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Have you experienced a long wait to close on your home loan recently?

2009-06-25T22:39:00.002-04:00

The real estate industry has experienced many changes in the past year. As seen on television, the real estate market has been dealt with an influx of foreclosures, not as many homes selling as in recent years, and various changes that have been made for loan programs offered by most lenders.

The changes to various loan programs is having an impact in our region. Certain little to no down payment loans have been eliminated, minimum credit scores for certain loans have been raised, and some lenders are being more critical of the home loans that are being made.

As most of us are aware, some banks have experienced major losses and some have sought help from the federal governement to help offset those losses. The federal government came to the rescue and helped many banks in need. The goal was to help free up credit to help get the economy moving again.

The result of these actions have not exactly been what was intended. Loans are still being made, but did this bailout free up credit to help the real estate industry among other industries get out of the downward movement? It may have helped some, but where is all of the bailout money gone that went to these banks? Are banks passing it on to consumers and businesses in the form of loans and credit to help spur the economy?

An issue that I have noticed that has recently developed is the time it takes to get a home loan. Various lenders in the area have experienced an increased amount of loan applications for refinances of home loans and for purchases due to the very appealing interest rates. As a result many lenders have been dealing with the need of more time to get these loans closed. Lenders have been challenged with stricter underwriting guidelines of home loans that have also slowed down the process. Some lenders continue to close home loans at about the same rate of time as in the past, but others struggle to meet deadlines for real estate contracts and leave the consumers involved wondering what is to happen next.

Have you experienced a long wait for the refinance of your home or the sale or purchase of a home? I would like to hear from you on what your experiences has been. Please do not name companies or people involved. It would be interesting to hear from what you experienced during the home loan process.

If you have any real estate related question or an idea for a story for the real estate blog, email me at todd@toddnelson.com.

Why Have A Home Inspection When Buying A Home?

2009-06-20T22:47:00.000-04:00

There are various steps in the purchasing process, but one very important step to address is a home inspection. Although not usually a requirement, I recommend that everyone get a home inspection before purchasing a home. As a Realtor, I do not know everything about the home that I am selling. I use the knowledge obtained from the seller and what visually can be seen during a visit to the home in marketing the property. Sometimes the seller does not know of issues that may need addressed on their home.

A home inspector is usually more thorough than an appraisal on the property which is more focused on the features, overall condition, and value of the home. The home inspector also is usually hired by the buyer to inspect the home. Some of the items inspected, but not limited to just these items are the structure, the heating/cooling system, electrical, plumbing, attic, crawlspace or basement, roof, and other parts of the home. The inspector will usually give the buyer a written report detailing their findings. Some inspectors identify the items as a major concern, a safety issue, or to monitor the issue. You can visit the West Virginia Association of Home Inspectors at http://www.wvahi.org/ for more information about local members and home inspections. In West Virginia, home inspectors are required to be licensed and more information on home inspector licensing can also be obtained from the above website.

A home inspection gives a buyer more knowledge about the home that the buyer plans on purchasing. This inspection should also help with informing the purchaser of possible future repair costs. Costs of home inspections vary from around $250 to $500 and possibly more depending on the size and age of the home. Ask the home inspector their costs, education background, and you can also ask other questions listed on the above website. A home inspection provides a buyer with more information on the property that the purchaser may not have known from visually viewing the home on their own. Feel free to contact me with any other questions that you might have on the subject.

The First Time Home Buyer Tax Credit Is Not Only For Home Buyers Who Have Never Owned a Home

2009-05-05T10:09:00.005-04:00

Did you know that under the first time home buyer tax credit that was recently passed for home purchases in a certain time period during 2009 is not only for home buyers who have never owned a home?

As obtained from www.federalhousingtaxcredit.com the following are some common Frequently Asked Questions:

1. Who is eligible to claim the tax credit?

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 before December 1, 2009. 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.

2. What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year 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, unmarried joint purchasers may 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. How is the amount of the tax credit determined?

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4. Are there any income limits for claiming the tax credit?

Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 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 $75,000 for single taxpayers and $150,000 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 $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5. What is "modified adjusted gross income"?

Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "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.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

7. Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, 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 $88,000. The buyer’s income exceeds $75,000 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.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?

The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

9. How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. 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 69 of their 1040 income tax return. No other applications or forms 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.

10. What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit. 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.

11. I read that the tax credit is "refundable." What does that mean?

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).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?

Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that 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 before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

Yes. The tax credit can be combined with the 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. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?

No. You can claim only one.

16. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence 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. Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $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. I bought a home in 2008. Do I qualify for this credit?

No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.

19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income 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.

Further, 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. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 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 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, 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 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Please feel free to contact me at todd@toddnelson.com with further questions or your accountant to get more details about this great opportunity.

West Virginia Housing Fund Offering Below Market Interest Rates For Newly Constructed Homes!

2009-04-14T08:51:00.008-04:00

Have you been thinking of building your new dream home or about purchasing a new home that has nevered been lived in, before? If so, the West Virginia Development Fund is now offering a new program to save you a considerable amount of money.

The West Virginia Housing Development Fund's 3-2-1 buy-down program allows homebuyers to secure loans substantially below-market interest rates.

For example, You lock in a mortgage rate of 5 percent on your new home. Under the new program, the interest rate will be lowered to 2 percent the first year, 3 percent the next and 4 percent the final year before returning to 5 percent for the remaining years of the loan.

This program which started this month does not require a borrower to be a first-time homebuyer and there is no income or home price limits.

The main stipulation is that the borrower must have a contract to buy a new home that is being built, or one that nobody has ever occupied.

This program most likely will not last a long time. The housing board authorized $40 million in loans to be offered from participating lenders across West Virginia. This money could last possibly three months. These discounts will only be available for about 200 to 300 new homes and possibily fewer.

It is suggested that the potential home buyer first speak with a local lender about this program. Information on this program has already been provided to banks, credit unions, and mortgage brokers about the 3-2-1 program. There is a few additional documents to fill out to sign up for the program.

For more information, contact a local lender or the West Virginia Housing Development Fund office at 877-WVA-DREAM, or go to www.wvhdf.com.

Do you know some of the names of the neighborhoods in the Huntington?

2009-03-25T08:13:00.001-04:00

As with many cities there are neighborhoods within its boundaries. Huntington has various neighborhoods within its boundaries.

One such neighborhood surrounds the Ritter Park area. It is called the Southside area. It is made up of typically older two story homes, apartment buildings, and beautiful estate type homes.

Another neighborhood surrounds St. Mary's Medical Center. It is called the Highlawn area. There is an elementary that carries the name as well, Highlawn Elementary School.

The West End area of Huntington most likely would include the Central City part of town and areas around Washington Ave, Jefferson Ave, and St. Cloud Commons.

Westmoreland is a neighborhood that actually is in Wayne County and includes the area starting around the Wayne County line to about Camden Park.

There are several other neighborhoods in Huntington. Can you name more? I purposely left some neighborhood names off to see if anyone can respond with other neighborhoods and their characteristics.

If you have a real estate or a topic that you would like covered in the Real Estate Blog. Email me at todd@toddnelson.com.

Maximizing Value When Remodeling Your Home

2009-02-05T08:12:00.007-05:00

Thinking about remodeling projects for your home?

Before beginning a significant remodeling project, think about what project investments would have a greater return if selling the home may be in the future. Some people may think that they never will sell, but later because of circumstances, decide to sell their home. Some of the best returns of investment come from remodeling the kitchen or bath. Believe it or not, Remodeling Magazine’s 2005 Cost Versus Value Report illustrates that doing a midrange remodel of a bathroom can translate into a national average of 102.2% recoup on the initial investment. A minor kitchen remodel consisting of such things as replacing the appliances, adding new fixtures, countertop, new flooring, painting, and changing cabinet fronts and drawers could translate into a national average of 98.5% recoup on the investment. Other ideas for remodeling and their national average recoup of investment include roofing replacement (84.7% recoup), siding replacement (95.5% recoup), window replacement (89.6% recoup), and basement remodel (90.1% recoup).Certain remodeling projects such as additions should seriously be evaluated.

The cost of additions can possibly price your home out of the market as compared to homes in your area. It may be cheaper to sell your home and buy a home that already has what you want. According to the Cost versus Value Report a bathroom addition could translate into an 86.4% recoup, a family room addition (83% recoup), and a main bedroom suite addition (82.4% Recoup). Consulting with a Realtor or licensed appraiser before such additions are added is highly recommended. Adding nice landscaping also can increase curb appeal and translate into more money when selling a home.

First impressions of a home are often made from the exterior upkeep of the home so improving what buyers see first can improve the outlook of selling a home. Inexpensive ways to improve the condition and appeal of a home include such items as painting, changing hardware on kitchen cabinets, replacing certain light fixtures and faucets, and an overall good cleaning of the home. For more information contact at todd@toddnelson.com or by calling (304) 733-7158.

Check out the open houses on Sunday!

2009-01-24T16:49:00.002-05:00

Readers of the Herald Dispatch on Sunday will notice a newly added item in the open house section of the newspaper. Every fourth Sunday through October some of the area real estate companies will be having open houses in certain communities of the area. Of course open houses will be held in various locations as normal, but starting Sunday January 25th, 2009 some of the area companies will participate in highlighting communities in our area. The first highlighted area is Barboursville. There will be a number of open houses in this particular area allowing for attendees less of a drive and more homes to see than possibly normal during this time. On Sunday February 22nd, there will be a highlight of the areas of South Point, Chesapeake, Proctorville, and Crown City Ohio. Stay tuned to the open house section of the Sunday newspaper for area homes to view and other communities that will be highlighted.

The Weather Outside is Frightful. Now is a Good Time To De-clutter the Inside of Your Home

2009-01-15T14:12:00.003-05:00

As the weather gets colder, staying indoors is a reality. Instead of getting bored at home, observe each room and make a list of items no longer needed. Go to your local retailer and purchase some storage containers. You can visit each room of your home and see what is no longer needed or has not been used in years. Go through your clothing and decide what you could sell or donate to a local charity. After boxing up these items, place them in the garage or a storage unit. As spring arrives, you will have more time to enjoy the great outdoors and be ready for the yearly garage sale. Perhaps you may even find that item that you have been looking for for months. Another result of your labor is that you will feel better knowing that a task has been completed and your home may even feel larger with the reduction of items.

With interest rates falling it is almost like homes are on sale!

2008-12-18T14:40:00.003-05:00

Interest rates are very appealing right now and continue to garner attention from prospective home buyers and fellow home owners looking to save money. As the interest rates fall, it is almost like homes are on sale when compared to rates earlier in the year.

For example:

If you had thought about buying a home in the summer priced at $200,000 putting 5 percent down when the interest rates for a 30 year fixed rate mortgage were around 6.25% you could expect a monthly payment with principal and interest based on good credit at $1,169.86 a month.

This week one lender had an interest rate with certain parameters at 4.625% on a 30 year fixed rate mortgage. That same house would have a monthly payment with the new interest rate of $976.87 a month.

That is a savings of $192.99 a month, $2,315.88 a year, and $69,476.40 over the 30 years of the loan!

So if you are considering buying a home, right now it is almost like everything is on sale with the lower interest rates. Call a realtor in your area or if I can be of further assistance, email me at todd@toddnelson.com with your questions.

Treasury Actions Could Save Home Buyers and Home Owners Thousands!

2008-12-04T14:02:00.002-05:00

If you are a home buyer who has been on the fence about buying a home, then your decision may have just gotten much easier with actions that may occur in the coming weeks. The treasury department may implement a plan that would have it directly engaging in the mortgage industry to dramatically force down interest rates and as a result stimulate the moribund housing market. This is based on sources familiar to the proposal.

Under the plan, the treasury department may buy securities that finance newly issued loans for home purchases, according to the sources familiar with the proposal. Mortgage lenders would have to set exceptionally low interest to a rate, for example, no more than 4.5 percent for traditional, 30-year fixed-rate loans.

According to sources who spoke on condition of anonymity because the plan has not been finalized, these securities would be purchased primarily from Fannie Mae and Freddie Mac, the financing giants that buy most mortgages from U.S. lenders.

For a home buyer wanting to finance $100,000 on a 30 year fixed rate mortgage at 4.5 percent your payment would be $506.69 a month including only principal and interest. This is a savings of $92.86 a month based on rates that were around 6 percent recently. Of course, the savings increase with a larger loan amount. This could allow home buyers to even afford more home if they want.

With the possible changes in the mist. The future of the real estate industry is beginning to look very promising for the coming year. This change could be the boost that our industry has needed. Email me with any real estate related questions at todd@toddnelson.com.

Selling Your Home During The Holidays

2008-11-22T17:13:00.004-05:00

A common question asked of realtors this time of year is the following:

"Should I keep my home on the market over the holidays?"

The answer to that question is Yes. There are several reasons why:

1. Buyers continue to look over the holidays. A lot of those buyers probably are seriously searching since during this time of year there are many other events that could be taking their time away from the search for a new home.
2. Some sellers take their home off of the market during the holidays and this allows for possibly less competition for you as a seller during this time.
3. Interest rates change daily and if the interest rates drop during this time, your home may become even more appealing especially if the interest rates are lower than usual.

Advice for decorating your home during the holidays:

1. Do not decorate too much. Same rules apply as any time of year. Do not have too much clutter. Christmas trees are common, but do not put four or five trees out. This could be a distraction for buyers who may spend more time admiring your decorations then your home.

2. Take advantage of the smells. There are some great smells that people love to take in during this time of year. Certain food smells, evergreen scents, and many other holiday odors can be used to your advantage to set the mood when your home is shown.

3. Do not have a room full of presents. Keep your presents to a minimum on display during showings. Put some gifts away in a closet or somewhere not seen during showings. Although buyers are looking to possibly buy your home, someone may have other ideas in mind after viewing a home that is loaded with gifts. It is sad, but sometimes it is true that people could be so cold-hearted to steal during the holidays.

4. You can draw attention to your home with decorating tastefully. Do not cover your home with lights from roof to foundation. Place several spotlights in your front yard and wreaths on every window. At night your home will stand out in the neighborhood without a lot of lights and work. Also, during the day, the home will not be overloaded with extension cords and the curb appeal will still be seen.

5. Have water and cookies setting out for guests. Buyers of course are not Santa, but buyers sometime look at multiple homes and they may get thirsty. Having bottled water and Christmas cookies out for guests will make your home stand out among the many homes that they may view.

6. Play Christmas music to set the mood. Having certain Christmas music playing in the background during a showing could set the mood and make your home also stand out.

7. Use centerpieces on table made out of pine cones or other wintry pieces.

8. Shovel the driveway and sidewalks before showings. This will make it safer to enter your home and less likely for a fall.

9. Remember not to have Christmas cards put up everywhere. It is exciting to get Christmas cards from loved ones and to put them up, but the less clutter the better.

10. REMEMBER TO KEEP THE FOCUS ON YOUR HOME. It is great to have the home staged, but remember whatever you do to think whether the item would enhance or distract a buyer when viewing your home.

If you should have any real estate questions, feel free to email me at todd@toddnelson.com.

History In The Making

2008-11-05T21:00:00.002-05:00

Last night after months of waiting, the future path of our country was chosen. Barack Obama will be our next President. He will be our first African American President. Everyone now can move on and prepare for the new direction our country will be taking. The real estate market has been very unpredictable this year and hopefully with his leadership things will improve.

An interesting thing happened overnight. The interest rate quoted by a local lender dropped to around 6% on a fixed rate 30 year mortgage with a borrower having a 720 or higher credit score. The interest rates have been around 6.5% to 6.875% recently. It will be very exciting if the interest rates continue to drop over the next couple of months especially if the econmony improves.

Check with your local lender to see how their interest rates are doing and hopefully they will continue to drop. Please email me at todd@toddnelson.com with an real estate related questions.

Interest Rates Starting To Creep Down

2008-10-22T08:34:00.002-04:00

The real estate market this year has been a roller coster ride along with the stock market. Over the last few days, the 30 year fixed interest rate on real estate mortgages has started to drop. A local mortgage broker was quoting a fixed interest rate on a 30 year mortgage at 6% yesterday with a buyer who had a credit score of 720 or higher among other requirements. The lower the interest rate the more home a buyer can afford or the lower the mortgage payment for a prospective buyer. Call a local lender today to see how their interest rates are doing. Email me at todd@toddnelson.com if you have any real estate questions.

Local Real Estate Market Slowing Down

2008-10-02T20:53:00.004-04:00

National headlines have been detailing for nearly a year now the slowdown in the real estate market. The local real estate market was not impacted drastically right away but is now experiencing a decrease in sales. Through the end of August, the Huntington area residential real estate market is down around 18% from last year based on numbers obtained from the Huntington Board of Realtors. Last year was a great year for the Huntington area residential real estate market.

There have been some significant changes that are having an effect on the local area as well as the nation such as the elimination of various loan programs that allowed many to purchase homes with little or no down payment. Also, consumer's credit scores are being utilized more to determine what interest rate that a purchaser will get in obtaining a home loan. There is a tier system being used by some lenders with a higher credit score being able to obtain the best interest rate. There have been other changes to different loan programs making it harder for potential buyers to get a loan.

I try to look at the glass half full versus half empty. Certain areas of our market and certain price ranges are still doing well. If you are a seller moving up to higher price range then you might end up doing well if the home that you are selling is in an area of our market that has not had a significant decline. The home you might be buying in this example that may be at a higher price may be experiencing a decline which may allow you to get a better deal.

Interest rates still remain low and there are various home choices in our market. Please feel free to contact me if you have any questions or have a story idea for my blog at todd@toddnelson.com.

Watch the interest rates this week

2008-09-15T20:44:00.002-04:00

As the stock market continues to tumble, watch the real estate mortgage interest rates this week. Last week one local lender was quoting 5.75% on a 30 year fixed rate mortgage based on certain conditions including the credit score at a particular level. As interest rates drops, buyers will be able to afford more home or get a lower payment on the price range home they are currently looking for. Call your local lender for more details. The interest rates can be different at each lender. Be sure to get a Good Faith Estimate detailing the lender's closing costs.

Historical Homes In the Huntington Area

2008-08-20T22:30:00.003-04:00

There are various historical homes surrounding our area. There may be some in your neighborhood. If you have an older home that may be over 100 years old, send me some pictures that I can post on my blog. Is your home on the National Register of Historic Homes? Let me know and we can spotlight your home.

Where do you think is the best place to live in our area?

2008-07-27T21:21:00.001-04:00

The tri-state area is an awesome place to live. From our convenient downtown neighborhoods to our beautiful countrysides, there are numerous options for each resident to choose when settling in our area. As the summer is upon us, fond memories of the area come to mind. Do you think the southside of Huntington, Salt Rock, the Martha area of Barboursville, Applewood in Proctorville, or your neighborhood is the greatest place to live? Respond to this blog and explain what area you reside in (subdivision name, town, etc.) and why you think it is the greatest place to live. Email pictures to me at todd@toddnelson.com for posting on the blog. Have a great summer!

Did you know that a lot of records from our local courthouses are online?

2008-07-06T08:23:00.001-04:00

Technology has allowed for easier access to courthouse records in our region. Searching for certain records are only a click away. You can visit the Cabell County Assessor's website at http://maps.cabellasessor.com. Various information on properties and even flood maps are online there. You can even see a satellite picture of your property there as well.

Some of Wayne County's records are also online. The website address for http://www.waynecountywv.us. Tax records, deeds, and numerous other information is available there as well. Look at the deed to your property. Records can actually be viewed on there website.

Various Lawrence County Ohio records can be viewed at two different websites. One website is for the Lawrence County recorder's office. The web address is http://www.lawrencecountyohiorecorder.org. You can view deeds there along with other documents as well. Another website for additional property information is located at http://www.lawrencecountyauditor.org. Property and tax information can be obtained there along with some other helpful information.

If you have a real estate related question please email me at todd@toddnelson.com.

Why Have A Home Inspection?

2008-06-19T08:44:00.002-04:00

There are various steps in the purchasing process, but one very important step to address is a home inspection. Although not usually a requirement, I recommend that everyone get a home inspection before purchasing a home. As a Realtor, I do not know everything about the home that I am selling. I use the knowledge obtained from the seller and what visually can be seen during a visit to the home in marketing the property. Sometimes the seller does not know of issues that may need addressed on their home.

A home inspector is usually more thorough than an appraisal on the property which is more focused on the features, overall condition, and value of the home. The home inspector also is usually hired by the buyer to inspect the home. Some of the items inspected, but not limited to just these items are the structure, the heating/cooling system, electrical, plumbing, attic, crawlspace or basement, roof, and other parts of the home. The inspector will usually give the buyer a written report detailing their findings. Some inspectors identify the items as a major concern, a safety issue, or to monitor the issue. You can visit the West Virginia Association of Home Inspectors at www.wvahi.org for more information about local members and home inspections. In West Virginia, home inspectors are required to be licensed and more information on home inspector licensing can also be obtained from the above website.

A home inspection gives a buyer more knowledge about the home that the buyer plans on purchasing. This inspection should also help with informing the purchaser of possible future repair costs. Costs of home inspections vary from around $250 to $500 and possibly more depending on the size and age of the home. Ask the home inspector their costs, education background, and you can also ask other questions listed on the above website. A home inspection provides a buyer with more information on the property that the purchaser may not have known from visually viewing the home on their own. Feel free to contact me with any other questions that you might have on the subject.

Did you know that a lot of records from our local courthouses are online?

2008-06-19T08:41:00.003-04:00

Do you have a real estate related question?

2008-06-03T14:01:00.000-04:00

Since last fall, I have been writing about various topics concerning the real estate industry and our area. For the next several weeks, I would like to answer readers questions concerning remodeling ideas, the home buying process, what is going on in the Tri-State area dealing with home sales, etc. Please respond to my blog or email me directly with a question at todd@toddnelson.com. Stay tuned for some of the readers questions and my responding answers. Have a great week!

Real Estate Mortgages Are A Changing

2008-05-18T11:24:00.002-04:00

Real Estate Mortgages have had some recent changes made that can affect home buyers when searching for a new home. 100% financing types of mortgages are beginning to be difficult to find except for certain circumstances. FHA loans are gaining popularity. Private Mortgage Insurance changes are starting to affect buyers as well.

If it has been over 60 days since you got a pre-approval letter on a real estate mortgage, you may want to contact your lender to make sure if any changes have been made that might affect the type of mortgage you intended to apply for after you find a home. Interest rates are still great. A local lender was quoting 5.875% on a 30 year fixed rate mortgage last week depending on your credit score.

If you should have any questions, please contact me at todd@toddnelson.com or contact your local lender for more details.

What are some common questions to ask your lender when searching for a loan?

2008-05-02T20:52:00.002-04:00

Trying to decide what lender to use and what program to apply for can be difficult. Be sure you find a loan that fits your needs with these comprehensive questions:

1. What are the most popular mortgage loans that you offer?

2. Which type of mortgage plan do you think would be best for us? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? Note: Private mortage inusrance usually is required if you make less than a 20 percent downpayment, but most lenders will let you discontinue the policy when you've acquired a certain amount of equity by paying down the loan.

5. Who will service the loan?

6. What escrow requirements do you have?

7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

There are other questions that you could also ask a lender when comparing different financial institutions. These questions were obtained from an Old Colony marketing piece dealing with questions to ask a lender. Feel free to contact a lender for more information and if you should have any other real estate related question feel to free to email me at toddandtaranelson@msn.com.

What should I do when starting to search for a new home?

2008-04-28T22:20:00.002-04:00

Starting your search for your new home is exciting. Whether this is your first home or your fifth, there are some tasks to ponder on when beginning your search. The first step that I recommend is contacting a lender to get pre-approved for a loan. Based on the information that you give them concerning your financial situation, the lender can help inform you on the price range of home to view, the amount of closing costs that you will need to pay to purchase the home, the interest rate and terms of your prospective loan, and the estimated payment range on your next home.I recommend this step due to several reasons.

1. It gives you an idea of what price range home to view. This reduces the chance of looking at homes that you can not afford or to inform you that you might afford more of a home than originally thought.

2. You will have an idea of what some of the costs are associated with purchasing a home. This will help if you need to ask for assistance from the seller to help pay some of the associated costs of the purchase. There are limits that a seller can contribute. Check with your lender to find out the limits, requirements, etc.

3. The lender can issue you a pre-approval letter to you that can be given to the seller when you write an offer. This may help strengthen your negotiating position especially if you are in a competitive situation against another buyer who might not have a pre-approval letter.

4. The lender could also help if you do not currently qualify for a loan to purchase a home by giving advice on how to improve your credit situation to be able to qualify in the future. After speaking to a lender and getting pre-approved, now you can search for your new home!

Please feel free to contact me with additional questions about purchasing or the home buying process in general.

The interest rates are beginning to be more and more unpredictable

2008-04-10T22:40:00.002-04:00

Interest rates have been all over the place in recent weeks. Most recently interest rates for mortgages have begun to fall again. This week a local mortgage broker was quoting 5.875% on a 30 year fixed interest rate mortgage. 100% financing options are beginning to be harder to find in recent weeks with lending guideline changes. Call your local lender to find out more details. If you were on the fence about buying a home, now might be the time to make a decision. Email me as well if you should have any questions on real estate at todd@toddnelson.com.