I know I was going to talk about listing, but a few things have happened this week that deserve a mention.

I run into people who wonder why they should hire a Realtor to buy a home (cost you nothing in this area, seller usually pays).  Or why they should sell with a Realtor.  And by the way, not any Realtor, but a full time experienced Realtor, not your cousin who waits tables and does this on the side.

There are more reasons than I care to take up your time with.  But for right now, let’s just talk about two things that I came across this week that someone else had already missed.

First, zoning.  That is the County or City regulations governing how you can use your property.  I was working with a buyer and we found the perfect place for them!  It was a lovely home that was all redone and set up for horses.  A must for this buyer.  Just prior to writing the offer, I called the local zoning board to check on the current zoning.  It had changed from something that would allow horses to something that absolutely would not!  Had I not checked, it would have been a disaster!  This can apply to many other uses, including just living there and being able to resell the property as a home when you move.  So you need to know what is going on.  Don’t ASSUME!!!!

The second issue was a newer home with a brand new shop.  The home is currently listed with an agent.  Again, just to check, I called the local planning and zoning office to make sure the building permit for the shop had been completed.  Come to find out, none had ever been applied for.  Now that can mean one of 3 things.  1.  Maybe the County office was incorrect.  In this case, I did not question further, did not want to cause someone to go out and check.  That needs to be up to the homeowner or their agent.  If I were writing an offer on this house, it would be based on the owner producing the proper completed paper work.  #2.  Maybe the owner hired this done and the contractor did not do what he was supposed to do or even the owner did it themselves and did not apply for the permit.  In either case, they would need to take care of it.  #3.  Depending on the situation, at some point, the County could require the building be removed.  If it does not meet code or was built too close to the property line or any number of things.

The point is, do you want to deal with either of these issues as a new owner, or do you want a Realtor with some experience to do this checking for you and do everything possible to keep you safe?

And the really sad thing is, this all just happened this week, and it was not even a busy week!

Have a question?  Email me or leave a comment.

Here we go!

OK, you have your lender, you know what you can spend and have a price range.  Now what??

What we are not going to do is go look at houses.  WHAT!!!  Not look at houses??  No.  That is the very best way to be sure you end up unhappy.

First we are going to visit.  Meet at my office and visit about you, your needs, your wants, your expectations.  This visit is all about you.  This is where I find out who you are and what is important to you and what you want to avoid.  This is maybe the most important part of the entire process.

There are 2 main reasons we do this.  The first is to help you sort out what is really important to you.  I bring up a lot of things that you would not have even considered.  This information helps keep us all on track.  The second reason is so I can help you avoid the things you said you wanted to avoid.  Believe it or not, when you get into the emotion of home shopping, you forget a lot of what was really important!  You would not believe how many people will tell you that after they bought a home, they realized they got the wrong home!  It is usually because they forgot something that really was important to them.  I don’t let that happen.

One couple that I helped sell their home actually had purchased that  home when it was already way too small for their family.  They had 6 children and the home they bought was huge!  It had huge living areas, kitchen, living room, family rooms, office.  But it had only 3 bedrooms.  But they got so caught up with the large living spaces that they forgot what they really needed.  It was a very expensive mistake.  It is one they would not have made if I had been their Realtor.  But the agent they used to buy that home was more interested in getting a commission check than in what was right for their family.

From this point on, we work as a team and find your perfect new home.

Next entry will be on listing your home and the current market in Bonneville County, Jefferson County and Shelley, Idaho.

The following is an article from KSL.com.  It is a press release from the Utah FBI field office and is located at the following link.  http://saltlakecity.fbi.gov/pressrel/pressrel10/slc020410.htm

IF INVOLVED IN ONE OF THESE, YOU WOULD BE A VICTIM, BUT COULD ALSO BE PART OF THE FRAUD!

Salt Lake City FBI and Utah Division of Real Estate Name Top Five Mortgage Scams in 2010
Special Agents and State Investigators Warn Utahns to Beware

• Is someone letting you live in a home for free?
• Did a builder offer you deep discounts to move into a newly constructed house?
• Has a company offered to refinance your mortgage for a fee?

If the answer to any of these questions is “yes,” then you may be a victim of a scam. FBI special agents and the state investigators with the Utah Division of Real Estate have compiled a list of top five mortgage related scams in 2010.

1. Reverse Mortgage Scam: Reverse mortgages can be a legitimate way for senior citizens to take equity from their homes without a monthly payment. However, con artists convince senior citizens they can live in a home for free, obtain a home loan under the occupant’s name, and disappear with the equity, leaving the victim to repay the mortgage.

2. Short Sale Fraud: A “short sale” transaction involves a lender agreeing to sell a property for less than the mortgage amount. Fraud occurs when a distressed homeowner finds a prospective buyer and they secretly set a low sale price. Unbeknownst to the lender, the buyer is willing to pay more for the property and the homeowner pockets the difference.

3. Builder Bailouts: Simply put, builder bailouts are a “kick-back” scheme. They may be more common in a troubled real estate market where builders may have a surplus of unsold properties. The builder offers excessive “incentives” to the purchaser. These incentives are disclosed as a down payment which leads the lender to believe there is equity in a home. Under these circumstances the builder and the buyer are committing fraud.

4. Loan Modifications: The FBI Salt Lake City Field Office issued a consumer alert about loan modifications in the fall of 2009. Special agents and state investigators are concerned homeowners may fall for this same scam in 2010. Companies charge up to $2000, promising to make a homeowner’s mortgage payment more affordable. But some homeowners report that they didn’t get what they paid for. For more information on loan modification scams please find the 2009 news release at: http://saltlakecity.fbi.gov/pressrel/pressrel09/slc110409.htm.

5. Affinity Fraud: Affinity fraud is an ongoing concern for the Salt Lake City FBI Field Office and the Utah Division of Real Estate. Fraudsters who promote affinity scams frequently are, or pretend to be, members of a particular religious, ethnic, or professional group. They often enlist respected community or religious leaders from within the group to spread the word about the scheme. They convince those people that a fraudulent investment is legitimate and worthwhile. Many times those leaders become unwitting victims of the fraudster’s ruse.

For more crime tips or information on how to file a complaint with the FBI, please go tohttp://saltlakecity.fbi.gov/ or call (801) 579-1400. Consumers are also urged to visit the Utah Division of Real Estate website at http://realestate.utah.gov/.

Buying a home can be daunting!  But not if you have good help.  The right Realtor (me), Lender (you will know how to chose in a minute) and inspector.

There are many ways to categorize lenders and many ways to chose.  What follows is my opinion and I will give you the reasons for that opinion.  It is NOT the only way.

For the purpose of this blog, and for the current market, I will have only two categories,  direct underwriters and non direct underwriters.

A direct underwriter is a lender that is someone that can do all the required processing of your loan and paperwork right there in the same office you go into to apply for the loan.  Not just the same company, but the very same building.  They have jumped through all the hoops to qualify to do that and they are not one of the huge companies that you send all your information to some giant processing center.

The reason this is important is because when your file gets sent to a processing center, you become one of thousands instead of a real person.  Also, that nice person that took your information has no control at all as to how fast things get done.  They get to it when they get to it.  Depending on the company, you may also be in the mix with all the foreclosures and short sales that the company is processing.

In the last year I have been personally involved or someone in my company has been personally involved with multiple loans that have closed weeks late because of this process of closing.  Most of those company’s are simply very backed up.

When you deal with a direct underwriting company, they have a lot less files to deal with and a lot more control.  The person you talk with knows exactly what is going on and you close when they tell you they will close.  (Closing is when all the paperwork gets signed, the money gets issued and you bought the house).

Currently in the Idaho Falls area I am aware of the following lenders that are direct underwriters:

1. Interwest Mortgage (Call Joni)
2. Citizens Community Bank (Call Jason)
3. Bank of Commerce
4. Bank of Idaho
5. Westmark Credit Union

There may be others, I am just not aware of them and have not done business with them.  All of the above company’s I have done business with and they do a very good job.

Next time, looking for your home!

Wow!  Rates are low, tax incentives and the best prices in years!  There will likely not be a better time to buy a home maybe ever.

So what do you need to do?  You already did the first step, you decided you wanted to buy a home.  So now let’s just start through the process.

If you call me first, I will visit with you about what you need and want.  Then I will get you to a lender.  That really is what we need to do to help you know if you CAN buy a home right now or not.

What you need to have in your head before you go is how much of a payment you can really pay.  The lender may qualify you all the way up to $1,400 for a payment.  But if you are paying $800 for rent right now and just barely making it, you better not go for the big payment.  It is a slow and painful road to foreclosure.

You also need to take into account having a little money for maintenance.  So what I am really saying is, don’t max out your check book.  The possible exception to that would be if you are in a job or career that you know there are upcoming raises. In this economy, it is just better to be safe than sorry.

So you may be qualified up to $1,400, or maybe lots higher.  Just make sure you know where the money is coming from to make that monthly payment.  Let your lender know what you want your maximum payment to be and work from there.

Next time we will talk about picking a lender.

And more good news!  If you are not a first time home buyer, you can still qualify for a Tax Credit for the purchase of a home in the amount of $6,500!  There are several rules:

1. Home must have a signed contract after November 7th, 2009 & April 30th, 2010.
2. Must close by June 30th, 2010l
3. The home must be a primary residence.
4. The home you are leaving must have been your primary residence for 5 consecutive years out of the last 8 years.
5. The new home cannot be more than $800,000.
6. Incomes above $125,000 for singles and $250,000 for couples will reduce the amount of the credit.

Additional information including the needed forms are available at IRS.gov.

These tax credits have had huge amounts of fraud.  Please be advised that the returns are very slow.  So far I don’t even know anyone who has received theirs yet.

What you do get is months of waiting and requirements for a ton of additional documentation.  So don’t be in a hurry to spend that money!

You would be surprised, but a lot of people don’t realize that the First Time Home Buyers tax credit was extended and is still going on.  You have to have a home under contract, and accepted contract, by April 30th.  But you can take till June 30th to actually close!  Not getting this done before that date needlessly costs you $8,000!

Also, if you are thinking of selling your home, especially if you are in the $150,000 or less range, now is the time to get it on the market to take advantage of this incentive!

The first step in buying a home is finding a reputable lender.  There are a lot out there that are great.  Some not so good and some even scams.

Watch for the next entry with hints on picking a great lender.

Yes it is true, if you have not heard about it, the deadline for people who are classified and first time home buyers has been extended!  Instead of needing to be closed by November 30th of this year, you have until April 30th 2010.  In fact, the home just needs to be under contract by that date and close by June 30th 2010.

That is more than is typically needed for most homes to close in the Idaho Falls, Rigby areas.  But if you are working with a home that is a short sale, that extra time will help a lot.

The home prices in the entry level homes are very good right now and there is a fairly good supply.  If you are a little higher, say $130,000 and over, there are quite a few homes available.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009 are $75,000 for individual taxpayers and $150,000 for married couples filing jointly.

Income limits of $125,000 for individuals and $225,000 for married couples filing jointly apply to all sales occurring after Nov. 6, 2009.

There are additional limits and rules with the First Time Home Buyers Credit listed in an earlier Blog.

I will note the new rules for people who have owned a home in the last three years in my next Blog.

If you have additional questions, please feel free to email me or leave a comment and I will answer it!

How do I qualify for the first time home buyers credit in Idaho and can I have ever owned a home?

You can qualify for the first time home buyers credit by having never owned a home or not having owned a home in the last three years.  If you are married, and your spouse owned a home, that may disqualify you.  You would need to talk to an accountant about the specifics of your situation.

When do I need to buy a home?  The credit is for purchases made between Jan. 1st 2009 and December 1st, 2009.  That means the house has to be funded by those dates, not just an offer.  There is a lot of hope that the credit will be extended, but we don’t know if it will be or what the terms will be at this point.  There was a different program for 2008.

What type of house can I buy?  Single family homes, Condos, town homes and Co ops qualify.  It needs to be your primary residence.

How much do I qualify for?  Up to $8,000 or 10% of the purchase price of the home, whatever is less.  Also single filers earning more than $75,000 or married earning more than $150,000 may have the amount reduced or eliminated, depending on income.

Do I have to repay the money?  No, as long as you own the home at least 3 years.  If you sale prior to 3 years, the credit will be taken out of the sale of the home.

How do I get the credit?  You can file an amended 2008 tax return or file it with your 2009 return.  You will use IRS form 5405.  That is available at irs.gov

Additional information can be viewed, as well as vidios explaining the credit at

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Copy and paste that link into your browser.  It also has the form available on that page.

There are multiple things that can disqualify your home purchase from the $8,000 credit.  Some of them include:

• You are a nonresident alien.
• Your home is located outside of the United States.
• You acquire your home by gift or inheritance.
• You acquire your home from a related person.  Check on the IRS site for definition of related person.

I know this can be confusing.  If you have any additional questions, you can ask on this site, email me, contact your accountant or attorney or go the the IRS website.

Wow!  What an exciting time to buy your first home!  Interest rates are very good, home prices are lower than they have been in the last few years and the selection is larger in the first time home buyer range than I have seen for quite a few years!  The home supply in Idaho Falls and Rigby is pretty good and it gives you options that have not been available for awhile.

Plus of course there is the First Time Home Buyers tax incentive.  That is up to $8,000, or 10% of the price of the home you purchase, whatever is less.  If you are married and make over $150,000 per year, it is reduced.  Additional information is available at http://www.irs.gov/newsroom/article/0,,id=204671,00.html.  You can have owned a home prior, if it has been at least 3 years.  You can check the above link or check with your accountant for more information.

It can also be a bit intimidating to buy your first home.  It is easy if we break it down into steps.  The first thing is to decide if this is a good time to buy a home in your life.  Are you going to be in this area for at least 3-5 years?  Do you have an income that you feel is dependable?  Is it what you want?  It is never a good time to buy Real Estate if you don’t want to!

So first you need to visit a lender of your choice.  You will want to have w-2′s available, 2 years of tax returns and at least 2 months of bank statements.  You don’t need these the very first visit, but it will be required later.

So who do you choose?  This is a very important decision as the lender can very much make this an easy or difficult process.  A good place to start may be your bank.  I really like lenders that do the “underwriting” (loan process) right there in the office.  That is called “direct underwriting” and means all the decisions on processing is done right there.  The advantage is that there is more control.  Your loan is not sitting on a desk in another State with hundreds of others in a pile.

Local lenders that I know do “direct underwriting” are: Interwest Mortgage, 208 525-8778 ask for Joni, Citizens Community Bank, ask for Jason, Bank of Idaho, Bank of Commerce and WestMark Credit Union.  There may be others, those are just the ones I work with a lot.

The lender will tell you if you are qualified to purchase a home and what price range.  If you can’t, ask what you need to do to get ready.  Don’t be discouraged, just figure out what needs done and start working on it.

When they give you that price range, say $100,000, ask what your payment will be.  If that is a lot higher than you are currently paying for rent, figure out if you really have the extra money.  If not, tell them what you need your payment to be and they will tell you what price range you need to stay in.  Just because someone wants to loan you the money, does not mean you should borrow that much.

Once you have your price range, you need to think about where you want to live.  Depending on your range, you may have a lot of options or not so many.  Idaho Falls has more homes available in all ranges than Shelley or Rigby, simply due to the size of the town.  If you are under $100,000, we need to look where we find the homes.  The higher you can go, the more options you have.

Once we have the price and the general area, we start looking.  Typically you will want to know if you need 3 bedrooms, or if 1 or 2 will work.  If you have to have 2 baths or if 1 will do.  You might also consider manufactured homes.  You get a lot more usable space and newer for the $130,000 and under range than you will with a stick built home.  I can talk to you about the pros and the cons.  Not all loans will work with Manufactured homes, RD (Rural Development) will not allow them.  But Conventional, VA, FHA and IHA all allow them with certain requirements.

Then we go look!  That is the fun part.  Typically we start with the Internet, see what looks good to you there.  Then you can drive by the areas.  Trust your “feel” on this one.  If the place feels good to you, it is a good sign.  If not, well you may want to rethink that home.

Once we find one that you like, I take it from there.  We write an offer, present it, maybe negotiate a little and keep going till we find one and get an accepted offer.  At that point, the lender will start their process.  It is important to get your lender all the information they ask for.

Then we do an inspection and may go through some more things on that point, depends on the house.  Once we are done with all that, we just wait till the closing date, sign papers, pay your money and the house is yours!

All that may sound complicated, but working with me and the right lender, makes it easy.  Just one step at a time.  And we keep everything on track!

If you want to start looking on the Internet, you can go to www.IdahoWelcomeHome.com.  You have two options.  You can just search by price range or area and get photo’s and descriptions of the homes.  Or you can register, set up an account and by doing that, you will get more detailed information and the addresses of the properties.  Your choice.  You can even set up to get auto notifications when new listings come up in your price range.  All under your control!

Call me 208 403-5800, email me lani@ida.net or just post comments or questions here.  I look forward to helping you find your dream home!