Interest Rates Lower Than Ever

[caption id="attachment_2256" align="aligncenter" width="170"] History Of Interest Rates[/caption]

With Shopping for good deals being the focus of the day I thought it was pertinent to bring up our historic low interest rates. Sure we have heard for some time now that interest rates are low, however, It is one thing to hear it but to see this chart it really brings it home.

The best way to take advantage of these great rates is to be pre-qualified with a a good lender. If you need a recommendation don't hesitate to call us at 760-408-5300 or visit our home loan page on our web site.

Should I Bring My Friends and Family With Me to look At Real Estate?

  

Buying a new place is a very exciting time in every ones life. In fact,  if you are not excited please check your pulse! You want to ask a million questions, you want to see as many places as possible and you want to share it with your friends and family.


On the surface getting in the car and going through a bunch of houses seems pretty simple and straight forward.  The truth is that looking at Real Estate takes concentration. It is a big decision that will impact your life for many years to come. It is crucial that you think about the elements of the purchase that are most important to you. Your “must have” list and your “do not want” lists are just the starting point. Once you are looking at properties that closely match your needs and wants is when you must pay the most attention.

There are a hundred little things that can make a big difference in the quality of life you will enjoy once you make a place yours. Where does the sun come up? Is the neighborhood a quiet one? How will you live in the house? Is the laundry close to the bedrooms? Is the kitchen too big or too small for your cooking needs? Does the master closet seem cramped?

While friends and family may have the best intention are they really going to know the exact requirements you have? More to the point are they going to be a help or a distraction? It is unlikely that they will have the same taste as you. It is equally unlikely that the things that are important to you will be the same things that seem important to them.

Over the years I have seen one or two “tag along” people who were incredibly dedicated, invested and helpful in the process. These were the exceptions to be sure. More often than not I have seen them hinder the process and cause you – the buyer- to miss the finer points of a property. Your Realtor, needs your attention to both convey what is important about the property and to hear your feedback. Extra people are rarely helpful in that process.

The best suggestion is to do your selection alone and then once the decision is made make a trip back to the property to show friends and family why this is the perfect property for you. Then you can share your wonderful new place without worrying about distractions that might keep you from spotting the perfect place.

Search For Your Palm Springs Area Home Here

This Month In Real Estate

This months report covers first time buyers wants and needs. What motivates them to buy rather than rent. The major driving force now is the staggeringly low 4.1% average mortgage interest rate.

What is A QRM?

It is a Qualified Residential Mortgage and is a proposal put forth by federal regulators to try and make sure that lenders cannot make risky loans just for a quick profit. Protecting the economy at large and consumers as well.

While the idea is a good one at heart the proposed restrictions would make it vastly more difficult for the average consumer to obtain financing for a home purchase. Many consumers would be shut out of the housing market all together.

An article on the rismedia site says:

RISMEDIA, August 3, 2011—A proposed rule by federal regulators to impose a minimum 20 percent down payment, stringent debt-to-income ratio requirements and rigid credit standards will deny millions of Americans access to safe, low-cost mortgages, according to the National Association of Realtors®.

Read the whole article on RIS MEdia Site

There is no question that some regulations on risky and predatory lending need to be put in place. There is no question that there were big problems with the way things use to be. However, a middle ground needs to be found, in any new regulations , so that the very consumers the regulators are trying to protect are not shut out of the market to the extent that they don't need any protection since they can't participate anyway!

If you are considering a home purchase anytime in the future I would encourage you to pay attention to the political debate on this subject. Let your representatives know that access to financing for your dream of home ownership is important to you. This access to finance issue and the mortgage interest tax deduction are probably the two most important political issues you can't afford to ignore if you are interested in owning your own home.
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This Month In Real Estate

This Month In Real Estate

This Month the news covers the dramatic increase in First Time homebuyers in the market place.

Claiming Your First Time Home Buyer Tax Credit

If you are ready to claim your first time home buyer tax credit you will need to us the recently released Form 5405 from the IRS. Using this form first-Time Home buyer Credit and Repayment of the Credit, and the related instructions, eligible home buyers can now start to file their 2009 tax returns. Because of the late addition of this credit taxpayers claiming the home buyer credit must file a paper tax return due to the added documentation requirements.

The IRS expects to start processing 2009 tax returns claiming the home buyer credit in mid-February after it completes the updating and testing of systems to meet the law’s new requirements.

If you are one of the early taxpayers claiming the home buyer credit you may see tax refunds take an additional two to three weeks.

In addition to filling out a Form 5405, all eligible home buyers

must include

with their 2009 tax returns one of the following documents in order to receive the credit:

* A copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
* For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
* For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

Your Realtor or closing officer should be able to help you obtain these documents easily.

Don't forget that the new law allows a long-time resident of the same principal residence to claim the home buyer credit if they purchase a new principal residence. The qualification standard is using a home as a principal residence for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the home buyer credit, and it encouraged home buyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period:

* Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
* Property tax records or
* Homeowner’s insurance records.

With these new documentation requirements this mean that taxpayers claiming the credit cannot file electronically and must file paper returns. Don't forget that the tax credit is set to expire and you must be in contract on a home before April 30, 2010 and close before the end of June 2010.

Find out more using this link Yes, the IRS has You Tube videos! Who knew!

First Time Homebuyer Tax Credit

Many articles have been written summarizing the changes and the extension of the tax credit but here it is in Black and White right from the IRS website. I thought it would be easiest just to have this list:

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.
Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.