The information below about a NEW ZERO Down financing program comes from The Minnesota Housing Finance Agency and more information will be coming soon!
This type of program could mean help for Twin Cities home buyers that are on the fence about buying their first home. From rumors I have heard, there will be income limits and credit requirements for this program (appears to also be geared for first time home buyers).
As always, check with your local mortgage lender to see if you qualify. I’ll post more information when I get updates. A couple of lenders that I like and that have access to these programs are:Alec Grebis with Bell Mortgage and Cornerstone Mortgage.

New Loan Product for the Minnesota Mortgage Program

Minnesota Housing will soon be offering Affordable Advantage, a loan product that helps serve low- and moderate-income borrowers. The product has flexible terms and is one of the few 100 % LTV products available in the market. The product is based on Fannie Mae’s Affordable Advantage™, an initiative developed exclusively for Housing Finance Agencies, including Minnesota Housing.

Contact me for more information or to start the home search process!
Jen McKinnon
Real Estate Agent / Investor
AGENT REFERRAL NETWORK
Member of The Minnesota Real Estate Team
jen[at]MnRealEstateTeam[dot]com
612.384.1073

So, you didn’t get into the real estate market in time to take advantage of the tax credit? Below is a great article from a newsletter I get from Ronny Loew at Waterstone Mortgage.

What’s More Important? Low Rates or Tax Credit
In a recent survey by Prudential Real Estate and Relocation Services, an overwhelming majority of those polled found that when factoring in either low interest rates or the tax credit, low rates were far more important in a decision to purchase a home now.

There’s a good reason for this statistic. For example, if you purchase a home for $300,000 and finance $270,000, and your interest rate for a 30-year fixed rate loan was 5.25% versus 4.75%, you would pay nearly $30,000 more over the term of the loan. This is a significant amount of money!

Since the Fed’s Mortgage Backed Securities purchase program ended on March 31, there has been much volatility and price swings in the markets. Rates overall are off their lows and are often quoted above 5.00% today with no points.

Looked at from another perspective, if prospective home buyers are waiting for home prices to decline a bit more before purchasing a home, but interest rates push higher towards 6.00% in the meantime, waiting could well cost those home buyers more money in the long run.

In fact, let’s say a home buyer delays a transaction but receives a $10,000 reduction off that $300,000 home. If, in the meantime, rates were to rise .75% to 6.00% and the buyer financed 90% of the purchase price, the amount of total payments over a 30-year term would be over $35,000 more than paying the $300,000 purchase price and the 5.25% interest rate.

The Twin Cities real estate market is still HOT and there are great homes at good prices – in ALL price ranges and all areas of the Twin Cities. Please call me to learn more about home buying!

Jen McKinnon
Realtor/Investor
AGENT REFERRAL NETWORK

612.384.1073
jen[at]MnRealEstateTeam[dot]com

I drove through an absolutely gorgeous, exclusive development in Wayzata Minnesota last weekend – just 15 minutes west of Downtown Minneapolis and biking distance to charming Downtown Wayzata!
This development is called Locust Hills of Wayzata and it is nothing short of spectacular.
This property was a former private estate with 70 acres on the shores of Grays Bay (Lake Minnetonka). It has been subdivided and now the European-style community encompasses woods, wetlands, lakefront, lagoon and walking trails along with 44 architecturally designed homes along with 3 estate lake homes on Gray’s Bay of Lake Minnetonka.

Currently there are lots available and there are specific builders that have been pre qualified to build but there is opportunity to bring your own favorite builder – they will just need to be approved by the developers.
By the sounds of it you can get a lot and home starting around $1.2 Million. There is an association that takes care of everything! Talk about maintenance free living! That’s so you can enjoy the Lake Minnetonka lifestyle and spend the summer days boating since private boat slips are provided for each resident of this exclusive neighborhood.

You have to see it to believe it! Please call me for more information.

Jen McKinnon
Realtor / Investor
Agent Referral Network

Member of The Minnesota Real Estate Team
jen[at]MnRealEstateTeam.com
612.384.1073

Every year, I get my home in St Paul’s Macalester Groveland neighborhood ready for spring and summer with multiple trips to various garden stores in town. I’m always surprised at how expensive it can be especially when I need trees or shrubs. Well…this year, I got notice of a great tree sale that I thought I would share with you.

The “Friends Of The Parks & Trails of St Paul and Ramsey County” are having a tree sale! Their motto is, “Planting, Protecting & Preserving For 25 Years”. You can buy for yourself or donate a tree to a park.

Details:
Order by Saturday April 17th 2010
Pick Up On Saturday May 1st 2010
Pick Up Sites:
St Paul – Highland Park Pavilion (1200 Montreal)
Maplewood – Ramsey County Parks (2015 N Van Dyke)

For More Information Check Out www.friendsoftheparks.org or call 651.698.4543

Contact me live with questions or if you have any real estate questions!
Jen McKinnon
Realtor/Investor
612.384.1073
jen[at]MnRealEstateTeam[dot]com

Member of The Minnesota Real Estate Team
AGENT REFERRAL NETWORK

If you are a landlord in Minnesota, please remember that you need to complete a Certificate of Rent Paid Form for each tenant that paid you rent in 2009. By law, you must have this to each tenant on or before January 31 2010.

For more information and the forms click here…Minnesota 2010 Certificate of Rent Paid

Ok, I don’t normally like to be negative but in the world of home buying, there are certain things that you should NOT do and typically these are some of the most important. And this is not just me making things up, this information comes from Cornerstone Mortgage, a very reputable lender in the Twin Cities market. Steering clear of these items below will give you a much better chance of qualifying for a home loan.

Whether you are a first time home buyer, a move up buyer, a downsizing buyer or any type of home buyer in between, here are a few things you should keep in mind BEFORE buying a home in the Twin Cities or anywhere in the US.

1. Do not look for a home without being pre-approved for a loan.
2. Do not suddenly pay off debts and collections or close accounts.
3. Do not apply for new credit cards.
4. Do not change jobs or change your pay structure at your current job.
5. Do not consolidate bills.
6. Do not make non-payroll related deposits into your bank account without keeping copies of the checks.
7. Do not pack the documents needed during the loan process. These include W-2′s forms, tax returns, bank statements, pay stubs, etc.
8. Do not choose a mortgage without researching all the different types.
9. Do not shop for, lease or purchase a car or other type of vehicle.
10. Do not incur more debt by making large purchases such as appliances.

If you do need to do any of these things, please discuss with your loan officer IMMEDIATELY, delaying can and most likely will cause issues with obtaining a loan and or closing on a house. I’ve seen bad things happen in the Twin Cities market when buyers do not fully disclose their financial information to a loan officer. Remember, your loan officer is there to HELP. You want to make sure you have a good relationship with your loan officer because without them, it’s pretty tough to get a house.

Looking to buy? Give me a call!

Jen McKinnon
Realtor / Investor
612.384.1073
jen[at]MnRealEstateTeam.com

AGENT REFERRAL NETWORK
Member of The Minnesota Real Estate Team

It’s 2010 and the experts are weighing in on the housing market. Here is the forecast according to Money Magazine (December 2009)

There is talk that the market will stabilize in 2010 but regaining equity may take some time.
Home sales are rising and inventory is going down. Experts believe the housing market will hit its bottom in the second half of 2010 but that we will still see another 5 – 10% price drop on houses.

This is still a great time to buy a home whether you are a first time buyer or buying your next home. There will be another wave of foreclosures in 2010 which will boost housing inventory. Interest rates are predicted to stay low in the first part of 2010 or at least until the extended federal tax credit expires June 30 2010 (you must have an accepted purchase agreement by April 30 2010 and close by June 30 2010). This tax credit is good for first time home buyers and other buyers who are buying their next home and have lived in their current home for at least 5 of the last 7 years.

So, what should you do?
If you are hoping to buy a home, make your move now. Right now the market is in your favor but as the economy improves the housing market will become more favorable for sellers. Keep in mind, if you are looking to purchase a lower priced home (under $150,000) expect competition, especially if the house does not need a lot of work done to improve it. If you are trying to purchase a fixer upper that is already in foreclosure or owned by a bank, expect A LOT of competition. In the Twin Cities market, many of these homes (under $100,000) end up in multiple offers within a few days). To improve your odds of getting one of these amazing deals be prepared to offer above list price, be flexible on closing time, offer more earnest money than normal or pay full cash.
However, if you are buying a higher priced home especially if over $500,000, the demand is not as great so you can typically offer about 10% below list price. These homes will still see some drop in value over the next year so offering below list price (always make sure your agent checks out the recent comparable sales in the area) will provide a cushion for this reduction in value.

If you are hoping to sell in the next year, hopefully you have some equity because most likely you’ve lost quite a bit of value on your home. If not, and you don’t have to move, experts are saying hold off. But, if you want to move or need to move, you may be able to recoup some losses on your current home by buying at below market pricing on your new home. Essentially, you can buy more house now than you could even a year ago so in many situations, you may “break even” if you have to sell at a loss but buy at a low price (and great interest rate) for instant equity.

The Twin Cities real estate market is showing similar trends – contact me about your specific situation and I’d be happy to do some market analysis for you!

Jen McKinnon
Realtor / Investor
AGENT REFERRAL NETWORK
MN Real Estate Team – #1 Team In Minnesota

612.384.1073
jen[at]mnrealestateteam[dot]com