First Time Home Buyer $7500 Tax Credit

Time is running out! There is only 24 days left to take advantage of the FTHB tax credit for 2008. This temporary tax credit incentive is available for purchases of a principal residence on or after April 9th , 2008 and available through July 1st, 2009. The FTHB is defined a an individual who has not had ownership in a principal residence in the previous 3 years.

Call me for more information.

Eagan Rated #1 Place to Raise Children in Minnesota!

Eagan was rated as one of the best places to raise children in 2009 by Business Week magazine. This rating was based on a number of factors including school performance, number of schools, crime rates, job growth, household expendures, air quality, job growth, family income, parks, theaters, museums, diversity and other amenities.

School performance and safety were weighted most heavily in the poll. The magazine went on to describe Eagan's community as "an upscale community with good schools, ponds, rolling hills, woods, and open space."

http://ci.eagan.mn.us/

For more information on Eagan or surrounding communities please don't hesitate in contacting me. I will be happy to answer any questions you may have.

Five Ways to Fund a Down Payment

I often get the question..."How much money do I need for a Down Payment on a home?"

Some people may be surprised that it only takes 3% (January 1, 2009 it raises to 3.5%) to fund a down payment for a FHA loan.

Here are the TOP 5 ways to get a Down Payment to Purchase your Home.

1. The New Tax Credit- for a limited time only, the government will give 1st Time Homebuyers (who have not owned a home in the last 3 years) a tax credit up to $7,500, when purchasing a home.





2. Gift Funds- a gift from a relative is permissible for either a FHA or conventional loan.





3. Down Payment Assistance- many programs have been eliminated, however there is still some assistance available for quailified borrowers. Ask me for more details.





4. Borrow against your 401 K - if you conribute to your company 401k you may be able to borrow against your retirement funds. Check with your HR benefits Specialist for details.





5. Save and Sell- Save your tax refund, sell items you no longer need on Ebay or Craig's List. Take on a part time job or work over time hours. Even a small amount saved can add up over time.

Investment in a Home has always been a good sound investment. It can result in tax savings and appreciation over time. Ask me for more information.

Market update in the Twin Cities

Twin Cities Housing Update:


Per the Minneapolis Area Association of Realtors for the week of November 3, 2008



"The big let down in home sales that many of us have expected following the recent drops in consumer confidence has yet to materialize in the Twin Cities housing market. For the week ending October 25, there were 602 pending sales, up 17.1 percent over the same week last year. Despite the uncertainties swirling in the general economy, home sales continue to post year-over-year increases every week. Lender-mediated sales continue to grow market share, as 51.1 percent of pending sales for the most recent reporting week were foreclosures or short sales, which should mean continued declines in median sales prices."

"New listings for the same week were down 2.0 percent from the same week in 2007, and the total number of active homes for sale is down by 9.2 percent year-over-year."



This is a clear sign that the market is improving and continuing to correct. The real estate market needs to clear out the foreclosure inventory and this is happening with the over 50% of all sales bank-owned or lender mediated.



I often get the question, "when will we hit bottom in the real estate market?" I wish I could look into a crystal ball and give you an answer, but I will try the next best thing. What experts are saying is this, "One year from now, we will not be seeing any appreciating values. Best case scenario, we will maintain current property values. Some will say that we have hit the bottom already, or are very close. Some feel we have another 6-12 months beofre we see the bottom. The truth is we wont know when we hit the "bottom" until it has already happened (or probably 6 months later). There is no way to time the market- similar to the stock market. Real Estate is and has always been a Long Term investment. With all the positive things going on in the market - great Buying opportunities for First Time Homebuyers and move up buyers, low interest rates, good inventory, the time has never been better to invest.

Important Things to Look for in a Real Estate Agent

• Knows the Market- you want an agent who is informed on the changing market, not just what is for sale in a particular neighborhood. Someone who knows the trends in the area, is knowledgeable on the neighborhoods, and educated on how the market is changing.




• A Great Listener- you want an agent who really listens to your wants and needs. In the fact finding process your agent may ask you a lot of questions- this is to get an idea what you are looking for and your goals and motivations. This is an important step in the home buying process. One who really listens is very important quality to have and can save you time in your search.




• Help you Figure out what you can afford- you want an agent that can run some numbers for you and provide a list of qualified lenders that you can discuss pre-approval with. You want an agent that will stick within your budget and look at those houses in that price range.

• Help you Narrow your Search- it is great to start your home search on the internet, you can get a list a mile long of homes of interest. When the time is right an agent can really help you sort through that list. A good agent will help you weed through the properties and set up the showings. An agent may also preview properties for you.




• Help you determine an offer price or evaluate an offer if you are selling. - a good agent can gather market information or comps on the properties that have recently sold in the area. A CMA is put together with this information so you can make an educated decision on your offer.





• Help you get more value from the Property- a good agent has a trained eye when if comes to looking a properties and their values. They can advise on what improvements would bring more value to the property or what can distract from the home. Also a good agent knows contractors or experts in the field that they can refer for expert opinions.





• Will be with You from Start to Finish- From the inital fact finding meeting, showing properties, the offer, working with the mortgage lender and title company all the way to a smooth close. A good agent will represent you in all stages of the home buying process.





• Market your property agressively- a good agent will use innovative marketing ideas to help sell your property for the best price. Offering staging tips, quality photographs of the home, various internet marketing venues (ask me about marketing at the Edina Kiosk), MLS and other creative outlets. Offering open houses and broker opens. You want a good agent to represent you in selling your home and one that can get the job done.

"Working for you, Working with you." is my motto.

Let me help you in your Home Buying or Selling Process.

Tax Benefits in Owning a Home

Before a home owner curses the troubled housing market, he or she should take solace in the U.S. tax code, which makes buying a home a good deal for almost everyone.

Here are some reasons why:

• Mortgage interest deductions- in some cases including mortgage insurance premiums, reduce home owners' tax liability by reducing income.The deductions can be used on both first and second home mortgages.



• Interest on home equity loans are also deductible.



• Profits from the sale of a home can potentially be tax free* (* when a primary residence is sold the profits are tax free up to $250,000 for single home owners or $500,000 for married home owners filing. Any profit above this usually is a long term capital gain at 15%- less if the seller's tax rate is less than 20 %.

Tax laws change, please contact your tax attorney or accountant for specific tax questions.

How to raise your Credit score.

Thinking about buying that first home? Check your credit score. There are 5 categories that can effect your credit score.


Here are some tips to help raise that score.

1. Pay your bills on time. 35% of your score is dependent on your payment history. Make a plan-set up auto pay and maintain a budget.






2. Keep credit balances at 30 % of your credit limit, or lower.






3. Don't cancel credit cards to up your score. about 15% of your score is based on long you held your card. A card you have had a few years is better than a new one. Be sure to have a credit card, as no credit history can also throw off a score.






4. Don't apply for too many credit cards. about 10% of your score is determined by how many times lenders request your credit report. Don't apply for too many cards.






5. Watch the kind of credit you use. about 10% of your score is based on the types of credit you are using. Secured (car loans and mortgages) or unsecured (student loans, credit cards) Unsecured loans are considered riskier on your report.

information from USAA Magazine