Homebuyer Tax Credit to be Extended and Expanded

The Senate has voted to extend and expand a popular tax credit for homebuyers that was scheduled to expire Nov. 30. The House is expected to schedule a quick vote on the bill, part of a package that also extends unemployment benefits for people out of work more than a year. How the homebuyer tax credit would work:

Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.

Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.

Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.

Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.

How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.

By The Associated Press (AP)

End of October Sales Results

Not a bad October! Let's keep it up in November!

Mortgage News

A recent Wall Street Journal article about the first-time homebuyer tax credit cautions buyers under contract to wait until after closing before purchasing appliances, furniture or similar items on credit.1 The article notes that some mortgage lenders are running credit reports on closing day, and even an additional credit inquiry (let alone a purchase) may raise a red flag that could require additional documentation and potentially delay closing.

At Century 21 Mortgage®, we know how important it is to make the mortgage process easy for you and your customers, and to close on time. In keeping with that commitment, here are some insights you can share with your buyers regarding how lenders view credit to ensure a smoother mortgage experience.

Lenders need to know: can your customer afford the payment? Before offering a loan, the lender examines debt-to-income (DTI) ratios. If a buyer under contract takes on additional debt, then that could change the ratio—potentially making the mortgage unaffordable. That’s a situation that both lenders and buyers want to avoid.

Lenders make a loan offer based on 3 to 4 months banking history. By looking at your customer’s bank statements over several months, a lender has a pretty good idea where your customer’s money comes from and where it goes. An unusually large withdrawal or deposit before closing may require further documentation, so the lender knows the customer isn’t accumulating additional debt.

Lenders want to know the customer’s track record at paying their debts. That’s where the credit rating comes in. If a new credit report is pulled before closing, it suggests that the consumer may be looking to acquire more debt—and this could jeopardize the affordability of the mortgage.

In summary: For buyers under contract, credit purchases and credit inquiries can raise red flags, prompting a lender to ask for additional documentation. A buyer’s best bet is to work with a lender who will take the time to offer professional guidance and explain up front exactly what they need to do to close on time.

Beginning of October Comments

The season is changing, another year is nearing an end and most would agree that we are beginning to see gradual and consistent signs of recovery in our real estate market and the economy in general. Some of these trends can be painfully slow to detect and difficult to translate depending on which media outlet has put their spin on newly released housing and economic data. The important thing to consider is that most experts agree we are headed in a positive direction. It is also important to not get disappointed during our typical holiday slowdown that is right around the corner and realize it is just a seasonal fluctuation and not a negative indication of the overall direction of our healing real estate market.

$8,000 First Time Buyer Tax Credit Ends November 30th

Revolutionary Century 21 iPhone Application

Consumers are changing the way they want to be communicated with by brands. There was a time when one way advertising – like radio and television – was compelling enough to drive home buyers to our doors. Today's savvy consumers want to engage interactively in brand communications. They also want information immediately.

CENTURY 21® Real Estate is delivering what consumers want! We are pleased to announce that we are launching a branded iPhone application for real estate consumers in October, 2009!

This iPhone app will be a highly functional tool that is Gold Standard, bringing CENTURY 21 innovation to life. It will deliver local listings and community information through GPS. With the touch of an iPhone button, consumers will be able to review all the listings and open houses in any neighborhood. Buyers researching local neighborhoods or pondering a cross-country move can enter any location nationwide and view neighborhood information, property values and school ratings.

With this new app, consumers can use the built-in camera to take photos of properties. They can also add personal notes and attach them to the saved listing.

Century 21 Real Estate Professionals Rental Website

www.c21rep.com, the Property Management and Rental Website for Century 21 Real Estate Professionals, exceeded 750 customer leads this week. The site was launched in September 2007 and has seen a huge increase in traffic as of late.