Truth in Lending and other real estate updates
I feel as if I have been on a long vacation. Hopefully, you have been checking our website and viewing the videos. (www.KatyDreamHomes.com)
There have been so many changes in real estate until I am not sure where to begin. Of course you have heard of the extended tax credit. You have until April 30, 2010 to sign a contract to purchase. If you sign a contract by that date, you will have until June 30, 2010 to compete the transactions. With the changes in getting a loan and the search for your home, you must move now. Time is definitely of the essence as everything takes longer .
The new tax credit for move up or existing homeowners is $6500. Certain restricitons apply but the deadline is the same as for first time home buyers.
On the lending side, there is a new truth in lending requirement. The truth in lending disclosure involves initial and final disclosures to borrowers on fees and will affect closing dates.
1. Closing may not occurr until 7 business days after the intial disclosures are sent to borrowers. ( business days=Monday through Saturday and exclude Sundays and holidays)
2. Upfront fees cannot be collected from the borrower until initial disclosures are delivered. This may affect the ordering of appraisal.
3. An increase in the APR (Annual Percentage Rate) by more than 0.125% requires the Truth in Lending Disclosure to be revised and delivered to the borrower 3 business days before closing.
I have read that Katy is ranked among the single digits as a good place to be and has lots of diversity but I have been telling you that.
The HVCC (Housing valuation Code) received a lot of interest in my earlier blog. It is in the midst of changes after a lot of input from various sources. Watch bill HR3126 which will possbly replace the HVCC initiative but is still under consideration. WWW.govtrack.us is a good source but I am sure there are others to keep abreast of the new Consumer Financial Protection Agency Act of 2009 or HR3126.
We expect to see increases in new homes and possibly re-sales as the inventory continue to decrease. For those who have the resources and the vision, this market is for you. How low can it go? When that question has been answered, opportunity will have left the building. Do your homework.
The period after Christmas leads into the tradition high season for real estate. The tax credit will give it a push but stops at the beginning of the season. How will this affect Sellers? My crystal ball is unclear on that one as many factors will contribute to the answer. Sellers will need to pay particular attention to pricing, preparation and marketing of their property. This is where we come in. Take a look at our website
http://www.getreadyset-homesold.com/
Future blogs will give incites on all three areas. So stay tuned.
All success to you