Are you a Twin Cities resident that is still wondering if now is a good time to buy a home? Read below for great information from a National Survey – this information does also hold true to the Twin Cities as well.

Now is a great time to buy as long as you work with a qualified bank or mortgage broker to ensure a solid, safe loan product. Of course, you never want to buy more of a home than you are comfortable with and a good lender will never push you into that direction.

AND….as a home buyer, you certainly want to work with a qualified, REALTOR who will be representing YOUR best interests. The Twin Cities, just like many other markets is being driven by price right now and you want a REALTOR on your side that can help navigate the process and also help ensure that everything gets done correctly.

Home buying can be exciting and scary and yes, it is still a good investment in the Twin Cities – as long as you follow the proper steps and work with a team of qualified mortgage and Real Estate professionals. Read on for more thoughts…..

Majority of Americans: Buying a Home Is a Good Decision

RISMEDIA, November 27, 2010–Despite the continuing challenges facing the U.S., nearly eight out of 10 respondents believe buying a home is a good financial decision, according to NAR’s eighth annual Housing Opportunity Pulse Survey.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in eight years of sampling, with 70 percent of Americans saying that job layoffs and unemployment are a big problem in their area; eight in 10 cite these issues as a barrier to homeownership. The telephone survey of 1,209 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program.

Some key results:

* Americans continue to believe that buying a home is a good financial decision (77 percent believe strongly or not so strongly, 68 percent strongly so).
* More than two-thirds of respondents (68 percent) say that now is a good time to buy a home.
* Job insecurity and the lack of jobs continue to be the primary obstacle to home ownership and market recovery.
* Respondents see the recession and job losses as the main reasons for the foreclosure problem, a shift from last year when they were more likely to blame homeowners who bought homes they could not afford.
* A majority of renters say that owning a home at some point in the future is either one of their highest priorities (39 percent) or a moderate priority (24 percent). Just 21 percent of renters say that owning a home is not a priority at all.
* Frustration with banks is up: now a majority worry that banks have made it too hard to qualify for a home mortgage loan.
* 51 percent of respondents say foreclosures remain a big or moderate problem in their area. While there has been a significant drop in the percentage of those surveyed who say foreclosures have increased, 51 percent say that the rate of foreclosures is about the same as it was last year.
* Most of those surveyed say that it is harder to sell a home in their neighborhood than it was a year ago.
* Looking forward, 70 percent expect real estate sales in their neighborhood to remain about the same over the next few months. A nearly identical number (69 percent), also expect home values to remain the same.
* Nearly one-quarter (23 percent) are now very concerned about the number of homes and condos for sale in their area—a number that is up 7 points from last year.
* Most respondents are more concerned about the drop in home values than they are about home costs being too high. Still, cost remains the significant barrier to many who would otherwise like to buy a home.

Contact me with questions or if you are looking for information!
Jen McKinnon
Realtor/Investor/CDPE
AGENT REFERRAL NETWORK
MN Real Estate Team
612.384.1073
jen[at]MnRealEstateTeam[dot]com

So, it sounds like 100% Loan To Value financing is back again (around Aug 16 2010).  Obviously, there are restrictions and you need to talk to a qualified lender to make sure this is the right mortgage product for you.  A couple of lenders I recommend are:

Cornerstone Mortgage (Rob Bonahoom) in Burnsville Minnesota

Bell Mortgage (Alec Grebis) in Bloomington Minnesota

Conventional 100% financing now available

680 minimum credit score

45% Debt-To-Income ratio or less

NO Mortgage ins needed with this program

Must be first time home buyer (not owning a home in the previous 3 years)

Up to 3% in seller paids allowed

Income limits of $83,900 a year for a family of 1-4 people

This program was just unveiled today and it sounds like lenders can not lock anyone in until August 16th so that gives you plenty of time to get out and find the perfect home!  Home inventory in the traditional first time buyer price range (under $200,000) is very high especially in the under $150,000 range.  Just a few months ago investors were going crazy buying up cheap bank owned houses (especially in North Minneapolis) and remodeling them.  Now, because the federal tax credit expired, these sellers are sitting on inventory that they want to sell fast!  Now, don’t get me wrong…it does not mean you can throw out low ball offers all day long, it just means that many of these houses are priced to sell!

For more information about 2 beautifully remodeled homes in North Minneapolis, click on the links below – these houses are move in ready – just about everything is NEW (including most of the plumbing and electrical!).

3318 James Ave N Minneapolis

3842 Humboldt Ave N Minneapolis

Call or email me with any questions!

Jen McKinnon

Real Estate Agent / Investor

AGENT REFERRAL NETWORK

Member of the #1 MN Real Estate Team

612.384.1073

jen@mnrealestateteam[dot]com

Five Smart Reasons to Buy a Home Now

RISMEDIA, July 30, 2010–The economy is stabilizing. Home prices are holding. It’s not just as good a time as ever to buy a house. It’s one of the best times ever.

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they have a little give to absorb a few ups and downs as the still-recovering housing market gains traction.  So, don’t worry about “missing” out on the tax credits – real estate is a LONG TERM investment.  Now is a great time to buy while interest rates are low!

2. Houses are in move-in condition. Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners in the Twin Cities who have been holding back kept their houses in good shape while they waited. As those owner occupant houses enter the market, they are in marked contrast to tattered foreclosures.  Sellers are doing what is needed to make their homes stand out and sell!  This means a move in ready home for you!

3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system – and this is just the opportunity that owners of many desirable properties have been waiting for.  Don’t get me wrong, foreclosures can be a GREAT deal but they are not always left in the best shape when the owner moves out.  There will still be plenty of foreclosure homes for sale in the Twin Cities (and rumor of some of the more high priced homes hitting the market) but more homeowners (not in foreclosure) are choosing to sell now as well in hopes of making up any losses on the sale of their current home when they buy their next house.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines…again. Now that appraisers have more flexibility to set values that reflect the current market, today’s deals will more likely make it over the finish line.  BUT please be aware that you still need to work with a reputable lender who has a history of getting the deal done and within a reasonable time frame.

5. Plenty of programs. Homes are more affordable than they have been for years, but communities have stuck by “workforce housing” programs that encourage middle-class families to buy houses. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.  Again, don’t worry if you missed the federal tax credit…many counties and cities have programs available to assist with down payments.  Contact me if you need more information – I can put you in touch with GREAT lenders who has access to everything out there in Minnesota!

Give me a call!

Jen McKinnon

Real Estate Agent / Investor

612.384.1073

jen[at]MnRealEstateTeam.com

AGENT REFERRAL NETWORK

Member of the MN Real Estate Team

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

Now, I want you to know that I will never pressure anyone to buy a home. However, as I have stated in the past, if you find a home in the Twin Cities that you like, you’d better be ready to move fast. And I mean within hours!

I have a client who is a first time buyer and is looking at using an FHA loan to purchase his first house. He is looking to pay under $160,000 and plans on having to do some repairs and cosmetic work to the house.

First of all, most of the homes we are looking at in the Northern Suburbs of the Twin Cities are short sales or foreclosures (bank owned – REO).

Second, we are having a difficult time finding houses that will accept FHA financing as most bank owned / REO homes have a number of problems that FHA inspecion will not pass without the seller fixing the issue (which 9 times out of 10 the bank, who is the seller, will not fix).

Third, when we are making offers the houses are usually in a multiple offer or better yet, a highest and best situation (this is where the seller, usually a bank, will call for all offers to be resubmitted with their absolute highest and best offer. This puts everyone who has submitted an offer into a “panic” and gets the bank more money. Good tactic for them, bad for buyers.

Finally, we ran into a situation with a Twin Cities suburb home that had been relisted on the market for only 6 days and when I called in the morning there were no offers but alot of interest. 5 minutes later one offer was submitted. So we got out and looked at the house about 2 hours later and I informed the agent immediately that we would be submitting an offer. Come to find a few hours later that the bank had already accepted the first offer that got submitted and although the listing agent submitted ours he did not forewarn the bank that a second offer was coming in. This would have given them two offers to review and potentially the option to have us submit highest and best.

So, as you can see, some REO / bank owned listing agents are actually acting quickly and submitting offers ASAP and I feel this was a very rare bank that made a decision in HOURS instead of days or weeks like many take.
One more reason to act fast and be ready to make the decision. Get the offer in and use your inspection contingency to back out if need be.

Jen McKinnon
Realtor/Investor
MN Real Estate Team
The #1 Real Estate Team in MN

612.384.1073
jen [at] mnrealestateteam [dot] com

Agent Referral Network
10663 165th St Suite 17
Lakeville, MN 55044

The housing market in the Twin Cities is an incredible market for home buyer’s of all price levels right now. Buying a home in the Twin Cities is especially exciting for First Time Home Buyers and especially those looking at homes under $200,000 because inventory is HIGH! Not to mention the nice $8000 tax credit that you will be eligible for on your 2009 tax return.
So, as a future home buyer, what are some important pieces of information that you should know and be prepared with?

1. YOU MUST BE PRE APPROVED
I don’t know how many times we can say it….talk to a lender and get the pre approval out of the way. Homes are selling FAST and no seller – especially a bank owned property / REO / short sale is going to even look at your offer without a pre approval letter or if you are paying cash, a proof of funds.

2. BE READY TO WRITE AN OFFERMany houses are going into multiple offer situations within days of being listed. This means that buying a home in the Twin Cities can be much more difficult because there are alot of buyers just like you out there and the ones that are pre approved, look at listings everyday, can get out to look at houses quickly and are ready to pull the trigger and write an offer are more likely to win the home that they want to buy.

3. DON’T GET EMOTIONAL – YOU AREN’T ALONE
On a daily basis, I am looking up houses to show clients who want to buy and on a daily basis, I am running into houses that are listed as active on the MLS but are really either in a multiple offer situation or are already sold. Why, you ask, would the house still be listed as active then and tempt you with it’s pretty pictures and hot price point? Many houses listed today (especially those under $200,000) are short sales, foreclosures or REO’s (Real Estate Owned) and the listing agents on these properties are VERY busy and typically don’t get the status updated on MLS fast enough. They are also overwhelmed with how fast properties are moving.

4. USE THE INSPECTION CONTINGENCY TO YOUR ADVANTAGE
When you make an offer on a house, always ask for an inspection contingency (unless of course you bring an inspector with you on the first visit) because you obviously want to inspect the property before you buy it and the inspection contingency allows you a timeframe that you can still back out of the transaction and get your earnest money back (the money you gave when writing the offer and will be used towards your purchase). You can back out during inspection for ANY reason. Bottom line, WRITE THE OFFER and back out if you need to. If you do not write the offer, you will NEVER get the house. Of course, I don’t want you to write a purchase agreement on a house that you do not want to buy but if you are even remotely interested in a Twin Cities house, WRITE THE OFFER or someone else will.

Call me when you are ready to start looking!
Jen McKinnon
Agent Referral Network and
Member of the MN Real Estate Team

612.384.1073
jen[at]mnrealestateteam[dot]com

As the Jefferson’s said, “we’re movin’ on up!”
Are you hoping to make the move to your “next” home?

Do you need a bigger house because of a growing family or maybe you want to move into one of the Twin Cities best school districts like Wayzata, Minnetonka, Edina or Eden Prairie. Or, maybe you just want to take advantage of the great home prices in the Twin Cities or the even better mortgage rates that lenders like Cornerstone have to offer.
As a Twin Cities home buyer, we have a great seminar that you should check out that will cover all of your questions.

Moving in a Down Market
Tuesday, June 2nd, 6:30- 8 PM

Afraid to move in this market? Learn the math behind buying a home at a great price and with a great interest rate! Take advantage of the opportunities to enhance your current financial stability in today’s low mortgage interest rate environment by joining us for our upcoming seminar and Q&A forum.

Topics include:
- Eye-opening financial benefits of buying a home now versus waiting for economic recovery
- Pricing and preparing your home to sell in this market
- How a loss on your sale may be recouped with a good buy
- Cost effective services to rent and manage your home if it doesn’t sell

Please contact me for more information or to register:
Jen McKinnon
612.384.1073
jen [at] mnrealestateteam [dot] com

Are you a first time home buyer in the Twin Cities? Now is a great time and even better than we saw last year! Hello….$8,000 tax credit!
If you are wondering about First Time Home Buyer financing and assistance, Alec Grebis with Cornerstone Mortgage is a great person to contact. He wrote a great article about this at his blog, The Mortgage Scoop. Remember, talking to a knowledgeable lender is the first step in the home buying process!

Are you looking to buy and live in Minneapolis or St Paul?
Do you want information about all of the financial resources available to you from the State, County, City or Non Profits?
There is a new website coming out tomorrow, Thursday April 23 2009 that will give you all of that and more.
Live MSP is a website dedicated to showing potential buyers all of the neighborhoods in Minneapolis and St Paul, available homes and most importantly, all of the financial programs that are available to home buyers and home owners to entice buyers to buy in the city and encourage current city dwellers who may want to remodel.
Check out Live MSP now!

There are a few areas in the Twin Cities where the $1 million dollar price tag is still the “norm”. According to Mpls St Paul Magazine, the cities of Woodland (a strip of shoreline along Lake Minnetonka’s east side), Tonka Bay (a south central bay on Lake Minnetonka), Sunfish Lake (between Hwy 110 and Hwy 494 just west of Robert Trail) and Mendota (just across the Mendota Bridge from St Paul) had median price tags of $1 million in 2008.

These areas are high demand because of their locations and the homes are beautiful.
Currently, there are 43 single family homes listed as active – 26 are under $1 million and 17 are over the $1 million mark. Looking for the best? There is a Tonka Bay location for $5,950,000 and 7,348 square feet of Mediterranean styled luxury. Want the biggest in Woodland? $8,500,000 will buy you 8,036 square feet on Wayzata Bay and 571 feet of lakeshore and private boat docking.

Want more information on these types of homes?
Contact me
Jen McKinnon
Realtor / Investor
MN Real Estate Team – #1 Team in MN

612.384.1073
jen[at]mnrealestateteam[dot]com