Saturday, April 25, 2009

Why Get Mortgage Pre-approval?

Dear Rich:

I am interested in buying a home in Mint Hill (I am a first time home-buyer) and I am wondering if you think it is necessary to get a pre-approval - or just a pre-qualification? My credit is good and I just got a raise in my job, so I don't know if this is a necessary step or what I would do to get this before I start the home search.

Ralph

Dear Ralph:

Starting a home search? Go into it with a pre-approval, not just a pre-qualification, for a mortgage.

A pre-qualification is a simple and informal process where you get an estimate from a bank regarding how much you will likely qualify for if you apply for a mortgage with that bank. It gives a ballpark figure, but it’s not a solid commitment. Many factors, such as credit scores and outstanding debt, may actually affect how much you’ll be approved for.

A pre-approval is a much more reliable. The bank draws up a letter pre-approving a mortgage up to a certain amount. To get that pre-approval, you’ll supply a statement of earnings and assets, and the bank will pull a credit report.

If you have a pre-approval in hand, it demonstrates you are serious. It also gives you an edge in several ways:

--> If you are one of two sets of buyers looking at the same house and making approximately the same offer, guess who usually wins? You got it! The ones who have a pre-approval typically get the house.

--> Buyers with a pre-approval often have more bargaining power. If the sellers know they have an interested pre-approved buyer, they are more likely to be open to negotiation.

--> Possession of a pre-approval can speed up the closing.

One word of caution: If any of your conditions change from the time you apply for a pre-approval to the time you go for the mortgage (such as employment status or debt load), the pre-approval may no longer be valid.

In the long run, getting a pre-approval is worth the additional time and effort.

Good Luck!
Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Wednesday, April 22, 2009

Home Energy & Climate Bill

Home Energy & Climate Bill Unveiled
House Energy Chair Henry Waxman (D-CA) and Subcommittee Chair Ed Markey (D-MA) unveiled 648-page draft climate and energy legislation, the "American Clean Energy and Security Act." Among the many provisions, the bill would provide funding to states that:

  • Increase the energy efficiency of new and renovated buildings by 30-50% over latest model codes. The Energy Department could develop future models which states must adopt to receive bill funding.
  • Implement energy labels (like mileage/gallon labels for cars) on homes and buildings. The label must be accessible so it is "more fully factored into market transactions," but states could provide it at times other than the property's sale (e.g., when an energy audit is conducted).
The Waxman-Markey bill would also:
  • Direct the EPA to issue regulations for states to implement labeling and building codes, and assure that citizens can bring lawsuits to force action; and
  • Bar EPA from regulating carbon emissions under the New Source Review program, which effectively prevents regulation of tens of thousands (EPA numbers) of office and apartment buildings. If Congress fails to enact this provision, EPA will have to require permits and installation of energy saving measures (such as solar panels) in order for owners to build, maintain or operate buildings with 20 or more units. This is the result of a Supreme Court ruling that carbon dioxide is an air pollutant within the meaning of the Clean Air Act.

Chairman Waxman has vowed to move the bill out of his committee by Memorial Day so the House could consider it later this year. The Senate is also developing legislation but the energy and climate provisions are being drafted by different committees on separate tracks, so the timing is less clear.

As reported by NAR

2009 Homebuyer Tax Credit

The homebuyer tax credit is one of 10 key provisions of the American Recovery and Reinvestment Act signed by President Obama into law on Feb. 17, 2009.

The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser's income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)

Saturday, April 18, 2009

Buying a home with Small Children

Dear Rich –

My wife and I have 3 young children, ages 1 to 4, and we’re about to buy our first home. Up until now, we’ve lived in an apartment. What things should we take into consideration when looking at houses in teh Charlotte area?

Thanks!

Marty H.



Dear Marty –

You’re wise to take advantage of buying a home now. Not only is it one of the best times ever to purchase, between the lower housing costs and mortgage rates, but you should be able to take advantage of the stimulus package giving you up to 10% (to a maximum of $8000) if you purchase before December 1st. (Be sure to read my post about How the Stimulus Package Can Help You Purchase Your First Home from 4/16).

Some of the issues you’ll want to watch for include:

· The quality of the schools - once you’ve located your dream house--or some good prospects, you can look up school reports on my website. While looking at reports is a good place to start, you’ll also want to visit the school and talk to the administrators, teachers and local parents before making any final decisions.

· What is the neighborhood like? Are there children the age of yours around, or is it a community where there are much older children or mostly senior citizens?

· Are the neighbors out and about, or do they stay inside? Many families with young children look for a social aspect to their neighborhood.

· Are there parks nearby for play?

· How is the yard set up? Does it offer sufficient outdoor play area? Could it accommodate a swing set and a game of softball, kickball or badminton?

· Is it on a quiet street with low traffic? If not, will you need to put up a fence until the children are older?

· Is it free from child hazards, such as streams, ponds, dangerous fences, etc.?

· Inside, are there banisters and railings on all staircases?

· Are there multiple levels that could be dangerous for toddlers? If so, is it possible to put up a gate?

Moving from an apartment into your own home will be on of the most rewarding experiences for you and your family. I wish you the best of luck. If I can be of assistance in helping you find your dream home, please call me at 704-564-0807.


Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Thursday, April 16, 2009

How the New Stimulus Package Can Help You Purchase Your First Home

If you are considering the purchase of a first home or have not owned a primary residence in three years or more, the American Recovery and Investment Act could help your dreams of home ownership come true.

The stimulus package provides a credit of 10% of the home purchase price, up to a maximum of $8,000 for those who purchase a home between January 1, 2009 and December 1, 2009. The credit may be taken on either your 2008 or 2009 tax filing, does not require repayment, and works to reduce your tax liability.

If the closing on your home takes place after April 15, but you want to take the credit on your 2008 taxes, you would have to have filed for an extension, but as long as the closing takes place prior to October 15, you can claim the credit by that extension cut off date.

Already filed your return for 2008, and don’t want to wait until 2009 to take the credit? You can still claim it by filing an amendment to your return with IRS Form 1040X.

If you plan to take the credit for 2009, you can either claim it on your 2009 taxes or adjust your withholdings to reflect the credit.

You will be eligible to take the full credit if your income is under $75,000 if filing individually, or $150,000 if filing jointly. As your income rises, the percentage of credit drops. Once you hit an income of $95,000 filing individually or $170,000 filing jointly, you are no longer eligible to take the credit.

For more information on this stimulus package, visit The National Association of Realtors.


Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Wednesday, April 15, 2009

Pets and Real Estate

Dear Rich:

My wife and I are trying to sell our home (in Charlotte) and we want to make it as "buyer-friendly" as possible. However, we have 2 large dogs and we know that this can be a detractor to potential buyers. Do you have any tips for selling our home?

Charlie - Charlotte, NC
Dear Charlie:
People who are pet lovers cannot understand those who are not. In reality, there are many people on this planet who either don’t like animals, are fearful of them, or who are allergic to them--so you are right to be concerned about how this might affect the sale of the house.
Having a pet can certainly be an obstacle to the sale of your home, if you are not vigilant. Many people moving to the Charlotte area have come to retire, and are not interested in a home that has had pets, or are bringing their own. They may even be intimidated by looking at a house that has a big dog--or two!
I have seen some agents recommend that the pet be relocated elsewhere until the sale is made. I have yet to meet a homeowner willing to do that to a beloved pet, especially in this market, when sales are taking longer.
So here are some tips to be sure Fido or Fluffy don’t prevent the sale of your house:
1.) Vacuum the floors and rugs constantly, even several times a day, so there is no sign of animal fur. Don’t forget to vacuum chairs and sofas as well.
2.) Cat pans must be immaculate…completely changed prior to any showing. If the dog uses a run or the yard, be sure all indications are absent.
3.) If there are carpet stains, have the rugs professionally cleaned.
4.) Remove all pet paraphernalia when showing the house, including toys, food and water bowls, photos, balls, leashes, and cat trees.
5.) Be sure there is no scent of animal in the house. To eliminate odor, use an enzyme cleaner or call a professional ozone company. Deodorizers only camouflage the smell, they do not eliminate it, and those with allergies may have a reaction.
6.) Your pet should not greet the buyer and agent at the door. It should be safely ensconced in a pet carrier or outside on a leash.
7.) If your pet is a “chewer,” eliminate any furniture or replace any woodwork that has been damaged.
8.) Be sure photos of your home, (inside and out) on your realtor’s website do not show your pets.
Although people who love animals are likely to be more understanding, they are still there to consider the purchase of your home, not your pet. Whatever you can do to remove distractions and obstacles that may prevent the purchase will be to your benefit.
Good luck with the sale of your home!
Rich Ferretti
Jamison Realty

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Investing in Real Estate

Are you considering investing in real estate? This is a remarkable time to take advantage of available inventory in the Charlotte area, at amazing prices. This area is still poised for growth and Charlotte is a wonderful place to live, work and invest.

Check out my Active Rain Article on Investing in Real Estate.

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Tuesday, April 14, 2009

8 Tips to Sell a Home Where a Pet Lives

Dear Rich:

My wife and I are trying to sell our home (in Charlotte) and we want to make it as "buyer-friendly" as possible. However, we have 2 large dogs and we know that this can be a detractor to potential buyers. Do you have any tips for selling our home?

Charlie - Charlotte, NC

Dear Charlie:

People who are pet lovers cannot understand those who are not. In reality, there are many people on this planet who either don’t like animals, are fearful of them, or who are allergic to them--so you are right to be concerned about how this might affect the sale of the house.

Having a pet can certainly be an obstacle to the sale of your home, if you are not vigilant. Many people moving to the Charlotte area have come to retire, and are not interested in a home that has had pets, or are bringing their own. They may even be intimidated by looking at a house that has a big dog--or two!

I have seen some agents recommend that the pet be relocated elsewhere until the sale is made. I have yet to meet a homeowner willing to do that to a beloved pet, especially in this market, when sales are taking longer.

So here are some tips to be sure Fido or Fluffy don’t prevent the sale of your house:

1.) Vacuum the floors and rugs constantly, even several times a day, so there is no sign of animal fur. Don’t forget to vacuum chairs and sofas as well.

2.) Cat pans must be immaculate…completely changed prior to any showing. If the dog uses a run or the yard, be sure all indications are absent.

3.) If there are carpet stains, have the rugs professionally cleaned.

4.) Remove all pet paraphernalia when showing the house, including toys, food and water bowls, photos, balls, leashes, and cat trees.

5.) Be sure there is no scent of animal in the house. To eliminate odor, use an enzyme cleaner or call a professional ozone company. Deodorizers only camouflage the smell, they do not eliminate it, and those with allergies may have a reaction.

6.) Your pet should not greet the buyer and agent at the door. It should be safely ensconced in a pet carrier or outside on a leash.

7.) If your pet is a “chewer,” eliminate any furniture or replace any woodwork that has been damaged.

8.) Be sure photos of your home, (inside and out) on your realtor’s website do not show your pets.

Although people who love animals are likely to be more understanding, they are still there to consider the purchase of your home, not your pet. Whatever you can do to remove distractions and obstacles that may prevent the purchase will be to your benefit.

Good luck with the sale of your home!
Rich Ferretti
Jamison Realty

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

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Charlotte North Carolina Real Estate Professional. Visit our site www.RichFerretti.com