Many area home loans will close by end of month

SIKESTON, Mo. -- Although President Obama signed a bill Friday to extend the popular $8,000 tax credit for first-time homebuyers set to expire at the end of November, those involved in closing home loans are still expecting the rest of the month to be hectic.

"When comparing this November to the last two years, we will double the amount of home loans this month from a typical year," said Samantha Jarrett, vice president at First Midwest Bank in Sikeston. "It's huge, especially when you consider that November and December are typically two of the slowest months."

But banks aren't the only ones benefitting from the increase in home sales, to which many say the up to $8,000 tax credit has contributed. Real estate agents, appraisers, inspectors, title insurance companies and more are involved in getting the properties closed -- and the boost in home sales is credited with keeping some businesses afloat during the tough economic times.

"I think it's been a very positive thing for this area," said Chuck Leible, owner of Delta Title in Sikeston. He said he has seen business pick up in the past 10 months.

Mike Jobe, an inspector with Jobe Construction Co., said he was "really, really busy" in the spring, then business slowed in July through September, only to pick up again.

"And I really think it's because of the Nov. 30 deadline," he said. "Most of the houses that I've inspected and see selling are for first-time homebuyers and are selling for under $100,000."

The tax credit, which is for 10 percent of the selling price up to $8,000, isn't the only thing encouraging people to buy, Jobe said. "Interest rates are extremely cheap, too," he said.

All that makes for "a very pleasant gravy to be thrown in," Leible said.

Julie Redden, an appraiser, said she's been busy over the past few weeks and expects it to continue through the end of the month. She said she's seen about a 50 percent increase in business -- and while there are some refinancing, most of those are for first-time homebuyers.

"About a week ago, I got swamped within a couple of days," she said. "And of course, everyone wants to close by Nov. 30."

Tracey Sutton, manager at SEMO Title, said the need to get paperwork done in time for a Nov. 30 closing has been expressed several times. "And we're going to make sure that our customers are taken care of. We're hoping not to turn anyone down," she said.

Despite everything, Sutton said business has not yet been too overwhelming but employees are preparing to work extra hours if necessary. "Typically, we don't work the day after Thanksgiving, but if the need is there, we are going to work," she said.

Karen Bizzell, manager at Old Security Title, said business has increased, and she expects it to continue. "I'm sure the last two weeks of November will be very busy," she said.

Despite the extension, several people who planned to buy likely need to be in their new home by the end of the month, she said.

Faye Walborg, broker/owner of Century 21 Premiere Realty in Sikeston and one of the founding members of the SemoList website, said business has been brisk for most agents, and there appears to be a lot of first-time homebuyers on the market.

"I'd say about 60 percent of the properties closed last month and so far this month are for people who are looking to get a refund back," she said. "Although there aren't any statistics, I'd say (the tax credit) is daring first-time homebuyers to make a move."

Thanks to a part of the bill signed Friday, some current homeowners will get incentives when they buy a new home. The program includes a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.

"I think that's going to be a great opportunity and will hopefully spur the market and keep it active," Walborg said.