Theresa Struckmeyer, Orange Ca Realtor

Orange County, Ca First Time Home Buyer Tax Credit Extension

October is here and somewhere around a dark corner lays the dreaded deadline. On November 30th 2009 the First Time Home Buyer Tax Creditwill expire. What this means to buyers is they may have very little time left to locate and close escrow on a new home if they wish to qualify for a $8000 tax credit. Or will the credit be extended? As of yet we have heard nothing concretethat points to an answer in either direction so for now we just speculate. There are compelling arguments from both sides of the fence.

Those who favor an extension of the First Time Home Buyer Tax Credit say that the credit has sparked sales and is helping put an end to the real estate downturn. The list of those in favor of a First Time Home Buyer Tax Credit Extension is long and notable.

Key players on the argument for a First Time Home Buyer Tax Credit extension include The National Association of Realtors (NAR). According to a study conducted by NAR, nearly 40% of first time home buyers would not have bought had it not been for the first time home buyer tax credit. NAR uses statistics provided by the IRS to prove that nearly 1.8 million tax payers will claim the credit. If it was not for the First Time Home Buyers Tax Credit, NAR claims, 355,000 sales would not have taken place.

NAR has sent out a call to action to Realtors across the nation to reach out to their congressional members to act on an extension. NAR argues that if the First Time Home Buyer Tax Creditis not extended that the real estate market could again come to a halt which could jeopardize the progress that has already been realized because of the First Time Home Buyer Tax Credit. Furthermore, NAR calls for the First Time Home Buyer Credit to be expanded to include all buyers.

Another key player in the argument for a First Time Home Buyer Tax Creditextension is the California Association of Realtors (CAR). On October 5Th, 2009, CAR posted an article on their site in which White House spokesman Robert Gibbs confirmed that our President Obama is also in favor of the First Time Home Buyer Tax Credit extension. This could mean that the possibility of an extension of the First Time Home Buyer Tax credit is likely.

But still, there are many who argue a compelling opposition. Barbara Kiviat, for instance, argues on her time.com article that a first time home buyer tax credit extension will end up costing between 50-100 billion for the year. Since a good majority of buyers would have bought regardless of the First Time Home Buyer Tax Credit, the cost associated for the program far outweighs the benefits. And lastly, she argues, that an extension of the First Time Home Buyer Credit could make Americans begin to feel entitled to the First Time Home Buyer Tax Credit. Once the First Time Home Buyer Tax credit is ingrained in the minds of Americans, it will be harder to end the program and therefore an extension can end up costing billions of dollars for years to come.

And then there is the bidding war problem we have certainly seen here locally in Orange County California. I wrote an article about this a few weeks ago: First Time Home Buyer Tax Credit- Just Plain Ugly? It has become apparent that the First Time Home Buyer Tax Credit and the uncertain end to the credit has stirred up a mess in bidding wars with First Time Home Buyers especially in lower end homes. It has become very common for dozens of offers to come in on properties within a matter of days. Many times these homes end up selling for thousands more than the asking price. I had a listing back in July, for instance, that was listed for $320,000. We ended up getting 30 offers by the end of the week. Our highest offer was $400,000. Of course, myself, my broker, and the home owner knew that the home would likely not appraise for this price so we ended up settling for an offer of $369,000. These bidding wars raise the question that perhaps First Time Home Buyers are not reaping the rewards being promised by the First Time Home Buyer Tax Credit as they are paying for the money up front in the form of a higher priced home.

Whichever side you take in the First Time Home Buyer Tax Credit debate, there is one problem that has already transpired. Waiting to the last minute for an extension, NAR argues, will cause uncertainty on what is to come and could cause buyers to start dropping out of the market even before the First Time Home Buyer Tax Credit deadline. Unfortunately, here we are in the last minutes of the First Time Home Buyer Tax Credit and congress has yet to come up with a solution which has left many Realtors, seller, and buyers guessing what is to come. So for now we hold our breath and hope for the best outcome.

What is your opinion on the First Time Home Buyer Tax Credit Extension?

Corona Ca, First Time Home Buyer Tips- Part 4: What You Need to Know About Sellers

So you are a First Time Home Buyer looking to buy a home in Corona California. You are a unique individual and your search will vary in most respects from others who are looking to buy. There is always one constant though: you will be buying your home from a seller. Although all sellers vary just like buyers vary, there are 4 main types of seller. Knowing the difference between these sellers can help make your search more productive.

First Time Home Buyer Tips- Seller #1- The Short Sale: A seller who has listed their home as a short sale is usually a seller who does not necessarily want to sell but they have no other choice. They have run into hard times. Perhaps there was a divorce, a job loss, or family illness. Whatever their hardship may be, they can no longer afford their mortgage. On top of this, they are underwater with their mortgage/s. This means they owe more on their home than it is worth. Here are some First Time Home Buyer Tips you should know when working with a short sale.

First Time Home Buyer Tip 1: Patience is a virtue. Because the homeowner's lender/s must approve the sale, you will have to be patient and wait for your home during the process. This process can take anywhere from 1-5 months depending on the lender. As a rule of thumb smaller lenders such as Wachovia or SPS are usually quickest at approving the sale. Bigger lenders such as Bank Of America and Indymac usually take the longest. If the home owner has more than one lender, this can also complicate things and cause delays.

First Time Home Buyer Tip 2: Don't let short sales scare you off if you have the time. Most of the time short sales are the best deals. This is not to say that you are going to get the house at a deep discount, but a lot of lenders will usually approve the sale as long as the offer is within 10 % of the value of the home. On top of this, because of the delays, short sales attract less buyers than other types of sales so you will be less likely to get caught up in bidding wars against other buyers.

First Time Home Buyer Tip3: If you are going to make an offer on a short sale, make sure that both agents know what they are doing. Not every Realtor is educated enough to represent a seller or buyer in a short sale transaction. The seller's agent needs to know how to qualify the seller as not every seller will qualify for a short sale. They also must negotiate with the seller's lender to get a good result. Your agent needs to understand short sales so they can ask the listing agent the right questions so she can ensure you are not wasting time on an unqualified short sale.

First Time Home Buyer Tips- Seller #2- The Bank Owned or REO: A bank owned home is another form of distressed sale. This home gets put on the market after a home goes to foreclosure and it is now owned by a bank. Because homeowners who are losing their home often begin to neglect the home, these homes often need some work. Sometimes just cosmetic work and other times they are complete fiver uppers. Here are some First Time Home Buyer Tips to keep in mind when looking at bank owned homes.

First Time Home Buyer Tip 4: Bank owned are very popular. Because every buyer wants a home at a great price, REO homes often gets several if not dozens of offers within a few days. The nicest and best price homes usually get the most offers. Because of bidding wars between buyers, many REO homes end up selling for thousands more than the list price.

First Time Home Buyer Tip 5: Bank Owned Homes are usually sold "as is." What you see is what you get. Bank owned also come without seller disclosures which means you, the buyer, will not be given a history of the home and its defects. Remember, the seller, the bank, has never lived in the home so they cannot properly disclose much information on the home. Once you get your offer accepted, a thorough property inspection by a licensed inspector is essential.

First Time Home Buyer Tip 6: You might have to put in a few offers before getting one excepted. Because REO homes get so much attention, you may have to put in some offers before you become a home owner. Be patient and make sure to make your offers according to the most you would be willing to pay for that home in order to have a better chance. Banks are looking for the best offers according to price and term. They favor buyers with the most generous offers, largest down payments, and fastest closes.

First Time Home Buyer Tip 7; You will likely have to sign a bank addendum to buy a REO home. When your offer gets chosen, the listing agent will likely provide your agent with a bank addendum for you to agree to. Until you and the bank have agreed to this addendum, the bank usually reserves the right to accept other offers. Make sure you go over the addendum carefully with your agent.

First Time Home Buyer Tip 8: Not all REO homes will qualify for financing. If there are broken windows , a drained pool, or if the home is not in livable condition, than the home might not qualify for financing especially FHA financing. Since REOs are usually sold "as is" you may have to fix these items before you can close your loan.

First Time Home Buyer Tips- Seller #3- The Corporate Owned or Flip Home: These homes usually start off as fixer upper bank owned or short sale homes. These homes are bought by investors or investment groups who then come in and fix up the home to resell. These homes often have granite counter tops, new flooring, and recessed lighting. They are in turn key condition so that you, the buyer, can move in without having to do any work.

First Time Home Buyer Tip 8: Your agent should check to make sure the home has value. Lately a big problem has been real estate appraisals. If the home does not appraise for the amount you are buying it for, than your lender will not allow you to buy the home unless you come up with the difference in cash. Because the seller's intention is to profit, there are times that these homes are overpriced. Since these homes are usually the nicest, there is often competition amongst buyers as well which can cause overbidding. If your agent does her homework when making an offer, you can avoid appraisal problems down the road.

First Time Home Buyer Tip 9: FHA financing may not be available. If you are using FHA financing, these flip homes may not qualify due to the FHA flip rule. The seller must own the home for 90 days before FHA will allow financing. Many corporate owners specify in the MLS that they do not accept FHA for this reason. Your agent will be able to advice you on the possibilities of FHA financing for a home.

First Time Home Buyer Tips- Seller #4- The Equity Seller: This is a good old fashion sale. There are no lenders to negotiate with or REO addendum. If you make an offer on this type of home, you and your agent will be working directly with the sellers agent and the home owner. Sometimes repairs and termite work can even be negotiated.

First Time Home Buyer Tip 10: Because there is less red tape in these kinds of sale, they often draw quite a crowd of buyers especially if the home is priced aggressively. If you spot an equity sale that you would like to see, make sure to make an appointment to see it right away before it is sold to someone else.

First Time Home Buyer Tip 11: Beware an equity sale may be a short sale in disguise. Some homeowners are unrealistic and price their homes accordingly. If their agent does not ground them in reality than this "easy" sale can become quite complicated. Remember, the house must appraise for the price you are offering so make sure your agent looks into the houses value and make your offer accordingly.

As I set out to write this post, I didn't realize how long it would become. This does wrap it up for my First Time Home Buyer Tips series. I know buying a home can be overwhelming, but by selecting a good Realtor who specializes in working with First Time Home Buyers, you can rest assured that your agent will help guide you through the process. As you can probably see, there are many things to keep in mind when buying a home, but it is also a great time to buy. Prices are at a level we have not seen for years and rates are near historical lows. If you are a First Time Home Buyer who is looking to buy in Corona or its surrounding areas, please give me a call. I would be honored to help you with any questions you may have.

If you would like for me to set up your own personal property website so that you can get daily emails of new homes you might be interested in, please email me with your search criteria and I will have your home search up and running within 1 business day.

Click here to read First Time Home Buyer Tips- Part 1: How to Choose Your Realtor

Corona, Ca First Time Home Buyer Tips-Part 3: Do & Don't

So you are a First Time Home Buyer looking to buy a new home or condo in Corona. You have chosen a great Realtor and are working with a wonderful loan officer who has pre approved you for your loan. Here comes the fun part. It is time to start searching for your home. Before you get started take a look at this list of First Time Buyer Tips Do and Don't because the last thing you want is to run into problems now, especially if they can be avoided.

First Time Home Buyer Tips Do 1: Continue to Save Money. During the time you are searching for homes and even when you have already found your home, saving money is always a smart thing to do. Even if you have a sufficient amount saved for your down payment and closing costs, its always a good idea to continue saving. For one, it looks good on your loan when you have reserves and it is also nice to have a rainy day cushion especially when you are a home owner.

First Time Home Buyer Tips Don't 1: Don't Secure yourself a home and then go on a shopping spree. Yes your new home will need furniture and the patio could use a barbecue, but save the spending spree for after escrow closes. You have to remember that your loan approval is based off of credit score and debt compared to income ratios. Those new credit card purchases could easily affect your credit score or raise your debt ratio which can lead to a loan denial. After escrow closes and your new home keys are in your hands, go ahead and buy a few nice things but remember you have a new mortgage payment to think about.

First Time Home Buyer Tips Do 2: Be Patient. Yes it is a buyer's market but there is a lot of competition out there. You should know that it may take a few offers before you get one accepted especially in the starter home prices (under $500,000). Most First Time Home Buyers buy homes in the lower price range so you will likely find yourself in a battle against other buyers all hoping for the same home . Because of First Time Home Buyer and investor demand on these homes, it is not uncommon for a home to receive several if not dozens of offers in just a few days. Have a talk about what to expect with your Realtor so you do not become frustrated with the process. Remember it is going to take a little work but you are buying a home at a great time so its worth it.

First Time Home Buyer Tips Don't 2: Don't Procrastinate. This goes along with Do 2. Homes are selling fast. The last thing you want to do is miss out on the opportunity on making an offer because you waited too long to see it. If your Realtor is sending you auto emails that update you on new homes available, check them daily. If your Realtor is not sending you email updates, ask to be put on one so you will always be updated on new homes to see. If you see a home you like, let your Realtor know and schedule an appointment to see it right away. If you think the home is for you, make sure your Realtor writes up and sends the offer right away. You are going to have to sign the offer so make sure you make yourself available in a timely manner too.

First Time Home Buyer Tips Do 3: Take the time to educate yourself on the market. There are 4 main types of homes to buy: bank owned homes, short Sales, equity seller homes, and investor flip homes. Ask your Realtor about these type of homes and the implications that go along with buying one. Keep this in mind when writing offers. The next post will go over these types of sellers in detail.

First Time Home Buyer Tips Don't 3: Don't Get Discouraged. It is easy to get discouraged especially when the home search that you figured would take a few weeks turns into a few months. Believe me nobody likes this in fact your Realtor probably dislikes this more than you. It is important to keep a positive attitude. If you are feeling overwhelmed, let your Realtor know. She may have some encouraging words for you that can help. Maybe you and your Realtor can change strategies and yield better results. For every problem there is a solution so have fun with your home search and keep an open mind and you will find your home in no time.

Next installment of First Time Home Buyer Tips will define the 4 home seller types and what this means to you the Tustin, Ca First Time Home Buyer. I did mean to make this a 3 part series....but there is so much to talk about when it comes to buying your first home...

In the meantime if you are looking to buy your First Home in Corona or its surrounding areas and are looking to interview the right agent for the job, please give me a call or email. I specialize in working with First Time Home Buyers and I would be honored if I could help you out in any way.

If you would like for me to set up your own personal property website so that you can get daily emails of new homes you might be interested in, please email me with your search criteria and I will have your home search up and running within 1 business day

Click here to read First Time Home Buyer Tips-Part 4: What You Need to Know About Sellers

Corona, Ca First Time Home Buyer Tips: Part 2- How to Choose your Lender

When it comes to buying your first home, there are many choices you have to make. Making the right choice can mean the difference between a happy first time home buyer and disappointment. Choosing your lender and loan officer is a very important decision you do not want to go wrong on.

First Time Home Buyer tip 1: First things first, secure financing. Oh I know talking about finances is no where as much fun as going to look at homes but it needs to be the first thing you do. Sure you can start by choosing your agent as they can be a great resource in finding your lender, but before you start looking at homes you need to know what you qualify for.

First Time Home Buyer tip 2: Choose your lender and loan officer wisely. I am guilty of this myself, but I quickly learned so learn from my mistakes and don't make these mistakes yourself. As a Realtor in today's market it goes without saying that a buyer should be approved for a loan before starting their home search. What I was doing is recommending that my buyers walk into their local Bank of America, Wells Fargo, or Chase and get pre approved first. This way I know how much they qualify for and I would have an approval letter ready for when it was time to make offers. Sounds like I did all I had to do, right? Wrong. Lenders are handing out approval letters like candy. What they do not hand out like candy is loans. Remember, just because a loan officer works for a big bank doesn't mean they are qualified to do your loan. I learned that lesson the hard way.

First Time Home Buyer tip 3: Get referrals when it comes to choosing a loan officer: If you have already chosen your real estate agent, they can be a great source for a loan officer referral. After all besides yourself, your agent is the 2nd most dedicated to getting your home purchase closed. If you have not chosen an agent or if they do not have a referral for you, inquire with friends and family. If someone you know has purchased a home recently, inquire about their experience with their loan officer. If they were satisfied, give that loan officer a call and see if you would feel comfortable with them as well.

First Time Home Buyer tip 4: Do not rule out mortgage brokers. Because many direct lenders have systems in place, loan officers who work for these banks often have less control over their files than a mortgage broker has. It is sometimes a misconception that brokers charge more than a direct lender. Because a broker can shop rates, the extra cost to use a broker can often be absorbed by the lower rate they are able to secure for you.

First Time Home Buyer tip 5: Use a full time loan officer. Same as a Realtor, doing home loans is a full time job. You want your loan officer to be available for you and dedicated to getting your loan done in a timely manner.

First Time Home Buyer tip 6: Ask the right questions. When interviewing a loan officer for the job of securing you a home loan make sure to ask questions about their experience and qualifications. If you are doing an FHA loan for instance, ask if they can process these type of loans and how many FHA loans they have done. Ask them how long they have been in business. Do they do loans full time? What are their office hours? What is the average time it takes them to close a home loan? This last one is important as many sellers now charge fees for late closings and can even cancel the sale if you are not able to close in a timely manner.

First Time Home Buyer tip 7: Bring in a full package when being pre approved for a loan. This is probably the most important. Yes it is extra work but get it done. Bring in all pay stubs for the last month, last two month bank statements, last two years w2 and tax returns, a copy of drivers license and social security card, and get your credit ran. You want to make sure your loan officer examines everything upfront. If all your loan officer asks for is a recent pay stub and a credit report, run. The last thing you want is a preapproval letter that doesn't really mean you can get a home loan. Some loan officers are guilty of taking any prospect and seeing what sticks. You do not want a loan officer who practices this way. You want to be certain you qualify. Remember as a buyer you will have to put in a good faith deposit once you are under contract for a home. You do not want to lose your deposit because of a bad loan officer. Ask your loan officer if she sees any potential problems. If your loan officer spots potential problems that can be addressed, get these items fixed now rather than wait until you are in escrow on a home.

First Time Home Buyer tip 8: Get payment and cost estimates. Interest rates fluctuate but this should not stop your loan officer from giving you an estimate based on today's rates. For one, you need to know how much money you will need to buy a home. Also, when you get pre approved your loan officer will let you know how much home you qualify to purchase but payment is also a factor. Let's say, for instance, you are pre qualified for $300,000 but you feel comfortable with a $2000 a month payment. Your loan officer can go over different scenarios with you so you have a better idea about roughly how much home you can buy and still stay within a payment you feel comfortable with. Now remember to give this information to your Realtor so she can adjust your home search accordingly.

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Next time I will go over Corona, Ca First Time Home Buyer Tips: Part 3 Do and Don't. Many times First Time Home Buyers are not properly informed on what they should and what they should not do as they search for their first home and during escrow after they find their home. A wrong decision can mean a failed transaction... next blog will go over everything you need to know on this topic...

If you are a first time home buyer and need help in finding a great loan officer or Realtor or if you just have questions, please feel free to email me or call.

If you would like for me to set up your own personal property website so that you can get daily emails of new homes you might be interested in, please email me with your search criteria and I will have your home search up and running within 1 business day

Click here to read First Time Home Buyer Tips- Part 3: Buyers Do and Don't

Corona, Ca First Time Home Buyer Tips- Part 1: How to Choose your Realtor

This will be the first in a series of first time home buyer tips blogs that I hope will be beneficial to all first time home buyers looking for tips on how to prepare for purchasing their first home. Buying your first home is both exciting and trying. Choosing the right agent can mean the difference between your first set of home keys and disappointment. Here are a few tips to keep in mind when searching for the perfect agent for the job.

First Time Home Buyer tip 1: Chose an agent who specializes in working with First Time Home Buyers. This might seem like stating the obvious but many buyers do not understand why this is important. As a First Time Home Buyer, your needs are different than most. Many agents have specialties. Some agents, for instance, specialize in relocation buyers. Others specialize in move up buyer's. And the list goes on and on as there are many different types of buyers and sellers. As a first time Home buyer, your may need a little more guidance and reassurance than other buyers. A first time home buyer specialist will likely understand these needs and will be better equipped to answer all your questions. A first time home buyer specialist will likely be more patient and willing to take the time necessary to make you feel comfortable in your future purchase.

First Time Home Buyer tip 2: Chose an agent who is familiar with the area you are looking in. If you are looking for a home in Costa Mesa , it would be beneficial for you to work with an agent who works in this areas. If you work with an out of area agent they will have less knowledge about prices and neighborhoods in the area you are looking in.

First Time Home Buyer tip 3: Chose an agent who understands finance options. Unless you are planning to purchase all cash, remember, you cannot buy a home without a home loan. Your agent should inquire about your financing plans and be able to give you advice or recommendations. Today FHA financing is one of the most widely used loan products for first time home buyers. Your agent should understand FHA and its rules and guidelines. Not understanding financing and its implications can greatly hinder your chances in obtaining your new home. Are you planning to buy a condo? If so, you should know that if you are using FHA financing, the condo complex must be FHA approved. Does your agent know how to find out if a complex is approved? They should. The last thing you want is to fall in love with a condo only to find out that it does not qualify for the financing you are approved for. Even if you are planning to buy a single family home, your agent needs to know that not all homes will qualify for financing.

First Time Home Buyer tip 4: Work with a full time agent. Being a Realtor is a full time job. I am currently working with a first time home buyer who spent 1 1/2 years working with a part time agent without success. They chose this agent because he was a friend. The problem is he has a full time job and only sold real estate on the side. When the buyer found a house he was interested in, it often took over a week for his agent to get back to him. By then, the house was often already sold. On top of this, they were often forced to go and look at homes after dark because of their agent's schedule. Needless to say, they never found a home. First Time Home Buyers demand a lot of time and attention. You need an agent who is dedicated to you and not another job. And remember, finding a home is just half the battle. Your agent needs to be available to walk you through the purchase once you find your home.

First Time Home Buyer tip 5: Work with an agent you like. Although we are technically in a buyer's market, there is a lot of competition amongst buyer's especially for starter homes. Because of this, many houses and condos often receive several offers. This means you may have to put in a few offers before you get one accepted. What this means for you is you may be spending a lot of time with your agent so make sure you are comfortable with your agent. Does your agent make you feel pressured or awkward? Does your agent make you feel your questions are dumb or unimportant? If so, then maybe you should keep on looking. You should be able to think of your agent as a friend who's goal is to get you into your first home. Your agent should also be like a trusted teacher as they will be guiding you in one of the most important purchases you will ever make.

First Time Home Buyer tip 6: Work with an agent who understands today's market. As a First Time Home Buyer you will run into 4 different types of homes: bank owned, short sales, equity homes, and investor owned homes. As a First Time Home Buyer you probably have no idea what this all means. Your agent should be able to explain these type of sellers to you. More than half of all listings you will find in Corona will be either bank owned or short sale. Your agent needs to understand the implications and process for both of these types of homes so they can explain to you what to expect. As short sales are often the most difficult but also the best deals, you may want to chose an agent who specializes in short sales and First Time Home Buyers. On the other hand, you may want to purchase a corporate owned home or a home from a seller with equity. Your agent needs to understand how to deal with these particular kinds of sellers as well.

Choosing an agent to purchase your first home with as a first time home buyer is just as important as choosing the home that you are going to purchase. Be selective. You deserve to work with the agent who will get you the best results. On my next First Time Home Buyer Tips installment, I will get into choosing your lender. Perhaps I should have started with this, but being a Realtor I am a little partial. In the meantime, if you are looking to purchase your first home in Corona or its surrounding area, I would be honored if you gave me a call or email to find out if I am the agent for you.

If you would like for me to set up your own personal property website so that you can get daily emails of new homes you might be interested in, please email me with your search criteria and I will have your home search up and running within 1 business day.

Click here for First Time Home Buyer Tips- Part 2 How to Choose a Loan Officer