Friday, August 14, 2009
Thursday, August 13, 2009
Consumers have another level of protection in choosing their mortgage plan under the passing of the Mortgage Disclosure Improvement Act (MDIA).
In the past, consumers could be charged application and appraisal fees before seeing the details about the mortgage program they chose. No longer.
No monies may be collected from the borrower with the exception to a credit report fee until they receive the initial disclosures. This may cause a delay in when the appraisal is ordered, as we cannot order the appraisal without the signed disclosures.
Additionally, if the APR on a fixed-rate loan increases by more than 0.125%, new disclosures must be prepared and delivered to the borrower. There is now a three-day waiting period from delivery of disclosures until an appraisal report can be ordered. If re-disclosure is necessary, three more days of waiting follow before loan documentation can be signed. Also, the loan can never close fewer than seven days from the initial, accurate disclosure.
There are unintended consequences from this new rule. This means longer closing times for all types of mortgage loans. If inaccurate fees for any service provider (attorney, title insurance, appraiser, etc) are listed, re-disclosure means a longer wait.
Be sure to allow sufficient turn times in your purchase transactions, as three weeks for a mortgage contingency and the usual 30-day period for closing may now be insufficient.
Tuesday, August 11, 2009
Just thought I would give you all a reminder of the $8,000 Home Buyer Tax Credit at a glance.
The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The credit is available for homes purchase on or after January 1, 2009 and before December 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
Let me know if you have any questions.
Sunday, August 9, 2009
142 Overlook Drive
Great Buy at $965,000
Sold and Closed in 71 Days
4 Bedrooms, 3 Baths, 2361 sq ft. One level acre on cul de sac and updated condtion.
Also closed this week
18 Olmstead Court $715,000
321 Frogtown Rd $950,000
175 Woodland Rd $1,875,000
234 Indian Rock Rd $2,410,000
There are 32 homes in contract at this time and 262 houses actively on the market.