What's in the New Home Buyer Tax Credit for Me?

Well...if you have not owned a home in three years (aka "first time homebuyer") and you purchase a home that closes between January and December 1, 2009, and you make $75,000 or less (single) or $150,000 or less (married couple), then you get up to an $8,000 credit on your 2009 income tax!

This is great news for folks wanting to purchase a home for the first time!

Click on the link http://www.bobparks.com/resources/tax-credit/ to check out the details for yourself.

With rates as low as 4.875% for a 30 year mortgage, this would be an awesome time to start considering a home purchase if you are a "first timer", and can qualify for a loan. FHA loans require 3% down payment and conventional loans, typically 10-20% down, so start stashing away and let's start looking at a home!

Contact me at Dawne@bobparks.com for more information.

Mortgage Refinancing Tips

REFINANCING?

Don’t believe everything you hear on TV, radio or the internet about low rates. Each situation is unique. Before lenders can effectively quote rates, they need to know a lot of individualized information such as your credit score, how much your home is worth and how much you will be borrowing.

The Whole Picture: There’s more to consider when refinancing than just a lower monthly payment. A lender may quote you a lower payment, but refinancing still may not make sense when you factor in your up-front costs such as application, appraisal and credit report fees, and your back-end costs such as extending the length of the loan again to 30 years, title insurance, private mortgage insurance (PMI) and closing fees. A qualified mortgage professional will help you assess these costs so you can make an educated decision about refinancing.

Longer Time Frame: The mortgage industry is operating with much smaller infrastructure and fewer people than just a year ago. With historically low interest rates, and many customers refinancing their loans, this extra strain will slow the process down. Be patient and lock your interest rate for the longest period you can (without paying any fees) so potential delays don’t affect your lower rate. Stay in touch frequently with your lender to monitor the progress toward closing and cooperate by providing requested records quickly.

New Set of Rules: Understand the rules are different now. Many loan products that were available before and customers may be accustomed to, are no longer available. Lenders now ask for a lot more information on applications, and not everyone will qualify. Institutions are reviewing policies frequently and it is not unheard of for loan guidelines to change “mid-stream”. New regulations are being put in place which could affect loans in process as well.

For a qualified mortgage professional, click on my Mortgage Professionals link below.