The government’s First-Time Home Buyer Tax Credit program expires November 30, 2009 — a scant 60 days from today.

In this video, Chris Brown provides critical milestone dates originators, Realtors and homebuyers must be aware of if they plan on taking advantage of the Federal $8000 First Time Home Buyer Tax Credit set to expire November 30, 2009. Knowing when it expires and that it is for $8000, isn’t enough, yet that is what 99% of the videos tell you about.

Here is what you NEED to know and the DATES to focus on!

Five Factors that Make Up a Credit Score

Check MBS pricing here.

4:22 PM EST Market News

As predicted last Friday by “Brian Brady” and his partner Sean Purcell, the Dow Jones Industrial closed up more than 900 points today after last weeks plummet.

12:36 PM EST Market News

The Dow Jones Industrial Average is up more than 500-points in trading today. The DOW has now moved above the 9,000 mark.

9:53 AM EST Market News

Today the bond market is closed in observance of Columbus Day. That said, later this this week I’m expecting movement in mortgage rates based on the release of September’s Retail Sales report and Producer Price Index (PPI) this Wednesday.

“WOW” is the only word that expresses the speed at which the financial markets moved the last 45 days. Last week the markets were in a once-in-a-generation financial panic. Panics can build quickly, but their resolutions take time. Even though the markets over-reacted, don’t expect things to get back to normal right away. Increased troubles in the financial system have been met by increased efforts from the G-7 central banks and governments.

It’s important to remember, this is not the Great Depression, yet there is certainly some downside for the economy in the near term.

Another key point…consumer spending accounts for over 70% of GDP and all indicators point towards negative 3Q08 growth in the US economy. Part of the third quarter decline in consumer spending represents the dwindling effect of tax rebates in 2Q08. However, the lagged impact of higher energy prices is also a major factor. Higher inflation led to a year-over-year decline in real wages. When that happens, it’s hard realizing growth in real consumer spending when real wage growth is weak. Additionally, a weakening labor market will limit nominal wage growth in the near term.

On the upside, falling energy prices should help mitigate or increase discretionary consumer income. Thus, lower inflation will lift consumer purchasing power.

Also, Central banks and governments have responded very aggressively to the crisis. In the U.S., the Federal Reserve has provided significant liquidity injections through open market operations, expanded existing liquidity facilities, and introduced several new liquidity facilities.

What caused this mess and what does it mean for everyday people like us?

Take the time to listen to an interview by Brian Brady, Sean Purcell and Greg Swann addressing:

1. “The Community Reinvestment Act (original sub-prime loans), conceived in 1977 and super-charged in 1995, was the actual starting point of the “toxic loan” revolution that took our economy down.
2. The Bailout may be an instrument to keep people into homes through the “loansharking collection” principle.
3. Predictions about the convergence of low-priced and mid-priced homes through financing caps.”

Listen to Podcast here.

Again, I’m not endorsing one party over the other, however on this housing issue one party is shifting the blame.

Some of the highlights include:

1. Don’t think a series of small claims is better than one big claim. The smaller clains are more expensive to process for an insurer and may result in higher premiums for your home.
2. Don’t lie about your history of claims — similar to CARFAX, homeowners have a “record” that track prior filings and getting busted is only a database search away.
3. Higher credit scores can lead to lower premiums because homeowners will higher scores tend to make fewer claims.
4. Your driving records impact your premium calculation.

The article also provides a fair amount of myth-busting so it’s worth a read. A few minutes could save you some good money on your home insurance.

(Image courtesy: Spot Lite Magic & Costumes)

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Prepare:

• You dream of buying a home
• You analyze your finances, decide how much you can afford and how much you will spend

Shop:

• You shop first for you mortgage options
• You shop for a home
• You select a home, make an offer and negotiate the price

Buy:

• The owner negotiates, you agree on a price, sign a sales contract and put up earnest money
• You obtain a mortgage
• You have the home inspected, obtain hazard insurance and prepare funds for closing. The lender and closing agents order the appraisal and title search
• The closing agent brings a clear title, deed and termite certificate. The owner brings keys for the home to the closing
• You bring the down payment, closing funds and insurance verification to the closing
• The attorney/lender/real estate professional coordinates the signing of documents and the transfer of money and ownership
• Ownership of the home is transferred to you at the closing
• You move your possessions into your new home

Care:

• You enjoy your new home and create a seasonal maintenance schedule

1. Cash or Capital Assets – The funds you have available for the down payment and the financial resources available after closing
2. Capacity – The continuing income for paying your monthly housing expenses and obligations
3. Credit – Your ability to manage debt and motivation to repay the mortgage
4. Collateral – Basically the house you are purchasing, which is the security for the loan (from the lenders perspective)
5. Characteristics – Other factors related to the transaction that could impact the risk of your loan

The first two factors involve your income: your yearly income and your monthly income. In deciding how well you can meet your monthly obligations, it is helpfull to make a distinction between periodic or onetime income (such as bonus or inheritance) and the steady money you count on each month for paying your bills.

The lender will ask questions such as those listed below and wil most likely ask to see supporting income.

What Do You Earn?

• Bring your most recent pay stubs
• Two years of W-2 statements
• Two years of federal tax returns

What Is Your Existing Debt?

• Bring loan statements and account numbers

What Potential Problems Could Keep You From Repaying The Mortgage?

• Bring a copy of your credit report, if you have one. The lender will order one anyway, but you want to see it before the lender, if possible, to clear up any problems.

Well Skippy, whenever I start thinking this way, I remind myself why I’m here. I’m here to serve others…it’s a reality to being successful in life and business. In fact, I think if we walked a mile in someone else’s shoes, our perspective would change dramatically.

“CLICK HERE”

Watch this video, it will help put some perspective back into your life and career.

Hat Tip: Chris Lengquist (thanks Chris)

Over the years with economic cycles and technology advances, the home financing process has changed, too. That’s why it’s critical you work with an individual that can make moving to your next home easier. With over 20 years mortgage experience and a lender with rock solid financial stability, my clients have access to a vast menu of home financing options, fast approval decisions, low down payment programs, and flexible rate, term, and closing cost options. Apply when and how it’s convenient for you – online, over the phone, or in person.

Financing a home is not a once-in-a-lifetime decision, and the financing package you used to buy your first home may not meet your needs the next time around. An experienced mortgage professional, will help you find a home financing solution that supports your current and future homeownership goals.

The majority of homeowners purchase multiple homes in their lifetimes. Each time you buy a home, you need to reevaluate your needs and goals. So whether you are trading in your first home for a larger one nearby, relocating for the tenth time, or looking to move to a new area for a lifestyle change, my team is here to help.

Pick your lender and Realtor responsibly!