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First time home buyers: Important dates to keep if
you are purchasing a home this year.

August 1st: Start your pre-approval process with your mortgage
lender and begin to gather the documents that you will need (pay stubs,
past 2 years tax returns, last 90 days of bank statements, cancelled checks
showing rental payment history if applicable)

September 1st: Have your buyers agent picked out.  Yes, it is always
wise to have a buyers agent looking out for your best interest.   ( In Michigan
the sellers have their own agent.  Protect yourself.)

October 15th:  Have your new home picked out and your purchase offer
accepted by the sellers.

November 30th: The most important date! To qualify for the 1st
time home buyers tax credit you must complete the purchase of your home
on or before November 30th. Don’t count on the government to issue an
extension.  (Remember, we all lost the down payment assistance programs
on a specific date.  They were not given an extension!)

If you’d like to get a feel for the homes that are on the market
currently in Macomb County MI please click here.

Last week I heard from a gentleman who is thinking about not renewing his apartment lease and taking advantage of the first time home buyers tax credit.   In his inquiry he wanted to know if he purchased a home for $40,000 if he still would recieve all of the “$8,000″.

The answer is no. He would be eligible for a tax credit equaling 10% of the purchase price of the home. ($4,000 for his example of a $40,000 purchase price.)

One of the reasons that people get so confused about this is because this tax credit is referred to as the “$8000 1st time home buyers tax credit.” I’ve been guilty of referring to it as that myself, although I do try to always pre-fix it with “up to”..

Likewise, if you purchase a $100,000 home and you meet the other guidelines for the tax credit the amount of money you are eligible to receive is $8000, not $10,000.

Keep the questions coming and thank you to those who have given me permission to post your questions here.  The answers are helpful to many who are confused by this topic.

~Kris Wales~ A partner for your real estate needs in Macomb County MI
Want to search for homes in Macomb County with MLS provided data?

One of the questions that I’m asked about the First Time Home Buyers tax
credit is: “Can I get the money back to me quicker?”

The good news is yes, you can. If you qualifty for the 1st time home
buyers tax credit you can simply amend your already completed 2008
income tax return. You don’t have to wait until you file your tax return
next year to receive your money.

For home buyers this will come in handy especially if you are purchasing
a home that needs some work.   Those that are purchasing their first homes
in Macomb County are likely running into many homes that need updating
or some tender loving care. (Foreclosures and bank owned homes for the
most part need a bit of attention from their new owners.)

The tax credit that you recieve back can be used for anything you
wish: New flooring, updating a kitchen or a bath, replacing missing or damaged
appliances. Some buyers are using the funds to replenish their savings account
after their home purchase.

Here is a  link to the irs.gov page on amending your 2008 tax return to take
advantage of the (up to) $8000 First time home buyers tax credit.

~Kris Wales~A partner for your real estate needs in Macomb County MI
Want to search the homes for sale in Macomb County with MLS provided data?

This past Sunday my husband, grandson and I went to downtown Mt. Clemens for the arts fair and to watch my oldest son (Rick Charming) and his fabulous drummer friend (Val Klaft) perform.  While we were there I realized it had been a while since I viewed any homes for sale in Mt. Clemens and I’ve missed that.

There are so many older homes that are brimming with charm and many other details that home buyers love:  Custom woodwork, large rooms, tree lined streets.

I know that whenever I have a client tell me that they want to look for their new home in Mt. Clemens that I am thrilled to take them there and help them. It’s always such a treat!

If you’d like to take a peek at the homes for sale that were built pre-1940 in Mt. Clemens please click on this link.  It will take you to the “active” homes on the market courtesy of Mirealsource™.

Gary, Avery & Rick Charming –>

—You better start looking now.

I hate it when I sound like a “salesperson” (no offense to sales people intended) but things are going to get crazy-busy here in Macomb County during the months of September and October.

Already we are experiencing signs of what is going to come hurdling at us like an avalanche:

• Multiple offers on homes for sale.  (I’ve had 4 homes in the last month that my buyer clients have made offers on that had more than one offer coming in.  Not fun at all for buyers.)
• 45 days to close for most home purchases (instead of the typical 30 day turnaround)
• Home inspectors being booked up (and can’t get in your home in your contract time frame)

If you’ve never listened to me before please listen to me now:
If you are thinking of purchasing a home to take advantage of
the up to $8000 in first time home buyers tax credits that expire on November 30th you’d better start getting your ducks in a row now.

Please please PLEASE don’t wait until October or November.  You will miss out and be kicking yourself for waiting too long.

If you’d like to search for homes and condos for sale in Macomb
County MI click here. My search site is updated daily and you’ll be able to view all homes on the market that are currently in Mirealsource™ and Realcomp II ™ multilist databases.

~Kris Wales~ A partner for your target real estate needs in Macomb County MI

This weekend there will be an art show - craft fair in downtown Mt. Clemens.

Look for it in the Macomb Place area.  Parking is plentiful downtown with many lots just behind the businesses.

My husband and I will be taking some “us” time and attending as this is an area of Macomb County that we thoroughly enjoy.

An added bonus for us? Our well traveled oldest son, Rick Charming (his stage name), will be performing from 2:30 to 4:00 along with his friend Val Klaft in the gazebo (between Pine and Walnut)

Hope to see you there!

~Kris Wales~   A partner for your real estate needs in  Macomb County MI

The 2009 summer property tax bills will be arriving in the mailbox (or, to
your mortgage lenders mailbox.)

If you are considering purchasing a home please keep in mind that many homes have had property tax reductions due to lower property values, but many have also had their homestead exemptions stripped. (Foreclosures,
abandoned homes, etc.)

It is extremely important that you contact the city or township assessors office prior to writing an offer on your home to ask for the current (2009) homestead status as well as the current (2009) assessed & taxable values.

Too many people are relying on the listing agents 2008 information that is stated on the informational sheet of the home and not verifying the 2009 property tax status.   Inaccurate information can cost you a great deal of money after your purchase, or worse, your being unable to purchase the home
because of higher than reported property taxes.

Please verify the 2009 property tax status with the city or township assessors office.

Kris Wales - A partner for your real estate needs in Macomb County MI

Goodness, what a whirlwind this week has been with information and mis-information alike.

Some of you may have read elsewhere that the first time home buyers tax credit from the Federal government is now being allowed to be given upfront so that a home buyer could use it for the down payment on their home:  Not true.  Yet.

I believe it won’t happen.

There are too many glitches in order for this to happen in a timely manner.  (Remember, the 1st time home buyer tax credit expires at the end of November of this year.)

What have I been advising my Macomb County MI home buyers?   Let’s all wait for official clarification from HUD and FHA before assuming that this will take place.  Plan on paying 3 1/2% of the purchase price of your new home as the down payment and we can ask the sellers for 6% of the purchase price to be given at closing for your closing costs and prepaid costs.

Until there is official word and official guidelines as to how this money could possibly get into your hands prior to closing on the home we all need to prepare as if it does not exist.

As always, if you want to search for homes in Macomb County MI that are currently for sale you may do so here or contact me and I’ll do a custom search for you.

Kris Wales - A partner for your real estate needs in Macomb County MI

This past week I received 3 email inquiries about the (up to) $8000 first time home buyers tax credit and even though I responded to the people who asked the questions via email, I realized that the questions they asked are ones that I’m sure many others have questions about.

If I buy a HUD home with the $2500 closing cost gift can I still take that 1st time home buyers tax credit? Yes you can.   The $2500 closing cost promotion from HUD for Michigan home buyers is a completely different incentive from the governments first time home buyers tax credit.

I own a home in another state but someone else is living in it.  Can I purchase a home in the state I’m currently in and take the credit? Not to my knowledge.   My understanding is this:  The first time home buyers tax credit is for those who have never owned a home before, or someone who owned a home and sold it 3 years prior to purchasing the new home.   As always, check with your tax professional or contact the IRS directly for clarification, but nothing I’ve read indicates that you would be considered a “1st time home buyer”.

If my husband and I buy a home in Mt. Clemens for $55,000 what is the tax credit? $5500 or $8000? Your tax credit would be for 10% of the purchase price ($5500).

If you’d like more information about either the HUD promotion that currently is in place for Michigan, or about the First Time Home Buyers tax credit that expires at the end of November please don’t hesitate to contact me. As always, ask me about buyers agency in Michigan.  I’d be happy to help you sort through all your home buying options.

Kris Wales - A partner for your real estate needs in Macomb County MI - search homes for sale in Macomb County MI with MLS provided data

One of the new changes to the process that occurs during home buying has been implemented:  HVCC - the Home Valuation Code of Conduct - went into effect on May 1st of this year.

If a home buyer is using a conventional mortgage (not FHA or VA) the appraisal that is ordered will now be subjected to much stricter rules in order to ensure that it isn’t tainted by pressure from mortgage lenders, real estate professionals and home buyers.

Please read the link above for the full explanation from Freddie Macs website.

What will I be watching for as this new change is implemented?

* The time it takes an appraisal to come back to the mortgage lender.

* The cost of appraisals.

Currently I have a buyer that is purchasing a home right now that is the *first* for me going through this new appraisal process.  I’ll keep you updated if there appear to be any delays or glitches as it goes through processing on the appraisal end of things.

Kris Wales - A partner for your real estate needs in Macomb County MI
Search homes for sale in Macomb County MI with MLS provided data