Real Estate Information

Join us for two open houses on July 11th.

Come tour these two wonderful homes.

For most homebuyers, the deadline a receiving tax credits for buying a home passed in April. The Home Buyer Tax Credit incentive offered a credit of $8,000 to first-time home buyers, along with a “long-time resident” credit of up to $6,500 to repeat buyers. The deadline for the at large credit was April 30^th to have a binding contract and June 30, 2010 to close on the home. The closing date deadline has now been extended to September 30^th, 2010.

Military personnel have an additional year to get a contract and close on a new home through a special extension for the armed forces and other government employees deployed out the United States.

Qualified service members who are ordered on a period of official extended duty have until April 30^th, 2011 to get a binding contract on a home in place and until June 30^th, 2011 to close. Additionally, a service member who must return to the U.S. for medical reasons before completing his or her tour outside the U.S. may also qualify for the one-year extension.

Eligible parties specifically include members of the uniformed services, Foreign Services or employees of the intelligence community who were on qualified extended duty for at least 90 days during the period beginning after Dec. 31, 2008 and ending before May 1, 2010.

This bill giving the extension to military families can also assist financially strapped military personnel by making mortgage payments tax deductible.

As with any government credit or incentive, let tax professionals, including resources at the Internal Revenue Service, guide you through the qualifying and deduction requirements.

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Independence day is just around the corner! The long weekend is perfect for spending time with family and friends, celebrating our independence and of course fireworks! The Chapel Hill, Carrboro and Durham area offers many fun July 4h events for all to enjoy. Have a safe and happy July 4th!

Festival for the Eno

Location:  West Point on the Eno; Durham City Park
5101 North Roxboro Road, Durham, NC  27704
Dates:  July 3, 4 & 5
Times:  10:00 a.m. - 6:00 p.m. each day
Over 90 performers on 4 stages.A variety of activities, all with an environmental or cultural connection to the river and kid-friendly activities all day; face painting; craft demonstrations; historic buildings; rain tent
Cost:  Kids 12 and under & Seniors 65 and over are admitted free
          Early bird passes:  $13 per person (single day); $30 per person (3-day pass)
          At the gate:  $15 per person (single day); $35 per person (3-day pass)
Parking:  Free parking at Durham County Stadium on Duke Street. For more information email, festival@enoriver.org.

Old Fashioned July 4th

Location:  Horace Williams House Grounds
610 East Rosemary Street, Chapel Hill, NC  27514
Time:  1:00 p.m. - 3:00 p.m.
Free ice cream and picnicking.  Free concert by the Village Band. Call (919) 942-7818 for more information.

Carrboro July 4th Celebration

9:30 a.m. - 11:00 a.m.:  Kick-off at Weaver Street Market Lawn
Includes Patriotic Tattoo booth, hat making & decorating, bike & wagon decorating, patriotic costume contest)
 
11:00 a.m.:  Parade from Weaver Street Market to Town Hall
 
Town Hall Activities:
10:30 a.m. - 3:00 p.m.:  Main Stage at Carrboro Town Hall
10:30 a.m.:  The Village Band
11:15 a.m.:  Cane Creek Cloggers
11:30 a.m. - 12:30 p.m.:  Children's Stage -- The Whistling Woman
11:30 a.m. - 3:00 p.m.:  Kids Fun Zone -- face painting & magic
12:00 p.m.:  Sea Cruz)
12:30 p.m. - 1:00 p.m.:  Limbo & sack races
12:45 p.m. - 1:30 p.m.:  Captin Jim's Magic Show
1:00 p.m.:  Toddler Square -- sandboxes, water tables, scrap exchange, etc.
1:30 p.m. -- Senior Bingo
1:30 p.m. - 2:30 p.m.:  Pie Eating Contest
2:15 p.m.:  The Harvey Dalton Arnold Blues Band
2:40 p.m.:  Water balloon toss
All day:  Bounce house, rock climbing, face painting, fortune telling, welcome wall, games, roaming magician, juggle boy, food court)
 

Independence Day Celebration

Location:  Kenan Memorial Stadium, UNC at Chapel Hill
Schedule:
7:00 p.m. -- Gates open; live entertainment, interactive children's activities, juggler and magician shows begin
8:00 p.m. -- Big Sam Band
9:30 p.m. -- Fireworks

Cost:  Free. *Also receive a free glow necklace from Grace Church (while supplies last)
Parking:  Enter through Gate 2 at Kenan Stadium's North Side.  Public parking available in the parking deck off Manning Drive and in Rams Head Parking Deck off Ridge Road.

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Termite inspections are a necessary inspection required by many states in the home sale process. If a home has termites, they can create significant damage and even destroy a home if left untreated.

In fact, if you notice evidence of termites, there’s a good chance the infestation is already quite advanced.

If you have any worries at all about termites in home, the best course of action is to locate a pest control or termite inspection so that you are aware of the full extent of the problem. Of course, pest inspections are an important part of the overall inspection process, so make sure you hire an expert in the field:

1. Check out online or yellow page listings under Pest Control for a licensed, bonded inspector. Your real estate agent can also be helpful in location a company for you.
2. Request estimates for the inspection cost and compare rates.
3. Make sure that you get a copy of the inspection report and course of action needed before signing any contract papers.

Buying or selling a home usually requires a clear pest control report. The inspector looks for termite infestation as well as other pest infestation, plumbing leaks, obvious roof leaks, dry rot and water damage. Make sure that all areas of the home are accessible for the inspector. Try to stick with companies that do inspection and treatment only – and leave any wood repair to carpenters or contractors.

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Homeowners are increasingly interested in electronics for the home. Some find interest in the gadgetry and some enjoy home electronics for the lifestyle and enjoyment at home. However, many find the range and complexity of products on the market today overwhelming, but the Custom Electronic Design and Installation Association (CEDIA) is a great resource.

CEDIA consists of knowledgeable and talented professionals who can help you navigate through the maze of consumer electronics. They have developed the 10 Smart Consumer Electronic Tips for the Home, below is their list:

1. Wire for everything now...even wireless – If you are building or remodeling a home, start with a plan for future wiring needs. Wire is necessary to support wireless applications.
2. Insist on integrated systems – Make sure the electronic equipment you are buying can be hooked up together and operated with one, easy to use control system. Systems that communicate simplify your life and offer peace of mind by "watching" over your home.
3. Integrate lighting and heating control – Going green meets convenience. Get the most out of your system with the least amount of energy consumption. System integration provides automatic energy-efficient adjustments saving you time and money.
4. Think with your wallet, but lead with your head – Quality and long-term dependability are the most cost effective attributes that you can build into a home.
5. Buy an experience, not a box – Find an electronic systems contractor that allows you to test drive the entire system or at least experience the thrill of a high performance system. Few people have the time to research and evaluate all the hardware choices. It's smarter to focus on the end result and make your choices based upon overall performance and value.
6. Simplify your controls – Easy to use, all-in-one remote controls are available for any system. You can even have them custom programmed so they make perfect sense to you. New technologies offer control from other devices and even through Internet browsers anywhere in the world.
7. Increase your expectations – Your home electronics system is a big investment and you deserve to be satisfied with it.
8. Think "green" – By utilizing green practices, you can save money by having a more energy efficient system and help save the planet. Ask a professional about how you can "go green" in your home.
9. Ensure the experts work together for you – Maximize your home's electronic systems capabilities by having your architect, builder or interior designer collaborate and partner with an electronic systems contractor from the beginning of the planning process.
10. Consult a professional – Today's integrated electronic systems grow, evolve and change over time, constantly adding entertainment, comfort and security features. Select an electronic systems contractor you can trust and who will support your electronic integration needs for years. Having a long-term relationship with one professional will maximize the reliability and enjoyment of your home's electronic systems.

If you found this helpful and would like to know more, find a CEDIA Certified Professional near you at www.cedia.org.

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Homebuyers who have been monitoring their credit score, watching their debt-to-income ratio and avoiding large purchases may still face another hurdle if appling for financing with Fannie Mae.

Unfortunately Fannie Mae has instituted more requirements, the LQI – Loan Quality Initiative. Changes in lending will take effect June 1 as a part of the government’s effort to monitor and regulate underwriting and fraud in the mortgage business. Now lenders can order an additional, last minute full credit screen before your loan actually closes. Any debt that you have incurred in preparing to move into your new house – from furniture to appliances or landscaping, could place your closing on hold.

If the debt is significant enough to affect your debt-to-income ratio, your deal could actually fall through. New rules under the LQI will require lenders to pull two credit reports for each mortgage and to perform additional verifications of borrower occupancy, Social Security information and Individual Taxpayer Identification Numbers, among other changes.

So, if you buy new furniture for your home on retail credit, the lender will now be contacting the merchant to verify the credit terms and amount. The best course of action is to wait on any purchases that require credit until after you have officially closed on your mortgage.

For more information on the guidelines and what your lenders are required to do, check out Fannie Mae’s LQI page.

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The Global Elementary Model United Nations was held on May 14 and 15th, 2010 in Dallas Texas.  This event is held for elementary and middle school students who take on the different roles of delegates to the United Nations.  This event has been held since 1990 it provides these young students to broaden their educational experiences.  They have the opportunity to learn about other countries people and their cultures along with the utility to gain an understanding about how these countries interact.  This in itself provides the opportunity for many awesome achievements.
 
There is a lot of preparation that students do before the conference.  Students who are participating from each school are assigned a particular country.  Throughout the school year, they are involved in preparing themselves for the United Nations event.  They have to do research to begin to understand all of the facets of their assigned country.  The purpose of the project is to give the students a better understanding about how the UN really works and the information is relevant to today's global environment.  Once they arrived at the conference, they perform the various roles of delegates at the UN.  Relevant topics are debated and discussed.  This model UN even includes the entire delegation voting on numerous referendums.  For individuals or schools to score points, they must convince their fellow participants to vote for their particular agenda.

Some of the awesome achievements include three students from the Duke School delegation.  Noah Mlyn, Ethan Fox and Joseph McGuire , each one the best delegate and peace prize awards.  These are prestigious awards and was based on their ability to get their resolutions passed.  The additional members of this team include Zack Balleisen, Aliza Gersing, Caroline Manson, Claudia Sollee, Issac Lutz, Jose Lopez, Joshua McClain, Zain Clapacs, Eli Rice, Nancy Sullivan, Kevin Quinn, Miranda Turner and Nadia Parashkeovova.  Congratulations go out to all of the delegates who participated and got a chance to learn a little bit more about global issues of today.

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If you have found a home you want to purchase and are applying for a mortgage, your lender will look at what is called a debt-to-income ratio. If you are not familiar with this, below you can find more information as well as why is it important to you and how it effects your financing.

Debt-to-income ratio is simply a comparison of the money you earn to the money you owe. It includes credit card debt, existing mortgages, auto loans, and any other personal debt.

Your mortgage lender will look at your Debt-To-Income (DTI) to evaluate your ability to afford your new mortgage. You should have a good idea of what your DTI ratio is before you approach a lender or consider buying a new home.

You ultimately want to achieve a low DTI ratio. A high number means that you have less disposable income and less ability to maintain the home once you purchase it. With foreclosures at an all time high, lenders are not willing to assume any additional risk in lending.

Most lenders seek DTI ratios in the 20-36% range or lower, with no more than 28% of debt dedicated to the mortgage itself. While some lenders will consider higher ratios, DTIs in the upper 30% range are considered high risk.

There are several different calculators available online to help you determine your ratio, and you can always check with your financial institution for guidance on determining your DTI ratio.

Here’s a simple formula:

1. Add all your monthly payments (mortgage or rent, car, credit cards, any other debt payments)
2. Add your gross income (before taxes), bonuses, alimony, or any other outside income and divide by 12
3. Then divide the total number in (1) by the final number in (2)
4. The result is your DTI ratio

Whether you are ready to buy, considering a home purchase, or are just interested in your financial health, it’s a good idea to know your DTI and understand the steps to lower your ratio and become as close to debt-free as you can.

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Warmer weather has arrived and many homeowners are starting to think about making some home repairs or improvements. However with the current economy, these projects may not be in the budget. The good news is there an option, the FHA 203(k) program loan. This program allows homeowners to secure a loan for home improvements, provided the property has adequate value to secure the loan.

In order to qualify for an FHA home improvement loan, the property must be a residental home, one-to-four-unit dwelling that is older than one year. Condominiums can also qualify, but only for interior improvements.

Many additional costs can be financed into the 203(k) loan, including permits, inspection costs, work write-ups, and supplemental fees. Other expenses that can be rolled into the loan include the escrow for contingency costs and up to six months worth of the proposed mortgage payment.

It is important to know that these FHA home improvement loans cannot be used for anything other than home improvement or repairs. The loan recipient cannot use the funds for other expenses like debt or other purchases. Specific improvement of the property such as roof repair or other major repairs/improvements are the only purchases that may be used with the funds.

FHA loans are typically easy to apply and qualify for.  The FHA guidelines for loan qualification are very flexible and typically require less than 5% down payment. This allows homeowners quick and easy access to home improvement funds at some of the lowest interest rates available.

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