DON'T APPLY FOR A CREDIT CARD

The holidays are upon us. On TV this morning they were talking about pitfalls of credit cards this shopping season. One thing they mentioned that I wanted to pass on: If you're house-shopping, it's a very good idea NOT TO APPLY FOR ANY NEW CREDIT!
With minimum credit scores and no leeway on qualifying ratios, applying for a new card might lower your ratio or put your debts too high and you could loose that house you were planning on buying. I'd hate to see anyone unable to get a loan because their score was to low because they opened an Old Navy card to save $10 off their purchase. RESIST THE TEMPTATION to open any new credit if you're trying to get a home loan. Even if you've already been to your lender, that credit report can't be more than 120 days old or we have to do another one. Your score may have been high enough, but with inquiries and new credit, a new report might get your loan denied.

SOME MORE HOOPS TO JUMP THROUGH!

Today's topics: Home inspections and property flipping

I'm not surprised it's happened, but Rural Housing is asking for copies of the home inspections and every repair noted in the home inspection needs to be done before closing. In the past, they didn't ask to see home inspections, just relied on the appraisal. Now if a home inspection is in the offer or on the HUD, they want to see it. In the past, we never had to provide home inspections. We've got a loan right now where Rural Housing requested the inspection. They want windows fixed that are stuck shut, electrical outlets fixed, and the home inspector has to go back out and confirm the repairs have been done.

Property Flipping: A home can not be sold that transferred ownership in the past 90 days. If it is selling and was sold within the past year, it may require additional info and two appraisals.

What wonderful news!

Effective January 1st, FHA appraisals will be ordered through the Appraisal Management companies. This is a sore subject with me. They could just go back to the old system where FHA assigned the appraiser, but instead they are requiring the use of a 3rd party, adding additional time, and more expense for borrowers.

I know there's reasons for all these rules, but sometimes they go a little too far to the extreme and it hurts borrowers.

Together we'll get through it!

REPEAT HOMEBUYER TAX CREDIT

With the last 2 home buyer tax credits, you couldn't have owned a home in the past 3 years. With the extension and amendment to the tax credit, someone who hasn't owned in the last 3 years (1st-time buyers) are still eligible for up to $8,000 if they qualify, but now repeat buyers buying a primary residence who have owned and occupied a home for 5 of the last 8 years can get a tax credit up to $6,500.

This is fantastic news! Call me for details!

HOME BUYER CREDIT

It was official on Friday November 6th. The BUYER TAX CREDIT was extended and amended. For those who have not owned a home in the last 3 years, the 10% of sale price up to $8000 tax credit was extended. It was also amended to include a credit of up to $6500 for borrowers who occupied a primary residence 5 out of the last 8 years if they purchase a new primary residence. If they own now or owned recently, then can still get up to $6500. Income limits were also increased.

You have to have an offer accepted by April 30th and the loan must close by June 30th, 2010.

Call me for details.

MALL OF AMERICA TRIP

Had a blast at the Mall of America Thursday. Bonnie Oliver, Jean Farve and I met Kelly Overgard for lunch. After 3 hours of catching up our faces hurt from laughing so much. Thanks THE TITLE COMPANY for putting on the trip.

BUYER TAX CREDIT NOW LOOKS LIKE DONE DEAL

The home-buyer tax credit looks like it's a done deal. All it needs now is President Obama to sign, which should happen today! Yipee!!!

It extends the tax credit of up to $8,000 for 1st-time buyers. Offers must be accepted by 4/30 and the loan MUST CLOSE by the end of June, 2010. It also offers a $6,500 tax credit buyers who have owned their home for the last 5 years and want to upgrade.

I'll get you details as soon as their officially out. Income limits have also changed, so keep checking my blog.

Jolyn

$8,000 tax credit extension not a sure thing yet!

There's a lot of loan officers and lenders out there telling people the $8,000 tax credit was extended. IT IS NOT! It was passed in the Senate, but now goes to the house.

When it's approved by everyone, I'll sure let you know. You can always call me if you hear something and want to know the real truth about it. If I don't know the answer, I'll do the research and find out.

Your trusted mortgage expert,

Jolyn