Depending on your loan type and individual program eligibility for First Time Home Buyer Programs, your down payment requirements for your home loan may vary from zero down to 3.5% or more, if you choose for down payment.  We will need to establish where this money is coming from and it will need to be from an acceptable, and verifiable source. 

Common down payment and closing cost sources:

• Checking Accounts
• Savings Accounts
• Independent Investment Accounts
• 401K or other retirement plans
• Down Payment Assistance Programs for First Time Home Buyers
• Gift Funds from a relative or closely related party
• Sale of assets (like a car or other verifiable asset)

These aren’t the only acceptable sources of funds for down payment, but are the most common sources of down payment.  Each of them have their own requirements for verification.  Typically, we can easily verify the first 3 with most recent account statements from our checking, savings or other investment accounts.  When it comes to obtaining money from a 401K or other retirement plan for down payment, we will need to know the terms of the withdrawal in addition to verifying the balance with a most recent statement.   

A few unacceptable sources of down payment

• Borrowed funds from an unsecured source (cash advances from credit cards or other loans)
• Gifts from sources where we can’t adequately prove a relationship
• Cash – by nature cash is not verifiable and is an unaccepted source of funds

Each person’s cash situation is different and the best place to start is by getting an education surrounding your particular situation and what to do and not to do throughout the loan process.  Even if you’re a year away from buying your first home, or your next home, starting to prepare early can prevent hiccups down the road.   Contact Carrie now or start the process by completing our online pre-qualification worksheet. 

If you’re a first time home buyer and you want to learn more about the process of buying your first home and down payment assistance programs that you may be eligible for as a First Time Home Buyer in Minnesota; attend our Free First Time Home Buyer Class.  Our next First Time Home Buyer Class is scheduled for February 9^th from 6:30-8PM.  Register online now for the Free First Time Home Buyer Class or call 952-808-0042 to register by phone. 

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Firstly, let’s talk about the income numbers we use and how they may apply to you.  For most mortgage loan programs we will be using your gross income to establish your maximum qualifying ability.   This means your income BEFORE taxes or other deductions are made.  This makes absolutely no sense to most home buyers, particularly first time home buyers as they have yet to see or experience the tax benefits of home ownership.   However, we will be using your gross pay figure for qualifying purposes. 

If your income comes from self-employment, commission, bonus, seasonal, part-time or other potentially varying income types, we will be averaging your income; over a two year period of time in most cases. 

In general terms, when it comes to income stability, we’re looking to show proof that you’ve had income for the prior two year period and to establish the likelihood that your income will continue for at least 3 years.  Very common situations:

• Recent graduate has first job and doesn’t have a two-year history.  We can use your new full-time, salaried or hourly income and show prior history through school transcripts.   Just keep in mind the varying income types above. 
• There was a layoff in the last 2 year period.  If you have experienced an extended layoff in the last two years, we will need to establish a new pattern of stability of income.  Typically, we can do this after a return to work or a new job with a 6-month history. 
• Child support or spousal maintenance that just started or will cease within a 3-year time period.   Good news, bad news here.  We can use child support or spousal maintenance for qualifying in most cases if we can prove the last 3 months receipt.  However, if the support will end in less than 3 years from your scheduled closing, we will not be able to use that income for general qualifying purposes.
• Cash income, non-reimbursed business expenses or other deductions on tax returns.  There’s an old saying I picked up somewhere along the way and it goes like this, “If you don’t claim it, we can’t use it.”   It’s really that simple.  If you don’t claim cash income on a tax return or if you deduct true business expenses on a tax return that aren’t reimbursed to you, we can’t use the cash income or must deduct those expenses from your income for qualifying.   

There are obviously a host of other considerations for income and varying responses to each unique situation.  The above are simply a few very common income scenarios we encounter.  If you have a specific income question you’d like an answer to, Ask Carrie.  I would be happy to answer your question!

Watch for our next post on the #3 Qualifying Consideration – Cold, hard, CASH and where you can get it from. 

Are you a first time home buyer and you’re interested in learning more about buying your first home in Minnesota?   We offer a Free First Time Home Buyer Class every month.  Our next class is scheduled for February 9th from 6:30-8PM at Cornerstone Mortgage in Burnsville.  Our classes all promise to be no-hassle, no-pressure.  Register online now for our First Time Home Buyer Class or call to register at 952-808-0042.   This First Time Home Buyer Class is a must attend for anyone who is looking to buy their first home with a desire to be well educated about the home buying process before they begin.  All first time home buyer class attendees will also receive a free copy of their consumer credit report upon request.  Credit review is an important first step in the mortgage qualifying process.

Bills and payments that haven’t traditionally been included in a person’s credit report will start showing up and credit reporting agencies will start providing far more invasive information – like estimates of a consumer’s income.  Take note and pass on these things that didn’t used to automatically get included in your credit report that will start becoming available in a separate score available to mortgage lenders:

• Payday loans
• Evictions
• Child support payments
• Rent, utilities and cellular bills may also eventually be tracked

This is a bad-news/good-news situation.  Banks and mortgage lenders feel these new inclusions will give them a better way to evaluate potential borrowers, but this additional information can eliminate some people from qualifying for a loan or require them to pay higher rates or fees because they are considered higher risks.  On the other hand, people who have little or no credit history will have other ways to show that they have paid their bills on time with things like monthly rent payments appearing in their history.  Currently, folks who save money, pay their rent and utilities on time but don’t have any credit cards or finance history suffer similar scrutiny to people with some “dings” on their credit records.

As lenders try to avoid the practices that led to the infamous “Mortgage Meltdown” and subsequent real estate market slump, consumers need to keep up with all the things that can affect their credit score and their ability to receive credit and borrow money.  Our credit score follows us everywhere we go like a “personal financial shadow.”  Make sure you’re not in the dark. 

 Want to learn more? Contact Carrie today. Ready to start the pre-qualification process for a mortgage, but concerned about your credit, or lack thereof?  Carrie can help.  Start the pre-qualification process online or call Carrie at 952-808-2810 to start the process over the phone.  

If you’re a first time home buyer, credit can be mystifying.  We host a Free First Time Home Buyer Class each month to take some of the mystery out of the process of buying your first home.  Our next Free First Time Home Buyer Class is scheduled for Thursday, February 9th from 6:30-8PM.  Register online for the February First Time Home Buyer Class or call 952-808-2810.  No matter where you are in the process of buying your first home, it’s never too early to start the learning process!

In terms of mortgage financing today – credit is going to play a large determining factor in a number of different elements:

• Instant loan approval or credit repair
• Mortgage insurance rates
• Loan Program Eligibility
• Minimum down payment options
• Interest rate
• Maximum qualifying amount
• Home owners insurance rates

Let’s unpack this a bit.  First and foremost, don’t click away if you have blemished credit or a lack of credit thinking you won’t ever qualify for a home loan.  Nothing could be further from the truth.  Certainly, there needs to be a plan and you may need to take some action, but you can recover from past credit woes and we’re here to help you take the right steps.  

There are some key positive things that we are looking for when assessing your long-term ability to repay a mortgage and we need to be able to prove that you are likely to repay your mortgage, on a timely basis.  That makes sense right?   So, here are a few things we’re looking for:

• 12 months of on-time payment history on at least 3 accounts.  These can be rental history, credit card accounts, car payments, student loan payments or other payments that report to a credit report or don’t.  Know that your standard rent, utilities and insurance payments don’t report to a credit report so these items will be known as alternative credit.
• You’re not “maxed out”.  Again, no running and hiding or clicking away because your one credit card with a $1,000 limit is at $1003 right now.  This isn’t a reason alone for denial.  However, when assessing your overall ability to repay, if you’re very credit heavy in terms of revolving debt and you’re completely maxed out, it doesn’t paint the most stable use of credit.   Ideally, your credit score and your loan application will be looked upon more favorably if you have available credit to use vs. credit that is completely used up.  
• A lack of overdrafts, overdraft protection advances or payday advances.   We understand an occasional blip – everyone has them – but recurring or consistent overdrafts or advances against pay say that you’re spending more than you have the ability to spend already or having difficulty managing your monthly expenses.  Keeping your bank account clean is ideal when applying for a mortgage loan.  If you do use overdraft protection on a regular basis as a normal course of financial business – stop now.  If you have an isolated instance that is easy to explain, simply be prepared to explain it.

Your actual credit score will play a role in your ability to obtain a mortgage as well as the items I listed above and there are some generic things you should understand about your credit score.  There are a number of different things that make common sense to you or me to do in preparation for applying for a home loan that may actually impact your credit negatively.  

Do NOT do the following without advice from your Loan Officer:

• Pay off collections
• Pay off accounts completely
• Close accounts
• Consolidate debt
• Acquire new credit
• Apply for new, additional credit

The best advice I can give as it pertains to credit and applying for a mortgage is to start by having us review and advise you specific to your individual credit situation.  Just as each of us are different as human beings, so are our credit profiles.  Making changes that you may see as positive could negatively impact you and items you thought may be seriously negative may actually not be so bad or be able to be easily remedied.   Take the time to visit with someone about your credit before your start your home search. 

We offer free consumer credit reports and analysis to all of our clients.  We will take a look at your credit report and your credit score with you and assess next steps in the mortgage pre-approval process.  You can start the process online by completing our online pre-qualification worksheet, contact Carrie via e-mail, or call 952-808-2810 to set up your one-on-one consultation and start the pre-approval process off right!

To learn more about mortgage credit standards today, attend one of our Free monthly classes for First Time Home Buyers or Current Home Owners.  

Our next First Time Home Buyer Class is Thursday, February 9^th from 6:30-8PM.  Register online for our First Time Home Buyer Class.

Our next Right Move Class for Current Home Owners is Saturday, February 25th  from 10-11:30AM.  Register online for our Right Move Class for Current Home Owners. 

The First Time Home Buyer Class and Right Move Class are both located:

Cornerstone Mortgage Company – 436 Gateway Blvd, Burnsville, MN 55337 – 952-808-0042

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During these one-on-one or group meetings, I jokingly address comfort level vs. qualifying ability.   I talk about the irrelevance of the amount of your pre-approval as it doesn’t take into consideration a number of different things you may want or need to pay for on a monthly basis.  I’m personally fond of Ramen – on occasion – but certainly don’t want to put people in a position where that’s all they can afford to eat.  I’m grateful to be able to say that the trend has shifted and most people come in with a conservative approach to home ownership today vs. just a few years back when everyone “had to have” everything they wanted when buying their homes even if it meant being completely house poor.  

My vision in providing home loan financing is to be certain that I am helping people to work toward three very specific goals – Strength, Security and Stability as they become home owners or continue on in home ownership.  One of the ways we can be sure to accomplish this is to be certain that you will be comfortable with the monthly payment and other expenses long-term. 

Whether you are a first time home buyer or a home owner looking to purchase a new home, there are a few simple exercises that I believe are fruitful for anyone to go through when looking at financing a new home:

1)      Track your monthly expenses in a budget.  Yes, I know budget is a horrible word that nobody likes, but it’s not that tough in light of online banking and other tools available to us today at nearly any banking institution.   We need to know where we spend our money before we know how much we could be comfortable paying or “giving up” for a new home.   It’s amazing how much money we “find” when we pay attention to what we spend and make minor adjustments in our spending. 

2)      If you’re a first time home buyer, be sure to consider full utilities and home maintenance into your budget for buying a home.  Most renters will need to account for gas, increased electric, garbage and water bills and should be comfortable setting aside at least 1% of the homes value for annual maintenance and home repairs.  

3)      Test yourself – how much can you save?   If you’re looking at increasing your monthly housing expense $500|month, can you comfortably set aside $500|month into a savings account and not touch it for a period of at least 3 months?

4)      Using #3 as a premise for testing your comfort level, are you also able to continue to save money at the same rate you did previously?  i.e. Can you set aside the additional 1% you will likely need for home maintenance and repairs or other short-term, intermediate or long-term goals like vehicles or vehicle repairs, vacations or retirement?   If you can’t continue to accumulate savings, you may also be pushing yourself too far.  

I know these are very simple tasks, right?  However, it’s not uncommon for the first time home buyer to not know or understand what they can truly afford on a monthly basis.  A number of first time home buyers today are moving straight from rent-free family living into home ownership and they have managed to save a decent sum of money yet haven’t thought about the long-term ability to continue that or, have been able to spend very freely because they weren’t obligated to pay a large monthly rental expense.  It’s also not uncommon for couples who are purchasing a home together and moving in for the first time to come into my office with completely different ideas of their comfort levels.  If you are in this situation, I encourage you to take the test together and you will very likely come to the same, agreeable conclusion on comfort level for a new house payment.  

Your comfort level and overall assessment of your short-term, intermediate and long-term financial goals will equate to long-term strength, stability and security in home ownership!  We’re here to help you achieve all three!

 If you are a first time home buyer and you’re looking for more education about buying your first home in today’s mortgage and real estate market, our next Free First Time Home Buyer Class is:

Thursday, January 20^th from 6:30-8PM – Register Online for the First Time Home Buyer Class

If you are a current home owners and you’re interested in learning more about today’s market for refinancing, selling your current home, or buying new, our next Right Move Class for  Current Home Owners is:

Saturday, January 22^nd from 10-11:30AM – Register Online for the Right Move Home Owner Class

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Many home buyers, particularly first time home buyers, don’t have enough money saved to cover their down payment and all of their closing costs and pre-paid items.  What are these amounts, what do they cover, and will the seller pay? 

In addition to your down payment amount, which will vary based on your loan type and pre-approval, you will have closing costs and pre-paid items that you will need to cover in your home purchase.   These items include but are not limited to:

• Lender Fees for Origination of Your Loan
• Appraisal Fees
• Interest you will pay at closing on your loan
• Mortgage Insurance (if applicable)
• Real Estate Taxes
• Home Owners Insurance
• Title Company Charges for researching and insuring the title of your new home
• Government charges
• Real Estate Fees you may agree to pay

Depending on the purchase price of your home, your loan amount, the property taxes and even your loan type, these amounts can vary dramatically.  Contrary to popular belief, there is no set percentage for closing costs or pre-paid items.  The reason a percentage doesn’t work is largely due to the fact that a number of closing costs are fixed amounts and as a result the higher your loan amount is, the lower the percentage will be.  Each individual home and your individual situation will cause these amounts to vary and, you have options as to how you want to structure your closing costs and pre-paid items. 

For example, mortgage loan guidelines will dictate how much you can ask the seller to pay in your closing costs.  For minimum down payment mortgage financing, FHA loans will allow for the seller to pay up to 6% in seller paid closing costs and pre-paid items, whereas with Conventional loans, the seller is only allowed to pay 3% in seller paid closing costs and pre-paid items.  Higher down payment loans and loan for homes you won’t occupy as your primary residence have varying guidelines. 

Seller paid closing costs are a common option in today’s Minnesota real estate market.  Most transactions will include some form of seller paid closing costs.  Now, let’s be realistic though – the seller isn’t giving you something for nothing. 

For simple math sake, let’s use a $100,000 purchase price example.  If you offer $100,000 to a seller and you ask them for 3% in seller paid closing costs, you’re actual offer is $97,000, not $100,000.  The seller credits the $3,000 back to you at the time of closing against your closing costs.   So, it stands to reason that you could have asked the seller for $97,000 for a purchase price and they would have accepted it the same as the $100,000 with them giving you back $3,000 at closing.  You are therefore, financing your closing costs over the life of your loan due to the higher purchase price and corresponding loan amount. 

Are the offers really the same?  Not really when you’re in the sellers shoes.   While the dollars and cents come out the same, keep in mind that you’re indicating to the seller that you don’t have enough money to cover these costs with this offer.  If someone else comes in with a lower offer, say $95,000, but they’ve asked for no closing costs to be paid for them, the seller may emotionally decide that even though their bottom line is a couple thousand less, the other offer is better because the buyer is a more financially solid offer.   If you have the ability to pay your own costs, handle them through structuring your home loan differently, or by using closing cost assistance as a first time home buyer, you may have the edge that the other home buyer doesn’t in a multiple offer situation. 

It’s also important to note that while FHA will allow you to have up to 6% in seller paid closing costs, our market isn’t allowing for that in most cases.  With lender mediated home sales nearing 50% of our home sales, particularly in the first time home buyer price ranges, you will find that banks who are selling bank owned properties or lenders who are negotiating short-sales are typically maxing out seller paid closing costs at 3%.  If you are preparing for more than 3% in seller paid closing costs, you may come up short if you’re looking at bank owned or short-sale properties. 

Ultimately, yes, you are likely to be able to include a portion of your closing costs in your purchase price to be paid by the seller.  This will allow you to reduce your cash investment at closing and if you’re a first time home buyer in Minnesota, there are a number of Minnesota First Time Home Buyer Programs that you may also be eligible for that include down payment assistance and closing cost assistance that can further decrease the amount you need to come up with for closing.   Find out if you’re eligible for one of these first time home buyer programs by completing an online pre-qualification worksheet. 

If you’re a first time home buyer and you’re looking for more information about buying your first home in Minnesota, special first time home buyer programs with down payment assistance or closing cost assistance, we offer a Free First Time Home Buyer Class the third Thursday of every month.  Our next First Time Home Buyer Class is scheduled for Thursday, January 20^th from 6:30-8PM.  Register for the First Time Home Buyer Class Online or call 952-808-0042 to register today. 

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If you’re out looking for homes in today’s Minnesota real estate market, my guess is that you know what I’m talking about and you may very well have checked that home off of your favorites list and sent it directly to the trash in your online property search tool.  Don’t be so hasty!  You can make all things new with an FHA 203K.  An FHA 203K – what, you say? 

An FHA 203K is a buy and repair loan.  You can turn all of the above items and other home repairs into new and finance them along with your new loan at today’s record low interest rates.  If you’re like most first time home buyers, and even move-up home buyers today, down payment and closing costs are enough for you to consider, let alone looking at 10-20K in remodeling costs.  The houses you’re looking at may be right in terms of location, size, layout, but the outdated kitchen, repair items above or down right nasty bathrooms may be turning you away.  Or, it could be as simple as a need for all new flooring.  My husband and I giggled as we were touring some homes last year and encountered a home with a very open floor plan that had wildly different flooring in each and every space.  I encourage you to take a look at the FHA 203K loan as an option that can open up possibilities for you.  

We work with three different types of FHA 203K loans and are experts in assisting you in the FHA 203K process.  It’s a pretty simple process for you as the home buyer:

• Find a house
• Make your lists of wants and needs
• Select a licensed and insured Minnesota Contractor (Or we can recommend one who specializes in FHA 203K’s)
• Get a bid for the repairs
• Negotiate the items you want to complete and accept the bid
• Complete your loan paperwork financing the repairs into the home purchase 
• Start repairs after closing on your new home

Now, there’s a lot of work that goes on behind the scenes in terms of coordination with the FHA 203K contractor, the appraiser, and loan approval, but in simple terms, you work out what you want or need completed in the home, negotiate pricing with the contractor, and we coordinate the rest.  

The three different types of FHA 203K financing we offer:

1. First Time Home Buyer FHA 203K(S) – for first time home buyers to be used in combination with a Minnesota Housing First Time Home Buyer Program with down payment assistance or closing cost assistance.  The repairs done in this loan must be non-structural and cannot include personal property such as free-standing appliances.  Total repair costs must be below $15,000. 
2. FHA 203K(S) – This is a loan for those who have owned a home before or first time home buyers who aren’t using a special first time home buyer program.  You can finance up to $35,000 in total repair costs, and you can include free-standing appliance and any other non-structural home repair or improvement in this loan. 
3. FHA 203K – This loan is for those who are going big in terms of repair amounts or moving walls.  Yes, you can make structural changes with this program and there is no limit to what you can repair.  This loan type also requires the supervision of an FHA 203K consultant, in addition to the FHA 203K Approved Contractor. 

Big jobs or little pesky items, an FHA 203K loan option may be the right choice for you.  To find out more about if this is a viable option for you, contact Carrie Guarrero or start the process online by completing our online pre-qualification worksheet. 

If you are a first time home buyer in Minnesota today and you haven’t learned about first time home buyer down payment assistance and closing cost assistance programs, read more about First Time Home Buyer Programs in Minnesota.  There are a wealth of resources and special first time home buyer programs available today.  If you’re just starting the process and you need to take the mystery out of the first time home buying process, attend one of our Free First Time Home Buyer Classes.  Our next First Time Home Buyer Class is scheduled for Thursday, January 19th from 6:30-8PM.  Register online for January First Time Home Buyer Class now. 

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It appears that we’re on the healing side in Minnesota from a market perspective and all indicators for the past many months have shown that to be the case.  Now, for those skeptics out there, settle down, I’m certainly not saying we’re going to return to any form of rapid appreciation or anything reminiscent of the early 2000’s.  Frankly, I wouldn’t want us to go back there and see us take another ride a few years down-stream.  But, there are glimmers of hope and indicators that tell us that we’re on the right track and we may actually see some appreciation here in 2012.  

Check out the recent Twin City Area numbers from the Minneapolis Area Association of Realtors.   The December 10^th market update continues to show signs of strength:

• New listings came in at 911 new homes on the market – down 11.3% from last year
• Pending Sales came in at 761 homes under contract – up 31.7% from this time last year
• Total inventory fell to a total of 19,380 homes on the market – down 23.2% from last year.   Note: This marks the lowest inventory levels that we’ve seen in Minnesota since 2004. 

These numbers aren’t new.  Our market has been a trending this way since mid-year and as we continue on this trend, the standard rules of supply and demand will apply.  I work with a large number of first time home buyers and move-up home buyers alike.  In today’s Minnesota real estate market, I see them lose out in multiple offer situations every day.  It’s not uncommon today for a first time home buyer to write two or three purchase agreements before they get one accepted due to low inventory levels and lack of move-in-ready inventory on the market.  While we still call this a “buyer’s market”, we’re seeing multiple offers and higher than list price offers every day.  New inventory is literally being flocked to and if it’s priced correctly, it doesn’t sit long.  

Inventory and all of these numbers are certainly only one driver of the market and other factors are keeping this a buyers’ market, but beware – the tables could change as early as Spring of 2012 if things keep going the way they appear to be going.  As Consumer Confidence grows stronger and the job market stabilizes or sees growth, combined with the trending we see in supply numbers; there’s only one direction prices – and coincidentally interest rates will go – Up. 

In super simple terms, good news for the economy is typically bad news for interest rates.  While again, I don’t believe we’re set to see any super spikes in rates early this year, I know the difference that even .50 in interest rate can make in a first time home buyer or move-up buyer scenario.  The long-term numbers for that kind of interest savings are staggering and for some, it could mean the difference between buying the house they want, or not.  If you’re ready now and you can take the next steps toward buying your first home as a first time home buyer or selling and buying a new home as a move-up buyer, all signs indicate that buying now would be a wise choice.   If you’re a first time home buyer, there are other incentives like special first time home buyer programs and down payment assistance programs in Minnesota that could help make your first home purchase a reality.  So, if you’re sitting on that proverbial fence, you may want to consider stepping off and into a market that doesn’t appear to be slowing down for old man winter this year.  

To start the pre-qualification process now, complete our online pre-qualification worksheet. If you’re a first time home buyer and you’re interested in learning more about the current Minnesota real estate and mortgage markets, special first time home buyer programs or down payment assistance, attend our Free First Time Home Buyer Class held monthly the 3^rd Thursday of every month from 6:30-8PM.  More information on this First Time Home Buyer Class. 

If you’re a move-up buyer and you’re considering selling your current home and buying a new one in today’s market, we have a class for you too.  Register for the Right Move Class for Home Sellers and Buyers held the 3^rd Saturday of every month from 10-11:30AM.   More information on this Home Seller and Home Buyer Class.

We’re here to help educate you about what’s right for your particular situation, no matter where you fall in terms of finances, timing or simple readiness for home ownership.  If you’re not able to attend the First Time Home Buyer Class or the Right Move Class, contact us for a one-on-one consultation to assess your specific situation.  We will evaluate your ability to qualify for mortgage financing today, first time home buyer down payment assistance or options for selling and buying new in today’s market.  As always, our advice comes with no-obligation.  

Home values have definitely taken a beating over the last 4 years and many people are looking simply at the dollars and cents and trying to figure out how to get out from under the mountain of debt on a home that isn’t worth near what it was when they purchased.   Now that I’ve stated the obvious and lifted your spirits – know that there are solutions.

We’ve designed a class for home sellers in today’s Minnesota marketplace who are considering buying again but aren’t sure what the next steps may look like for them or whether selling now and buying again are possible or financially fruitful for them.  

As with all of our home buyer classes, there is no fee for attendance.  Our next Right Move Class is scheduled for this Saturday, December 17^th from 10:00-11:30AM at 436 Gateway Blvd, Burnsville, MN.  You can register for the Right Move Class Online or by calling 952-808-0042.  

This class is brought to you buy seasoned experts in the fields of Real Estate and Mortgage Banking.  Sue Jacobs of Kubes Realty and Carrie Guarrero of Cornerstone Mortgage have teamed up to deliver this class to the growing population of home sellers in today’s Minnesota real estate market who need expert advice.  With over 40 years of combined experience serving hundreds of past clients in Minnesota between them, the need for an educational offering to address the host of questions surrounding selling and buying again today became quite obvious.  The mass amount of misinformation surrounding our current real estate market and what it takes to sell your home and purchase a new home is staggering. 

We will discuss:

• The current Minnesota market and the forecast for real estate
• Short sale and Foreclosures
• Qualifying for a new mortgage today
• Renting out your current home
• Credit and Credit Repair
• Underwater Refinance Programs
• And more!

If you’re considering selling or buying a new home, this home buyer class was designed to deliver the information you need to make informed decisions about your situation.  Whether you’re underwater on your home and looking at a short sale or an underwater refinance, looking at a loss, but you still have equity in your home, or you want to stay in your home and want to know the best way to position yourself for the future or take advantage of the current interest rate environment, this class is designed for you.  Register online today.

If you aren’t able to attend the Right Move Home Buyer Class, but are interested in a one-on-one consultation to discuss your specific situation, contact Carrie Guarrero or Sue Jacobs today.  Their experience in Minnesota real estate and mortgage banking is unmatched and they will be sure to give you honest, thoughtful direction specific to your particular circumstances.  

Helpful articles that you may find of value to you when thinking about selling your home or purchasing new today:

• Understanding an FHA 203K
• Short Sales and Foreclosures
• Underwater Refinance Program Information
• Credit is Key

We understand that the market has impacted you and we want to be sure that all Minnesota homeowners are provided accurate, expert information about the appropriate steps and options for them in selling their homes in today’s new market.  Credit and credit repair have become tremendously hot topics over the past few years and we’ve established resources to meet your individual needs.   We look forward to seeing you in class!

Their first home was a 5 bedroom home, with 3 baths and a fully finished basement complete with fireplace and a bar. This is an example of what first time home buyers can purchase today with the same dollars it would have cost to purchase a 3 bedroom in far worse condition just a few years ago. I knew that was the reality from my desk reviewing the MLS listings and home appraisals, but walking over that threshold it became even more clear to me. Now is an excellent time for first time home buyers to purchase their first home and the dollar is truly buying you way more than it has in years.

There are a number of other reasons that buying your first home or moving up into a new home may make sense today including the record low interest rates that continue to hold and the fact that home sales in Minnesota are on the rise. If you have a home to sell in today’s market, home buyers need new inventory to look at – what’s out there is becoming stale and new homes on the market are being scooped up quickly by eager first time home buyers and move-up home buyers alike. According to the Minneapolis Area Association of Realtors, in the last 3 months, new listings have dropped over 15% and overall inventory has fallen to over 20% to just about 20,000 homes on the market in total for the Twin Cities Metropolitan Area. Pending sales during the same time frame are up over 30%. As a home seller in the Twin Cities Real Estate Market, those are good numbers if you’re interested in listing your home. As a home buyer, it means you’ll likely have some competition out there while you’re looking for your first home or a new home to purchase.

There are some simple economic laws in play here that make now a great time to buy or sell in our Minnesota marketplace. We’ve all heard it before, but it’s most basic – supply and demand. What happens when demand for something is greater than the supply? The price goes up. There are certainly a number of other factors in play in our marketplace that are holding home prices low for now, but depending on where you’re looking to purchase a home, you may actually note that homes are being sold for greater than the listing price or that there has been some slight appreciation in recent months.

There are truly some excellent deals to be made out there today and you could be living in the dream if you’re in a position to buy your first home today. Want to learn more about buying your first home in Minnesota? Need down payment assistance or a first time home buyer program to help you? Contact Carrie Guarrero today to get started or attend our monthly First Time Home Buyer Class.  Our next class is held Thursday, December 15th from 6:30-8PM.  You can register for this next Minnesota First Time Home Buyer Class by calling 952-808-0042 or register online now.