So we do expect that the government will indeed close the program down in an attempt to return to more normal market conditions.  This is what they are telling us.  This will leave private investors to pick up the slack, which they may or may not do at a rate necessary to keep interest rates low.

Brian O’Connell of BankingMyWay.com says,

“If the economy doesn’t cooperate, and sends private investors into the mortgage marketplace to plug the gap (a good bet right now), then look for interest rates to rise next March. [2010]

The Fed may not do deadlines, but it’s not above firing a warning shot to the American consumer. If you want to buy a home, do it in the next three or four months. After all, the difference in monthly mortgage payments of 5% or 6% can be measured in tens of thousands of dollars over the life of the loan.”

Brian’s right. Every 1%  of interest rate increases your costs over the life of the loan, and it also reduces the price of the house you can qualify to buy. For instance if you qualify to buy a $400,000 home now at 5%, you will qualify for $358,000 at 6%.

Maximum buying power comes with low rates. We have the triple benefit of low interest rates and low prices right now, (some REO’s are ridiculously low) and government tax credits. It really is an incredibly inexpensive moment to buy.

Lynette Hensley
Associate Broker

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

1. Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.

 [We will compare many factors, including how much you bought for, what you owe, if this would cause a short sale, etc. Many factors go into these decisions.]

2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.

[While this may not help you directly, it can help to sell your home. We are associated with a few lenders who have certifications with the House Key program and other down payment assistance programs that can be specific to a city.]

3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

[These include Federal Tax Credits as well as county specific rebates that run for specified time frames.]

4. Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

[Us for instance!]
Source: McClatchy Tribune, Kate Forgach (02/07/2010)

First time homebuyers:

• The $8000 tax credit is for first time homebuyers only. For the tax credit program, the IRS defines a first time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8000.
• The tax credit applies only to homes priced at $800,000 or less.

Repeat Home Buyers:

• To be eligible to claim the tax credit, buyers must have owned and lived in their home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6500.
• The tax credit applies only to homes priced $800,000 or less.

This info is not intended as legal or tax advice. I just wanted you to know the basics to see if you might be qualified and to find out more. Here is a link to the current info: Tax Credit

Let me know if I can help in any way!

Lynette Hensley
Associate Broker

Index Blog Newsletter

Newsletter Link

Read here for updates about the town of Index–there is mention of a vacation cabin for great getaways as well as a blog about berry picking.  Wouldn’t it be grand to live in a town where the news is about berry picking??

Larry and I have this 2 Bedroom 1 Bath home for sale in Index.  It is also a recording studio!

READ MORE!

Type in the city you want to know more about and then click go.  You get the current weather report, and if you look under the daily forecast there is a line with averages, like this:

Average temperature of July: 57°F. Average high temperature: 66°F. Average low temperature: 51°F. More Averages »

If you click on “More averages”  you can find the average rainfall, temps, snowfalls, all kinds of averages.

Know more about the town you want to live in!

Lynette Hensley
Associate Broker

• soaker hoses instead of sprinklers
• don’t pre-rinse dishes
• do laundry only with full loads
• shower instead of taking baths
• turn off the faucet when brushing teeth or shaving
• change to an efficient shower head
• check for leaks at sinks and toilets
• Save the water that runs while waiting for hot water. Use to wash produce, cleaning, watering plants.
• for warm water, turn hot water on first, then add cold water as needed.
• don’t use the garbage disposal, compost.

This info compiled from SavingWater.org

Lynette Hensley
Associate Broker

Look at the beauty only 2 miles from our Index listing!  The fish are a-jumpin’ and the water is a-flowing’ in this beautiful area of Washington State.  This is Eagle Falls on the Skykomish River.  Here you can swim, boat and simply wade around and enjoy the beautiful area.  Here is a bit more about the falls: Eagle Falls.

Lynette Hensley
Associate Broker

Facing the town of Index’s climbing wall is this 2 bedroom home with a full recording studio in the basement.

2 Bedrooms and one bath are on the main level, with the kitchen, breakfast counter and dining room lighted by clerestory windows.  This home was built in 1918, redone in 1945, and has been well cared for.

In the 80’s the basement was converted to a recording studio. Isolation booths, wall treatments of egg crate foam rubber and sound isolated ceilings are some of the features, along with full internal wiring for recording.

This home is located in the town of Index, WA, along

Sound Booth

Hwy 2, between Stevens Pass and Monroe. Index Blog Mountain views are included, and proximity to recreational activities like hiking, skiing, river water sports and climbing add to its charm.  From the front porch, you can see climbers on the town’s climbing wall, and from the backyard, Mt Index is majestic to the south.  Leaving the home toward town one can also see Mt. Persis, Gunn & Merchant peaks.  The town is surrounded by mountains, and is also near the Skykomish river where there are recreation opportunities within walking distance of the home.

Mt Index

Rhodies in the spring time are a wonderful display of color–mature plantings and fruit trees in the yard.  Between the house and gardening shed are stairs leading up to the house, as well as down to the basement studio, or the terraced backyard/patio.  It’s a shy quarter acre of peaceful mountain home.  $199,950

Please Call Larry Baumgartner for a private viewing, 206 291 4117 or email for more information

Featured Listings

All information is deemed reliable as of this posting, but is not guaranteed.  The price and market status is subject to change at any time.

Answer:
In many  other states people sign and get possession of the property the same day.

In the State of WA, buyers and sellers sign papers a day or two ahead of the closing, and that’s what you will do in most cases. Closing day is still the day you get your keys.

Why?  Washington is an Escrow state–that means that the escrow officer will guide you through the signing and notarize your signatures.  Then all your loan documents go back to the lender for a final review, then funds are released and title releases the deed to record at the county.  Once the deed is recorded, you get your keys.  Though technically at 9PM on the day of closing is when you can have them,most often the keys are turned over to the buyer as soon as escrow says the transaction is closed.

Lynette Hensley, Associate Broker

(Asked and answered on Zillow)

Answer:
We really like the Volunteer Park Cafe: Special menu with creative food flair. Think roasted pear brioche french toast. Capital Hill area. And Mae’s Cafe:

Wonderful omelets and your happy making breakfast foods, and cow decor. On funky Phinney Ridge. Them’s the faves!

Lynette Hensley—-ComeBuyAHouse.com team