What would you do with $7,500??

There’s never been a better time to buy your first home!

Have your first-time homebuyers been waiting for the perfect time to buy? Well, that time has come! If they close on a home – new or resale, single family, townhouse or condo – before July 1, 2009 they may be eligible for a credit of up to $7500 off their tax bill.

The Tax Credit Summary:

• Available to first-time homebuyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.
• If the home is purchased in 2008, the tax credit is taken on the 2008 tax return. If the home is purchased in 2009, the buyer has the option of taking the credit on the 2008 or the 2009 tax returns.
  

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Rates are still low and there are hundreds of fantastic properties on the market. Contact me today to learn more about this great program! 571-259-3009.

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Source: www.federalhousingtaxcredit.com

Steps to take before applying for a mortgage

Step One

Using your computer, go to the Internet and apply online to receive your free credit report. Recent federal regulations require that the agencies provide this for you at least once a year. Visit a website such as FreeCreditReport or others and they will walk you through the process.

Step Two

Using your computer, go to the Lexington Law website and subscribe for their credit cleaning service. This should be done at least six months before the expected need to apply for a mortgage. Lexington Law is a fantastic service that you only need to keep until you get your mortgage funded. The $30 or so a month that the service costs can mean the difference between getting a mortgage and not getting a mortgage. They will request that you send them the credit report that you received from Step 1 above. Follow their instructions closely!

Step Three

Bank Statements: These are a MUST have. You must find all your bank statements for the last three years. If you don’t have them, ask the bank. Most all banks now provide this information online. Your bank will always provide copies going back three years. If you use bill pay services, print out the details page of EVERY online payment you made–just showing line item with a payment is not enough. You must have the details.

Step Four

Make two lists. The first list is all the utilities that you have used over the last three years. The second list is everyone that appears on your credit report such as credit cards, store accounts, cell phone companies and so on. For EVERY company listed, begin the process of collecting the original or copy of each month’s bill and a copy of the check or other payment method used to pay the bill. Yes, this is time consuming but critical. Even through your landlord does not send you a bill, you do need to have copies of all the checks or money orders that you used to pay the rent or mortgage. Go to the landlord and ask for a copy of your account ledger or ask them to prepare some letter stating that you paid your rent on time. But canceled checks are always the best proof.

Step Five

Organize the “bad” debts, or bills that you have not paid or are in a late status, by amounts due. Those that are $100 or less, pay them immediately. If you can’t do that, you can’t afford a house. Then work on those that are $250 or less. Than $500 or less. Any that are over $500, ensure that you have contacted them and are on a payment schedule. They payments need not be more than $25 a month, but a steady payment of a bad debit is essential to show responsibility and desire to meet commitments.

Step Six

Using the 3 ring binder, tape, and hole punch, begin to organize all the paperwork. It should read like a book with separate sections for Bank Statements, Utilities, Rent and Mortgages, and Creditors. Tape canceled checks and other receipts to the bills or tape on a separate page. If you are good with the computer, you can scan all the information into the computer and then print out copies as you need them.

Step Seven

When its time to apply for a mortgage, take the binder to the mortgage agent. They will be impressed and very happy.

Question and Answer

Q: I would like to buy a home, but don’t know how much to budget for maintenance. How much, on average, can I expect to spend per year?

A: You should plan to spend at least one percent of the purchase price of your home every year to cover such costs as painting, landscaping and other routine maintenance.

An older home may require more maintenance than a newly-constructed home, but this depends primarily on how well it has been cared for through the years.

It is wise of you to budget for the regular upkeep of your home. The condition of your home directly affects its value. Plus, the cost of good home maintenance is usually minor compared to the price of repairing damage that may have occurred due to neglect.

For more information on protecting your home’s resale value or for help in finding a home, call me. As your real estate professional, I am here for you.

Selecting a Homeowner’s Policy

Buying a home is an exciting milestone, and probably one of the biggest purchases you will ever make. You will want to protect the beauty and value of your home with a homeowner’s insurance policy. But how do you pick the right one? And how do you know how much coverage you need? Here’s some information about homeowner’s insurance that can help take the guesswork out of selecting a policy.

When it comes to homeowners’ insurance, keep in mind that it doesn’t necessarily matter what you paid for your home. You need coverage for what it would cost to rebuild. If you aren’t able to afford insurance for 100 percent of the home’s value, be sure you’re covered for at least 80 percent. This can be beneficial in case of a partial loss.

Among the different types of homeowners’ policies, cash-value insurance is the least expensive. This will pay you whatever your valuables would sell for at the time, which is unlikely enough to replace them.

Replacement-cost insurance will cost more, but may be worth the extra expense. This insurance will replace the items that are damaged or lost with something new. With some policies, there may be a cap of $1,000 or more to replace such valuables as jewelry or artwork. So if you have valuables worth more than the cap, consider adding riders to your policy.

Guaranteed-replacement cost insurance will offer the best coverage and has no price cap. Generally, however, it will not cover the expense of upgrading your home to meet building codes that may have changed since your policy’s issue date.

If you would like more real estate advice, call me. As your real estate professional, I am here to answer your questions.

Hurricane Preparedness Sales Tax Holiday

When: Sunday, May 25, 2008 through Saturday, May 31, 2008

What’s Exempt: During this seven-day period, purchases of certain supplies and equipment need for hurricane preparedness will be exempt from sales tax.

More information, including a printable version of this list, is available from the Virginia Department of Taxation.

Qualifying Items
Sales Price of $60 or Less
The following hurricane preparedness items may be purchased exempt of the Retail Sales and Use Tax during the “Hurricane Preparedness Sales Tax Holiday,” provided that such items have a selling price of $60 or less per item.

Artificial ice, blue ice, ice packs and reusable ice
Batteries (excluding automobile or boat batteries), including
AAA cell
AA cell
C cell
D cell
6 volt
9 volt
Cell phone batteries
Any portable self-powered light sources including
Flashlights
Lanterns
Glow sticks
Tarpaulins, plastic sheeting, plastic drop cloths, and other flexible waterproof sheeting
Bungee cords, rope
Ground anchor systems or tie down kits
Ratchet straps
Duct tape
Carbon monoxide detectors
Smoke detectors
Fire extinguishers
Gas or diesel fuel tanks or containers
Water storage containers
Nonelectric food storage coolers
Bottled water
Manual can openers
Portable self-powered radios (including self-powered radios with electrical power capability)
Two-way radios
Weather band radios and NOAA weather radios
Storm shutter devices
Cell phone chargers
First Aid Kits
Sales Price of $1,000 or Less
The following hurricane preparedness items may be purchased exempt of the Retail Sales and Use Tax during the “Hurricane Preparedness Sales Tax Holiday,” provided that such items have a selling price of $1000 or less per item.

Portable generators and generator power cords
Inverters and inverter power cables

Take advantage of every time you get an opportunity to save money!

Short Sales vs. Foreclosures

With all of the area home sales that are Short Sales and with all of the Foreclosed homes on the market buyers in Manassas Virginia and the surrounding areas have a lot to think about.

First let’s start with making sure everyone understands the differences in these types of properties.

During a Short Sale the owner still owns the home and may or may not be occupying it at the time. The home value is higher then the total mortgages currently held on the property. The owner is trying to avoid foreclosure from the bank by receiving an offer to purchase. If the sale goes through the final approval is needed by the bank to accept the offer for less then the amount owed on the loan. It’s a bit more involved but you get the idea.

A Bank Owned home has already been foreclosed by the bank and was not purchased at auction. So the home now reverts back to ownership by the bank. Banks want to sell these as they are not in the business of owning homes.

So which is best to buy? Which one gets you the best deal? How flexible is your time line?

If you purchase a Short Sale property you MUST be prepared for two things. The first is that it may take 30-60 days, maybe longer for the bank to approve the sale. And the second thing is that when that 30 or 60 day decision arrives they may say ‘no’. If they say no you are out any expenses up until then and you have to start the home search again. Sure you will get your earnest deposit back but the cost for the home inspection, the appraisal or other inspections are gone. Now you need to start looking again. The challenge is putting an offer together that in the long run, the bank will like. The seller’s will almost accept anything sometimes which is good and bad. For you it seems good but when the bank finally reviews the offer if it is out of line with a) what they owe the bank and b) what the general market value is the bank is likely to say NO.

The good thing you are doing if this does go through is you are actually helping the sellers save themselves from an otherwise disastrous situation – foreclosure. A Short Sale has less impact on the seller’s credit rating and may help them to get themselves back on track that much sooner. And I have to say there is something nice in knowing that you got a great home, at a great price and where able to help someone else along the way.

Bank Owned homes are a great alternative but not always the great deal you might think so take your time. Banks, just like the original owners are looking for market value. They are trying to a) recover their losses and b) make up for some of those losses. If you are in a time crunch Bank Owned homes help you stay on track a bit better then a Short Sale. Both are often sold in AS-IS condition meaning ‘buyer beware’. Make certain to have a home inspection even if they sellers are stating AS-IS. Consult with your Realtor as you should be able to make an offer with using a Home Inspection as the right to ‘Void the Offer’. This would simply state that if you find things during the inspection, even if the owners will not correct them, you should have full rights to void the offer and get your earnest deposit back.

Everyone wants a great home at a steal of a price. They are out there but do your homework and you just might find just what you are looking for.

Hello world!

The beginning of something new and interesting! Enjoy with me!