In every region, November’s PHSI decreased month-to-month but increased year-over-year. In the Northeast, the index plunged 25.7 percent to 74.4 in November but was 14.7 percent higher than the same month in 2008. Coming in at 82.0, the Midwest PHSI fell 25.7 percent from October but jumped 9.2 percent from a year ago. In the South, pending home sales dropped 15.0 percent in November to an index of 97.8, a 14.7 percent increase year-over-year. In the West, November’s PHSI was 124.6, a 2.7 percent decline from October but a 21.4 percent surge from November 2008.

National news does impact our markets in the Prescott and Prescott Valley areas as we rely on those sales so people can move here and buy homes.  We are really waiting for California to start selling again as this is our biggest source of buyers.

See:  Home builders see positive signs in market

Now, Federal officials have done a 180 saying that the money cannot be used as a down payment.

See:  Tax credit ineligible for down payment

To many, including myself, this money should be used to for other things than the buyer’s down payment.  Without any skin in the game by homebuyers, we could end up where we are today…buyers need to have equity in their homes to make prudent decisions about their homes.

Sellers of homes in the Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt need every bit of help they can get and welcome Federal help.  However, throwing good money after bad is in noone’s best interest.

To find deals of REO, bank owned, foreclosed, short sale, and distressed homes in the Prescott AZ area: 

Thinking of buying a home in the Prescott, Arizona area?  Perhaps one of the foreclosed or REO homes? 

Now is the time with the incredible decline in home prices and historically low interest rates!  Are you prepared to move forward? 

Before you answer yes, have you consulted a lender? 

If you are one of the 30% or so who do, congratulations!  Many others rush out to seize the opportunity and forget a vital step. 

Why is it so important?  Well, ask any lender and they will tell you how radically different the loan process is compared to three years ago.  

Gone are all the non-qualifying programs along with stated income loans for self-employed borrowers.  Higher credit scores are required and additional monies for down payments particularly for second homes and investment properties.  With Fannie Mae and Freddie Mac virtually being the only source for mortgages, they have enacted risked based fees for anyone possessing a credit score below 720.  With advanced planning you may be able to avoid these fees by ensuring your credit score does not cause you to pay  addtional monies. 

So don’t be insulted if your Realtor asks that you talk with a lender before being shown properties.  After all, nothing is as embarassing as finding that special home and, as your Realtor waits to prepare a contract, you are told that you do not qualify.  On the bright side, with these low rates, you may qualify for more than you thought.  Happy house hunting! 

For more information about the current financing market or to get pre-approved, call
Tom 928-775-9330 or email him at tomhenichek@cableone.net.

Fico Scores/Reports

 On Wednesday, the Federal Reserve agreed to purchase a large amount of mortgage securities since investors are sitting on the sidelines and not actively participating in these securities. 

This action spiked a short term rally in the stock and bond markets with the bond market seeing its largest yield decline since 1962.  Interest rates declined .25% but we are not sure how long this exuberance will last. 
 

Many bond experts are predicting that since the government is backing these securities, interest rates will continue to decline providing home buyers a significant savings.   
 

Keep your eye on the market and stay in touch – this could be the time for make that purchase!

For more information about the current financing market or to get pre-approved, call
Tom 928-775-9330 or email him at tomhenichek@cableone.net.

Fico Scores/Reports

Search for Foreclosed Properties in Prescott

Many of you are familiar with the $7,500 tax credit if you purchased a home after April 8, 2008 and before July 1, 2009.  Essentially, the government has given you an interest free loan for purchasing this home if you are not a high-income tax payer.  This credit must be paid back within a 15 year period.  If you sell the house prior to that time, the remainder is due in the year of the sale.
 

Another new program has been released by the IRS for those purchasing a home before December 1, 2009.  This program allows for up to $8,000 tax credit ($4,000 for married filing separately) which does not have to be paid back as long as you occupy the home for 36 months.  Again, this benefit begins to phase out for high-income earners ($75,000 or $150,000 for joint filers).  If you purchased a home on or before December 31, 2008, you are not eligible for this new program.

 This program is only available to first time homebuyers which includes those who have owned a home previously but not within the past 3 years pf the date of purchase.  Simply fill out IRS Form 5405 to claim this credit.

For more information about the current financing market or to get pre-approved, call
Tom 928-775-9330 or email him at tomhenichek@cableone.net.

Fico Scores/Reports