Homebuyer ed program offered

Local residents who are looking to buy a house soon will have a chance next week to learn more about the process.

Union State Bank, 1009 S. Clark St., is sponsoring a free homebuyer education program that is scheduled to take place at 6 p.m. Thursday, April 16, at Fort Scott Community College, 2108 S. Horton St.

According to USB Business Development Officer Bryan Holt, the program is designed to educate first-time homebuyers about several aspects of the house purchasing process, including choosing a realtor, finding a house, house inspections, loans, and other topics.

"People sometimes don't understand the loans they are getting," Holt said. "And once they've bought a home, they have to consider things like maintenance and upkeep, and whether or not to get homeowners insurance. It's a good program with a local flavor that makes it a little more personal."

The program is intended to be an information session, Holt said.

Dave Hallmark, a representative of an Olathe-based mortgage company, is scheduled to be the presenter for the program, Holt said.

"Homebuying education is a passion of his (Hallmark)," Holt said.

The program will also feature two local presenters; insurance agent Kale Nelson, and local resident Jim Pitts. Nelson will talk to attendees about homeowners insurance, while Pitts is slated to give a presentation on the topic of getting a house inspected prior to the sale.

Holt added that another benefit of the program is that people who participate will receive a certificate of completion which states that they have learned the information that is necessary for people who are looking to buy a house for the first time. By attending the local program, prospective homebuyers can avoid traveling long distances to participate in similar classes in other cities, Holt said.

Local realtor Phil Hammons said the current state of the national economy has led to a prime time for the purchase of real estate.

"This is an ideal time (to buy a home) because interest rates are low and prices are low," he said. "I've never seen interest rates this low in my 35-year real estate career."

Holt agreed, adding that another incentive for first-time homebuyers is a tax credit that is part of the American Recovery and Reinvestment Act of 2009, a $787 billion spending bill passed earlier this year by the federal government. The legislation provides a total of $6.6 billion -- or up to $8,000 per homebuyer -- in refundable tax credits for first-time homebuyers who purchase houses between Jan. 1, 2009, and Dec. 1, 2009.

Unlike tax credits enacted last year, the new credit does not have to be repaid, and is equal to 10 percent of the house's purchase price up to a maximum of $8,000. The legislation is designed to stimulate the economy and revive a weak housing market, according to www.federalhousingtaxcredit.com, a Web site that provides details about the tax credits.

"It's a fantastic time for a homebuyer to get into a new house," Holt said. "Home prices have come down and mortgage rates are very low."

Hammons said business has been slow recently at his agency, but he expects the local housing market to rebound soon.

"Things are quite slow, but we're showing signs of life," he said. "We've been busier the last few weeks than we were last fall. Prices are down a little. Most people's appraisals actually went down a little this year. Fort Scott never got as high as these other big markets so we didn't have that far to fall."

Hammons also said the homebuyer education program will inform more potential homebuyers about the federal tax credits and the housing market to relieve any unease they may feel.

"There are hundreds of potential homebuyers out there in the community, and they're scared because of the recession and they don't know about the first-time tax credit," he said. "I'm glad they're holding these types of seminars because there are people out there who don't know about it."

Holt added that USB officials want to begin conducting a couple of homebuyer education programs each year.

For more information about the program, or to make a reservation, call USB at (620) 223-0066.