Low Rate Mortgages - Mobile Alabama, Low Rate Home Loans, Mobile Alabama

Just want to remind you that when the Hurricane crosses the 20 degree Lat and 30 long lines Insurance companies stop writing policies that being the case it looks like that will happen sometime early Friday morning. Please pass this information on immediately to any of your clients who may have a potential closing this week.

Lets pray that we don't have to deal with Hurricane.

Familiarize yourself with the terms that are used to identify a hurricane.

• A hurricane watch means a hurricane is possible in your area. Be prepared to evacuate. Monitor local radio and television news outlets or listen to NOAA Weather Radio for the latest developments.
• A hurricane warning is when a hurricane is expected in your area. If local authorities advise you to evacuate, leave immediately.
• Hurricanes are classified into five categories based on their wind speed, central pressure, and damage potential. Category Three and higher hurricanes are considered major hurricanes, though Categories One and Two are still extremely dangerous and warrant your full attention.

Since I posted the FAQ about the 7500 first time home buyers tax credit, I have been ask to explain this a little more in layman's terms. http://activerain.com/blogsview/647879/75-Tax-Credit-FAQ

I was emailed this article ( I hope its helpful )

First-time home buyers who purchase(d) a principal residence on or after April 9, 2008 and before July 1, 2009 are eligible for the credit. A first-time home buyer is defined as an individual who has not had an ownership interest in a principal residence in the three-year period before the date of home
purchase, and someone who has never taken advantage of the first-time home buyer credit available to residents of Washington, D.C. (see below). In the case of married couples, both must be first-time home buyers.

For other groups purchasing a home, the statute is less clear. Take a couple who is planning to be married in 2009. The bride-to-be and her fiancé purchased a home on June 1, 2008. She previously
owned a home in 2006 while her fiancé has never owned one. The bride will not qualify for the tax credit for the 2008 purchase because she owned a home after June 1, 2005 (three years before the date of the couple's purchase). But, since both were single when they purchased the home, the groom may
qualify for the credit. He may be eligible because both of them will file tax returns as Single for 2008. (If they married in 2008, neither would be eligible). When purchasers file a joint tax return, both
must be first-time buyers.

Obviously there are other types of households, and in some of these cases the statute could be somewhat ambiguous. As for any major financial investment, purchasers should consult a tax advisor.

Income Restrictions

There are some income restrictions with this program. Those restrictions are based on the tax filing status the purchaser claims when filing his/her income tax return. The maximum income for individuals filing as "Single" (or "Head of Household") is $95,000; individuals filing a joint return may have income of no more than $170,000.

How Does it Work?

The credit directly reduces the total amount of taxes owed and is refundable. When the buyer files his/her taxes, for the year he or she purchased the home (2008 or 2009), the taxpayer will be able to subtract the amount of the credit from his/her Federal income tax liability, increasing their refund
or reducing the amount owed.

The amount of the credit is based on the price of the home being purchased. The tax credit is equal to 10 percent of the purchase price of the home up to $7,500. The full credit is available for single buyers whose adjusted gross income is less than $75,000. If the buyer's adjusted gross income is greater than
$75,000 and his/her home purchase qualifies the buyers for the full credit, the credit phases out. For married couples filing jointly, the credit begins to phase out at an adjusted gross income of $150,000 (for details, see charts).

The tax credit is not completely free money for buyers to keep. It has a payback provision that makes it similar to an interest free-loan. Two years after the credit is claimed, buyers will have to begin repaying that "loan" so that the credit is paid back in full over the course of 15 years. For first time buyers who qualify for the full credit, the payback amount is $500 per year. Those getting less than the full credit pay equally over the 15 years (which is a rate of 6.67% per year).

If a qualifying home is resold before the credit is repaid, the seller will have to immediately pay the outstanding balance of the credit. If the home is sold at a loss, then nothing more is owed.

Other Eligibility Conditions

A home buyer tax credit has been available for first-time buyers in Washington, D.C. for many years. But buyers cannot claim both the DC and the national first-time home buyer tax credit. In addition, purchases by non-resident aliens and purchases financed by proceeds from a qualified mortgage issue are not eligible. Home purchases between relatives and other gifts of residences are not eligible for the credit. Also, the credit is good only for a principal residence located in the United States. This includes
single-family detached housing, condos or coops, townhouses or any similar type of new or existing dwelling.

Ceteris Paribus

Even with the above exclusionary factors, first-time buyers purchasing a home will reap the other benefits of homeownership. They will be able to deduct their mortgage interest payments on their
taxes, as well as their property taxes. In addition, when they sell that home, those owners will be entitled to the capital gains tax exclusion. And of course, these first-time buyers will at last be able to
feel the pride and security of owning their own home.

You may think that shopping for homes starts with jumping in the car and driving all over town. And it's true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long - if weeks go by without finding what you're looking for, the fun can fade pretty fast. That's why we say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself

1. What do I want my home to be close to?
2. How much space do I need and why?
3. Which is more critical: location or size?
4. Would I be interested in a fixer-upper?
5. How important is home value appreciation?
6. Is neighborhood stability and priority?
7. Would I be interested in a condo?
8. Would I be interested in new home construction?
9. What features and amenities do I wasn't? Which do I really need?

When searching for your dream home, you were just that - a dreamer. Now that you're writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective o your market. The three basic components of an offer are price, terms, and contingencies.

Price - the right price to offer must fairly reflect the true market value o fthe home you want to buy. Your agent's market research will guide this decision.

Terms - the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

1. Schedule - a schedule of events that has to happen before closing.
2. Conveyances - the items that stay with the house when the sellers leave.
3. Commission - the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
4. Closing costs - it's standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
5. Home warranty - this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
6. Earnest money - this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

Why would a first time homeowner want to buy a house in todays market

Simple

A temporary tax credit up to 7500 ( 1st time or not owned in past three years )

single is less than 75k income ( allowed )

married less than 150 k income ( allowed )

Not to be paid back until 2010 and over 15 years or the sale of the house.

This will make up for the loss of a lot of DPA's we have been using in the past.

The part of the bill I don't like is 1/1/09 is the Capital Gains Exclusion for personal home sales will move to 40% exclusion for the 2 of last 5 year rule ( was eligible 250k for single & 500k for married ) people who sell in 2008 are exempt.

Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list. We call home ownership the best "accidental investment" most people ever make. But, we believe when it is done right, home ownership becomes an "intentional investment" that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

1. If you are paying rent, you very likely can afford to buy
2. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run
3. The lack of a substantial down payment doesn't prevent you from making your first home purchase
4. A less-than-perfect credit score won't necessarily stop you from buying a home
5. The best way to get closer to buying your ultimate dream home is to buy your first home now
6. Buying a home doesn't have to be complicated - there are many professionals who will help you along the way

http://ronbolton.yourkwagent.com

Are you thinking of buying home? Are you a first time homeowner ?

What is the appeal of new home over a existing home.

• New homes have a longer life expectancy, and often appraise higher than a pre-owned home. Future resales are favorable at these appreciated prices.

• Most new homes have at least a one-year warranty on the home and a five- year warranty on major appliances. Some builders extend structural warranties to 10 years.

• When you buy a new home, you get to pick the options you want, including the floor plan, choices of optional rooms, extra square footage, upgrade materials, and color choices. You can make the home fit your needs and personal tastes.

• Especially in a market where many new homes are under construction, new home prices are usually more competitive. It is also easier to comparison shop a new home to ensure that you are getting the best value.

• A new home will meet all current safety and environmental codes. You are assured that toxic materials such as asbestos and lead-based paints have NOT been used in the construction. A new home will have lower maintenance requirements in its lifetime.

• New homes usually have open space. You can choose family rooms, libraries, and even home theaters. They are equipped for modern electronic equipment, such as microwaves, TVs, multiple telephone lines, stereo equipment, faxes, and even networked computers.