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A message from friends at Pillar to Post....

VA Loans and Tax Credit Extension

Recently the office of Veteran's Affairs announced a few updates to the VA loan program and now an extension of the tax credit is still available for active members of the armed service. This is very difficult information to find and I wanted to post this out there for all of the men and women that serve our country. They deserve our thanks and help in manners like this that can benefit them to own a home.

Here are some of the details that I was able to find:

• Tax credit is good until April 30, 2011. This means an accepted offer has to close by this time.
• $8,000
• No repayment penalty of the tax credit
• You don't have to live in the home for 3 years. This can be due to a variety of different reasons( reassignment, etc)

VA Loans are still available and are the only loans that are offering 100% financing. !00% financing still means that the veteran can have closing costs, escrow of taxes, and many other costs that will need to be brought to the closing table. A great way for these to be covered entirely or partially is asking the seller to pay up to 3% of the purchase price in closing costs and prepaid. A great resource is http://www.benefits.va.gov/homeloans/docs/2010_county_loan_limits.pdf for loan limits. Here are some other guidelines with a VA Loan:

• Loan limit of $417,000 unless you live in any of the other high cost counties see the pdf above.
• No private mortgage insurance
• 100% Financing
• No Mortgage Insurance
• No Minimum Investment or Down Payment needed from the buyer
• Lenders are limited to only charging 1% Origination Fees
• Seller must pay the entire escrow fee (Lender pays this if it’s a refinance)
• If the property does not appraiser for the sales price, the Veteran’s earnest money is protected
• No Credit Report or Appraisal needed for VA Interest Rate Reduction Refinance Loan (A VA-to-VA refinance with no cash-out. Often called VA Streamline refinances).
• Low rates
• No limit in seller’s concessions used to pay Veteran’s closing costs
• 4% Seller’s concessions for non-VA costs as well as Veteran’s debt (That’s right, the seller can pay off some of the veteran’s debt in the transaction).
• Can be used for a Stick Built House, Manufactured home (must be on land), Condo, Townhouse, and multi-family from 2-4 units
• No Funding Fee for disabled Veterans (It doesn’t matter if the veteran is 10% disbaled or 100% disabled, they won’t be charged a Funding Fee).

Here are some basic guidelines for a VA loan( check with a VA lender to get all of them):

• Most lenders will want the Veteran to have at least a 620 credit score
• You must be 3 years separated from a foreclosure
• You must be 2 years separated from a Bankruptcy
• The Veteran should have at least 3 tradelines on credit to review.
• Nobody can be on the VA Loan with the Veteran other than a Spouse
• Surviving Spouses of deceased Veterans with VA Benefits can also use a VA Loan
• VA Loans are assumable, which means you can sell the house and pass the loan to another Veteran as long as they can cover the difference between the sales price and the existing loan.
• VA Funding Fees, which is a fee that goes directly to the Department of Veterans Affairs, varies depending on whether the Veteran was full-active duty or reserve, how much the Veteran puts down, the type of transaction (Purchase, Streamline refinance or Cash-out Refinance) or if the Veteran is disabled.

Whether you are looking for a home, condo or income property, finding a local lender and local Realtor will help you in the process. Please feel free to pass this along. It is really important that veterans understand all of the benefits available to them.

You Are Not A Lead

More than ever more buyers and sellers of real estate feel like a lead. I have read a lot of articles and watched videos all over the internet where they feel like a lead.

This is disappointing! Having a connection to your clients and providing them what they are interested in is our job as their Realtor. They look to us to provide them with more than just the average agent. They want our knowledge, professionalism, negotiating skills, and marketing! This is why they pay us to help them sell a home or help them buy a home.

Separate yourself from the mass of other agents. Provide service above and beyond their expectations! Make the experience more than they could have imagined and connect with them. Having a client for life is priceless and what a better ad or marketing piece than a past buyer or seller who talks about their experience with you to others.

People talk about real estate and the economy. Know what is happening in your local area. Know the average days on market to sell a home as a whole and the area in which you either have a niche or were your clients are located. Understanding prices and market list price to sale price.

In Madison and the surrounding communities( Fitchburg, Verona, Monona, McFarland, Stoughton, Sun Prairie, Middleton, and Waunakee) the area is healthy and jobs are available. The housing market does have some REO and shortsale transactions, but the majority of sales are traditional sales between a buyer and seller.

Each market is different and each neighborhood is different but the reason we are here is to provide this to our clients and to new customers that are looking for the same level of service, knowledge and professionalism.

Make your clients feel like you are there for them and they are not just a lead! They are with you because of who you are and what you make them feel like and what you proved them. Respect them and in turn you will be successful in the long run.

Is It An Excellent Time To Buy?

Why Own?
There are many great reasons to consider owning a home:
You'll have a place that is yours! You'll own it, have a place to raise your children and become a part of your community. You can pass your home down to your children, and their children, creating security for generations to come.

You may pay less to own a home than you would to rent – and it's yours at the end! Homeownership can reduce the federal income taxes you pay. You can deduct the interest on your home mortgage and property taxes you pay on your home on the tax returns you file each year. These tax savings partially reduce, or offset somewhat, the actual cost of owning your home.

Your monthly payments won't ever go up if you choose a fixed-rate mortgage! If you choose a mortgage with a fixed-interest rate (one that stays the same for the life of the loan, say 30 years), you'll pay the same mortgage payment each month for the entire 30 years of the loan (if your taxes go up, your escrow will go up – increasing your monthly payment).

You'll build a good nest egg!Owning a home and building equity is the single greatest source of financial security and independence for the majority of people who've taken this step.

With the current inventories of homes and condominiums and historic low interest rates, it is a great time to be in the market to buy.

17 Inexpensive ways to make your home sell faster

With all of the competition that is in our Madison market, heck every market, why not put your best foot forward when it comes to easy and inexpensive fixes you can do to your home to make it more ready to sell.

1. Paint or stain the front and garage doors, especially if they show any weathering. These are the first visuals where a potential buyer focuses. If garage doors are metal and dented, they may need to be replaced.
2. Any old, basically abandoned sheds or small structures, must be removed, the area graded and the grass replaced.
3. Change any dated, outside light fixtures.
4. Fix that driveway. If it is blacktop, make sure cracks and crumbling areas are dug out and filled and then the whole driveway sealed. If it is cement, have large cracks filled and repaired professionally. The buyer must at least feel they can drive the moving truck in confidently!
5. Make sure landscaping bricks are in their proper placement. Mowing, weed-whipping sometimes moves them and this is something the homeowner rarely notices, but makes the property look unsightly.
6. Fill in bare dirt under large shade trees. Plant shade-tolerant plants in defined planters or groundcover. Landscape properly for that area.
7. All landscaping beds should be cleaned out and updated for the time of year it is in your region. Place new bedding material down.
8. Have trees and bushes pruned and trimmed. If a bush or tree is looking old or about to expire, remove it and replace it with a similar size and type if you can. If there is a tree limb(s) over the roof, have them removed.
9. If the house needs painting and a full paint job is not in the cards; have it touched up professionally in the worst, most visible spots. Paint shutters and fix them if they are hanging crooked. At least this may help get your client in the front door, even if they negotiate a full paint job into the sale later.
10. If the house is sided, have it power-washed and have gutters and windows cleaned. Window cleaning inside and out makes the house feel updated and fresh, rather than old and dingy.
11. Make sure grass is in good shape, weeds are removed, trimming done regularly. So many sellers fall down on this job the minute the house is listed, and this is critical to selling a house quickly, especially one where the owners have already moved out. In snowy climates, removal must be done regularly too. If owners have moved out, make sure you have an HWA Home Warranty to re-assure buyers.
12. Keep garbage and recycle containers inside the garage, along with all toys and equipment. Make sure the garage is neat and organized. Painted walls and floors also go a long way in this area and are inexpensive to do.
13. Decks should be washed and repainted or re-sealed; plantings around them cleaned, weed-free and looking good. Patio furniture should be in excellent condition. Even though it is in the backyard, this is the area where the family can envision enjoying the warm days and the new yard.
14. If the roof has missing shingles and they can be replaced inexpensively, suggest this be done as it may save negotiation over a completely new roof. Roof repair needs and costs should be minor or the homeowner might as well replace the entire roof.
15. If the homeowner wants to do a bit more, suggest solar lights lining the driveway or installing a more attractive front door with lead glass inserts and replacing plain doorknobs with something more custom.
16. If you have an evening showing, make sure lights are on outside and inside the house. This is warm and inviting.
17. If it’s a holiday season, by all means decorate the home! Just like sugar cookies or vanilla scent on the inside of the house, this really says “it’s a home” and I can see myself enjoying life here! In the least, always have some greenery or flowers for the season on the front step or porch; even a birdbath with a little garden around it says home.

Remember, buyers usually can't invision your home if all they can think about is the flaking paint around all of the windows and garage. After you are done, have friends and family make a final walk through of your home. This will make sure that there are no more areas for a buyer to be distracted by. Make it attractive and it will sell faster and for more money!

Happy buying and selling!
Charlie

Wisconsin Economies: Are We Affected by Mortgage Problems

In the January addition of Wisconsin Real Estate magazine there is a great article showing how localized real estate really is. A new report issued by the U.S. Conference of Mayors states that the "fallout from the mortgage crisis will be minimal in Wisconsin compared to much of the rest of the country". Even though the economy is declining, the decline is not coming from Wisconsin. Most of the major metropolitian areas in Wiscosin are projected to have product growth. They are Appleton (2.7%), Eau Claire (2.8%), Fond du Lac (3.1%), Green Bay (2.9%), La Crosse (3.1%), Madison (3.4%), and Milwaukee (2.5%). They also believe that west central and northern Wisconsin are not expected to lose any ground due to the mortgage crisis.

Wisconsin's, especially Madison's, economy is diversified and continues to grow at a steady pace. Our economy has historically been very even. This keeps Wisconsin from booming in a really good market and a bubble from bursting in a bad market. As projected by the Wisconsin Department of Revenue the"higher growth rates in Madison, Appleton, Green Bay and La Crosse metro areas" will offset any slower growth in other regions like Milwaukee and Racine.

Facts:

• Wisconsin's foreclosure rate is half the national average.
• Wisconsin consumers have an above average credit score and lower debt levels.
• Wisconsin technology, and other business sectors, are expanding and creating wealth.
• Export sales are up 50% from 2006 numbers.

Overall, the economy will be strong and with interest rates at near historic lows, the real estate market is projected to be a good year. What a great Buyer's market in 2008!