Tag Archives: credit

Homebuyer Tax Credit Closing Deadline Extended

Posted on by
Reply

 Late last night, the United States Senate passed an extension of the Homebuyer Tax Credit closing deadline.

Known as the “Homebuyers Assistance and Improvement Act of 2010,” the bill was passed by unanimous consent. The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed.

This legislation is designed to create a seamless extension, and the new closing deadline for eligible home sale transactions is now September 30, 2010. There will not be any gap between June 30 and the date the President signs the bill into law.

Congress Considering an Extension to the Home Buyer Tax Credit

Posted on by
Reply

Last fall, Congress extended an $8,000 tax credit for first-time homebuyers and added a smaller $6,500 credit for current homeowners who were buying a primary residence. To qualify for the credit, buyers had to sign purchase contracts by April 30 and close on the home by June 30.

As the cutoff to qualify for the federal tax credit looms on the horizon, Congress is considering an extension for homebuyers who are racing to close home sales in order to receive a federal tax credit.   

Experts in the  real estate industry warn that many buyers who rushed to buy homes to qualify for the tax credit may not close before the deadline, and this would result in home buyers losing out on thousands of dollars if lawmakers don’t act.

One of the major issues is that there are a large amount transactions that need to be completed, and the companies responsible for handling the sales, including mortgage lenders, appraisers and title insurers and real estate brokers, are struggling to keep up.

New Home Sales Surge – Biggest Jump in 47 Years!

Posted on by
Reply

According to CNN.com, new home sales jumped in March at the fastest single-month rate in 47 years!

It seems buyers are busy making purchases ahead of the tax credit that’s set to expire.

New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The increase ended a four-month streak of declines.

The March sales were the strongest since last July, and the percentage gain was the biggest on a month-over-month basis since a 31% gain in March 1963.  The increase was seen in every region of the U.S.; with the South leading the way with a 43.5% increase.    

Keep an eye out for the Coldwell Banker Buyer Bonus set to start at the beginning of May.

How will the extended and expanded homebuyer tax credit impact housing?

Posted on by
Reply

How will the extended and expanded homebuyer tax credit impact housing?

  • We applaud Congress and President Obama for passing the Worker, Homeownership, and Business Assistance Act of 2009.  The ensuing tax credits for first-time homebuyers, which is an extension of the popular plan that was set to expire on November 30, and move-up buyers is the true definition of stimulus.  According to NAR, approximately $63,000 is put back into the local economy for every home sold.  Economist Mark Zandi of economy.com believes that figure to be about $56,000.
  • The first-time tax credit was working, but what housing and our national economy needed was incentive for the move-up buyer.
  • The first-time homebuyer’s tax credit remains at $8,000 for most buyers who have not owned a home the previous three years who have a signed sales contract prior to May 1, 2010 and close before July 1, 2010.  The new plan also allows for a higher cap of $125,000 income for singles and $225,000 for married couples. 
  • Current homeowners who have lived in their homes for five consecutive years over the previous eight years, can take advantage of a tax credit of up to $6500 for the purchase of their next primary residence of up to $800,000.  Again, the contract must be signed before May 1,2010 and the deal closed before July 1, 2010.

Tips to Maintain & Improve Credit Scores

Posted on by
Reply

credit-scoreThe economy is on shaky ground, and credit is tight; credit scores are crucial in today’s housing market.  Here are 9 tips that will prove to be helpful in improving your credit score. 

 

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

 

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

 

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

 

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

 

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

 

 

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

 

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

 

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

 

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

Home Buyer Tax Credit Extended

Posted on by
Reply

The House of Representatives voted last Thursday to extend the first time homebuyer tax credit.  The bill was approved with an overwhelming 403-12 margin in Congress.  On Friday it was passed to the White House and enacted as law by president Obama.

 

Jim Gillespie, CEO of Coldwell Banker LLC, played a key role in the extension of this bill.  Gillespie and many other leaders in the real estate industry have been activists for this cause.  They have fought for almost a year now to have the bill extended, and in a email he sent out to Coldwell Banker associates he states,

“This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in Coldwell Banker’s Legislative Week, which was the springboard for my meetings on Capitol Hill, as well as the numerous other legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.”

 

The Senate was also commended by the National Association of Realtors for the extension.  NAR estimates that the current tax credit aided about $22 billion in home sales.

 

Bill Details:

·         Extends the present $8,000 tax credit for first-time home buyers through April 30, 2010.  

·         Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

·         If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction.  

·         Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples.

·         The purchase price of the home cannot exceed $800,000. 

·         To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

Government Unveils New Mortgage Assistance

Posted on by
Reply

freddie-mac-fannie-mae

The Obama Administration is sending more help to the housing market. 

 

On Monday, a new government program was revealed that will help support local and state finance agencies.  The plan will help finance mortgages for first-time homebuyers and also create more properties that will be available for rent. 

 

Recently, these agencies have had a difficult time raising money due to the credit crunch and the state of the housing market.  These agencies have sold about $4 billion in tax-exempt bonds this year.  This number is down from the past which is putting a limit on the amount of loans they can make. 

 

The new plan from the Obama Administration will use Fannie Mae and Freddie Mac to help alleviate some pressure on credit.  Together, the companies will package their mortgages and sell them as bonds to the treasury department. 

 

“It’s an additional layer of assistance to borrowers who are seeking a mortgage at a time when credit is scarce,” said Howard Glaser, a mortgage industry consultant in Washington. “It doesn’t solve all the problems of the housing market, but every little bit helps.”

Still Time to Take Advantage of Homebuyer Tax Credit – Coldwell Banker Agent Makes the Case on the Today Show

Posted on by
Reply

Congratulations to Coldwell Banker sales associate Jessica Riffle with Coldwell Banker Sea Coast in Wilmington, North Carolina, who was selected to serve as a guest blogger for the Today Show!

Jessica saw Tuesday’s Today Show segment where real estate contributor Barbara Corcoran suggested that it would take a “miracle” for new homebuyers to take advantage of the $8,000 first-time homebuyer tax credit as there was essentially no time left. Jessica saw this and wanted the world to know that’s simply not true.

Jessica expressed her opinions to the Today Show and the producers invited her to be a guest video blogger. Jessica then submitted her video response and posted on Coldwell Banker On Location You Tube channel, outlining why there is indeed still enough time.   Click here to see the video.

To see the same video on the Today Show page, click here.

A discussion on Jessica’s Today Show blog has also appeared on our Coldwell Banker Facebook page, as several people are weighing in on the subject.

Jessica deserves kudos for taking advantage of Coldwell Banker On Location to make her points known.  To date the channel has had nearly 450,000 viewed videos and Coldwell Banker professionals have posted more than 5000 videos. 

Great job, Jessica!

 

 

Real Estate Experts are Lobbying for an Extension/Expansion to the Home Buyer Tax Credit

Posted on by
Reply

As Many as 40% of all home buyers this year will be eligible for the $8000 tax credit.

The stimulus plan is scheduled to end in November, and it is projected to cost the federal government $15 billion.  This is two times the amount that was estimated when the bill was passed in February.

Many people are beginning to wonder if the housing market will continue to stablize without the tax credit.  Experts estimate that the tax credit helped aid several hundred thousand home sales.

The real estate industry, including the powerful 1.1 million-member National Association of Realtors, wants Congress to extend the credit at least through next summer. The group hopes to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market for at least three years, to qualify.

The price tag on that plan: $50 billion to $100 billion.

Lenders Are Ready; It’s Borrowers That Are Skittish

Posted on by
Reply

The following article has some great information on the financial crisis that we are facing as a nation.  In case you are really not sure where the credit market stands, this article could provide you with some great insight.  Maybe its not as hard as people think to get a loan these days?

http://www.newsobserver.com/business/story/1285522.html