Bixby Oklahoma Real Estate

When you first purchase a house in Tulsa, Broken Arrow or Claremore, you’re most likely thinking of ways to build a home for you and your family. A big yard means plenty of room for the children to play. A newly renovated kitchen means you can finally throw the types of dinner parties you’ve always wanted. A master suite, well, that’s just icing on the cake. However, when it comes to sell your Oklahoma home, it’s important to remember that all those little (and big) changes can also mean big little (and big) changes in your sale price.

While most homeowners should make changes to their houses that suit their lifestyle rather than the eventual sale price of their home five, ten, or even twenty years down the road, there are a few things to keep in mind. After all, if you will someday be selling your Tulsa house, you want to be sure you’re maximizing your profit.

• Repair all the little things – now. Most of the time, homeowners are willing to overlook the little idiosyncrasies like a broken step on the porch or chipping paint on the kitchen cabinets while they live in their house. These small repair needs are a bit like a knee that acts up in the rain or a car that always requires you to turn the key three times to the right before starting; they just become part of the everyday backdrop of your life. However, for someone buying a home in Tulsa, Broken Arrow or considering real estate in Claremore, these things can become glaring problems. By fixing issues as they arise (rather than waiting until you’re ready to sell your OK home), you not only avoid making major repairs all at once, but you actually get to enjoy the repairs while you live there.
• Know your neighborhood. If you live in one of Tulsa’s family-friendly neighborhoods, chances are things like well-maintained yards, large family rooms, and spacious kitchens will be worth more in the long run. If you live in a Broken Arrow condo, you might find that built-in bookshelves and jacuzzi bathtubs are more appropriate. While you don’t have to tailor every change to your eventual sales audience, you can choose to make the types of changes that will translate into the highest returns.
• Don’t ignore the less visible changes. Almost all of the houses for sale in Tulsa go through cosmetic changes before they hit the market. Fresh paint, new kitchen appliances, and good landscaping are fairly common. Less common are things like a new roof, updated plumbing, or even a newly-installed automatic sprinkler system. However, these things show up in a home inspection evaluation, and when you put your trust in a OK real estate agent like Debbie Solano, these types of changes will always get the focus and attention they deserve.

The most important thing you can do to your Tulsa home is enjoy the time you’re going to spend there. However, by keeping its eventual sale at the back of your mind, you’ll be able to get the most out of your life – and your investment.

In the Tulsa, Broken Arrow, Claremore Oklahoma real estate market, buying a home with the intent to fix it up is one of the best investments you can make. There’s no better way to take control over your home ownership than to customize the design, floorplan, and landscaping of everything from a single story rancher to a charming Victorian – especially if you’re looking to use the current Oklahoma real estate economic climate as a way to get the home of your dreams without breaking the bank.

However, as any responsible real estate agent will tell you, buying a fixer-upper can be a big challenge. Excessive or hidden damage in a home can be both dangerous and costly. Before you make the plunge, make sure you follow a few important fixer-upper guidelines.

1. Always get an inspection. Nothing will give you a better idea of what kind of repairs you’ll come across than a thorough home inspection from a trusted source. Don’t take on more damage than you, your contractor, and your budget can handle.

2. Pay attention to the layout and structural foundation of the house. If you’ve always dreamed of a large kitchen, make sure your potential new home can be adapted in terms of wiring, plumbing, and layout. Sometimes, the skeletal structure of a house prevents certain types of cosmetic changes.

3. Location matters. It doesn’t matter if you’re looking for a single family house in Tulsa or a condo in Broken Arrow; a home’s value is only as high as the neighborhood in which it’s located. A rundown building in a nice neighborhood has the greatest potential to bring an enormous resale price.

4. Know the difference between “big fixes” and “small fixes.” Things like drywall, painting, floor refinishing, landscaping, and hardware are easy to do yourself. Things like plumbing, electrical work, windows, and roofs can be more expensive and difficult. Stick to changes you can make for certain based on your skill level and budget.

When buying a home in Tulsa or looking at Broken Arrow real estate options, a fixer-upper can be one of the best ways to get the home of your dreams for a low overall cost. Just make sure you enter into the transaction with your eyes open, with flexibility in mind, and with Debbie Solano at your side.

Most real estate agents will tell you that the best time to sell a home in the Tulsa, Broken Arrow, Claremore Oklahoma areas is during the late spring and early summer months. When the weather turns warm, the vibrant growing season commences, and children can be seen playing happily in the yard, potential homebuyers really begin to connect with a house – even before they set foot across the threshold.

In real estate lingo, this is known as curb appeal.

Most potential homebuyers make a decision about a house within the first 30 seconds. For example, simply driving by a well-kept single family home for sale in the Tulsa, Broken Arrow, Claremore Oklahoma areas is often enough to cause people to pull over and make an immediate call to their realtor. That’s because an inviting exterior promises an inviting interior.

To get the kind of curb appeal that really gets noticed, you have to be able to detach yourself from your home. You may have lived there for months or years, and have probably learned to overlook the overgrown shrubbery next to the sidewalk or the mailbox in need of repair. However, these are the first things potential homebuyers will see. You have to view your home as objectively as possible in order to begin making the necessary repairs to get noticed.

Look out for:

• Visible mold or mildew on the house, roof, or sidewalks
• Outdated exteriors
• Yard clutter
• Dirty gutters, siding, or windows
• Chipped paint
• How your home appears at dusk or even at night
• Overgrowth in the yard or on the sidewalks
• Dead plants or leaf piles
• Overly personalized doormats

Of course, if you’re really motivated to sell your home in the Tulsa, Broken Arrow, Claremore Oklahoma areas, you may also want to consider upgrading your landscaping. Like staging your home or making repairs, restorative landscaping can give your house just enough polish to entice a higher level of buyers. In fact, in a recent study, it was determined that good landscaping can actually add 6 to 11 percent to your home’s sale price.

We all know that selling a home can be hard work. Increase your chances of success by making sure your potential buyers are impressed before they even get out of the car.

News: Funds for the Rural Development Program Are Once Again Available

What does this mean?  100% financing with no PMI!!!

Under the American Recovery and Reinvestment Act of 2009, approximately $10 billion in purchase funds are now available for the Rural Development Single Family Housing Guaranteed Loan Program (SFHGLP).  There are no funds available for refinance loans at this time; however, they do expect to have them available within several weeks.

Beginning Friday, March 27, 2009, the Rural Development program (971) will be re-activated for purchases only.  Refinance transactions will remain unavailable until further notice.

Tulsa County Real Real Estate Financing, Wagoner County Real Estate Financing, Creek County Real Estate Financing, Okfuskee County Real Estate Financing, Okmulgee County Real Estate Financing, Rogers County Real Estate Financing, Craig County Real Estate Financing, Choctaw County Real Estate Financing, Washington County Real Estate Financing, Osage County Real Estate Financing, Pawnee County Real Estate Financing, Cherokee County Real Estate Financing, Muskogee County Real Estate Financing, Nowata County Real Estate Financing

USDA was previously providing Conditional Commitments “subject to receipt of congressionally appropriated funds”. This is not an acceptable Commitment and loans cannot close with this stipulation.

Who owns the chocolate cake under your pretty flower made of butter frosting? Who exactly owns the mineral rights under your house?

What many people fail to realize is that royalty owners tend to be regular folks. In fact, many people who may be descendents of royalty owners may not realize that they have rights to royalties. It is a sad situation and I think the problem will loom larger as royalty holders realize that their rights are being challenged.

Who are the royalty holders? In many cases they are descendants of early landowners who worked hard to win over the land. There are a lot of little old ladies in retirement homes in Texas and Oklahoma who receive royalty checks and depend on them for their livelihood — even though they may be largely ignorant of where exactly that money originates.

Your next-door neighbor in Broken Arrow or Bixby may own the rights to minerals in Pawnee County or Osage County.  Your friend in midtown Tulsa may get income from a trust that owns the royalties under sections of Creek County or Tulsa County.  People throughout Oklahoma depend on the royalty income they receive through the legally binding contracts that are recorded in our county court houses.

If you want to know who the royalty owners are, then go down to the county clerk’s office and read the documents that pertain to your property.  You don’t have to read the abstract.  Documents may be missing from the abstract anyway — that’s why people get title insurance.  If you have questions, consult a qualified attorney.

Don’t just wonder — find out.  You have every right to know who owns the cake under your pretty icing house.

Real estate is like a cake. When you own the entire cake, you own the land in fee simple, essentially from the top of the ground to the center of the earth. When you own land in fee simple, you own the icing and the cake itself.

When someone sells the land and retains the mineral rights, then it is said that they sever the mineral rights. The surface owner effectively owns just the icing on the cake, which effectively means everything “from the grass roots up.” The mineral owner owns everything from “the grass roots” to the center of the earth.

The pretty houses on the surface of land are like flowers on a cake. Since it is not nice to mess up pretty flowers, in Oklahoma a new well cannot be spotted within 200 feet of a house. However, you can build a house close to existing wells.

Despite the fact that surface owners effectively own only the top few feet of land, they really own quite a ways down beyond the “grass roots.” This probably amounts to tens of feet, but not hundreds of feet down.

In Osage County, the landowners own just the surface. The Osage Nation owns all the minerals.

Generally in Oklahoma it is the surface owners who own the coal on the surface of the land and it is usually the surface owners who make agreements to have their properties strip mined for coal. However, the deeper coal zones can contain coal bed methane, a fertile source of natural gas; therefore the mineral owners will own those coal beds.

When you buy a house in Oklahoma, find out whether or not you are purchasing it in fee simple. If you are purchasing a property with mineral rights, your next question is, “What percentage of mineral rights are included?”

If you do not own at least 50% of the mineral rights, then you cannot control what happens to your land. It is incumbant upon all real estate sales representatives to explain this concept to anyone moving into Oklahoma from out of state.

This concept is hugely important and is understood by most native Oklahomans in rural areas. The emerging legal question is whether or not cities have the right to deprive land owners of their right to the minerals they own.

Homeowners should be encouraged to attempt to acquire the mineral rights to the land under them, because new technologies are making it much more cost effective to produce oil where heretofore it was not profitable.

In short, try to get more than 50% of the mineral rights if you cannot purchase your property in fee simple (otherwise you could be “pooled” — which is another topic for another blog).

This is a reblog of a blog I posted on Active Rain back in August 2008.

http://TulsaRealEstateWeb.com

http://NortheastOklahomaRealEstate.com

http://BixbyOklahomaRealEstate.com

http://dsolano.homesandland.com

Many of you who have been faithfully reading my blogs have noticed that I occasionally get up on a soap box and banter about a big chocolate cake known as real estate. While most realtors like to stage the pretty flowers that decorate the icing on top of the cake, I remain fascinated by the interface between the various layers of the cake and the icing

It just amazes me how ignorant real estate professionals are about this important topic: the relationship between landowners and the owners of the mineral rights beneath the land. It is not rocket science. It’s an interesting conglomeration of law, history, politics, geology, and genealogy all rolled into one bundle of rights that is much like detective work in unraveling. Unfortunately there are real economic and emotional consequences when these rights are misunderstood; tempers flare when it comes to the exercise of the more dominant rights of the mineral holders over those of the surface owners.

The State of New Mexico is considering a solution to the problem.

A bill is currently being proposed in the New Mexico legislature in an effort to alleviate some of the frustration experienced by surface owners: “Applying to the split estate (severed minerals), New Mexico HB 219 would require a person desiring to buy an oil and gas lease from the severed mineral owner to first give the surface owner notice of the intent to buy a lease from the mineral owner, a mineral ownership report and allow the surface owner 30 days in which to attempt to buy the minerals or buy a lease from the mineral owner.” (Source: “Politics in Action” / by Marshall Lochausen, CPL and President of the American Association of Professional Landmen, Landman 2, March 2009, p.2.)

Would such a solution fly in Oklahoma? Probably not. Why not? Nice idea… Good thinking… Well intentioned… in the spirit of peace and harmony… but impractical from a business standpoint.

Let’s say an oil company has hired geo-physicists, geologists, accountants, lawyers, and engineers to determine that there is a “structure” in a particular geographic area that may be able to produce a bit of oil. They pour thousands of dollars into examining the area and determine that there is interest in a particular oil-producing zone (think of the sweet raspberry filling in our metaphorical chocolate cake). While a homeowner might hire an abstract company to create or update a mineral abstract, an oil company would hire a landman to research the court records and possibly hire an oil & gas title attorney to identify the owners of the minerals and possible leaseholders. Then, especially in the case of a wildcat well or an unexplored area, the hard-working landman spends hours, days, and months tracking down heirs who may not even know they own the minerals. This could amount to thousands of dollars. Do you think the company who paid this money will want to just hand the mineral ownership report to a property owner who had the right all along to purchase the mineral rights themselves but never bothered to spend the money to do it? I don’t think so.

So, here is my advice to prospective landowners. Track down the mineral owners during the period of due diligence when you are considering the purchase of a property. If it takes longer than the traditional ten days, then write into your contract a sufficient number of days to determine whether or not the minerals can be reunited to the surface estate.

If you already own the surface of the chocolate cake and there is no one currently leasing the land under you, then by all means do your research now. Find out who owns the chocolate cake under your house. Identify the mineral owners, buy the rights back, and then lease them out yourself during the next oil boom.

So if you live in Creek County, Okmulgee County, Rogers County, Pawnee County, Okfuskee County, Wagoner County, Nowata County, Washington County, or the outlying parts of Tulsa County, then you will want to think about reuniting the mineral estate to the surface estate, especially if your land is not currently under production.

Of course, if you live in Osage County, then it will not be possible to reunite the split estate, since all the mineral rights belong to the Osage Nation.

If you live in the City of Tulsa, then the problem is a moot point, since the drilling and production of oil is not legal within the city limits (even though there is a lot of oil under the city of Tulsa).

Staging your home is a great way to prepare your home to sale and to make it look alluring to buyers in the Tulsa, Broken Arrow, Claremore Oklahoma areas. Staging your home has become popular during the last decade. Read this article to find out some great ideas on how to get your home ready for potential buyers and get it sold sooner, rather than later.

Within the first minute, people decide if they could live in your home. The problem is that there are so many homes on the market right now, that if yours doesn’t catch their eye immediately, then they have other choices. The struggling housing market is forcing people to take more drastic measures to sell their homes. Many homeowners say they need all the help they can get. With the market not being so good, there are ways you can make your house stand out. Staging your home is the way to make your house stand out in the Tulsa, Broken Arrow, Claremore Oklahoma areas.

The idea of home staging is to highlight your home’s best attributes and positively affect potential buyers. Staging your home isn’t about your own tastes. It is about making the home appealing to the general population. Whether you go at it alone or use a stager, you need to have the attitude that your home is no longer your home.

Following are some tips to consider:

• Take down family pictures. Potential buyers need to picture themselves in your home, not you!
• Staging your rooms to show off their true potential. Clear out clutter or other personal items that will distract buyers.
• Painting the walls yourself is the cheapest upgrading option you have. This will really attract buyers. Try a neutral tone.

Staging your home is a great option to make your home stand out in the Tulsa, Broken Arrow, Claremore Oklahoma areas. Let myself, Debbie Solano, your agent offer you advice about how to make your house more attractive to buyers.

The content of this blog is taken directly from the website of the National Association of Homebuilders (NAHB)

“Frequently Asked Questions About the Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

1. Who is eligible to claim the tax credit?
2. What is the definition of a first-time home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. How do I claim the tax credit? Do I need to complete a form or application?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

1. Who is eligible to claim the tax credit?
   First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
2. What is the definition of a first-time home buyer?
   The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. What is “modified adjusted gross income”?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
   The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
9. How do I claim the tax credit? Do I need to complete a form or application?
   Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
10. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
11. I read that the tax credit is “refundable.” What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    No. You can claim only one.
16. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
17. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

18. I bought a home in 2008. Do I qualify for this credit?
    No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose (”elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.”

Source:  National Association of Homebuilders HAHB website

Tulsa Real Estate Values — Credit Scores Determine How Much House You Can Purchase — Why Its Time to Buy a Home in Tulsa, Bixby, Broken Arrow, or Jenks

Across the country the banks are slashing consumers’ credit scores; scores are falling most rapidly in parts of the country where there have been the most housing problems and the highest percentages of credit card debt. If you have not use your credit card you may discover that the bank has closed your inactive account. You may be informed that your credit limit has decreased.

Why does this matter? With a lower credit score, it means that the same family with the same income, the same savings, and the same spending patterns may have less buying power as time passes because the banks are lowering the FICO scores. So if you are thinking of purchasing a home, now is a better time to buy than later will be.

Higher purchasing power coupled with high inventory and our current buyers’ market mean that now is the time to purchase a house.

Why Credit Scores Matter

FICO credit scores are based on a combination of factors which include the payment history and amount owed by consumers. The FICO score can range from 300 at the low end to 850 at the high end. 300 is the worst score and 850 is the best score.

The higher your score, the better your loan rate and the lower your monthly payment.

Let’s assume, for example, that you are purchasing a home in Bixby, Broken Arrow, Jenks, Glenpool, Union, or Tulsa. The real estate listings in Tulsa are full of homes with three-car garages. So let’s say you decide that now is the time to move up to the home of your dreams. You decide to borrow $300,00 for 30 years.

With a FICO score of 760 to 850 and an APR of 4.734%, your monthly payment would be $1,562. 

With a FICO score of 700 to 759 and an APR of 4.956%, your monthly payment would be $1,602.

With a FICO score of 680 to 699 and an APR of 5.133%, your monthly payment would be $1,635.

With a FICO score of 660 to 679 and an APR of 5.347%, your monthly payment would be $1,675.

With a FICO score of 640 to 659 and an APR of 5.777%, your monthly payment would be $1,756.

With a FICO score of 620 to 639 and an APR of 6.323%, your monthly payment would be $1,861.

These source for these figures came from: Informa Research Services; Fair Isaac’s myfico.com. Of course, these payment amounts will vary from day to day and from bank to bank.

That same exact house will be more expensive for some families because they will be paying more each month on the principal and interest on their loan because they had a poorer credit score. The higher your credit score, the lower will be your monthly payment because you will be able to purchase that house at a lower interest rate.

This is why when people ask me what their monthly payments will be on a house I automatically give them the names and numbers of tried and true mortgage lenders in the Tulsa area. By referring my clients to mortgage bankers, I can then be sure that my buyers are qualified before I show them houses.  Plus, I can concentrate on my job, finding you the perfect home, negotiating a good deal, and guiding you through a smooth transaction.

How to Improve your Credit Score

There are at least eight ways you can improve your credit score:

1. Get current on your loan payments if you’ve been late in the past.
2. Pay down as much debt as possible each month.
3. Establish credit slowly; do not open a lot of new accounts at any one time.
4. Use less than one-third of the credit line available on your credit cards.
5. Do not cancel your credit card accounts; but use them so they stay active.
6. Use the credit score calculator at Credit.com and CreditKarma.com to see how account closures or limit reductions will hurt your score, and how other actions will help it.
7. Dispute mistakes on your credit reports. 
8. Get a a free credit report annually from each of the three credit bureaus at www.annualcreditreport.com.

(Source:  Fair Isaac, USA TODAY research).