Scott Cowan, a Realtor with Keller Williams and a blogger at ClassicHomesNorthwest.com wrote a great post about taking advantage of the $8,000 tax credit. If you’re not ready, or you just can’t find the house you want, disregard the urgency of this message. But if you’ve seen lots of places that could work for you and you’re committed to taking advantage of the credit- pay close attention:
If you have not had an offer accepted by a seller by the end of this week October 18th. 2009 the chances of you closing on time to receive the tax credit are just about nil. If you do not have your financing in place the first thing you must do is to call a lender MONDAY OCTOBER 12th. and get them all of the information they need ASAP so that they can tell you if you are qualified to buy a home and how much you are qualified. If you are going to try to use USDA financing you are most likely out of luck as the USDA loans take longer than 45 days to close. VA buyers you are really, really cutting it close as you will need the VA appraisal to be taken care of quickly and they are running upwards of 3 weeks now.
He goes on to give time frames for different transactions which are pretty spot on. Remember to check with your own lender as closing times vary from place to place. My experience with bank owned properties is that they have been pretty cooperative with getting a deal closed in 30 days- the only trick is getting it signed around in less than a week.
For a refresher on how the tax credit works watch this video.
No one can predict the future, but when a city the size of Tacoma, (often in the shadow of larger northwest cities when it comes to real estate reporting) is declared the best bet for price appreciation from 2008-2013, it’s hard not to be flattered and excited.
I live in Tacoma and I love this city. Nothing would make me happier than seeing that kind of appreciation. Regardless of how much stock you put in the Case-Shiller Index, it’s great to see good things said about Tacoma. Go back and look, I didn’t see the word “Seattle” anywhere in that article…
This year in Washington State we have new legislation designed to prevent homeowners in danger of losing their homes from being scammed. Freddie Mac recently released this video explaining how the scam works and how to protect yourself. It’s a little cheesy, but you get the message:
Remember, don’t sign paperwork without talking to a Lender, an attorney or a Realtor that you trust. Or, contact the counselors from the State of Washington at 1-877-894-HOME or visit their webpage here.
Last week credit companies made some changes to how your FICO score is calculated.
If you are buying a house, refinancing a house, or renting an apartment- you are being judged based on your credit score. I am not one of those people who advocates being obsessed with your score. I spent two years of my life obsessively reading and worrying about how every minor financial event in my life impacted my score, which is silly. Obsessing about credit is unhealthy, but understand the scoring process staying on top of how to put your best foot forward to creditors is a good thing!
Credit scores range from 300-850. The lowest I have ever encountered was a 463, the highest I’ve seen was 840. Both of those people made about the same income, it was all about how they managed their money. The average credit score in america is about 678. If your score is 700 or above, your interest rates should be low and credit should be readily available to you.
Here’s one way to increase the pool of home buyers: Allow more skilled immigrants to enter the United States legally. Erik Emery wrote a post on a Thomas Friedman article in the New York Times that says we should do exactly that.
“All you need to do is grant visas to two million Indians, Chinese and Koreans,” said Shekhar Gupta, editor of The Indian Express newspaper. “We will buy up all the subprime homes. We will work 18 hours a day to pay for them. We will immediately improve your savings rate — no Indian bank today has more than 2 percent nonperforming loans because not paying your mortgage is considered shameful here. And we will start new companies to create our own jobs and jobs for more Americans.”
So… people come here to start companies that employ people and buy houses. Sounds good to me. Click here to read the full article.
The New York Times has a great article out about some of the new tax breaks available to people buying, selling, and improving their homes!
Among the highlights, more information about the $7500 home buyer credit, a new tax break for widows & widowers, residential energy credits, and more. It also points out which tax breaks are being looked over by congress that might be coming down the pike soon.
Tax time is getting closer, if you own a home (or plan to buy one this coming year) this is essential information. So read this article and then call your tax professional.
Thanks to my #1 Client Matt for sending this my way!
The New Tribune is reporting that the City of Tacoma has the opportunity to claim 2.9 Million of the 3.9 Billion Dollar Housing Bill congress passed in July.
“Pierce County is eligible for about $4.4 million, and the City of Tacoma is eligible for about $2.9 million. Both amounts are the highest in the state, because both areas have the highest foreclosure rates.
Local officials acknowledge the program’s limitations.
“Three million dollars in the housing market is a grain of sand,” said Rick Teasley, housing division manager for the City of Tacoma. “At the very best, we can hope to help maybe 100 to 200 home buyers get into houses.”
Everyone is going to have lots of opinions about how this money can best be used, the problem is (Like Rick Teasley says above) 2.9 million is not a ton of money. To put that in perspective that is 12.6 houses at our County’s median home price of $230,000.
I get this question all the time. I’m sure every Realtor does. These days every accountant, grocery checker, and therapist probably does too. Sometimes I get it from first time homebuyers, sometimes from people who’ve bought and sold several houses. My answer varies. Sure, housing inventories are high and buyers are calling the shots on price and terms- but for a person who is serious about making wise decisions, the answer to your question depends on more than just the climate in the housing market. It depends on where you are financially, if you plan to move out of the area in the the next 3-5 years, or if you’re going to have 3 babies in rapid succession…
