Home Tax Credit Extended…

From our mortgage agent, this just in:
The House of Representatives voted unanimously to extend the tax credit for military members for up to one year. This bill must still make it thru the Senate (so it’s not yet passed), but nonetheless it’s promising news!

With this precedent, maybe there is greater hope that the credit will be extended for the general public.

Keep letting your congressmen and women know if you feel this would be a benefit for the economy.

Patty Cunningham, Realtor®
Coldwell Banker Preferred

390 Waterloo Blvd, Suite 101
Exton, PA 19341
web: http://www.pattycsellshomes.com
blog: http://pcunning.wordpress.com
O. 610.363.6006
F. 484.356.0540
C. 610.659.4669
E. pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

Home Tax Credit — Should it Be Extended?

Many are lobbying to get the $8000, first time homebuyer tax credit, currently slated to end on November 30, to be extended.  Do you think that is a good idea?  Will it continue to invigorate a sluggish economy, as proponents predict?  Or would an extension be a waste of taxpayer dollars?  Some say a recent mini-slowdown in the US economy can be tracked to the end of the “Cash for Clunkers” program, a tax incentive for car buyers that ended late this summer.  Could the tax credit have an even more significant impact on housing market and the state of the economy?

 Let me know what you think.  Post your reply here.

Patty Cunningham
Realtor
Coldwell Banker Preferred
Exton, PA
o. 610-363-6006
c. 610-659-4669

Be sure to have a Marketing Plan

Roadmap to “sold!” A marketing plan.
 
Looking for the most profitable path to selling your home? Using a marketing plan is your map and an experienced real estate agent is your guide.

A knowledgeable agent will keep you on course with a complete marketing plan that includes fact-based market analysis, signage, virtual tours, brochures, MLS placement, direct mail, home showings, open houses, and the resources of their active network.

Know-how also counts on the road to “sold!” Select an agent with a proven track record who will aggressively market your home, anticipate problems, and skillfully resolve any unavoidable issues.

Patty Cunningham, ePro, AHS
Coldwell Banker Preferred
office: 610-363-6006
direct: 484-881-6051
cell:    610-659-4669
email: pcunningham@cbpref.com
web: http://www.pattycsellshomes.com
blog: http://pcunning.wordpress.com/

 Oh, by the way…  I’m never too busy for one of your referrals!

Caught in between selling and buying a home? Coldwell Banker^® has tips on what to do.

The first question I am frequently asked by clients is: “Should I sell my current home before I look for a new one?”  Trying to sell a home and buy one at the same time can be challenging. Many home buyers find themselves caught in a difficult position.  They often cannot place an offer on a desired home without committing the money they expect to receive from the sale of their current one.

Below are some tips on how to close the gap between buying and selling a home:

Consider bridge loans. A bridge loan means borrowing from the current home’s equity until the proceeds from its sale are obtained. Some bridge loans require that only the interest be repaid; others mandate a single payment of interest and principal when the loan needs to be paid back. If protracted, bridge loans can be expensive, so it is best to use them for overlaps of a short period of time between closings.

Buy on contingency. Have a prior-sale contingency included in the purchase contract of the new home. It provides the opportunity to withdraw from an offer if the current home does not sell by a specific and agreed upon date.

Evaluate whether to buy or sell first. You could still find yourself caught in between, even with a prior-sale contingency clause. Home owners must consider which is better to do first. In a seller’s market, locating the new home and starting the buying process may be the best approach. Most people need to sell their current home to qualify for a loan to purchase the next one, which is often more expensive. In a buyer’s market, you should be aware of the market conditions and the possibility of not being able to sell your current home quickly.

Review home equity options. For those who need to borrow for a longer period than just a few months, it is best to use a home equity loan or a fixed-rate line of credit, particularly if sizable equity has been built up.

 

With any of these options, I always advise my clients to use their own best judgment about the level of risk with which they are comfortable.  Just because a lender will give you the money, doesn’t mean that you should necessarily take it.  When in doubt, consult your financial advisor.

________________________________________________

Patty Cunningham, Realtor®                                                   390 Waterloo Blvd, Suite 101
Coldwell Banker Preferred                                                 Exton, PA 19341
web: http://www.pattycsellshomes.com                                      O. 610.363.6006
blog: http://pcunning.wordpress.com/                                                  F. 484.356.0540
                                                                                                                        C. 610.659.4669
                                                                                                                        E.  pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

               Oh, by the way…  I’m never too busy for one of your referrals!

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NOTE:  The information in this electronic mail message is the sender’s confidential business and may be legally privileged. It is intended solely for the addressee(s).

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Housing Market Upswing

As I predicted last winter, the housing market appears to be recovering, as documented in this recent report from the National Association of Realtors:

Existing home sales jump to two year high

The housing market is a buyer’s market and they are buying.

The National Association of Realtors reports sales of existing homes jumped 7.2 percent in July, the biggest monthly increase since it began keeping track in 1999.

Sales rose to an annual pace of 5.24 million. It was the fourth consecutive monthly increase in existing home sales, the longest streak since June 2004. Sales were 5 percent higher than a year ago, the first time sales were above year ago levels since November 2005.

“The housing market has decisively turned for the better,” said NAR chief economist Lawrence Yun in a statement. “A combination of first-time buyers taking advantage of the housing stimulus tax credit and greatly improved affordability conditions are contributing the higher sales.”

Tax credits, prices that have been driven lower for the last two years, and historically low mortgage rates are all contributing to rising sales.

Freddie Mac (NYSE: FRE) this week reported 30-year fixed-rate mortgages fell to an average of 5.12 percent this week. A year ago, long-term mortgages were 6.5 percent.

Yun also notes in some recovering markets, like San Diego, Las Vegas, Phoenix and Orlando, the demand for foreclosed and lower priced homes has spiked, and lack of inventory is becoming a common complaint.

________________________________________________

Patty Cunningham, Realtor®                                                   390 Waterloo Blvd, Suite 101
Coldwell Banker Preferred                                                 Exton, PA 19341
web: http://www.pattycsellshomes.com                          O. 610.363.6006
blog: http://pcunning.wordpress.com/                                                  F. 484.356.0540
                                                                                                                        C. 610.659.4669
                                                                                                                        E.  pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

               Oh, by the way…  I’m never too busy for one of your referrals!

Mortgage Disclosure Act

The rules for the Mortgage Disclosure Improvement Act were finalized Friday, May 8^th and it is applicable to all mortgage lenders (federally chartered or state licensed).  For applications taken as of July 30, 2009, new requirements about the delivery and the accuracy of disclosures will apply.  One of the new requirements is that the borrower must be provided with an accurate APR disclosure at least three business days prior to closing.  It must be in their hands three business days prior to closing and they are permitted to close on the 3^rd business day after receiving it, or later.

 

An easy way to remember new rule is “3/7/3.”  This means:

 

• 3 days after application – an initial Truth In Lending (TIL) statement must be provided no later than 3 business days after receipt of the loan application. 

 

• 7 business days after initial application – Waiting period – the borrower is not permitted to close until at least seven business days have passed since the TIL was placed in the mail or provided to the borrower.

 

• 3 business days prior to closing – Waiting period – The borrower must receive an accurate APR on their TIL at least 3 business days prior to closing.  If it was provided before that period of time, because the loan terms were locked in earlier in the process, no new TIL is required if there is no change to the APR or the change is less than 1/8^th of a percent (1/4 percent for construction loans).

 

If the final loan terms cause the TIL/APR top be understated by more than 1/8^th of a percent, a revised TIL with an accurate APR must be provided to the borrower, so that they receive it at least three business days prior to closing.  It must be in their hands at that time, and they may close on the 3^rd business day after that day.

 

Some issues to consider:

These new timing requirements limit mortgage companies’ ability to accommodate rush closings, and they could delay closings.

 

For loans where the final loan terms increase the APR by more than 1/8^th of a percent, a revised TIL is required to be received by the borrower at least 3 business days prior to closing.  This means closing table changes may result in having to reschedule the closing date.

Patty Cunningham, Realtor®                                                   390 Waterloo Blvd, Suite 101
Coldwell Banker Preferred                                                 Exton, PA 19341
web: http://www.pattycsellshomes.com                                      O. 610.363.6006
blog: http://pcunning.wordpress.com/                                                  F. 484.356.0540
                                                                                                                        C. 610.659.4669
                                                                                                                        E.  pcunningham@cbpref.com
Access my Business Directory here: http://www.pattycunningham.com/realestate/Contractor%20Referrals.pdf

Natural Gas Pipelines in Chester County

From the Philadelphia Inquirer last week, word that rights of natural gas pipeline companies may impact some homeowners in Chester County.

 

Pipeline push worries Chester County landowners and farmers

Hundreds of Chester County residents are confronting requests from companies for larger rights-of-way to expand existing natural gas pipelines or for new rights-of-way to add lines. And under federal law, the landowners might not have much choice. The price depends partly on the land’s appraised value; farmers also would be compensated because land dug up for a pipeline takes about five years to return to productivity. More than 700 miles of natural-gas pipelines crisscross Chester County, and because natural gas is a clean-burning fuel, demand is growing. Last month, the Federal Energy Regulatory Commission approved a controversial expansion of a Williams-Transcontinental pipeline near Downingtown and Exton. For natural-gas suppliers looking to build pipelines, Chester County has an advantage that few other places can match because of the presence of farmland and open space coupled with a nexus of three federal pipelines. Landowners who thought conservation easements guarded against development are shocked to find out that when pipelines enter the picture, that protection doesn’t mean much. The 1938 Natural Gas Act gave what is now the Federal Energy Regulatory Commission full authority over interstate natural-gas pipelines, overriding state or local restrictions such as easements. West Vincent has become the latest battleground between the pipeline companies and landowners. Dominion Keystone, an offshoot of Dominion Resources Inc. of Virginia, hopes to build a 280-mile pipeline from Greene County in the southwest corner of Pennsylvania to Chester County.

 

Patty Cunningham, ePro, SRES, ABR, AHS
Coldwell Banker Preferred
office: 610-429-4400
direct: 484-881-6051
cell:    610-659-4669
email: pcunningham@cbpref.com
web: http://www.cbpref.com/pcunningham
blog: http://pcunning.wordpress.com/
 
Oh, by the way…  I’m never too busy for one of your referrals! 

 

 

 

September 11 — Take a Moment

Where were you on this date in 2001?  I’m sure you remember what you were doing when you heard the news about the attacks on the twin towers and the Pentagon.  Take a moment today to reflect on the passing of life and innocence on that fateful day.  What do you do each day that honors your life?  How did this event change your view of the world? 

 

Blessings and peace.

 

Patty Cunningham, ePro, SRES, ABR, AHS

Coldwell Banker Preferred

office: 610-429-4400

direct: 484-881-6051

cell:    610-659-4669

email: pcunningham@cbpref.com

web: http://www.cbpref.com/pcunningham

blog: http://pcunning.wordpress.com/

 

Oh, by the way…  I’m never too busy for one of your referrals!

Estimate Your Future Social Security Benefits

Want to figure out what your future Social Security benefits should be?  The Social Security Administration has put an “estimator” on their website.  You can find it here: http://www.socialsecurity.gov/estimator/.  If you are currently receiving Social Security payments, you cannot use the estimator.  Otherwise, you can run up to three different scenarios, once you verify your personal information.  Very interesting.  Enjoy!
 

Patty Cunningham, ePro, SRES, ABR, AHS
Coldwell Banker Preferred
office: 610-429-4400
direct: 484-881-6051

cell:    610-659-4669
email: pcunningham@cbpref.com
web: http://www.cbpref.com/pcunningham
blog: http://pcunning.wordpress.com/
 

Oh, by the way…  I’m never too busy for one of your referrals!

The Fed Rescues Fannie Mae and Freddie Mac – Good for You?

You may have heard that the Fed is making some commitments to supporting Fannie Mae and Freddie Mac. You may also have noticed that the stock market rallied a bit this morning and is responding positively to this news.

In brief the federal government has seized control of the mortgage giants and is restructuring them to ensure fiscal stability. They are infusing the companies with $200 billion and replacing the CEO’s as part of this very dramatic rescue. You can read more about it here: http://online.wsj.com/public/us, in the Wall Street Journal, although every news company has its own report.

Why? And how will this help you? In the short run, the stock market is responding favorably and has rallied in trading following the weekend announcement. In the long run, the increased liquidity should produce a reduction in rates, and because shareholders will no longer have to be appeased, there will be fewer restrictions on who can qualify, thus helping more consumers get loans. We won’t be going back to the days where anyone could get a 100% mortgage. I hope we’ve learned that is not a sensible approach! But this is good news, indeed. For, when the housing market is strong, the economy is not far behind and everyone benefits.

Patty Cunningham, ePro, SRES, ABR, AHS
Coldwell Banker Preferred
office: 610-363-6006
direct: 484-881-6051
cell: 610-659-4669
email: pcunningham@cbpref.com
web: http://www.cbpref.com/pcunningham
blog: http://pcunning.wordpress.com/

Oh, by the way… I’m never too busy for one of your referrals!