Jul
3
Tax Credit Extended for Veterans
Posted by marchantteam under Buyer Information, For Buyers, General Information, Loans
With the holiday weekend, your Fishers Realtor is taking some time off. This is a guest post from James Kelly, a VA lender. James blogs on veteran’s issues and real estate across the United States and proudly serves American military families as the nation’s premier VA Lender.
This Sunday is Independence Day, and as you celebrate our nation™s independence this weekend, remember to thank the men and women who serve this great country and keep it alive.
If you are in the military or if you who know someone who is, there is some good news that you should be aware of: Service men and women can still purchase a home and receive the $6,500 or $8,000 tax credit that, for everyone else, expired on April 30. Also a good point: you can use a VA Loan to purchase the home, which has many benefits of its own, and still receive the credit.
To be eligible for the tax credit, you must have served at least 90 days overseas between Jan. 1, 2009 and April 30, 2010.
The credit is commonly referred to as the œ$8,000 first-time homebuyer tax credit, but do know that the credit isn™t automatically $8000; rather it is 10 percent of the home price up to $8,000. Also, a œfirst-time homebuyer means that neither you nor your spouse has owned a home within the past three years. If you are not considered a first-time home buyer, you are still eligible to receive up to $6,500 as a repeat buyer. There are a few additional VA home loan requirements, along with the service time, that you must meet in order to qualify for the credit (both for first-time and repeat buyers):
- The purchase price cannot be more than $800,000
- For single men and women, your annual income cannot be more than $125,000 annually
- Married couples who file jointly cannot have a combine annual income of more than $225,000
- You must be under contract by April 30, 2011 and close by June 30, 2011
Some have voiced concerns over the chance that they will have to relocate because of deployment, but feel safe in knowing that the bill states that they cannot reclaim the credit if you need to sell or rent your home.
While the credit is gone for the general public, it is great to see it is available for those that serve our country!
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Jan
18
Avoiding Mortgage Application Pitfalls
Posted by marchantteam under For Buyers, General Information, Loans
Hello Fishers Readers! I’ve been out of town all week and asked for some help in writing on the Fishers Real Estate Blog. Jon Knight quickly accepted the challenge. He has over 16 years experience in the mortgage industry as both a mortgage broker and a mortgage banker. He is currently the Branch Manager for Primary Residential Mortgage, Inc. located in Fishers, Indiana. 
If you are considering a buying a home in Fishers or are looking to refinance your existing mortgage, there are a number of potential pitfalls that you must be aware of prior to making loan application. Some of these pitfalls can become extremely costly and in worse-case scenarios can even result in loan denials. It is absolutely critical that you prepare yourself accordingly prior to loan application.
Get Your Ducks In A Row
A loan application can best be described as a tool by which a mortgage lender can make a thorough œassessment of a client™s ability to repay the loan requested and also ensuring themselves sufficient collateral to back the loan. This assessment involves the review of four main borrower-related items.
They include Income, Credit History, Liabilities, and Assets. Keep in mind there are items that are also reviewed that you have no control over, such as appraised value, chain of title, deed restrictions, encumbrances, etc.
Here are examples of potential pitfalls as they relate to these four items and what you can do to prepare (obviously not all inclusive, but these are the most typical issues):
Income ·
- Self Employment: If you are self-employed you need to be very careful how much you œwrite off in the two tax years prior to making loan application. Your last two œfiled tax returns will be used as your income basis. The past 2 years adjusted gross income will be averaged.
- Commission Income: A 2-year history of commission income will be required if it is your intention to utilize that income to qualify. This income will be averaged as well over the 2 years. Watch your œunreimbursed business expenses on your tax returns. These will be deducted from your income.
Credit ·
- 12- month rule: If you have late payments on a mortgage, rent payments, installment debt, credit cards, etc. in the last 12 months, you are going to find it difficult to get loan approval. While 1 or 2 late payments on a credit card may not kill your chances, late payments on a mortgage and/or rent certainly will.
- Credit, after application: Make absolutely sure you are not late on any debt between the time you make application and when you close. Credit reports can be updated at any time by lenders.
- Credit Inquiries: Limit the number of credit applications you make in the 90 days prior to making application. These inquiries can impact your score negatively. You will be asked to explain them as well.
Liabilities ·
- Debt Ratios: Conventional loan approvals now require 45% total debt ratios or lower. Take all your debt, including the new mortgage payment, and add it up. If it is more than 45% of your income, you won™t qualify. FHA still allows debt ratios above 45%, but they are starting to look very closely at lowering their limits as well.
- New Debt: Do not apply for any new debt between the time you submit your loan application and the time the loan is closed. Not only can the new debt significantly impact your debt ratio if discovered, it can also negatively impact your credit score.
Assets
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Bank Statements: Watch out for large deposits that are hard to explain. If a large deposit shows up on the bank statements you provide to your lender, be prepared to explain and document them. Do your best to avoid making large deposits for approx. 90 days prior to loan application.
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NSF™s: It should go without saying, but avoid any and all NSF fees, overdraft fees, and bounced-check fees on any bank statements at least 90 days prior to making loan application.
Obtain a free consultation prior to making formal loan application easily. You can call Jon directly at 317-567-2307 or email him at jknight@primeresindy.com to discuss your specific situation.
Thanks Jon!
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Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
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Jan
6
Fishers Realtor explains Cap and Trade
Posted by marchantteam under Buyer Information, For Buyers, For Sellers, General Information, Loans, Real Estate Terms A-G
There is quite a bit of controversy on the Cap and Trade being discussed; this is more than just the regulation of pollution emitted into the atmosphere. Their is language being discussed around cap and trade for things that we use daily like gas, electric, etc. I’m not here to debate the issue but to give you some ideas on how it might be used in a conversation about Fishers Real Estate.
We recently had some folks in from Langdon Mortgage Company to talk with the Marchant Team. Here are some tidbits I picked up:
- You can borrow 5% over the appraised value for energy efficient items such as insulation, windows or furnace for example.
- You can borrow an additional $2,500 over the above for weatherization items.
- If you spent $5,000 for a new furnance/air conditioner; it would cost you about $28.00 more a month and chances are you would save that in utility costs.
This is important as we think about both “being green” and about cap and trade. Reducing the consumption of utilities is going to become more important over time. This EEM (Energy Efficient Mortgage) isn’t available to JUST new home buyers, exisiting home owners can put the purchase of these items in their mortgage as well.
Want to know more? Send me a quick email and I will put you in touch with the experts at Langdon Mortgage to see if the program is right for you!
I like to update the Fishers homes for sale statistic in each blog, so as of today there are 677 homes for sale and 136 are under $150,000.
Search homes for sale in Fishers by Neighborhood
Other Northside Blogs (Carmel, Noblesville, and Geist)
Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
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Jun
19
Fishers Realtor talks about Appraisals
Posted by marchantteam under For Buyers, For Sellers, General Information, Loans, Tips and Random Thoughts
HVCC or “ha
voc” as I call it is changing the way appraisals are performed in all areas of the country, including the Fishers Real Estate market. The Home Valuation Code of Conduct became effective on May 1, 2009. It was developed by the New York State Attorney General and somehow became a National solution. I use the term “solution” loosely. I think the intent is valid and probably necessary, the execution has flaws.
The code requires a third party, called Appraisal Management Companies (AMC’s) to act as a liaison between lenders and appraisers. In our area, one such company is called Streetlinks. The essence is that lenders can no longer select qualified appraisers to complete the loan application. They work through a third party and an appraiser is selected. Here are just my favorite three problems with the current HVCC.
- It can be an appraiser unfamiliar with the area/county that the selected property is in.
- The timing is up to the third party and can take up to 3 weeks to complete (this from my personal experience). This will affect the consumer as they may require a longer rate lock period. It is an appraisal mess as Inman News puts it.
- The cost to have oversight will be passed on to the consumer and taken away from the appraiser.
I have interesting stories as this unfolds. One appraisal used ONLY bank owned in the appraisal even though the neighborhood had other strong comparables. I have seen buyers required to bring 8.5% rather than 3.5% as their down payment on an FHA loan as a result of the appraiser marking “declining market” on the appraisal. (I was able to pull comparables for 2008 and 2009 to get this changed; the benefit of having an experienced Realtor list your home!). I have seen an appraisal for $210,000 and $228,000 on the exact same floor plan in the same neighborhood. So, yes there are problems with the current HVCC and if you have read this post and some of the related articles, I hope you will go one step further and sign the HVCC petition. There are currently 35,422 signatures as of June 19th.
Other Related Reading:
National Association of Mortgage Brokers Position Paper
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Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
One Response to “Fishers Realtor talks about Appraisals”
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Jun
17
Fishers Real Estate and Rising Interest Rates
Posted by marchantteam under Buyer Information, For Buyers, General Information, Loans
This is a great clip from Keller Williams on the rise in Interest Rates and how it might affect a first time home buyers decision to purchase a home.
Specifically today; the rates are very favorable so if you have applied for a loan, talk to your lender about locking. If you are beginning to think about buying a new home, you have about five months left to find the home, get the loan and close on the transaction and qualify for the $8,000 of monies, so please call me or email me today and let’s get you started!
Search homes for sale in Fishers by Neighborhood
Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
One Response to “Fishers Real Estate and Rising Interest Rates”
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Good point for first time homebuyers in Fishers and their window to get the tax credit.
Great explanation of Havoc, Cindy. I hope consumers as well as real estate professionals get involved and sign the petitions circulating. Just because the changes have good intentions doesn’t mean they actually carry out a fix. This is a case where the fix is creating more of a mess than the original problem. They need to re-think the fix.