Buying Your First Home

Buying Your First Home
Home ownership is the cornerstone of the American Dream. But before you start looking, there are a number of things you need to consider.
Before You Start Grab your current household budget so you can consider your financial situation and your ability to make mortgage payments.
Ask family and friends if they can recommend experts, like a lawyer, a Realtor and an inspector, who can help with the home buying process.
Think about your lifestyle and how it might affect your choice of home and neighborhood.
Do a little research on current home prices in the neighborhoods you plan to target.

To begin your search visit The H Team at http://www.realestatetrio.com for more information.

Why Determine the Value of Your Home

What's it Worth?

As a stock holder many Americans check the stock market everyday, looking at TV, online and the newspaper. But fail to take stock of their own home. Up to 95% of today's home owners do not know the value of their largest investment, their home.
A comparative market analysis (CMA) provided by a Real Estate Professional can bring you up to speed.
The CMA is normally used as a way of measuring value. When you are buying or selling or even refinancing, a CMA is essential in setting a price and in choosing the proper time to sell.
There are numerous other reasons to run a CMA including your net worth or to provide adequate replacement insurance or to leverage your equity.
Get your free CMA today by contacting The H Team.

Thinking Of Buying A Foreclosure Property

Six Questions You Must Ask

Is Now A Good Time To Buy A Foreclosure?
Because local market conditions vary the answer is going to be different. Buyers should be asking questions before they make an offer on any foreclosure property.
What's The First Step A Buyer Needs To Make?
Get pre-approved for a loan before you begin shopping.
How Can You Tell A Bad Foreclosure From A Good One?
There are lots of great deals out there. Make sure you work with a Realtor who can guide you through the potential problems associated with buying a foreclosure.
I'm A Qualified Borrower Can I Appeal To Banks For Better Terms?
Lenders have lots of defaulted mortgages, many of them will offer a below-market loan on a bank owned property.
What Are The Costs Of Buying A Foreclosure?
Figure commissions, closing costs, repair costs and upgrade costs and add at least 10% to that figure as a "surprise" fund.
How Does Choice Of Neighborhood Affect Foreclosure Investments?
Avoid areas overrun with foreclosures, particularly newer subdivisions in overbuilt suburban areas. Choose established neighborhoods with good schools and transportation.

For additional information, questions or a list of local foreclosures please contact The H Team today.

Interior Painting Tips

Interior Painting Tips

Get The Surface Ready
You want the paint to glide on smoothly, so be sure the surface is clean, free of hand prints, dirt or scuff marks. Lightly sand any glossy spots to avoid streaking.


Select The Sheen and Color
Lighting has a big effect on the way your color appears. Try a small trail sample available at most Home Improvement Stores. Higher sheen paints are more durable than flats, so use them in high traffic areas. Satin or low-lustre finishes offer more warmth. Consider a high sheen paint on the ceiling, which offers good reflection.
Don't Buy Cheap Paint Although you may want to save a buck or two it isn't worth it on paint. Purchase top quality acrylic-latex interior paint which goes on smoothly and is easy to clean up. Painting the interior of your home is a big job so you want the quality to show.
Choose The Right Tools
If you're using a roller to paint, select the right length of roller nap for proper paint coverage. The smoother your painting surface, the shorter your nap should be. Use synthetic materials, which are made from nylon or polyester, when applying latex or water based paints.

Source: The Rohm and Haas Paint Quality Institute
For a list of licensed quality painters in the St. Louis area contact The H Team.

How To Beat Negativity

Our economy is hurting. Most Home Sales are sluggish and we all have a lot of uncertainty. It's very easy to get discouraged.


Breaking Negativity
From Jon Gordon


1. Tell Yourself A Positive Story
2. Model Yourself After Success
3. Focus On The Important Stuff
4. Replace "Have To" with "Get To"
5. Refuse To Participate In The Recession
6. Boost Your Marketing And Advertising
7. Create A Positive Vision
8. Invite Others Onto Your Bus
9. No More Complaining


For a copy of the complete article please contact The H Team for your free copy

Being Prepared For Severe Weather

Severe Weather Season Begins

Red Cross Urges Preparedness During Missouri Severe Weather Awareness Week

Knowing what to do and where to go during severe weather can be the difference between life and death. In 2008 severe weather killed 28 and injured 271 people according to the Missouri Severe Weather Service.

Provide A Home Tornado Plan
Pick a place where the family can gather if a tornado is headed your way. It can be a basement, a center hallway, a closet on the lowest floor or the bathroom. Keep this area uncluttered. If you’re in a high rise you may not have enough time to get to the lowest level so pick a place in a hallway in the center of the building. If outside, lie flat in a low lying area, and cover your head.

Assemble A Disaster Supplies Kit
Include a first aid kit and any essential medications along with items for infants, the elderly or disabled. You also need canned food, a can opener and at least 3 gallons of water per person. Include protective clothing, bedding or sleeping bags, a battery or crank powered radio, flashlight with extra batteries and written instructions on how to turn off electricity, gas and water if authorities advise you to do so. (You’ll need a professional to turn natural gas service on)

When A Thunderstorm Approaches
Listen to NOAA Weather Radio, commercial radio or television for the latest information. Find shelter in a building or an automobile. Keep windows closed and void convertibles. Telephone lines and metal pipes can conduct electricity. Avoid using the telephone and electrical appliances. Avoid taking a bath or shower. Turn off the Air Conditioner. Power surges from electricity can overload the compressor. Close blinds and shades, they will prevent shattered glass from flying around your home.

Protecting Yourself Outside During A Thunderstorm
Go to a low lying area away from trees, poles or metal objects. Make sure the place you choose is not subject to flooding. Make yourself a small target. Squat with your head between your knees. Do not lay flat on the ground this makes you a larger target.

Provided by The American Red Cross
Contact The H Team for a free list of items for your disaster supplies kit.

7 Steps For Removing Mold From Your Home

What Is Mold?
Mold is a type of fungus made up of tiny microscopic organisms that can grow almost anywhere. It multiplies itself via spores and shows itself in a variety of colors. The most common place to see mold is in your bathroom since mold needs moisture to grow.
1. Wear a face mask, goggles and rubber gloves. Do not touch mold with bare skin.
2. Seal off the area to prevent tiny spores from spreading to other parts of the home while removing.Open the windows and cover heat and ventilation registers.
3. Wash the affected areas with a mild detergent solution, such as laundry detergent and warm water. As an added step, wipe the area down with a solution of a 1/4 cup bleach and one cup of water. (Warning: Do not mix ammonia and bleach; the fumes can be toxic.)
4. Dry the surface completely. Use fans, blowers, dehumidifiers or natural ventilation.
5. Apply a borate-based detergent solution. Don't rinse. This will help prevent the mold from growing again.(Borate will be listed on the ingredient label.)
6. Don't take shortcuts. Never paint or caulk over moldy surfaces. The paint will peel and the mold will resurface.
7. Call a professional. Just when you think you've won the battle you may see dormant spores reappear or spread to clean areas of the home, particularly if proper removal procedures were not taken. You may need to contact a mold remediation company to resolve the problem.

Contact The H Team today for a list of licensed Mold Remediation Companies in the St. Louis, Mo. area.
For more information
Source: The Truth About Mold (Dearborn, 2008)

Top 5 Reasons To Consider Selling Short

ARE YOU UPSIDE DOWN?



1. Avoid foreclosure and help save your credit

2. Ease financial sress and recapture a sense of happiness

3. Reduce debt and regain control of your finances

4. Make a fresh start and restore your confidence.

5. Move forward with the help of a short sale specialist

Hiring a Realtor who is experienced in selling “short” will greatly increase your chances of success. Contact The H Team Today for a free confidential review

Key Individual Provisions of 2009 American Recovery & Reinvestment Act of 2009

Tax Credit on Installing Energy Improvements To Your Home

NON BUSINESS ENERGY PROPERTY CREDIT

What Is It?

A Tax Credit of up to $1500.00 for qualifying residential energy improvements including windows, doors, siding.

Who Gets It?
Taxpayers who invest in such energy improvements to their property.

When Do They Get It?
When taxpayers file their 2009 and 2010 tax returns.

What Does The Taxpayer Need To Do?
When 2009 and 2010 tax returns are completed make sure to claim the maximum benefit under this provision. Be sure to reduce your credit by any non business energy property credit claimed the previous year.

Consult your tax professional for additional information. Not intended as legal advice

Get Your Free Report of Tax Provisions For Individuals Here

Buy A Vehicle - Get Tax Credit

According to the American Recovery and Reinvestment Act of 2009 if you purchase a vehicle before 2010 you qualify for a tax credit.

Who Gets It?
Individuals who purchase new vehicles after 2/16/09 and before 2010. Benefit starts to phase out for individuals with MAGI or $125k/$250k

When Do You Get It?
When taxpayers file their 2009 tax return

What does the taxpayer need to do?
When you file your 2009 tax return, make sure you claim the maximum benefit under this provision. You may claim this deduction even if you don't itemize.

Contact your tax professional for complete details.Not meant as legal advice


Looking for additional details of the American Recovery and Investment Act of 2009? Contact The H Team for a free copy of the Key Individual Provisions

DOGTOWN USA 3 BR 2.5 Baths Under $90K

Three bedroom, 2.5 bath ranch home has much to offer. Vinyl siding, hardwood floors in all 3 bedrooms, Livingroom and breakfast room, Master bedroom suite with updated half bath. Breakfastroom walks out to very large covered deck and privacy fenced yard. Lower level is partially finished with family room, rec room with large bar, full bath and additional room with closets that could be 4th bedroom. There is also a laundry room and stotage room. Covered carport and off street parking. Home needs a little updating but well worth the price for this home.

Contact The H Team for a tour or view the entire MLS with no sign-up required

A Few Upcoming Events in St Louis, Mo.

Upcoming Events
By The H Team


Eco Expo
Join us at the Saint Louis Science Center, April 18-19, at the region’s premier green event, featuring

» Product demonstrations
» Eco-friendly interactive exhibits
» Activities for kids
» Live music in the outdoor beer garden
» Plus much more!
Eco Expo


March Morpho Mania @ The Butterfly House

The Morphos are back! Witness more than 1,500 iridescent common blue morpho butterflies in free flight inside the Conservatory throughout the month.
Butterfly House


Easter Egg Hunt @ Shaws Garden

Eggstravaganza
Saturday, April 4, 2009
The Garden is a gorgeous backdrop in Spring, and kids go crazy when meeting “Bunny” the Garden rabbit.
Shaws Garden


The Boat House @ Forest Park
The Boathouse in Forest Park has been a favorite spot for generations of St. Louisans
Bands will be returning in May
The Boat House

The Incentive for Greening American Homes

The Incentive for Greening American Homes
Written by Peter L. Mosca

Green is good, and the Obama Administration and Congress believe it should be an integral part of pulling America out of its economic doldrums. According to the National Association of Home Builders, expanded tax credits for energy-efficient home improvements in the new economic stimulus package puts more money in consumers' pockets by providing financial incentive for home owners to go green on their renovation projects in 2009 and 2010. While more efficient homes save on water and energy bills, these tax credits will make such home upgrades even more affordable.

The Internal Revenue Code section 25C tax credit for existing homes, which had expired at the end of 2007, was reinstated as part of the economic rescue package passed by the Bush Administration last fall. Homeowners could be rewarded for installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps. But remodelers found that the terms of the 25C credit -- equal to only 10 percent of the cost of each product and with a lifetime cap of $500 -- weren't strong enough to push enough homeowners off the fence and into action.

Now, the credit rate and lifetime cap have been tripled – to 30 percent and $1,500, respectively – the list of eligible improvements expanded, and the deadline for applying has been extended through the end of 2010. Congressional estimates indicate that the new rules for the tax incentive will increase aggregate remodeling activity by more than $6 billion.

"The new tax credit also aligns with industry research indicating that even the most aggressive efficiency goals for new homes won't make a dent in overall energy consumption. Instead, remodeling and retrofitting the nation's older homes is by far the more efficient solution," said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, a remodeler from Tucson (AZ).

"These new tax credits are another way that home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes," said Miedema.

A 2008 California study revealed that 70 percent of the greenhouse gas emissions related to single-family envelope energy consumption can be attributed to homes built before 1983.

The bottom line: Retrofitting existing homes with energy-efficient features is four to eight times more carbon, and cost-efficient than adding further energy-efficiency requirements to new housing, the study showed.

Details on qualifying improvements are available at the IRS Web site at www.irs.gov. It is expected that homeowners will need to complete Form 5695 (Residential Energy Credits) and submit as part of their 2009 income tax returns to claim the credit. Further, homeowners should retain for their own records information that includes:


Name and address of the manufacturer

Identification of the component

Make, model or other appropriate identifiers

Statement that the component meets the 25C standards

Climate zones for which the criteria are satisfied

Additional information for storm windows, if applicable

A declaration that the certification statement is true.
Due to the efforts of nonprofits like NAHB, the National Association of REALTORS and its affiliate organizations like the CCIM Institute, more and more businesses and individuals alike understand that 'green' is good for our economy, for our health and for the sustainability of our nation's communities

Why You Should Buy A Home Now

WHY YOU SHOULD BUY ANEW HOME NOW

You’re renting a home and beginning to wonder if you should maybe buy a home, consider what author, David Bach, tells us, "Most average homeowner’s are worth up to 35 times more than the average renter."
His advice is for renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way you’re only buying as much home as you can afford.
The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.
According to Market Watch , buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. People can get almost everything they need and most of what they want today.
While poor market conditions have created a tough situation for homeowners across the country , the downturn has made the buying market ripe for buyers.. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider.
How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, five years, buying now could be a good choice for you.
How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes.
Mortgage rates have dropped to historical lows. How much home you can afford is affected by mortgage interest rates that, right now, are very attractive. Good credit, documenting your income, and a substantial down payment will make you a better candidate for better rates.
Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures properties. Buyers can search he market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy, and some offer special rates the first year or are offering closing cost assistance.
Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy over the years.
Tax credit benefit. The American Recovery and Reinvestment Act of 2009 provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Wondering What Your Home Is Worth? Let Us Show You

Webster Groves Victorian Home High On A Hill For Sale

Amazing architectural detailing throughout. Spacious rooms with 10 foot ceilings. Lovely refinished hardwoods, stain glass windows with 2 bay windows and original moulding throughout. Kitchen offers 42 inch wood cabinets and opens to family room. Even offers a main floor laundry. Master offers a 8x10 sitting room with cedar lined walk in closet. Zoned HVAC and updated plumbing. Welcome your friends and family to the large 25 x 19 front porch. This foreclosure only needs very little to be move in ready. contact The H Team today for your tour.

Readying Your Home For Spring

Getting Your Home Ready For Spring
The H Team


Get your timers and clocks set ahead one hour. Daylight saving time is just around the corner and you’ll need to adjust any timers on household gadgets, indoor and outdoor lights, and those regulating the thermostats on your heating system.

Plant kitchen herbs inside and transplant in May when all signs of frost disappear. Basil, chives, dill, parsley, and fennel can be started from seeds. Oregano, rosemary, sage, savory, and tarragon do better if you start them from small plants or cuttings.

Change the batteries in your smoke detectors. In addition to testing batteries regularly, you should change these twice a year without fail.

Wash your windows. Clean the residue left behind by winter storms by tackling the job while the weather is still cool to prevent streaking. Start indoors before installing your screens, then finish the job outside on a dry day.

OUTSIDE:

Clean the deck to remove grime, pollen, fungus, and mildew. Scrub the surface with a deck cleanser or this homemade cleaning formula: Add one cup of powdered laundry detergent to a gallon of hot water, and add 1/2 cup of chlorine bleach to kill moss or mildew.

Check shrubs and trees for winter damage and prune accordingly. Remove deadwood or broken branches. Replant any shrubs that have heaved out of the soil during a freeze-thaw cycle, before the roots dry out.

Bring your garden hose out of storage. Check for cracks and leaks and replace the rubber or plastic washers at the connectors as well.

Service Lawn Mowers & Equipment Now is the time to inspect mowers and trimmers. Change the oil, replace spark plugs and sharpen the blades. If a unit needs repair getting it to the repair shop early will insure an early return
Spread Fertilizer and Weed Preventer Apply before the spring showers hit. Read manufacturers suggestions on application and warnings.

Will Your Sale Price Leave You Short

What to Do When the Sales Price Leaves You Short

It’s time to sell your home, and the total amount you owe is greater than your homes current value. This is called a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

• Refinancing your loan at a lower interest rate
• Providing a different payment plan to help you get caught up
• Providing a forbearance period if your situation is temporary

When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if

• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.

A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include

• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.

• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act , homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

As full time RealtorsThe H Team can provide a Broker Price Opinion and market your home.

St Louis Association of Realtors Update

Pending Home Sales Show Healthy Gain
Reprint from SLAR News You Can Use

Pending home sales increased as more buyers took advantage of improved affordability conditions, according to the National Association of Realtors®. Big gains in the South and Midwest offset modest declines in other regions. The Pending Home Sales Index rose 6.3 percent to 87.7 from an upwardly revised reading of 82.5 in November, and is 2.1 percent higher than December 2007 when it was 85.9. Lawrence Yun, NAR chief economist, said the index shows a modest rebound. "The monthly gain in pending home sales, spurred by buyers responding to lower home prices and mortgage interest rates, more than offset an index decline in the previous month," he said. "The biggest gains were in areas with the biggest improvements in affordability."

To begin your search for your new home or to sell your current home contact The H Team today.

Home Buyer Checklist

Buyer's Checklist
The H Team

Buyers must do their part to help make the Buying transaction "smooth" alll the way to the closing table. Always expect minor problems and delays along the way. On the seller's side, title problems are a common cause of postponed settlements. On your side, bureaucratic snags such as extensive credit checks and slow appraisals can bog things down. In many cases, there isn't much you or the seller can do but wait.

While you're waiting for completion of all the processes now in motion, you should:

Apply for homeowners insurance on your new home.
Get an exact accounting settlement cost, and make sure the money and necessary documents will be there at closing.
Select a date for the final walk-through of the house.
Contact utility companies about starting service in your name.
Insurance on your new home

Your lender will require you to take out a homeowners insurance policy, and usually pre-pay for the first years premium, something you would want to do anyway. The lender wants to cover the amount of its mortgage loan so it can recover the money in the event of a loss. However, it's up to you to see that your insurance coverage remains adequate by getting property protection, liability insurance and/or any additional coverage you think is necessary.

The final inspection
The house you're buying must be handed over to you in the condition specified in the contract. To verify this, schedule a walk-through of the house shortly before settlement, several days in advance is best, to allow time for the seller to correct any last-minute problems. Look for left behind items, trash, damages from the movers. Also check attics and garage rafters.

Take along a simple device, such as a plug-in nightlight, to test all electrical outlets. Turn on the furnace and air conditioning, flush toilets and turn on faucets, put the washing machine and dryer through a cycle. Fill all drains and check for leakage, run the dishwasher through a few complete cycles. In short, put the house through its paces.

If anything needs fixing or further cleaning, ask your agent to inform the selling agent or home seller immediately. Neither you nor the seller wants to postpone the settlement, but make it clear you won't go to closing until a second walk-through is satisfactory.

What happens at closing
The closing is where ownership of the home is officially transferred from the seller to you. Your closing officer works for the title company and coordinates the document signing and the collection and disbursement of funds. Your main role at the closing is to review and sign the documents related to the mortgage loan and to pay the closing costs.

Most parties involved with the purchase of your new home will attend your closing. The closing is a formal meeting typically attended by the buyer(s) and the seller(s) (and their attorneys if they have one), both real estate sales professionals, and, of course, the closing officer. The meeting is typically held at the title company's office.

What to bring to closing
For things to go smoothly, each party should bring certain documents and be prepared to pay the necessary fees. Many closing costs can be paid by personal check, but ask the closing attorney or closing officer. A certified or cashier's check may be required. Find out to whom checks should be made payable.Most closers will also require a state approved picture ID.

The seller and his attorney are responsible for preparing and bringing the deed and the most recent property-tax bill. They also will bring other documents required by the contract. This can include the property insurance policy, termite inspection, documents showing the removal of liens and a bill of sale for personal property.

Make sure you have adequate funds for the down payment and other settlement costs, arrange for your attorney to represent your interests at the meeting, bring the loan commitment, inform the lender of the meeting time and place. Finally, it's a good idea to bring a copy of the purchase contract to refresh your memory.

Regardless, if you're buying or selling The H Team will assist you from start to completion. Contact us today to answer any questions you may have.

First Time Homebuyer Tax Credits

Federal First Time Homebuyer Tax Credit
*Preprinted from an article by Sam Licklider


You may have already heard about this program from your Representative or Senator but, if you haven’t, MHDC (Missouri Housing Development Commission) has announced a new program to work in conjunction with the Federal First Time Homebuyer Tax Credit program. Included is the explanation from the MHDC web site immediately below this paragraph as well as the URL for the MHDC.

Quote from MHDC web site
With over 30 years experience funding mortgages for first-time homebuyers, MHDC knows that the biggest barrier faced by first-time homebuyers is acquiring money for down payment and closing costs. As a result, MHDC created a program that allows homebuyers to receive the value of the tax credit at the time of closing.
How the Federal First-Time Homebuyer Tax Credit Works:

First-time homebuyers receive a tax credit worth 10% of their home purchase, up to $7,500. The credit is claimed on the homebuyer’s federal tax returns. The credit is refundable, which means that the homebuyer receives a refund for the amount of the credit minus any federal tax liability. The credit is essentially an interest-free loan from the federal government and must be repaid through an increase in federal income taxes over a period of 15 years.

How the MHDC Tax Credit Advance Loan Program Works:

MHDC makes a second mortgage to the homebuyer at the time of closing worth up to 6% of the home purchase price or a maximum of $6,750, which is used to cover down payment and closing costs. The tax credit advance loan is paired with MHDC financing for the first mortgage in the form of a safe 30 year, fixed rate mortgage. The homebuyer then files for the federal tax credit and uses the credit refund to pay off the MHDC tax credit advance loan. If the tax credit advance loan is paid off by the designated deadline (no later than June, 2010), the homeowner pays no interest other than a modest servicing fee. If the tax credit advance loan is not paid in full by the deadline, principal and interest payments to repay the loan over 10 years begin automatically.

MHDC loan programs are available for households with incomes up to $85,500.

The federal tax credit and the MHDC tax credit advance loan program are both currently set to expire June 30, 2009.
Visit Missouri Housing Development Commission for more information.

To begin looking for that new home contact The H Team today.

Saving Money While Dining Out in St. Louis, MO.

Saving Money While Eating Out with the Children
The H Team

Everyone is trying to save money these days and one of the best ways we’ve found is going to restaurants that offer “kids eat free”. Here are some St. Louis restaurants that offer free meals for children;

Culpeppers 9 Locations
Kids under 12 eat free on Mondays with each paid adult meal.

Dickeys BBQ 8 Locations
Kids Eat Free on Sundays with Paid Adult Meal.

Kriegers 3 Locations
Kids 12 and Under Eat Free on Tuesdays

O Charleys 8 Locations
Kids under 12 Eat Free Every Weekday

The Pasta House 16 Locations
Kids under 12 Eat Free on Sundays

Steak and Shake 37 Locations
Kids under 12 Eat Free Every Weekday


Another great way to save money at St. Louis, MO., restaurants is to visit Here
There is a small fee but you can get a $25 Gift Certificate for only $10 to some of the area's best restaurants.



Learn how to save money on your next Real Estate transaction by visiting The H Team today

The H Team

Keeping Your Home Safe Using Electric Space Heaters

Keeping Your Home Safe Using Electric Space Heaters

The H Team
• Adapted from an article written by The Fire Protection Agency



As temperatures continue to remain below average Home owners are substituting electric space heaters instead of increasing the thermostat level.


But using a space heater isn’t as safe as it is simple. According to The Florida Fire Protection Agency, electric space heaters were responsible for:


• 32% of home heating-related fires
• 57% of home heating-related property damage
• 73% of home heating-related civilian deaths


Space Heaters cause a disproportionate amount of damage versus central heating systems and fireplaces. Therefore it is very important to practice safety and care when using electric space heaters.


Some basic safety tips include:

• Do not place anything that can catch fire or burn within 3 feet of the appliance
• Make sure your appliance is approved by Underwriters Labotories, it should have a sticker on the appliance or cord.
• Never use an extension cord.
• Turn appliance off when leaving the room or going to bed.
• Follow the manufacturers safety instructions


Provided as a community service by H Team.

First Time Home Buyer Mistakes

5 Common First-Time Home Buyer Mistakes
The H Team


They don’t ask enough questions of their lender and end up missing out on the best deal.

They don’t act quickly enough to make a decision and someone else buys the house.

They don’t find the right agent who’s willing to help them through the homebuying process.

They don’t do enough to make their offer look appealing to a seller.

They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Check out our web page to view the entire local MLS

Keeping Your Auto Winter Ready

Keeping Your Auto winter Ready
The H Team


Taking a few moments to check a few things can prevent being stranded or in need of a service truck.

Battery

Clean the battery with warm water. Remove the terminals and wire brush them and the battery posts with warm water and baking soda. Reattach the terminals and coat all exposed metal with petroleum jelly. You're not done yet–using some sort of household cleaner, clean all traces of dirt and oil from the battery's top and sides, particularly near the terminals. Traces of dirt can trap moisture, especially during damp winter days. This moisture acts as a conductor along a path that normally doesn't conduct electricity at all, and can leak enough current between the battery posts to prematurely drain your battery. In fact, consider replacing your battery if it's more than 4 years old. Newer cars tend to use smaller batteries to reduce weight and improve mileage, and, combined with high under hood temperatures, that spells an earlier demise than you may have gotten 10 to 15 years ago.

Light Bulbs

Check all light bulbs and replace any that aren't working. The days are short during the winter, and you'll depend on these bulbs for visibility a much larger proportion of the day. Check all turn signals, brake lights and headlights. It's also a good time to check your headlights alignment too.

Windshield wipers

Windshield Wipers are essential for winter driving, and after a summer of sunshine, the rubber squeegees are probably in sorry shape. Play it safe and replace them. Be sure the wiper arms and springs are in good shape, and that the blade is held square to the windshield surface. You may need to bend it slightly to keep everything square. Make sure your fluid level is full and that the washer solvent your using is safe for the low temps in your area.

Coolant

Check the date on the coolant. (Remember many new cars have extended drain intervals–but not permanent coolant. Read the owner's manual.) If it's due to be replaced, use a 50-50 mix of fresh coolant and water.


These few easy to follow tips can help reduce any problems with your automobile during the extreme cold of St. Louis winters.

Preventing Frozen Water Lines

Preventing Broken Water Pipes
The H Team
Arriving home to a flooded basement because of broken water pipes is a preventable situation. By following a few simple precautions your home doesn’t have to be damaged;



Disconnect exterior hoses
Once you’ve disconnected the hose from the faucet allow it to drain. Turn off the hose bib in the interior and open the valve to drain. If you do not have an interior shut off install heat tape over the first 10 inches of the interior pipe.

Install Insulated Pipe Sleeves
These rubber like covers just slip over pipes in an unheated area and available at most Hardware or Home Improvement Centers. A piece of duct tape over the ends will insure the cover stays in place.

Close up crawl spaces
And seal all access doors, vents and cracks. Cold air seeping in can freeze pipes and other plumbing fixtures.

Open Cabinet Doors
Under sinks to allow heat to keep pipes warm.

Know location of shutoff valve
To turn off all the water in your home, in case of breakage and flooding. Shutting the water off can prevent additional damage.

Always leave heat on
Your thermostat should be set no lower than 55 degrees if you are traveling or will be gone for an extended period of time.

Winterize your home
This consist of all pipes being drained and blown dry by a licensed plumber. Normally this is done if your home will be vacant for an extended time.


Are you in need of a licensed local plumber? Contact The H Team today for a qualified plumber.

A Unique Way To Get Your Home Sold

A Unique Way To Get Your Home Sold
Frank J. Helderle
With today’s market being what it is and buyers being in control, sometimes a real estate agent has to become creative, aggressive and think “outside the box.”

After being on the market for 120 days with tons of showings, we couldn’t get anything to happen on our listing. It was a nice listing, only 3 years new in a very upscale subdivision. It offered every builder option available, and was priced $20,000 under what the seller paid. Why, it wouldn’t sell was beyond me.

Finally another agent called who had a re-location client who was looking for a quick closing and was a cash buyer. I held my breath and crossed my fingers, nothing happened. The agent called the next day and said they liked it but that they were trying to decide which property they liked the most of the ones they had toured and wanted to go back in for another look. I asked which properties they were comparing our listing to and did some quick comparisons and even visited and toured the other two homes.

The next day the other agent called and said they really liked our listing but had decided to write an offer on one of the other properties. Since that property was about $15,000 less than ours with fewer amenities I asked the agent to give me a couple of hours to discuss some possibilities with my seller.

I immediately got on the phone with my seller. Since this seller had transferred out of town and purchased another home already he very much wanted this home to sell. In some of our previous discussions my client had confided in me that he was prepared to reduce the price lower but only if we had a qualified buyer who was ready.
I suggested he reduce his price to the point he was willing to go and that we write a reverse offer.
We wrote the offer and presented to the buyer’s agent, who after a brief education on reverse offers, presented the offer to his buyers. The buyers were elated and accepted the offer. The seller was able to get his home sold with a minimal reduction in his asking price.

There are just too many choices out there for buyers today and by offering an incentive to them it should make them take notice. Sellers have to become more aggressive and let the buyers know they are serious.

Is 2009 The Year To Buy A New Home

Is 2009 the Year To Purchase A Home?
Frank J. Helderle

As a buyer in 2009 the decision lays entirely in your court. With low interest rates, an over supply of homes for sale and the lower prices 2009 is a great time to purchase a new home, with a few items to consider;

Buying Too Aggressively So you’ve located a few houses you’re interested in, make sure it’s something you can easily afford. Everything you read today about the economy tells us that our current recession will last longer than a year or so and that unemployment could hit over 8% which means trying to stretch your income just won’t work. Most lenders will tell you how much of a home you can afford, but by buying a home that costs 50% of your take home pay is just inviting problems. Consider what happens if you get laid off or your company shuts down? It can happen, so buy conservatively.

Purchasing A Foreclosure Yes a foreclosure can be a real bargain, with deep discounts, these properties can come with a great deal of baggage. After a home sits vacant for months or years things begin to deteriorate, such as no water running through the stacks, dishwasher pumps tend to dry out, carpet and vinyl begin to get loose when the house has no heat or cooling. Always know what you’re getting into. Before you begin looking at foreclosures hire an expereienced real estate agent and a certified building inspector. Make sure all utilities are on, even if you have to arrange for them to be turned on..By spending a few dollars in the beginning will save you much more in the long run.

Search For The Best Deal Home prices are expected to continue to fall most of 2009, those people considering buying a home are in the driver’s seat and should be looking for the very best deal. Since it is such a buyers market look for the deal and low ball the offer, you never know, you may get lucky. While low balling is common in today’s market don’t go overboard. Making an insulting low offer may upset the seller which may result in any offer you make on the property unacceptable

Understand The Local Market It’s really easy to listen to all the doom and gloom about the Real Estate market but savvy buyers need to be paying attention to the market area they are considering making a purchase. What’s happening in one area may be the total opposite in another. Remember, an individual market is not the same as a national market. Again hiring an experience local Real Estate Agent will insure you’re well educated about the market you’re shopping.

Buy For The Long Term As home prices continue to decline 2009 will not be the year to make a return on your investment. Actually your new home may continue to loose value throughout 2009. But, eventually home prices will rebound. Any home you purchase in 2009 you should plan on living in for at least 3 years

2009 is the year to purchase a new home if you know where to look, how to look and when to look. Contact The H Team today to begin looking for your new home

Now Is The Time To Buy

Why Now Is The Time To Buy A Home

YES, now is the time to buy a house for a number of reasons. Regardless if you’re a first time home owner, an investor or a move up buyer. If you don’t get on the boat soon, once it leaves port, you won’t be able to get on board. It will move that fast. Just why do I and a lot of other professionals think 2009 will be the start of the rebound?

1. Low Prices Home prices are at a record low. The median price in St. Louis, MO., is now at $179,900 down from $200,000. With a decent credit score payments are going to be affordable once again.
2. Low Interest Rates FHA rates as of today are 5.125% on a 30 year fixed and as low as 4.750% on a 15 year fixed with only 3.5% down-payment required. My friends in the mortgage business tell me applications are up.
3. New White House The new White House is beginning to talk stimulus once again. Car manufacturers are reducing required credit rating requirements to get people back into the showrooms. Once the population starts spending money again Americans will get use to spending money again.

Once people start spending money again our economy will begin moving very fast. Interest rates will go up; sellers will want more money for their homes and will receive multiple offers on their homes.

Getting on board today by getting pre-approved, signing a buyer’s agency with a full time Realtor and beginning to look you can be sailing away in your new home at a great price with a low interest rate before the rush.

For a list of available homes that meet your criteria contact The H Team today. For free pre-qualification or to determine your buying power contact Christy

Frank J. Helderle

It's 2009 "Happy New Year"

I got up this morning and it suddenly dawned on me it’s a New Year, and a New Year means “New Business” Think about it for just a few moments; after the parties, the noise makers, the party hats there are a million different kinds of calendars out there. What a way to remind a client or potential client that it’s a New Year and maybe time for a New Home?
Yes, I know we all do the promotional calendars but like the one I sent my number two brother, “Hot Rod Cars” or the one I sent to my Doctor “Joke For A Day”, it’s better than a picture of me hanging on their wall. Who would of imagined how many different calendars are out there and guess what, you can get them for 50%. A twitter friend from Connecticut suggests appointment books also.

A New Year also brings resolutions and new goals. Looking at Amazon. Com. Three of the top ten best sellers deal with health or financial well being. I’ve noticed on television over the last two days at least 3 ads for weight loss surgery and at least 5 for gym memberships. I long for the political season to return. Those ads at least were comical.

Putting your financial and health goals on the front burner is great to start with, but another great goal for 2009 is to purchase a new home. Regardless of what the boo-hoers are saying now is the greatest time in 20 years to buy a home. Inventory is up, sellers are motivated and interest rates are at a historical low. Why not consider moving up and getting that extra bath and bedroom you’ve needed for so long. Or as many first-time home buyer’s have discovered home ownership is still the greatest investment they can make. And with a basement or extra bedroom they could purchase my hardly ridden exercise bike and start their own in home gym.

As a Realtor it’s time to get out there and start drumming up that “new business”. Everyone else it’s time to consider getting that new home, setting goals and staying on track towards those new resolutions.

To begin the search for that new home visit The H Team and search the MLS.

Happy New Year

What Did It Sell For?

63011 Ballwin, MO.

829 Lilybud Ct, $102,900
832 Lilybud Ct, $108,000
160 Burtonwood Dr, $130,000
605 Vitry Dr, $157,700
1219 Brittany Parkway Dr, $163,000
2333 Forest Leaf Parkway, $205,000
200 Morewood Dr, $215,000
1526 W. Field Av, $225,000
320 Country Club Dr, $255,000
315 Claymont Cove Ct, $269,500
425 Tamarack Dr, $275,000
336 Glan Tai Dr, $319,900
725 Kerley Ct, $357,000
16520 Highland Summit Dr, $370,000
1348 Rusticview Dr, $385,000
528 Dartmouth Crossing Dr, $434,500
730 Clayton Corners Dr, $628,000

63021 Ballwin, MO.

159 Carmel Woods Dr, $78,500
28 W. Meadows Ln, $87,500
224 Victor Ct, $110,000
1220 Wicklow Rd, $118,000
200 Braeshire Dr #D, $130,700
278 Village Creek Dr, $137,000
676 Turfwood Dr, $150,000
1356 Holgate Dr #E1, $155,000
2375 Hidden Meadow Ln, $161,500
1635 Award Dr, $163,000
724 Woodrun Dr, $167,000
152 Cascade Circle Dr, $174,000
809 Ginger Wood Ct, $178,000
938 Oakwood Farms Ln, $199,900
405 Harvest Hill Ct, $225,000
1412 Cedar Bluff Dr, $235,000
345 Carr Manor Ct, $300,000
916 Kiefer Trails Dr, $325,000
287 Victoria Pointe Ct, $425,000 1
515 Dietrich Ridge Dr, $750,750

63026 Fenton, MO.

1407 Valiant Dr, $98,000 1
452 Noche Ln, $148,000
819 Spring Crest Dr, $215,000
17 Majestic Ct, $233,500
2050 Meramec Meadows Dr, $274,000
1223 Summerpoint Ln, $305,000
1025 Hawkins Bend Dr, $431,310
1347 Remington Oaks Terr. $318,000
2220 Fenway Farms Trail, $460,000

63123 Affton, MO.

9207 Reavis Barracks Rd, $45,300
6247 Pointview Ln, $73,000
9434 Dorisann Ct, $100,000
9315 Rambler Dr, $110,000
4842 Mohegan Dr, $111,856
6501 Horst Dr, $115,000
10133 Florinda Dr, $120,500
9410 Upland Dr, $126,000
5124 Lakewood Av, $127,000
4327 Hannover Cts, $130,000
9433 Sequoia Ct, $135,000
9401 Talbot Dr, $138,500
4736 Weber Rd, $140,000
4355 Mohegan Dr, $144,000
7934 Aldershot Dr, $145,000
9800 Chesterton Dr, $148,300
4465 Mohegan Dr, $149,000
9040 Amona Dr, $149,000
7114 Val Brook Ln, $149,850
7127 Fernbrook Dr, $155,000
8218 Fendale Dr, $160,000
7221 General Sherman Ln, $161,000
8301 Lonkar Dr, $161,500
821 Forman Rd, $165,000

63125 Lemay-Mehlville, MO

9606 Gentry Av, $52,000
1919 Mansard Dr, $57,000
420 Earlsfield Ln, $128,000
1803 Diane Dr, $145,000

63128 Mehlville, MO

5450 Cherryview Ln, $120,000
5506 Duchesne Parque Dr, $142,000
4737 Music Ln, $239,000
9853 Southwick Dr, $250,000
4911 Griffin Rd, $272,000
4742 Music Ln, $275,000

63129 Oakville, Mehlville, MO.

4380 Tavistock Circle, $33,000
1053 Humber Circle, $105,000
29 Kassebaum Ln #202, $129,900
2902 Parc Cheri Ct, $138,000
29 Kassebaum Ln #101, $142,850
3620 Kathleen Ann Dr, $146,000
447 Fairwick Dr, $146,000
634 Fairwick Dr, $149,900
5835 Bristlecone Ct, $186,000
2840 Bee Tree Ln, $190,000
2680 Queen Bee Ln, $250,000
729 Forder Crossing Ct, $250,000
773 Forder Manor Dr, $250,000
3108 Woodbridge Estates Dr, $261,000
5006 Southridge Park Dr, $324,900
6250 Olsen Ln, $400,000

Prices and address' from public records.

Is it time to Move Up?

These 6 questions will help you decide whether you’re ready for a home that’s larger or moving to a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.

1. Have you built substantial equity in your current home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.

2. Has your income or financial situation improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.

3. Have you outgrown your neighborhood? The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.

4. Are there reasons why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.

5. Are you comfortable moving in the current housing market? If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6. Are interest rates attractive? A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

If you think it may be time to move up or move out contact The H Team today for a free review.

In A Buyer's Market Values Are Determined By Buyer's

While speaking with a new client yesterday, who is considering selling his house, a question/comment came up. As we were discussing com parables in the neighborhood he produced a print out of what he thought his home was worth.

I tried to explain to him the value of his home is determined by what a buyer is willing to pay in TODAY’s housing market, based on the comparison of the home in question with all of the others on the market, in the same neighborhood and others that had been sold that were comparable to his. I continued to explain what things did not affect the value of his home. After spending an hour with this gentleman I decided to make a list of items that do not effect the value of a home and create a list to include in my pre-listing packet;

What you paid for the house
Your remodeling costs
The amount of cash you need to buy your new house
What you want for your house
What I say your house is worth
What other real estate agents say your house is worth
What an appraiser says your house is worth
What the tax assessor said your house was worth
What Zillow says your home is worth
What Trulia says your home is worth

Your home is only worth what a buyer is willing to pay for it.

Since this fellows home was in a market area with a lot of foreclosures his potential price prohibited him from placing it on the market at this time.

How the Tax Credit Works

The First-Time Home Buyer Tax Credit was passed this year as part of the Housing and Economic Recovery Act (H.R. 3221) on july 30, 2008 and targets any individual that hasn't owned a home for at least three years. Taxpayers can take the credit on their 2008 tax return if the purchase was made after April 9, 2008

It's worth up to $7,500 and can be taken in a single tax year.Authorization for the tax credit ends July 1, 2009 so if you wait to buy until after the first of the year you can take the tax credit on your 2009 return.

The actual credit amount is set as a percentage of the home purchase amount. That perccentage amount 10 percent of the purchase price credited against your tax liability up to the $7,500.

Income levels are $75,000 for individuals and $150,000 for households. Individuals who income exceeds the $75,000 limit but isn't more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.

Any house is eligible as long as it's a primary residence and is in the USA.

Contact your professional tax advisior as to your eligibility. The H Team can help you find a new home.

First-Time Home Buyer Tax Credit

Frequently Asked Questions
About the First-Time Home Buyer Tax Credit

The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Who is eligible to claim the $7,500 tax credit?
What is the definition of a first-time home buyer?
How do I claim the tax credit? Do I need to complete a form or application?
What types of homes will qualify for the tax credit?
Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
What is "modified adjusted gross income"?
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Can you give me an example of how the partial tax credit is determined?
Does the credit amount differ based on tax filing status?
Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
I heard that the tax credit is refundable. What does that mean?
What is the difference between a tax credit and a tax deduction?
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
I am not a U.S. citizen. Can I claim the tax credit?
Does the credit have to be paid back to the government? If so, what are the payback provisions?
Why must the money be repaid?
Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
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?
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?
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?


Who is eligible to claim the $7,500 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 April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.


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. 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.


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. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.


What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.


Instead of buying a new home from a home builder, I have 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 April 9, 2008 and before July 1, 2009.

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


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 such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.


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 $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.


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 $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 $7,500 by 0.5. The result is $3,750.

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 $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

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.


Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.


Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.


I heard 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 taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).


What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 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 $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.


Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.


I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.


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.


Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.


Why must the money be repaid?
Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.


Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.
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.
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.
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 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 future home 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.

10 Tips to Avoid Foreclosure

As everyone knows foreclosure rates are up all across the US. Each month more than 250 families are foreclosed on. There is help, but most families are not acting fast enough. It is imperative that you ask for help as soon as you see trouble. These tips are provided to educate homeowners who are facing foreclosure.

Should you find yourself getting behind on your mortgage payment ACT NOW

1. Don't Ignore The Problem The further you fall behind the tougher it will become to reinstate your loan and the higher the chance of losing your home.

2. Contact Your Bank/Lender As soon as you realize you have a problem. The bank/lender does not want your house. They have options to help borrowers through tough times.

3. Open And Respond To All Mail From Your Lender Normally, the first notices contain good information about foreclosure prevention options to help get you through a tough financial period. later mail may include information about impending legal actions. Failure to open your mail is not an acceptable excuse in foreclosure court.

4. Know Your Mortgage Rights Locate your mortgage documents and read them so you know what your lender can do if you can't make your mortgage payments. Learn about foreclosure laws and time frames in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand Foreclosure Prevention Options Valuable information about foreclosure (also called loss mitigation) can be found on the Internet at www.fha.gov

6. Contact A Non Profit Housing Counselor The Us Department of Housing Urban Development funds free or very low cost housing counselors nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need assistance.

7. Prioritize Your Spending After health care keeping your home should be your main priority. Review your spending and see what you can cut spending to make your mortgage payment. Look for optional expenses, like cable, health club memberships, entertainment you can eliminate. Delay payments on unsecured debt such as credit cards until you have your mortgage paid.

8. Use Your Assets Do you have a second car? Whole Life insurance with cash value? Items you can sell to help reinstate your loan. Can a member of the household get a second job? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices in order to keep your home.

9. Avoid Foreclosure Prevention Companies for-profit companies will contact you promising to negotiate with your lender a plan to work out your loan. While these may be legitimate business' they will charge you a hefty fee (up to 3 months of your monthly mortgage) for providing information and services your lender or a HUD approved housing counselor will provide for free if you contact them. You don't need to pay money for help- use that money towards your mortgage instead.

10. Don't Lose Your Home To A Foreclosure Recovery Scandal If any firm claims they can stop foreclosure immediately if you sign a document appointing them to act on your behalf, you could be signing your home over to them and becoming a renter in your own home. Never sign a legal document without reading it or understanding it. Always get professional legal advice from an attorney, a HUD approved housing counselor or a trusted real estate professional.

To find out more about HUD approved housing agencies and their services go to www.hud.gov or call toll free 1 800 569-4287 weekdays between 9 AM and 5 PM Eastern Standard Time. You can receive the three closest housing counselors nearest you.

Good Luck. This information provided by The H Team a professional team of Realtors serving the St. Louis area. Experienced Loss Mitigation and Short Sale specialists.