tax credit

As most of you know, the end of the tax credit is just a few short weeks away on April 30, 2010. Under the guidelines, you have to be “under contract” by April 30, and then close the transaction by June 30, 2010 in order to receive the either $8000 First Time Buyer credit or the $6500 Move Up Buyer credit. The tax credit was extended back in November of 2009 at a time when home values and prices were continuing to fall and our government was trying to help solve that problem. I believe we did the best we could at the time.

For personal reasons as a loan originator (and my own checkbook) it would be great to have the tax credit extended and extended again. However when we “over incent” people to do things it will ultimately come back to bite us. By having extra incentives like the tax credit, our federal government is incurring tremendous debt in order to accomplish this. The national debt will ultimately have to be repaid by us as tax payers through higher federal income taxes which will in turn slow our economic recovery because we have less money to spend. In addition, when the tax credit is gone there is a risk that demand for homes will fall off significantly and we will see property values reduce in value again. A concept known as the “double dip”. So despite our government’s efforts to ease the drop in property values, ultimately the markets will determine if they succeeded or not.

The tax credit was good but it is time for us to stand on our own feet. There are enough incentives already for being a homeowner through the interest and points tax deduction, property tax deduction, and the potential for your property to appreciate in value. The tax credit although needed at the time needs to end.

Ok, here we go again. We are roughly 45 days away from the Federal Tax credit expiring for would-be home buyers. It seems like we just went through this the other day and in fact, it was just last October when we were writing articles just like this. It’s mid-March and at the end of April, the tax credit for home buyers and first-time home buyers will expire. The question is did you take advantage of it?

I hope you did and if you didn’t, there is still time, but a word of warning to all the procrastinators out there. I do not feel confident this time around that it will be extended. Am I sure about this? No, and I reserve the right to be wrong, but there are just too many things in play right now to lead me to believe that it won’t be extended. I don’t have enough room in this column to express all of my thoughts on the subject, but I will share a few things that lead me to this conclusion. First, it’s an election year and all bets are off on how a Senator or Congressman will vote once they are up for re-election. Second, the economy shows signs of improvement, but that could be a double edge sword. If it continues to improve, Washington will make an argument that there is no need to continue the program. If the economy falters, Washington could make the argument that the money needs to be better spent elsewhere to stimulate jobs. Third, since the deficit seems to be a hot topic among lawmakers, I have a hard time believing that there will be a lot of support to spend more money on this program, but then again, I could be wrong.

So where does that leave the home buyer…about 45 days from missing out on $8,000 or $6,500 in cash. There is still time to find a house, get under contract, and close. Remember, you don’t have to close until the end of June; you just need to be under contract by the end of April to get the money. Getting the loan in place, finding an agent, a house, and getting it under contract can be done in the next 45 days; but you have to start now. To find out how, check out www.taxcreditforeveryone.com or www.firsttimehomebuyerdenverco.com.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

So you are sitting on the sidelines right now missing out of the $8000 First Time Home Buyer Tax Credit because someone at the bank told you that your score was not good enough to buy right now. The banker probably did not provide much more information other than you “need to fix your credit and pay your bills on time” if you want to buy a house.

What are you supposed to do get started on that path of homeownership? Are you going to try to figure this credit fix stuff out on your own? Worst yet hire a credit repair firm and pay thousands of dollars for them to make money and show meager results? Or just continue to sit on the sidelines and rent and miss out probably one of the best buying opportunities in the past 30 years?

Here is a fact, 78% of the people who decide to buy a home ultimately by a home with 5 years of making that decision to buy. So the question is really not “IF” you are going to buy a home but “WHEN” are you going to buy a home. Problem is that most bankers and their loan officers don’t get this concept. They just see the never ending supply of other customers coming through the door and move onto the next customer. You are left to fend for yourself.

I have over 15 years of credit scoring and repair expertise. I have moved credit scores by over 100 points in 30 days. In addition, I have saved client tens of thousands of dollars is educating them on how to work out settlements with past due accounts. Before you give up on your dream of homeownership, get a second opinion on your credit. Your dream may be closer than you think!

Andy Jorgensen

Sr. Loan Originator

Guild Mortgage Company

7951 E. Maplewood Ave. Suite 290

Greeenwood Village, CO 80111

www.taxcreditforeveryone.com

Mortgage Originator License #MB100011854

303-753-9135 or 888-333-6944 office

303-753-8747 or 888-999-3594 fax

303-810-1191 cell