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