Thank You For Coming to our Client Appreciation Party!

I would like to thank everyone who came to our Client Appreciation Party held last April 10^th, Sunday at Kincaid Outdoor Center.  The party is our way of saying THANK YOU for all the referrals, business, love and support you continuously give us.

The guests enjoyed turkey rollers, cookies and cakes provided by Costco; while the kids loved the wonderful balloon creations in different shapes and sizes by Marky, D Clown; kids and adults (Would you believe?) had their face painted by Miss Yuliya. Five Star Entertainment livened up the Sunday afternoon with music from DJ Shawn.

And of course, a Sunday afternoon with all the kids in 1 room wouldn’t be complete without the fun games and prizes.  There was the balloon game, hula hoop game, potato sack race, do-the-limbo and musical chairs. 

It was our first time to arrange a HUGE event like this. But we’re really happy that everyone had fun. All the preparations paid off when we saw that everybody was having a good time!  A million thanks to the people who made this event memorable.

Again, thanks to everyone who came.  And for those who were not able to make it, stay tuned for the next event!

Referrals are an important part of our business and we appreciate you spreading the word to all of your co-workers, friends, and family. If you know anyone interested in buying, selling, or investing in real estate please contact me.  

FHA 203(k) Loan

Are you a first time home buyer interested in buying a fixer-upper but don't have the funds to remodel it?  There are sometimes properties on the market that weren't maintained by the sellers because of lack of funds and the house was left, or is currently in poor condition. And if you want to purchase that property and do the improvements yourself, you may qualify for financing deal through FHA 203(k) loan. 

The FHA 203(k) Loan is endorsed by the federal government, designed for individuals who want to repair/renovate a damaged home so they can live in it as their primary residence. The FHA 203(k) loan lets you include the money  needed for repairs and related expenses in the loan, such as materials and labor.  For example, the home is priced at $150k, repairs are $15k, the home would have to be appraised for $165k. You can also add 10-15% contingency reserve for expenses above and beyond your repair estimates. You can also get up to six months' worth of mortgage payments included to cover the mortgage while you're renovating the home, so that you won't have to make a double housing payment.

And the good thing about the loan is, you only have to come up with 3.5% of the total home purchase price plus the repair costs. In the example above, you would need 3.5% of $165k or $5,775 as your down payment. Same FHA requirement applies like having a steady verifiable income and a good credit score.

There are two types of FHA 203(k) mortgages namely regular and streamlined (also called "modified"). Regular 203(k)s are for properties that need structural repairs; while streamlined are for those that need only non-structural repairs. Both can be used for purchase or refinance.

Regular 203(k) purchase loans can have a maximum mortgage amount of the property value + rehab costs or 110% of the expected value of the property after renovation.  For example, if you were buying a house for $150k and the expected repair costs would be $25k, you cannot avail of the loan unless you have an existing $10k in cash to finance the repair. On the other hand, the streamlined loan allows home buyers to add a maximum of $35k to the purchase price to pay for the improvements.

The Renovation Loan is great for first time home buyers who want to buy a nice starter home and don't want to use their savings and credit cards to fix it up. 

To get more information on FHA 203(k) Renovation Loan, you may visit http://www.fha-203k.com.

IMPORTANT DOCUMENTS YOU MAY NEED BEFORE DECIDING TO BUY OR SELL!!!

Before you decide on buying or selling your property, make sure that you have the following basic documents on hand.  Being prepared will save you a lot of time, you can readily start the process of buying or selling once you have these documents with you.

Documents	Buyers	Sellers
ID (e.g. driver's license, state-issued ID, passport)	Yes	Yes
Paycheck	Yes. The purchase range is determined, in part, by their income.	Yes-if they are selling short sale.
Two Months' bank account statements	Yes. The buyers have to prove that they have a regular income to pay for the mortgage.	Yes-if they are selling short sale.
Two Years' W-2 forms or tax returns	Yes. Lenders want to see a stable, long-term income.	Yes-if they are selling short sale. The sellers have to show that they are suffering from economic hardship.
Gift Letters	Yes, in case the down payment money was a gift from a relative.	No.
Quitclaim deed	Yes for married buyers who plan to own as separate property.	Yes for married sellers selling homes that they own separately or joing owners selling their interests separately.
Divorce Decree	Yes, to prove that they shouldn't be held accountable for their ex's separate debts or credit reports.	Yes, to ensure that the seller has the right to sell.
Compliance certificate	Sometimes. It depends on the state government.	Yes
Mortgage Statements	No.	Yes. The escrow holder or title company will need to use them to order pay-off demands from any mortgage holder who has to get paid before the property's title can be transferred.

Consult with your local Realtor since they are the market expert and can provide both the required listing and selling documents.  Realtors are also a valuable resource in connection with lenders, title companies, home inspectors, engineers, and contractors.  For further questions regarding specific documents and circumstances, please contact Patrick James.

Tax Tips for Home Buyers

It's that time of the year again! Every year, on or before April 15, taxpayers must file their federal income taxes. There are a number of tax deductions available for home buyers that can significantly reduce one's taxable income.

Here are some things that home buyers need to know when filing their Income Tax:

1.Itemize your Return to Claim Your Deductions.
Not itemizing your income taxes may result to missing out on tax advantages. If you own a home and have a simple return, it's tempting to file for just the standard deduction. Sometimes, filing for standard deduction might outweigh your homeowner's deductions. But you'll never know if you're losing out on the tax advantages of itemizing unless you try. You can use tax software like Turbo Tax, which will automatically do the math on whether itemizing or taking the standard deduction will result in the lowest tax bill -- or the highest tax refund -- for you.

2. Tax Relief for Loan Modifications, Short Sales and Foreclosures is Only Around Through 2012.
While there is a positive outlook on the housing economy, 2011 is projected to be the peak year for foreclosures. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance is taxed as what the IRS calls Cancellation of Debt Income or CODI. However, under the Mortgage Debt Foregiveness Relief Act of 2007, the IRS is currently not charging income taxes on CODI through 2012.

3. Some Closing Costs are Tax Deductible.
If you bought or refinanced your home in 2010, you may be eligible for tax deductions on your closing costs, even if the seller has paid for them.

Take note that not all closing costs are tax deductible. Some closing costs that are tax deductible are mortgage points; prepaid mortgage interest paid at closing; and transfer taxes for rental or investment property.

Mortgage Points is a percentage of the loan amount you pay your lender at closing to basically "buy down" your interest rate. If you are purchasing a home, the total amount of loan points are fully deductible for that year’s tax returns. If you are refinancing, the points can still be deducted, but the deductions must be amortized or spread out over the course of the loan.

If you prepaid any mortgage interest as part of your closing costs, that interest will be tax deductible. You may have to prepay if you close on any day other than the first of the month. This is typically the day your future mortgage payments will be due and if your home loan closes on the 15th perhaps, then your lender will require you to prepay interest for the 15 days before the next month begins. Since this is still interest, even though it is included in your closing costs you can deduct it from your yearly tax returns.

If the transfer taxes are part of your closing costs, it will be tax deductible too. Things like hazard insurance or association dues for rental properties are also tax deductbible.

4. Moving Costs Due to Job Relocation are Tax Deductible.
If you have purchased a home and are moving due to job relocation, you can deduct some of the moving expenses (I.e. storage expenses, hotels and travel expenses, moving services and other incidentals) from your tax. However, for you to qualify for the deduction, your new job must be 55 miles away from your old home. And the move must take place within a year of your job relocation.

If you encounter some problems, you may call the IRS toll-free number at 800-829-1040 or check out http://www.irs.gov.

If you have further questions or if you would like to get more information, you may consult with a tax accountant or a CPA. If you are looking for a CPA or a tax accountant, please contact me for a list of reputable companies.

What You Need to Know About Credit Score

Home buyers who are seeking a mortgage should deeply understand what a credit score is.  What is a credit score?  Credit Score is a three-digit number that is used to predict how you will pay your bills. The creditor or lender uses the credit score on whether to grant or disapprove your loan application.   It also determines the interest rate that a lender or creditor offers.  The score ranges from 300-850 and is calculated using your credit history information from your credit report. Past history has shown that borrowers with higher credit scores are less likely to default on a loan.

There are several different versions of computing for your credit score, the most commonly used version is the FICO score developed by Fair Isaac Company.

There are 3 main credit bureaus, organizations that track credit histories and related information of individuals, namely Experian, Equifax and TransUnion.

Here's an approximate breakdown of how the credit score is determined:

Payment history includes:

-    Number of accounts paid, negative collections.
-    Delinquent accounts - total number of past due items, how long it's been past due, and how long it's been since you had a past due payment.

Outstanding Debt Information includes:

-       How much you owe on accounts and the types of accounts with balances.
-       How much of your revolving credit lines you've used -- looking for indications you are over-extended.
-       Amounts you owe on installment loan accounts vs their original balances - to make sure you are paying them constantly.
-       Number of zero balance accounts.

Length of Credit History:

-      Total length of time tracked by your credit report.
-      Length of time since accounts were opened.
-      Time that's passed since the last activity.
-      The longer your (good) history, the better your scores.

New Credit

-    Number of accounts you've recently opened and the proportion of new accounts to total accounts.

-    Number of recent credit inquiries. There will be a negative impact if there were numerous inquiries on your credit.
-    The time that's passed since recent inquires or newly-opened accounts.
-    If you've re-established a positive credit history after encountering payment problems.
-    In general, they want to make sure that you are not attempting to open numerous new accounts.

Mix of credit

-      Total number of accounts and types of accounts (installment, revolving, mortgage, etc.)
-      A mixture of account types usually generates better scores than reports with only numerous revolving accounts or credit cards.

How to Improve your Credit Score:

 
1. Pay your bills on time! Punctual payments are most effective way to improve your score.
2. If you are planning on applying for a mortgage, don't open new credit card accounts.
3. Maintain at most 25% credit on your credit card.
4. Do not allow inquiry on your credit report unless you absolutely have to.  In general, the more inquiries, the lower your score.  However, if you are shopping for a loan, make sure multiple inquiries occur within a few weeks, so that they can count as one inquiry on your score.
5. Review your credit report and correct any errors you find. One study concluded that as much as a quarter of reports list wrong information that hurt an individual's score. Correcting the mistakes can improve a score dramatically.
6. Keep old credit accounts, even if you're not using them. Creditors look at the debt-to-credit limit ratio and the average age of your accounts.

Housing Made Affordable So Why Rent When You Can Buy!!

It's a good time to buy a home or invest in a property. with the falling home prices and all-time low mortgage rates - owning your own home has become definitely affordable at this current time.

In a report from National Association of Home Builders/Wells Fargo Housing Oppountunity Index for the fourth quarter of 2010 indicates that 73.9% of all new and existing homes sold were affordable to families with median income.

So, if you are interested in buying a property and waiting for the best deal, now may be the time to search. With the increase in annual mortgage insurance to take effect in more than a month from now, you'll be able to save a substantial amount of money if you close the contract just before April 18.

Check your resources, even if the houses are at affordable prices, you will still need to think about down payment, closing costs, insurance, etc..

Spinell Homes is the largest builder in Alaska. They have built nearly 3,000 homes throughout South Central Alaska since 1987. Spinell has received numerous awards for building excellence from both the Anchorage and Mat-Su Home Builders Associations. Spinell Homes was awarded the "Award for Excellence" given by the Better Business Bureau and being voted "Best Home Builder in Alaska" by the readers of the Anchorage Daily News.

Hearthstone is the newest project of Spinell Homes. Hearthstone offers luxury yet affordable townhouse-style condos located near Lake Otis.  It's in a midtown location close to universities, hospitals and bases.

The condo price starts at $229,900 - unbelievable for a new construction!  Options could include carpet or hardwood flooring or tiles; cabinets, counter tops. You could also customize your home and build it according to everything you've dreamed of. It has an open kitchen layout where the family/guests can hang out. Condos are energy efficient. Home buyers can also upgrade to 5 Star plus energy efficiency if they choose to or they have the option to have 98% Energy Efficient Furnace. The condo includes a seperate laundry room.

And even better - Some units are coming out with a floorplan upgrade. They can have the option to have a half bath or the 2nd bath to have a dual vanity which couples love.

The deal gets better and better, in addition to being affordable for a luxurious condo, the builder, Spinell Homes is also willing to pay all closing costs with their preferred lender program for the next (5) buyers - that could save the home buyers thousands of dollars. The money could go into upgrades, furniture, appliance purchase and many more!

If you want to learn more about Luxurious yet affordable properties, call me at 907-242-SOLD (7653) and we'll discuss your options. Or you can visit www.hearthstonealaska.com and spinellhomes.com.

Things To Do Before Moving (Part 3 of 3)

1 Week Before the Move

- Separate the items which you will be moving yourself and what the movers will take.

- Make an inventory sheet of all the items to be transported. So you'll know if all your things have been transported completely and nothing has been lost.

- Empty, defrost and clean your refrigerator, freezer and clean your stove at least 24 hours before moving to let the air out.

Moving Day

- Take the children and pets to daycare facility that you have arranged.

- Supervise the move yourself, if you will not be available, assign a family member or a friend to make sure that all stuff are being transported and nothing is left behind.

- Ask the mover to sign the inventory sheet.

- Hand in your key, alarm codes, garage door openers to the new owner or Realtor.


It's advisable to have a checklist when you're moving. That way you'll know what to do on a specific date and make the necessary arrangements on your end and the people around you.