It's no wonder that buying or selling a home ranks high on the list of the most stress-provoking events one can experience, up there with the death of a loved one and divorce. There's a lot at stake financially when you buy or sell a home. A good or bad outcome can affect your net worth, as well as your sense well being.There are a lot of factors involved in buying or selling a home that are beyond your control. For example, interest rates could jump unexpectedly, or an inspector might uncover a defect that you were unaware of. However, there are steps you can take to maximize your chances for a successful real estate endeavor.The first step is to hire the right professionals to help you accomplish your goal. If you don't already have a real estate agent, mortgage broker and closing agent that you've worked with successfully before, ask friends and associates for recommendations. Take the time to interview each referral carefully to make sure that there's a good fit. Make sure to check references. If you have any doubts about a candidate, continue the search until you find qualified professionals with whom you have good rapport.A common mistake home buyers and sellers make is to underestimate the time it takes to get the job done. Resist the urge to pile additional work on yourself while you're in the midst of a home purchase or sale. By doing so, you'll be better able to manage stress.HOUSE HUNTING TIP: One of the keys to ensuring that your real estate venture will have a happy ending is to make a commitment to stay involved in the process every step of the way. Even though you hire professionals to assist you, they aren't the decision-makers. You are. Problems can arise if you relinquish control and let your real estate agent or mortgage person make decisions for you.Let your agent know that you want to be kept informed of developments as they arise. The sooner you know about a problem, or potential problem, the sooner you can work on resolving it.Don't be shy about asking for an explanation of a facet of the business, or your transaction, that you don't understand. If you don't buy and sell real estate on a regular basis, you shouldn't expect yourself to know the ins and outs of the business.As tedious as it might be, it's important to read and understand every document before you sign it. Make sure you receive copies of everything you sign. It's a good idea to retain these documents, even after the transaction closes. If there's a problem during or after the transaction, this documentation could prove invaluable in proving your case.It's also wise to keep a transaction log. This can be something as simple as a notepad on which you record important transaction-related conversations. Keep the log with your other transaction documentation in case you need to substantiate who said what later and when.Be nice, but let your real estate team know what you expect from them. This should include periodic written or verbal updates. If you're not receiving the service you need, let this be known. Don't expect the people working for you to be mind readers.You should expect that problems of some sort will arise during the course of your home purchase or sale. How you work through the problems has everything to do with the parties involved and how well you communicate with one another.THE CLOSING: Good rapport is worth its weight in gold.
1:25:12 PM Tuesday, August 24, 2010
FHA Madness
The FHA recently proposed reducing the UFMIP while increasing the annual premium that is paid monthly. Their stated intention is to bolster their insurance reserve fund. Um, not so fast….
Before even running the numbers, cutting the upfront MIP which is arguably when they need the money the most, wouldn’t seem to make sense. So when in doubt, I always fire up a new spreadsheet. Not surprisingly, my suspicions were confirmed.
If you’d like a copy of the spreadsheet just send a email ....
So which is it? Is the FHA just saying one thing and doing another? Don’t they have accountants that work there? Are they purposefully trying to seal their fate?
Or, for you conspiracy theorists, was this all a well concocted plan to run up the stock prices of the regular PMI companies (check the recent price action)? When you boil it all down, that’s about the only beneficial thing for at least somebody that’s coming out of this…..
My guess is that this is just another well intentioned but very poorly thought out plan by yet another government agency that fails to seek advice from those that are perhaps in the best position to offer it. If this bothers you,
In the meantime, if you have any FHA/fence sitters waiting for things to get better, use the spreadsheet to show them how much more expensive their payment will be or how much less house they’re going to be able to afford once the MI costs go up.
Hesitation May cost you money ...
Karl LeBlanc
Tuesday, August 10, 2010 1:32:25 PM
1. Protect Your Personal Information
•
required and never write it on checks.
carry in your wallet and store the copy in a safe place.
birth certificate with you.
2. Protect Your Documents
cut shredder.
your mailbox for pick-up.
leaving it in your mailbox overnight.
3. Be Vigilant Against Tricks
to an unsolicited request.
4. Protect Your Communications
and set to update often.
of at least 900MHz.
5. Check Your Credit Report
Wednesday, July 21, 2010 4:39:11 PM
KARL LEBLANC
LEADERONE FINANCIAL
NMLS # 164664
Office 281-298-5322
Cell 225-284-6409
Keep Calm & Carry On
GREAT NEWS ... RATES AT ALL-TIME LOWS ...........
Yes ...rates at all time lows ... However, getting to loan closing takes more steps ...When applying for a home mortgage , either in Houston or Baton Rouge ... Be prepared ...
Keep Calm and Carry On ...
Be prepared to deliver all documents regarding income and assets ....
Keep Calm and Carry On
Be prepared to write letters explaining any financial missteps or income issues..
Keep Calm and Carry on
Most importantly ... Maintain your income and financial status quo
Changing your circumstances will delay or cancel your closing ..
Be prepared , be diligent , and do not change your circumstances during the loan process and you will have the ability to access some of these historic rates ...
3:08:00 PM Tuesday, July 06, 2010
Have a super year
LeaderOne Financial
4810 W. Panther Creek Ste 106
The Woodlands Tx 77381
The Least-Trusted Banks in America
provided by
Customers of the biggest banks in the United States are the least likely to believe their financial institution does what's best for them as opposed to what's best for the bottom line, according to a new report from Forrester Research.
The report, Forrester's annual Customer Advocacy rankings, ranks nearly 50 financial services firms in the United States by the percentage of each firm's customers who agree with the statement: "My financial provider does what's best for me, not just its own bottom line." The results are based on a survey of about 4,500 consumers.
The bottom seven of this year's rankings, first to last, are Bank of America, Chase, Capital One, TD/Commerce, Fifth Third, Citibank, and in last place, HSBC.
Among Bank of America customers, 33 percent agreed with the statement above, while 31 percent of Chase customers agreed, 29 percent of Capital One customers agreed, 28 percent of TD/Commerce Bank customers agreed, 27 percent of Fifth Third Bank customers agreed and 26 percent of Citibank customers agreed.
Among HSBC customers, only 16 percent said they agreed with the statement, the lowest customer advocacy score ever reported in the United States, down 10 percentage points from HSBC's score last year and in line with other recent similar poor rankings of other HSBC units.
An HSBC spokesman declined to comment on the survey, since he hadn't seen it yet.
To put the rankings in perspective, large banks have generally been at the bottom of the list since the survey was initiated seven years ago, and many of the banks have alternated between the bottom spots year to year, said a Forrester vice president, Bill Doyle, who wasn't aware of anything particular HSBC has done recently that would make its score so low. Last year, for instance, Capital One was at the bottom with 22 percent of its customers agreeing with the statement. In fact, the more customers a banking institution has, the lower its customer advocacy ranking is likely to be, according to Forrester.
Why the poor rankings for the big banks? "Part of it is that the banks are preoccupied with their bottom line. They are public institutions who are in business to make money for their shareholder and inevitably, that shows to customers," Mr. Doyle said.
A high customer advocacy ranking means that customers tend to believe their bank takes their side in disputes, does what is right even if it's not required by regulation to do so, gives fair rates or performance comparisons and is clear about charges and fees, Mr. Doyle said.
Wells Fargo/Wachovia, by contrast, did better than the other big banks. About 40 percent of its customers said they believed the bank does what is best for them, with Wachovia's customers probably pulling up Wells Fargo's ratings, Mr. Doyle said. Wachovia has generally done substantially better in the rankings than the other big banks.
According to Mr. Doyle, customer advocacy rankings are a predictor of customer retention and attrition, and customers who rate their financial service firms high are more likely to consider their firm for additional products. In contrast, customers who give their banks a low ranking are most likely to switch in the next year and are "going to be reluctant to put any more money and open new accounts at those institutions," Mr. Doyle said.
This means the low rankings don't bode well for the bigger banks, many of which are reaching federal limits for how much they can increase deposits by acquiring other banks and must rely on attracting more customers to increase revenue.
Credit unions ranked much higher than the big banks, as they have in previous years, with 70 percent of credit union customers saying their financial institution puts their interests first. Mr. Doyle said this is because of credit unions' different operating model -- they are owned by customers -- and because they tend to emphasize customer service.
After credit unions, the bank run by USAA, a financial services company that serves the military and their families, came in next with 64 percent of its customers agreeing with the statement. It was followed by ING Direct, with 46 percent. Regional banks including PNC, U.S. Bank and BB&T came in next with rankings similar to Wells Fargo/Wachovia. Regional banks, which often can't afford big advertising campaigns, tend to emphasize customer service, Mr. Doyle said.
Insurance firms, meanwhile, remained the highest rated firms for customer advocacy, with more than half of all customers rating their insurers high on customer advocacy and insurers representing two-thirds of the firms in the top half of the rankings. The ranking of investment firms, meanwhile, fell below banks for the first time since the rankings began. Investment firm rankings tend to fall when the market isn't doing well, Mr. Doyle said.
Home Buyer Tax Credits
About the First-Time Home Buyer Tax Credit
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to
$8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies
to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where
a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will
qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single
taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009,
are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
The following questions and answers provide basic information about the tax credit. If you have more
specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional
about your unique situation.
1.
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify
for the tax credit, a home purchase must occur on or after January 1, 2009 and on or before April 30, 2010. For
the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property
transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment
sale purchases. See the IRS website for more detail.
However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a
binding sales contract in force on or before April 30, 2010.
Persons who are claimed as dependents by other taxpayers or who are under age 18 are not qualified for the
tax credit program.
2.
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the threeyear
period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the
home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal
residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, IRS Notice
2009-12 allows unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time
buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation
home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
3.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4.
Yes. For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is
$225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified
adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers
filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit
amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is
reduced proportionally for taxpayers with MAGIs between these amounts.
5.
higher limits retroactive?
The income limits for sales occuring on or after January 1, 2009 and on or before November 6, 2009 are
$75,000 for single taxpayers and $150,000 for married couples filing jointly.
6.
“adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments”
or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are
subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the
form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income
including wages, salaries, interest income, dividends and capital gains.
To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income.
See IRS Form 5405 for more details.
7.
MAGI exceeds the phaseout limits.
8.
applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount.
Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5.
To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply
$8,000 by 0.5. The result is $4,000.
Here’s another example: assume that an individual home buyer has a modified adjusted gross income of
$138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of
$20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that
the buyer is eligible for a partial tax credit of $2,800.
Please remember that these examples are intended to provide a general idea of how the tax credit might be
applied in different circumstances. You should always consult your tax advisor for information relating to your
specific circumstances.
9.
program's deadlines were extended.
10.
requirements?
You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form
5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for
2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications are required, and no
pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income
limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended
purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-
1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
11.
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for
a price less than or equal to $800,000. This includes single-family detached homes, attached homes like
townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The
definition of principal residence is identical to the one used to determine whether you may qualify for the
$250,000 / $500,000 capital gain tax exclusion for principal residences.
It is important to note that you cannot purchase a home from, among other family members, your ancestors
(parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your
spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.
12.
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has
little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a
check for a portion or even all of the amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of
$5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the
IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a
result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
13.
I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner
is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this
situation, the date of first occupancy must be on or after January 1, 2009 and on or before April 30, 2010 (or by
June 30, 2010, provided a binding sales contract was in force by April, 30, 2010).
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined
by the settlement date.
14.
program?
Yes. The tax credit can be combined with an MRB home buyer program. Note that first-time home buyers who
purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15.
this new credit?
No. You can claim only one.
16.
in the previous three years and who meets the income limits test may claim the tax credit for a qualified home
purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17.
$8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the
taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000
deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000
to $6,800.
18.
different tax credit. Please consult with your tax advisor for more information.
19.
their 2009 or 2010 tax return?
tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate
cash by raising his/her take home pay. This money can then be applied to the downpayment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly
estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding.
Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified
purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible
interest charges and penalties.
In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax
credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance
agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a
downpayment. Prospective home buyers should check with their state housing finance agency to see if such a
program is available in their community. To date, 18 state agencies have announced tax credit assistance
programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has
compiled a list of such programs, which can be found here.
20.
home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a
refund. These funds may be used for certain downpayment and closing cost expenses.
Under HUD’s guidelines, non-profits and FHA-approved lenders are allowed to give home buyers short-term 12:11:19 PMloans of up to $8,000. The guidelines also allow government agencies, such as state housing finance agencies,
to facilitate home sales by providing longer term loans secured by second mortgages.
Housing finance agencies and other government entities may also issue tax credit loans, which home buyers
may use to satisfy the FHA 3.5 percent downpayment requirement. In addition, approved FHA lenders can
purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5
percent downpayment that is required for FHA-insured homes.
More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf)
and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization
(pdf) is available at the NAHB web site.
21.
2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the
purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous
year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this
election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the
buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted
their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should
consult with a tax professional to determine how to arrange this.
22.
prior or present year, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and
a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields
the largest credit amount.
23.
buyer tax credit and the other qualifies for the $6,500 repeat home buyer credit?
The buyers can allocate the tax credit in any reasonable manner, provided neither claims a tax credit higher than
the one they qualify for
example, the repeat home buyer could claim $6,500 and the first-time home buyer could claim $1,500.
Alternatively, both buyers could claim a $4,000 tax credit.
24.
lived in and owned the same principal residence for at least five years. Spouse B has lived in and owned
the same principal residence for less than five years.
In this situation, the couple does not qualify for any home buyer tax credit. Because the couple is married, the
law tests the ownership history of
home buyer tax credit, so neither does Spouse B.
Spouse A does appear to qualify for the $6,500 repeat buyer credit, but because Spouse B has not owned and
lived in the same principal residence for at least five years, neither of them can claim the repeat home buyer tax
credit.
12:11:26 PM
Tuesday, January 19, 2010
There are lots of reasons to ask your lender for an FHA loan instead of taking a conventional or an expensive and risky sub-prime mortgage loan. Why not take advantage of the many benefits and protections that come only with FHA:
Easier To Qualify - Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requiremnts so its easier for you to qualify.
Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, it's easier for you to qualify for an FHA loan than conventional.
Low Downpayment- We have a low 3.5 downpayment, and that amount can come from a family member, employer or charitable organizations.. Most loans do not allow this.
Costs Less- Most times, FHA loan rates are more competitive than what is available in the conventional markets.
Help Keep Your Home - The FHA has been around since 1934..
There is more to buying your home than the monthly house payment.. Why not ask for a FHA loan that will help you buy your house and keep it ..
FHA is a wise choice
2:16:17 PM
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