First Time Home Buying Class – July 23
| July 23, 2009 | ||
| 6:30 pm | to | 8:00 pm |
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*REGISTER HERE*
Buying a home is obviously a huge decision. Amazingly, most people don’t spend much time educating themselves on the home buying process. Instead, they rely on the advice from friends, family, co-workers, or the first Realtor they meet at an Open House.
That’s where we come in. This free and very informative 90 minutes will give you the tools you need to start the Loan Pre-Approval Process, and begin the search fora home – the smart way. If you think home ownership is right for you, or if you’re just interested in learning more about the Twin Cities Housing Market, you need to come to this class.
This is not a “Sell-a-thon” like some other seminars on home buying. It’s totally free, we have no products to sell you, and there’s no documents to sign. We’re all about educating buyers to help you with the biggest financial decision in your life. If you like low-pressure and a laid-back atmosphere, you’ll feel right at home.
Our two presenters - Steve Howe and Alec Grebis - have teamed up to give you the full spectrum of buying your first house in the Buyer’s Market today. Learn how getting the right loan can save you Thousands of dollars a year.
Some of the topics we will cover include:
- First Time Home Buyer Tax Credit
- Credit Score Ratings
- Down Payments and Loan Qualification
- Special Mortgage Programs for First Time Buyers
- HOP and Fix-up Money
- Writing and Negotiating Offers
- Closing Process
- and Much More
If you are thinking about buying a home in the next 2 years we would love to answer your questions and help you make a solid home purchase, without paying too much. Anyone in the Minneapolis – St. Paul area of Minnesota should come on down to one of our monthly seminars.
Here’s the skinny:
- What - First Time Home Buyer Class
- Where - Cornerstone Mortgage; 436 Gateway Blvd, Burnsville, MN
- When - Thursday July 23rd, 6:30-8:00pm
Future Dates in 2009 are: August 13, September 17, October 15, November 19, December 17.
Space is limited so please REGISTER HERE.
100 Posts
Seems like almost yesterday that I started writing about tips and advice for First Time Home Buyers in MN. Well, here we are today and if you’re reading this, then there are 99 prior articles at your disposal to help educate you on the home buying process and programs for first time buyers.
As I write this blog post, I am reminded why I started this blog.
The Real Estate Business is a funny game. As an agent, we are taught to be both savvy business-people and also representatives of our clients’ best interests. It’s a hard juggling act sometimes, and more often than not the business side wins, and the counselor side loses.
An example would be that Agents are only worried about making more money, and not concerned with really helping their buyers and seller. This can be seen when an agent just goes after the highest price listings or buyers in order to make more money without having to work as much.
Part of my personality is to be true to myself and not let people down. Because of this, I have taken it upon myself to try and really educate as many new buyers as I can – regardless of whether they end up working with me or not. My reasoning is that the smarter people are about their real estate purchases, the more likely we are to climb out of this housing market abyss that has been created by a lot of misinformed people in the past.
So, by writing about my experiences several times a week and trying to make people more informed, I feel that I am both helping my business grow and more importantly helping the public learn about the real estate market.
It’s also worthy of note that most people who begin blogging only last a few weeks, or post so seldom that their websites never really gain any readership or credibility. With your help and comments I’ve been able to stay afloat for this long, and I don’t think things will be slowing down anytime soon.
With the $8,000 Tax Credit and lower interest rates still enticing buyers to start the process, I feel pretty confident that we will see a stabilization in the Twin Cities housing market this year, and continue to make our way towards a future appreciating market in 2010 and beyond.
Thanks for reading. And please leave a comment or question on any article you find interesting.
See you at post 200+…!
Don’t Wait for November 30th
November 30th will be a very pivotal day in America. This is the date that the $8,000 First Time Home Buyer Tax Credit will expire for the Obama Stimulus Bill in 2009.
Under the current plan, buyers must close (or “settle”) on their home on or before this date in order to be eligible for the $8,000 tax credit. Here are a few problems with waiting around until later November to take action on buying your first property:
- Nov. 30th is a Monday. If you know anything about the business world, it’s that Mondays are typically used for easing into the workweek, and catching up from the weekend of no activity. So, if we just take into account the day of the week, things would promise to be busy no matter what else was going on in the real estate world.
- Nov. 30th is the last day of the month. I know this seems like I’m stating the obvious, but a lot of things happen at the end of the month. Banks want to get their books straight before the next months rolls in. Payroll is getting ready to go out from employers. People are moving out of their leased home and into another property. Bottom line: ends of months are busy times. Combine this with the last day for closing and I bet things will be hectic.
- November 26th is Thanksgiving. That’s right. 4 days before the breaking point of $8,000 or no $8,000 we have a MAJOR American Holiday that usually means a couple things: people take a long weekend Thursday thru Sunday in order to travel and be with family, and very little business is ever done. So if you’re going to wait until the last minute you can almost guarantee that nothing will get done over that weekend, unless the people working for you have no families or take vacations.
As you can see, there are a few very nasty factors that were not taken into account when putting this Tax Credit together. Another thing to be mindful of is that buying a home takes time. It’s not like walking into Best Buy and picking up a copy of Michael Jackson’s Greatest Hits (Vol. 8). Loans can take weeks or months to process. Title Work can take weeks to get done. Files have to be shipped back and forth for signatures, and on top of all that you actually have to search for and find a home that fits your needs.
My point is that if you are a First Time Home Buyer, and an incentive to buying a home in 2009 is the Eight Thousand Dollar Tax Credit, you had better get moving. If you wait until the last minute you may be in jeopardy of losing Eight Grand – plain and simple.
Read my post on How Long it Takes to Buy a Home for more information. If you’re reading this and don’t know what the first steps are, just email me or call and I can point you in the right direction. Just don’t wait and pray that things will work out in the end.
This is My House…
…Haha – Just Kidding! I wish it was my house, because this house was HUGE.
It may be hard to tell from the outside, but this house was in bad shape. Very bad shape, in fact. Toilets missing, lighting ripped out, missing appliances, poor paint jobs, and some bad water leaking in the halfway finished basement.
I guess that goes to show you: ya can’t judge a house by it’s exterior.
Don’t make too many pre-judgements before going into a house for a showing. You may think it’s the perfect house for you, but could be unpleasantly surprised upon entering. Which brings up another point – don’t ever try to buy a house sight-unseen, especially if you are a MN First Time Home Buyer. You’ll be buying more than you bargain for, if the house is anything like this one was.
Take advantage of this Buyer’s Market! Learn how to buy your first property today!
Steve Howe works with First Time Home Buyers in Minnesota. As a part of the MN Real Estate Team, he specializes in guiding new buyers through the real estate transaction. Attend a free First Time Buyer Seminar to get started today!! You may also want to Subscribe to the RSS Feed. Thanks for reading!
Lots of BPO Requests Coming In
For a full explanation of what a BPO is, read my BPO Word of the Week Post.
I am signed up with a company to receive notices of when new BPO’s are being ordered by banks so they can determine the market value of a property. Most times, I will get an email request for one of these BPO’s every few days.
In the month of June alone, I have received over 45 requests for BPO’s in the Twin Cities area just from this one company. What does that mean? It means more bank-owned properties will be coming onto the market in the coming weeks and months.
After a bank takes over a home via Foreclosure, they have several things that need to be done before it’s re-listed on the housing market. These items (which I won’t go into here) can take a few weeks to a couple months. Only after they are done clearing title and getting things transfered over into the bank’s name do they complete this BPO in order to find out it’s value.
So, the recent influx of BPO requests tells me that more and more REO properties are coming soon. That will help with the multiple offer situations we’ve been having this spring, and level off home prices rather than escalating prices slightly.
This combined with the November 30th expiring Tax Credit for First Time Home Buyers, and I think we’re going to see a very busy summer and fall in the Minneapolis / St. Paul Real Estate Market.
I guess we’ll have to wait and see when all these homes come on the market. Stay tuned for more properties!
If you want to learn more about what your buying power will be make sure to subscribe via the RSS feed.
Buying your first home? Want to start the process but don’t know how? A smart buyer turns into a happy home owner. Steve Howe specializes in First Time Home Buyers in the Twin Cities area of Minnesota. Learn how he can help you buy your first property without paying a commission fee.
Is There a State Tax Credit?
Currently there is no MN State Tax Credit for First Time Home Buyers.
This is often confused with the Obama Federal Tax Credit for First Time Buyers under the 2009 Stimulus Act. I have gotten repeated phone calls and emails lately from people who want to know how much the state tax credit is.
The Federal Tax Credit is $8,000 and is refundable, which means if you were going to owe $2,000 in Federal Income Tax, the credit would take care of that $2,000 and then you would get a refund of the remaining $6,000.
If you were going to receive a credit of $2,000 already, then the tax credit would be added onto that amount and you’d actually get $10,000 total in your Income Tax Refund. Pretty cool, huh?
Remember that this is money coming from the Internal Revenue Service (IRS) and not the Lender, Real Estate Broker, or Seller. You have to file the paperwork with the IRS in order to receive the payment, but not until after you close on the property.
Also note that FHA has said they will allow the Anticipated Tax Credit to be used as Down Payment money for buyers, but the money has to be borrowed from a non-profit or government agency in order to do so, and currently no one in MN is doing this. So you’ll have to wait until after you buy the house to receive the Tax Credit funds.
Bottom line is that there is no state tax credit (at least not in Minnesota).
There are several down payment and fix-up money programs that we have access to in the state and local areas, which is often what people confuse the term “tax credit” with.
If you’d like to learn more about those programs or the $8,000 credit, sign up for our next First Time Home Buyer’s Class and we will get you informed.
Would you like to learn what your Buying Power is? Get the facts on the Real Estate Market today!
For more information on First Time Home Buyer Programs and Tips of how to purchase your first property, contact Steve Howe with the Minnesota Real Estate Team. We have been the #1 Team in MN for ‘06, ‘07, and ‘08. We would love to help make your dreams of home ownership come to reality. Fill out the Contact form to receive exclusive info, or Subscribe to this blog via the RSS feed. Thanks for Reading!
First Time Home Buying Class – June 18th 2009
| June 18, 2009 | ||
| 6:30 pm | to | 8:00 pm |
*REGISTER HERE*
Buying a home is obviously a huge decision. Amazingly, most people don’t spend much time educating themselves on the home buying process. Instead, they rely on the advice from friends, family, co-workers, or the first Realtor they meet at an Open House.
That’s where we come in. This free and very informative 90 minutes will give you the tools you need to start the Loan Pre-Approval Process, and begin the search for home – the smart way. If you think home ownership is right for you, or if you’re just interested in learning more about the Twin Cities Housing Market, you need to come to this class.
This is not a “Sell-a-thon” like some other seminars on home buyer. It’s totally free, we have no products to sell you, and there’s no documents to sign. We’re all about educating buyers to help you with the biggest financial decision in your life. If you like low-pressure and a laid-back atmosphere, you’ll feel right at home.
Our two presenters – Steve Howe and Alec Grebis – have teamed up to give you the full spectrum of buying your first house in the Buyer’s Market today. Learn how getting the right loan can save you Thousands of dollars a year.
Some of the topics we will cover include:
- First Time Home Buyer Tax Credit
- Credit Score Ratings
- Down Payments and Loan Qualification
- Special Mortgage Programs for First Time Buyers
- Writing and Negotiating Offers
- Closing Process
- and Much More
If you are thinking about buying a home in the next 2 years we would love to answer your questions and help you make a solid home purchase, without paying too much. Anyone in the Minneapolis St. Paul area of Minnesota should come on down to one of our monthly seminars.
Here’s the skinny:
- What – First Time Home Buyer Class
- Where – Cornerstone Mortgage; 436 Gateway Blvd, Burnsville, MN
- When – Thursday June 18th, 6:30-8:00pm
Future Dates in 2009 are: July 23, August 13, September 17, October 15, November 19, December 17.
Space is limited so please REGISTER HERE.
What Happened to this Short Sale House?
This was a Short Sale listing in Hopkins, MN. It’s clear that the owners have left this property behind and don’t care whatsoever if it actually gets sold.
Unfortunately, this isn’t the messiest house I’ve been in over the past month, but it still makes me sad a little bit to see the disrespect that people have for their properties.
If nothing else, this sort of scene reminds me that home ownership is a privilege, not a right. If you’re up for the challenge, I’d be happy to help in your real estate goals.
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Word of The Week: BPO
Oh, the wacky world of real estate always love to confuse people with acronyms anonymous.
However, that’s why I’m here to help clear the confusion for you.
BPO simply stands for Broker’s Price Opinion.
This is when a Real Estate Broker (or agent) analyzes the neighborhood and give a price opinion on a particular house’s value. This is slightly different than a Comparative Market Analysis (CMA) or an Appraisal which are used to determine values in other cases.
A BPO is generally used by banks when they are preparing to list a Bank-Owned Property for sale, or they are pressed with approving a Short Sale.
What goes into a BPO?
A BPO consists of at least 3 recently sold properties, and 3 active listings currently on the market. The goal of the BPO is to give the bank a good estimate of the current market value of a home. There are exterior and interior BPOs, which can sometime take into account any repairs and updates that need to be made for the home.
If the bank is looking at approving a Short Sale, this BPO is the main determining factor for whether they will say yes or no to the lower price.
A low BPO can ruin a Short Sale deal, and frustrate buyer, seller, and eventually the bank. If you are thinking about making an offer on a Short Sale listing, keep updated through your Realtor on whether the BPO has been completed and what the value came back at.
Would you like to learn what your Buying Power is? Get the facts on the Real Estate Market today!
For more information on First Time Home Buyer Programs and Tips of how to purchase your first property, contact Steve Howe with the Minnesota Real Estate Team. We have been the #1 Team in MN for ‘06, ‘07, and ‘08. We would love to help make your dreams of home ownership come to reality. Fill out the Contact form to receive exclusive info, or Subscribe to this blog via the RSS feed. Thanks for Reading!
$8,000 Buyer Tax Credit for Down Payment?
There have been some rumblings about being able to use the Obama Stimulus $8,000 Tax Credit for First Time Home Buyers as a down payment for a mortgage. When the Tax Credit first came out in the giant Stimulus Package, it was only available after the buyers closed on the property and then filed for the credit with the IRS.
Under a recent news release on HUD’s website, it seems that FHA mortgages will be eligible to get access to the money before they actually close on the house, which could be used for a down payment or help with closing costs.
While this may be music to some hopeful buyer’s ears, there’s a catch: there are no Minnesota non-profit or government organizations that can access the funds.
This is basically a case of ideas becoming reality faster than the “system” can get setup.
So, for now, there is no way to actually get the Tax Credit before you close. But at some point over the next few months I anticipate that some agency will setup a way to help new home buyers get this money before they close.
Stay Tuned for more details as they emerge. Or, call / email me to inquire further.
