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Wishing Everyone a Safe and Happy Holiday Season!
Thank you and welcome to the 12th issue of KimKproperties Newsletter. For more information within each topic please feel free to use the underlined links.
2011 has been a year of up and downs in the housing market (great rates in 2011 for qualified buyers!) and there has been more clarity provided regarding variables such as: how the mortgage industry dealing from years past are now effecting the market; the influx of short sale, government-owned, and bank-owned properties; home value decreases for homeowners who remain current on their mortgages; and new changes within FHA/HUD/VA programs to spur the market.
For now I am thankful for my allowed deduction of mortgage insurance premiums. Will that reamin in effect? I will let you know.
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Seller Concessions Defined
...Be an Informed Buyer and Seller
When negotiating the purchase of any home, one of the most effective tools to reducing the acquisition cost of the home is using the FHA/VA/Conventional Loans combined with seller concession. Concessions are a set dollar amount or percentage of the purchase price that a seller agrees to contribute towards the buyers closing costs. It can be any negotiation where the seller gives something up to the buyer, e.g. if there is some problem or updates that are needed in the house; often a seller will offer the buyer a concession of a lower sales price leaving the repairs or updates to the buyer to do later and pay for on their own. This would be an alternative to the seller having the repairs or updated done before closing, paying for them and selling the home at full price. In a buyers market like today, seller concessions are common.
- By using HUD's FHA guidelines, the average borrower can save thousands of dollars in buyer-paid costs by having a seller pay these typical closing fees. Be sure when negotiating your purchase contract that you ask for closing costs concessions. Most lenders, including FHA HUD insured loans, will allow up to 6% in seller concessions.
- Seller concessions are defined by the Department of Veterans Affairs as "...anything of value added to the transaction by the seller for which the buyer pays nothing additional and which the seller is not customarily expected or required to pay or provide". Seller concessions may include the seller paying the VA funding fee (which the VA loan applicant is normally required to pay) or paying points on the loan to lower the interest rate. Concessions may include paying insurance or property taxes for the buyer and putting money in escrow to give the buyer a temporarily reduced interest rate buydown. *valoans.com
- With conventional loans, lenders can place limits on a home buyer's ability to ask for seller-paid closing costs. These limits can reduce the amount to 3%, or they may not be allowed at all.
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Life Changes and How it May Affect Your Credit
Chances are you know someone who is facing the challenges of divorce. Going through this process can be emotionally and financially difficult. Failing to address important credit issues, however, will only make things worse. Remember, a divorce decree does not absolve credit contracts or relieve responsibility for any and all debt incurred during the marriage. The following is a proactive plan to maintain healthy credit both during and after a divorce.
Know Your Credit - Obtain copies of credit reports from all three bureaus right away (Experian®, Equifax, and TransUnion®).
Organize The Facts - Make a list of ALL open accounts and create a spreadsheet with creditors' contact info, account number, type of account, balance, monthly payment, and the name of the vested spouse.
Take Action - Sell or refinance secured credit assets (e.g. car, house, etc.) if possible, ensuring that loans are either paid in full or that only the vested spouse's name remains attached to the account. Immediately close any unsecured accounts (e.g. credit cards, etc.) with no balance. For those accounts with a balance, have them frozen to ensure no future charges can be made. A Few More Tips - Only a creditor can change the terms of a credit contract. A judge may order one spouse to pay off a joint account, but both parties are still responsible in the eyes of the creditor if the debt is unpaid. If possible, pay off these accounts quickly to help maintain good credit. However, if one party is ordered to pay off the debt of an open joint account, that party should be sure that the title reflects this change to avoid paying for something he or she no longer owns.
*Harry Venik, Sr. Loan Officer, Adams Mortgage, www.adamsmortgage.com
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Featured December
Local Events | |
Festival of Lights Parade. When: Saturday, December 3rd; 5:50PM. Where: South on Tejon Street starting at St. Vrain Street. Dress Warm! Festival of Lights Parade
Electric Safari - Cheyenne Mountain Zoo! 21st anniversary of holiday lights and winter family fun.When: December 9th-11th; December 16th - January 1st, excluding Christmas Eve. Where: Cheyenne Mountain Zoo. Electric Safari Information - Tickets Needed
Holiday Lighting Spectacular - Seven Falls. When: December 2nd,3rd 9th,10th,16th, and 17th; 5PM - 9:30PM. Where: Seven Falls in Cheyenne Canyon. |
Newsworthy Article of the Month
Congress voted to restore FHA loan limits: Encouraging news for the housing market and great news for both sellers (bigger buyer pool) and buyers (access to FHA loan for their finance needs)! Article attached with additional reference to Flood Insurance.
Yes, it's back but what happened to the market during the decrease period? 16% of home buyers have left the market. 52% of buyers have had to come up with a higher down payment. 32% have had to look for a lower-cost home. 21% are facing higher interest-rate payments.
*www.realtor.com
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Kim Klapac...
Locals Know!
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