Cashing in on Rising Gold

Gold rose again today to around $1,100 per ounce. However, rising gold means a weakening dollar. This reminds me of the gold party I attended this summer.

If you want to make some extra cash and strike while gold is hot, do be cautious. The TV version of Cash 4 Gold has been noted as a scam by many people.

You bring your old gold. No matter what the condition you'll get cash. As long as it really gold. Like the Tupperware parties the host gets a cut of the booty. Usually they'll invite some gold expert to analyze the pieces and write checks. The gold expert then takes your gold home, melts it into a brick and cashes it in. Add some food and drink to the mix and everybody goes home happy.

Many jewelry stores will also exchange your gold for cash. Again, this is a much safer, faster and more convenient way to go.

Coors Credit Union Hires Senior Mortgage Experts

Colorado home sales rose 9.4% in September, overall sales increased 24% since hitting bottom last year. Meanwhile the government not only extended the First Time Homebuyer's Tax Credit, but added in a chance for current home owners to get credit for a home purchase. Combine these actions with crackdowns on lending then if all goes as hoped we'll moving toward a stronger economy.

Coors Credit Union is on top of the game. They've just hired two well-seasoned Senior Mortgage Consultants. These additions will not only help with an increased demand in mortgage loans, but their experience brings a nice depth of knowledge to the Credit Union.

Leslie Larson is working out of the Coors Credit Union Golden office.
Leslie has been working in the mortgage business for the last 24 years where she has been an originator, processor, and closer. Leslie is great because she really works closely with clients and develop relationships with all parties involved to ensure that your mortgage experience goes smoothly. She also knows a lot about FHA, VA and Conventional financing. She is good at helping you choose the program that works best for your situation.

Ron LoSasso works out of the Arvada branch. His real estate career began at Chicago Title & Trust where he worked in both commercial and residential real estate. Eventually Ron opened his own real estate lending firm in Wisconsin. Then later when he moved to Colorado he started First Western Mortgage Company in Louisville. Ron is extremely active in local business and is the current president of the Louisville Chamber of Commerce.

Both Leslie and Ron have a strong knowledge of Jefferson County real estate.

How to Choose a Mortgage Lender

The 2008 crumbling of the economy taught us all a valuable lesson. I’m not surprised to hear a little skepticism out there regarding mortgages. The good news is that many lenders learned what happens when you lend too freely or get too creative. The bad news is that there will always be someone somewhere who tries to manipulate in order to earn a bit more money.

So, what do you do if you want to buy, but are feeling hesitant? Choose a reputable lender, right? Well, the last year showed us that it’s easier said than done. You can’t just stick with a big name lender and be sure you are getting responsible service. Of course this is a credit union blog, so naturally I’m going to recommend that you go to your credit union for a mortgage. But let me tell you really why you should go to your credit union.

#1 Trust: All the web articles always suggest that you go to someone you trust for a mortgage loan. Look beyond a mortgage loan. Credit unions are known for less fees. It’s not going to be any different with your mortgage loan.

#2 Rates: I’ve read several articles that warn not to choose a lender who “won’t quote you a rate over the phone”. That’s not reliable information. Mortgage rates can fluctuate greatly from one day to the next. A lender who commits to rate over the phone hasn’t given you or their financial institution good service. Instead, you’ll want to ask how their rates compare to other lender’s in the same market. And remember, you need to look at the overall loan, not just today’s rate.

#3 Accessibility: I probably should have rated this as #1. Prompt return of phone calls and commitments to answering questions is important. On the flip side, a lender who is always available could be a bad sign as well. Shouldn’t they be busy sometime? Large banks can get overbooked. They may ask you to call back next week or say they call you and then don’t. Credit Unions are smaller and more personal. This is important when you are trying to close on a home purchase by a specific date.

#4 Resources and Connections: Part of the lenders job is to ensure that your purchase moves smoothly forward and there are a lot of people in the way of making that happen. Contractors, inspectors, title offices can all need to be reminded of the importance of your sale—your lender acts like a director. The staff at Coors Credit Union is well connected with all of the key players.

#5 Knowledge & Credentials: It should go without saying but be sure that your lender is licensed and registered. You’ll also want to know that your lender stays on top of the industry changes and developments. Your lender should also be aware of all lending programs: not only those offered by the lending institution but of others. In this way they will be able to help you choose the best program for your situation.

Questions to ask a lender:

§ What are your loan programs? Do you offer VA loans (for example)?

§ Can I see a Good Faith Estimate right away?

§ Could you estimate closing costs for my loan?

§ Can you estimate and explain your fees?

§ Over the last year what percentage of loans did not close on time?

§ Will you get approval for my loan locally?

§ Do you sell your loans?

It’s important that you develop a comfortable two-way relationship with the lender. Buying a home is a big deal, be sure you trust your mortgage lender.

Who Qualifies as a First-Time Home Buyer

If you weren't in a position to buy a house by the original First-Time Home Buyers Tax Credit deadline of December 31, 2009 then you might be happy with the six-month extension announcement. Now if you close on a home purchase before June 30, 2010 you could be eligible for up to $8,000 tax-credit.

As a reminder these are the points you need to know about the "First-Time Buyer" aspect of the program. For information about the newly added "Trade-Up" portion for repeat buyers see yesterday's post. (BTW: you don't have to buy a more expensive home to qualify as a trade-up buyer.)

First Time Buyers (defined): The government’s definition of a first time buyer is anyone who hasn't owned a principal residence for three years before buying a house. So if this is your very first purchase, you qualify. If you previously owned a home, but for whatever reason haven’t owned a home in three years, you qualify. If you owned a home, but it was not your principal residence, you qualify.

up to $8,000: The tax credit is equal to 10% of the home purchase price or a maximum of $8,000. So if you purchase a home for $70,000 your credit is $7,000. If you purchase a home for $160,000 your credit is $8,000.

Income limits: The tax credit is limited to single buyers with a modified adjusted gross income of $75,000 or less and $150,000 for married couples. If you do not meet these limitations consult your tax advisor for possible reduced credit eligibility.

No Repayment: Previous First Time Buyer tax credits included a repayment clause. The credit was treated as a loan and had to be repaid to the government via 15 year installment payments—not so with the new tax credit.

Recapture: If you sell the home during the first three years of ownership you will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce. Consult your tax advisor.)

Lenders have been hesitant to sign new loans. President Obama is hoping that the First Time Home Buyers Tax Credit will change that. Meanwhile Coors Credit Union is ready and willing to help you purchase a home with an affordable mortgage. Contact us today to and get pre-approved in time to take advantage of this buyer’s market.

More Buyers Qualify for the Home Buyer's Tax Credit

On Friday President Obama signed the extension to the First Time Home Buyer's Tax Credit. The program was set to expire this December 1st, but was given a six-month reprieve and will now end June 30, 2010.

To receive the $8,000 contract buyers must sign a contract by April 30, 2010 and close on the home by June 30, 2010. All of the requirements from the bill's first round still apply, however, now even more homeowners will be eligible. The bill now includes buyers who want to trade up.

The tax-credit for current home owners who sell their home to buy a new one is up to $6,500. This portion of the tax-credit has been deceptively referred to as the "trade up" credit, but actually you don't have to purchase a bigger or more expensive home to qualify.

Who qualifies?
You must have owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. The bill states that the law tests home ownership for both home buyer and his/her spouse.

How much is the credit?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

Is any home eligible?
Purchases of homes priced above $800,000 are not eligible for the tax credit.

As for first-time buyers there are income limit restrictions:
The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. 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 $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

New Construction counts too. If you are having a home built both the first-time or the repeat, can apply for the tax-credit as long as the closing date is by the June 30, 2010 deadline.

For more details regarding the Home Buyers' Tax Credit for both first-time buyers and repeat buyers go to Home Buyer's Tax Credits.

Denver Arts Week Kicks Off Tonight

The third annual Denver Arts Week kicks offers a smorgasbord of cultural treats for everyone. The week kicks off in full gear this weekend with First Friday, Saturday Night at the Museums and Sunday on Stage.

If you have yet to venture to Denver's artistic neighborhoods on First Friday, set aside your prior excuses and get out there for this extra special First Friday. You'll be impressed by the festive atmosphere and quality art.

Happily Saturday Night at the Museums doesn't involve suffering through any of those ridiculous movies. It is instead the Mile High City's version of the popular La Nuit des Musées event in Paris, Night at the Museums offers a chance to discover eleven of Denver's greatest cultural attractions, all in one night, all for FREE. Complimentary shuttles run from 5 p.m. to 10 p.m. and originate from Cherry Creek Shopping Center and Denver Art Museum.

Then on Sunday discover our fair city's theatre offerings with Sunday on Stage. Denver theatres open up to give behind the scenes views at how productions come together, and actors' and dancers' crafts workshops.

More events take place throughout the week and to sweeten the deal hotels and restaurants are offering deep discounts.

ING Direct For Sale

The first bank closures of this recession sent people flurrying scared that their money was gone. But by now we've become accustomed to bank closures and understand that our money is safe. Then last week a different bank closure announcement came from Internet-based ING.

Parent company ING Group located in the Netherlands received bailout money of 10 billion euros and was worried both about a crackdown by European Union regulators and pressure to pay back the tax-payer funds. In response ING agreed to sell off ING Direct in Wilmington, Delaware by 2013.

There has been a flurry of activity from customers wondering how the sale will affect them on Twitter. Naturally, ING's response has been "Have no fear, we're still Orange, still as safe as Fort Knox and still paying more interest than your mattress," the bank Tweeted back at 12:15 p.m.

Most likely customer's don't fear that they'll loose their savings, but that they lose out on future earnings and may get stuck with a lesser product. ING Direct was famed for great customer service for customers who basically didn't need service.