within 60 days after the binding contract deadline. In this context, that means June 30, 2010, not June 29, 2010, according to the Internal Revenue Service. The discrepancy between 60 calendar days and two months occurs due to a financial fiction that every month equals 30 days.
Tip: Buyers should be upfront with their Realtor about their must-haves and their wish list. Buyers who aren’t realistic could find themselves up against the deadline with fewer houses from which to choose.
Tip: Harsh weather may be a help or an obstacle. Buyers who are willing to trudge through snow to find a house may have an advantage over buyers who wait until the weather improves.
Tip: Contract contingencies allow buyers some “breathing room” to take care of big items like financing, inspections and the sale of their current home, but contingencies shouldn’t be an excuse to delay once the deal is pending. If you run into a problem and you no longer want to buy that house, it’s great that you had those contingencies to protect you, but you may not have time to find another property.
Tip: Anecdotal reports suggest that some buyers have included a tax-credit contingency in the purchase contract. Whether that’s a necessary protection to make sure the deal closes on time depends on the situation and local practices. Either way, buyers should read the contract to make sure the closing will occur before the deadline.
Tip: Buyers should be preapproved for a mortgage because glitches such as a mistake on a credit report or a lender’s request for tax returns that must be retrieved from the Internal Revenue Service can cause a delay.
Tip: Buyers also should allow extra time in case the mortgage lender requires a second appraisal, which can delay final loan approval. The appraisal process in residential lending is going through some changes and it is not uncommon to have a mortgage lender require more than one appraisal.
Tip: Buyers should line up homeowners insurance as soon as the house is under contract. Homeowners insurance is usually routine, but some states have special disaster-related issues. A big storm, earthquake or fire can trigger a moratorium on new policies.
Tip: The IRS has introduced Form 5405 and instructions for taxpayers who want to claim the homebuyer tax credit.
