FREE Movies at the Capital! 2010

MOVIES UNDER THE STARS Schedule
July 1 - The Sandlot (1993) - Made in Utah
July 8 - Legally Blonde 2: Red, White & Blonde (2003) - Made in Utah July 15 - Planet 51 (2009)
July 22 - Forever Strong (2008) - Made in Utah
July 29 - The Goonies (1985)
August 5 - The World’s Fastest Indian (2005) - Made in Utah
August 12 - The Twilight Saga: New Moon (2009)
August 19 - Monsters vs. Aliens (2009)
August 26 - The Blind Side (2009)

The Wisdom in having a back up Lender in 2009

In all of my transactions this year there has been one HUGE
glaringly obvious similarity in any deal that has gone down
to the wire--LENDERS and most specifically Mortgage Brokers.

It has happened more than once that I am waiting the day before
closing on an approval---doesn't that seem wrong? My clients,
want to buy this house, have been told that it is going to be
possible,even to the point of passing their financing deadlines
and the day before closing, and we are still waiting on an approval
from the Broker. This is a bad, bad spot to be in so this is my
new advice in the 2009 lending/real estate world: ALWAYS have a
backup lender--
In a world where lenders are now facing daily changes in rules and
regulations it pays to have your eggs in more than one basket.

For example: One new rule is that once fees have been disclosed
to a borrower the file CANNOT, under ANY CIRCUMSTANCES close
for 7 days--what does that mean for you as a buyer?

Well, say that Broker #1 strings you along until 3 days until
your settlement deadline and then stops returning your calls(
I have seen it happen, multiple times) you hold onto hope that
he or she has had a medical emergency and that they aren't just
screening your calls. But with some hesitation you start calling
some of the other Brokers that didn't make the cut originally or
desperately ask around for recommendations. You find another Broker
#@ that you think MIGHT get the job done this time and he says that he
can FOR SURE get it done for you, but your settlement deadline is
in 3 days---now it is extension time and this is a really bad spot
to be in--now your earnest money is in danger, your dream home hangs
in the balance and you will have MANY sleepless nights until the deal
is closed--AT LEAST 7 days later(realistically 2-3 weeks)

BUT if you have a backup lender waiting in the wings that you can call
on when anything feels fishy with Lender #1 you will be better for it.

NOW: Mortgage Brokers work on commission and will NOT like being the
backup broker, so depending on your situation, your relationship with
said Broker and how up front you feel like being I might just go through
the process with both brokers or just simply let them know that
they are, in fact, your backup--however you want to handle it--you will
do yourself a lot of good to have a B team waiting to rush in.

Now this usually isn't a problem with Banks--usually just Brokers that
offer really low rates--that has been the issue with many of my clients--
They are chasing those low rates and get a dishonest or under experienced
(or overconfident) broker. DO NOT be afraid to ask questions--even really
basic ones and make sure they give you a solid answer that you can understand.

If you start getting nervous do NOT hesitate to call your reserves, seek a
second opinion or to ask for an extension BEFORE your earnest money is
at stake--Bottom line: NO ONE CAN BE TRUSTED in 2009's lending atmosphere
and DEALS DO FALL APART for highly qualified buyers that just picked the
wrong broker.

6000 tax credit for New construction

$6,000 Utah Grant for New Construction Not Just for First Time Homebuyers - Does Not Have to be Repaid

State of Utah $6000 home purchase grant

The State of Utah is offering purchasers of new construction a $6,000 grant that does not have to be repaid. You do not have to be a first time home buyer to qualify, but there are a few limitations.

Here are the basics of the "Home-Run" grant:

Does the amount of the grant vary? Is it up to $6,000? No. The amount of the grant for qualified applicants will always be the full $6,000.

Does it have to be re-paid? No. The $6,000 grant does not have to be re-paid.

Do I have to live in the home? Yes. The grant is for owner-occupied transactions. You must move into the home as your primary residence within 30 days of closing.

Do I have to be a first-time homebuyer? No. You need only to purchase a newly constructed home that has not yet been lived in.
AND you can still qualify for the 8,000 tax credit if you are a first time homebuyer!

Where did the money come from? From the Federal stimulus money given to Utah.

Are there income limitations to qualifying? Yes. A single Buyer cannot earn more than $75,000 per year and a couple that files jointly cannot earn more than $150,000 combined.

Does taking this grant disqualify me from the $8,000 Federal Tax Credit being offered by the Federal Government? No. There is an up to $8,000 federal tax credit for first time homebuyers who purchase a home between January 1, 2009 and December 1, 2009. (Details here) If you qualify for the $8,000 tax credit, you probably qualify for the $6,000 grant and can receive a total of $14,000 in credits/grants if you purchase new construction in Utah.

How long does this program last? While supplies last. There are only about 1600 grants available and once they are gone, they are gone for good.

Why the $6,000 grant? Lawmakers believe that this will help move some of the over 2,000 completed new construction homes on the market that are currently unsold.

How do I receive the money? When you have identified a property, your lender can submit the paperwork to reserve one of the grants available. At closing, $6,000 will be wired to the title company to be used on your behalf. It can be applied toward closing costs, fees, even down payment.

Are there any other restrictions? You must purchase the home with a 30 year (or less) fixed-rate mortgage. (FHA, VA, Utah Housing, Conventional are all options)

Bill text: http://le.utah.gov/˜2009/bills/sbillamd/sb0260s02.htm

Signed into law by Governor Jon Huntsman March 19, 2009

Interest rates....why the @@##!! you should care:

Simple:
Monthly Payment!
Lower rate=more house
for less-who wants a mc mansion?

WHEN you go to the bank to qualify for a mortgage
they look at MANY things(in fact you feel like
you have just had a financial physical-sans rubber
glove of course)
And among the things that determine how much money
you can borrow(monthly income, debt, credit score)
is what INTEREST RATE you qualify for.

For those that understand this already-good for
you smarty pants-but for me--when I bought my
first and even second home this stuff was just
well: Confounding and I just went along with
whatever the credit union told me.

Simply put: An interest rate on a home loan
is how much the lender(bank or credit union)
is going to charge you(in %) to borrow money
from them.

Bottom line: you want this number to be
AS LOW AS POSSIBLE!!! All the news reports
squealing about how low interest rates
right now are basically saying:
"money is cheaper to borrow than ever before
to buy a house!"

Why this matters to you:
Here is how I look at it:
IF you are lucky enough to be in a position
to be able to buy a home right now your luck
couldn't be better!
Because interest rates are LOW(it is cheap to
borrow money) and it is a buyer's market, you
can afford MUCH more house than you ever have
been able to, and this may or may not last.

What to do to find out if you ready to buy:
Ask yourself:
-Do you feel stable in your currant situation?
-How much do YOU feel you can afford for a mortgage every month
(banks are smart, but don't ever let anyone tell you can afford more
than you are comfortable spending every month)
-Shop around!
Rates are negotiable as are closing costs(mosts often paid by seller)
DO NOT let just anyone pull your credit or it will hurt it, but be sure to
at least get good faith estimates(no SSN required) from 2-4 credit unions/mortgage brokers/banks
Often if you are a good candidate they will fight to keep you as a customer.
ONCE you find 2-3(more than that and your credit is going to suffer) that your are comfortable with THEN and only then fill out a
loan application. From there you will be pre-approved for a certain amount of money
NOW you are ready to shop for the dream house!

NOTE: you can certainly shop for houses and even put an offer in for one without being pre approved. But it certainly does make you look like a more attractive buyer
to have a preapproval letter with your offer, AND if you know how much you can spend
it is MUCH easier to stay within your budget!

Call or write with questions!

Mickelle
801-698-8288
mickelle@urbanutah.com