Minnesota First Time Home Buyers

Listen To Me On The Radio!

Steve Howe — Tue, 10 Nov 2009 20:10:29 +0000

I have another appearance on my Team’s Radio Show on 100.3 FM, KTLK on Saturday, November 14 at about 11:00am.

I’ll probably be talking about the new Tax Credit Extension and our upcoming Home Buyer Classes.

If you want to listen this weekend, just tune your radio to 100.3 FM, or you can stream the station on iHeartRadio or KTLK’s Website.

The Minnesota Real Estate Show is every Saturday from 10:00am-12:00, hosted by Ryan O’Neill, Scott Wholmering, Kelly Guest and Cornerstone Mortgage.

2010 Home Buyer Tax Credit

Steve Howe — Fri, 06 Nov 2009 17:42:12 +0000

Here are the details you need to know about the 2010 Home Buyer Tax Credit. Many aspects are identical to the 2009 First Time Home Buyer Tax Credit, but a few key changes have been made, including a separate Credit for Repeat Home Buyers to take advantage of. As soon as the legislation is signed by President Barack Obama, the new parameters apply.

Remember these are Tax Credits through the Internal Revenue Service (IRS). The Mortgage, Real Estate, and Title Companies are not involved with filing for or dispersing payment of the Tax Credit. For detailed questions please consult a Tax Professional.

Common Aspects of Both Credits:

Income Limit of $125,000 for single buyers and $225,000 for couples
Applies only to Owner Occupants (no rental properties allowed)
Contract for the sale must be signed by April 30, 2010 and must close by June 30, 2010
Applies to any 1-4 Unit Properties
Credit is Refundable, which means it’s added to any other tax refund you receive
Eligible Buyers can amend their 2008 or 2009 Tax Returns to receive the Credit faster
Must live in the home for 36 months, otherwise the credit is repayable upon selling

Requirements for First Time Home Buyer Tax Credit:

Must have not owned a home for the past 36 months (applies to both, if buying jointly)
Credit will be given for 10% of the Sale Price or $8,000 (whichever is lower)
All Other Requirements from Common Aspects

Requirements for Repeat Home Buyer Tax Credit:

Must have owned a home and lived in it for 5 out of the last 8 years
Credit will be given for 10% of the Sale Price or $6,500 (whichever is lower)
Sale Price Limit of $800,000 for the Property
All Other Requirements from Common Aspects

Would you like to learn more about buying your first home? Don’t wait – Get Educated Today!

Steve Howe is a licensed Realtor in the state of Minnesota, and specializes in First Time Home Buyers. Don’t begin the process without getting the facts first. You can subscribe to his blog via theRSS feed, or contact him to receive exclusive information on buying your first property.

Crunching The Numbers

Steve Howe — Tue, 03 Nov 2009 21:16:20 +0000

Most of us learned a little about Supply and Demand back in school. I even remember doing a mini-musical about simple economics in 6th Grade Social Studies. And yet the concept of Supply vs. Demand gets lost in emotion and motivation when looking at buying a home.

I wanted to take some time today and analyze a few housing numbers from the Twin Cities area for your benefit. There’s an old thought that goes something like, “once something is popular, it’s already out of style” which means if you wait until everyone else jumps on the bandwagon first, you probably won’t have any room to hop on yourself.

That’s a little bit similar to what the Twin Cities Housing Market has been like for First Time Home Buyers this past 12 months. Back in the winter of 2008-2009 it wasn’t trendy to buy real estate, but after the 2009 Obama Stimulus Bill passed in February 2009, which included the $8,000 Home Buyer Tax Credit, it became popular to go house hunting for your first property.

With the Tax Credit Deadline of Nov. 30th, a lot buyers waited until late summer or early fall to act, which meant there was a lot of competition in lower price ranges. While a lot of new buyers thought they were going to get a great deal and close fast, they were rudely greeted by a swarm of buyers and shrinking inventory, which added up to a ton of headaches for them (and their agents).

So here’s the scoop – the numbers will tell the story of why it’s been such a crazy market for the past few months. The summary: more buyers, less houses.

For the full report visit the MPLS Realtor Site here. All data by the Minneapolis Association of Realtors.

RED – 2008 BLUE – 2009

(Note: since most first time home buyers will be buying under the $150,000 range, we’ll focus on those price points)

Number of Homes on Market – October 2008 and 2009

Months Supply of Homes on Market – October 2008 and 2009

Number of Homes Sold – October 2008 and 2009

Steve Howe is a First Time Home Buyer Specialist working with the Minnesota Real Estate Team. If you have questions about owning your first home, or would like to get more information about the process, fill out the contact form to receive Tips and Advice on getting a loan, searching for properties, and writing an offer.

Subscribe via the RSS feed to keep yourself updated on topics in the real estate market. Thanks for reading!

Home Buyer Tax Credit – Extension Coming?

Steve Howe — Mon, 02 Nov 2009 19:30:28 +0000

There’s been much talk between the Senate and Congress over the past couple months about extending or expanding the Home Buyer Tax Credit of $8,000 which expires on November 30th.

Last week, several reports were that the terms of a bill were “agreed upon” but not voted on or signed yet. Many Realtors and Loan Officers started calling their clients and letting them know the Tax Credit would be extended, but did they act too soon?

Most articles last week stated that the bill would pass sometime last week, or early this week. Well, there are still some reports that the terms may be up in the air, and some changes to the Tax Credit could still be possible.

I guess the bottom line is that until something passes and is signed into law, I wouldn’t count on anything. There have been so many possible extensions proposed, it’s hard to say definitively what will happen before it actually goes down.

So for now, you can keep checking back here until something is official from Congress. As soon as it happens, the MN First Time Home Buyer Blog will lay out all the details you need to know.

Thanks for reading, be sure to email or call with any questions you have.

FHA Loans – Beware

Steve Howe — Tue, 27 Oct 2009 20:05:05 +0000

This isn’t meant to scare anyone, but if you’re a First Time Home Buyer in Minnesota (or any other state for that matter) you need to be aware of some loan details that may derail your home purchase.

Getting a loan insured by the Federal Housing Administration (FHA) means you only have to put 3.5% down on the purchase price which is beneficial to a lot of First Time Buyers, but this advantage comes with a couple string attached.

The most important thing to note is that FHA typically has tighter appraisal standards, which means the house has to be in better physical condition than it would have to be for a Conventional mortgage appraisal. If you make an offer on a house in bad shape – usually a foreclosure or short sale – and the FHA appraisal comes back negative, you may have some trouble on your hands.

The key issues that an FHA appraisal might be rejected for are:

Plumbing
Electric
Foundation
Water Heater

If there are any issues with these utilities you may not be able to use a normal FHA mortgage.

You may have the option of using an FHA 203k loan, which is a rehab loan for FHA buyers that can help push the sale through, and actually finance the repair costs into the loan rather than coming up with the cash to fix them.

I’ll post later this week on the FHA 203k details, but for now be aware that even though FHA is a great program for new home buyers it comes with a few caveats.

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.

What Happens Between Acceptance and Closing?

Steve Howe — Mon, 19 Oct 2009 19:35:37 +0000

One question I get from First Time Home Buyers in Minnesota is “What do we need to do now that our offer has been accepted by the seller?”

This is a very fair question, since it would seem that by getting pre-approved for a mortgage and searching for the home would be most of your “work” in the process.

However, after you get an accepted offer it is important to know a few things. Your Earnest Money will be withdrawn from your checking account and held by the listing company until closing. Unless you back out for any undisclosed reasons, that money will go towards your down payment or closing costs when you settle.

If you have an inspection contingency, you’ll need to hire and schedule an inspection to take place on the property. This should be done asap in most cases, in order to not miss your inspection timeline within your contract.

At the same time, your lender will be processing paperwork, and will most likely need to gather more documents from you in order to submit the file to their underwriter. It’s important to obtain and submit these documents as soon as you can so that the lender has enough time to process things prior to closing. Most delays in today’s closings happen because the lender needs more documentation or time to push the file through. So don’t delay!

Once you get closer to the date of closing, you’ll need to line up the utilities into your name: Water, Garbage, Gas, Electric, Cable, etc. Have them setup the utilities in your name for the day of closing–but not before! You don’t want to be liable for any unpaid or delinquent bills or fees.

Lastly, you’ll setup a final walkthrough in the house to make sure the property’s condition is as you expected, and obtain a Cashier’s check for the final due amount of your down payment and closing costs.

That’s pretty much it, and you can come to closing to purchase your new home!

Obviously there are small details along the way, so make sure you always ask questions if you are confused on what the next step is. For my clients, I’ve created a simple checklist of what to expect in this time period so they are aware of their duties and the process. Good Luck!!

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 Buyer Class – November 19th 2009

Steve Howe — Sat, 17 Oct 2009 19:42:05 +0000

November 19, 2009
6:30 pm	to	8:00 pm

REGISTER HERE

Buying a home is obviously a huge decision. Amazingly, most people don’t spend too much time educating themselves on the home buying process. Instead, they rely on the advice from friends, family, co-workers, or the first Real Estate Agent 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 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 in order to help you with the biggest financial decision in your life. If you’re a fan of a low-pressure and laid-back atmosphere, you’ll feel right at home.

Our two presenters - Steve Howe and Darcy McDonald - 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 MN should come on down to one of our monthly seminars.

Here’s the info:

What – First Time Home Buyer Class
Where – Cornerstone Mortgage; 436 Gateway Blvd, Burnsville, MN
When – Thursday November 19th, 6:30-8:00pm

Future Dates in 2009 are: December 17.

Space is limited so please REGISTER HERE.

Eight-Thousand Dollars is not worth it

Steve Howe — Thu, 24 Sep 2009 20:11:01 +0000

Most of you searching for details on whether there will be an extension of the $8,000 Federal First Time Home Buyer Tax Credit are probably reading and hearing what I am–who knows?!?

As of late September 2009, there is no official bill in Congress or Senate that will extent the Tax Credit, or replace it with a similar style plan. For that, we will just have to wait and see.

What I can tell you right now, is that if you’re reading this before November 30th, 2009 and haven’t signed a contract for the purchase of a home: Stop Chasing 8,000 Dollars.

I know, I know…Eight Grand is a lot of money to a lot of people, particularly young buyers looking to get a nice deal on a home. But what I am seeing in the Minneapolis and St. Paul Housing Markets right now is that the “good deals” are few and far between. Specifically, there are fewer nice houses available for low prices, and those that remain are literally gobbled up in a matter of hours after being listed.

What does this really mean? It means if you’re chasing $8,000 to try and close on and be eligible for the Tax Credit, you are going against a TON of competition.

So, my advice to you if you’re not currently approved for a loan or under contract with a seller to buy their home: Wait.

Whether that’s 3 months, 6 months, or a year–just wait it out.

Here are the 5 main reasons I feel you would be better served to wait:

1) The $8,000 Tax Credit may be extended or even expanded in 2010. While it’s hard to predict the future, there remains the possibility that a similar program exists next year for people buying homes. No telling how much money or what the guidelines will be, but you could still get some extra bonus money if things work out in Congress.

2) The competition is too stiff right now. Under the price point of $150,000 the twin cities market is actually a seller’s market, which means prices are stable or even rising in a few areas. This means more buyers than available houses listed for sale. The result is much more difficult buying experience.

3) Fix-up and Down Payment Funds are dry right now. Multiple cities and counties around the metro area have rolled out programs to help buyers fix-up properties or even assisted in buyers’ down payments this year. Unfortunately with the current economic climate, many of these programs are simple out of funds. This is likely a result of more buyers entering the market this year, and in some cases these programs will be available again at some point down the road.

4) More time means more saved up money for you. A lot of buyers I have met during the past 6 months have had very little money saved up for down payment and closing costs. When buying your first home there are a lot of costs you need to be aware of, and many buyers have been getting “gifts” from family/friends in order to afford the property. In my opinion, you may actually benefit from waiting 6-12 months in order to save up some more cash to help with these costs. That way if you have something to fix unexpectedly in the house, you’ll be better able to handle it financially.

5) Forcing yourself into a house can end up costing you much more than $8,000. If you push yourself into buying so you can get this $8,000 Tax Credit, you may just be buying a big problem. Being desperate can come back to bite you hard in the end, so by forcing things right now, you could find yourself paying much more later on in repairs, legal fees, etc. This is the main reason I am advising people to wait until next year.

Remember, there will always be another home that fits your needs. And by waiting for a less competitive market you may actually get a better deal on a property than someone who hurriedly buys now simply to “cash in”.

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!

If you’re thinking about buying a home, make sure you get the facts. Now is a great time to make a first home purchase. Contact me, Steve Howe, for more information and start the process today.

First Time Home Buyer Class – October 15th 2009

Steve Howe — Fri, 18 Sep 2009 21:03:11 +0000

October 15, 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.

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.

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

Here’s the info:

What – First Time Home Buyer Class
Where – Cornerstone Mortgage; 436 Gateway Blvd, Burnsville, MN
When – Thursday October 15th, 6:30-8:00pm

Future Dates in 2009 are: November 19, December 17.

Space is limited so please REGISTER HERE.

Expect the Worst

Steve Howe — Thu, 17 Sep 2009 04:31:46 +0000

No, I’m not talking about being pessimistic when buying your first home, but in today’s market in the Twin Cities of MN there are a lot of crazy things that can happen throughout the process.

The most common thing I’m seeing while searching with 1st Time Home Buyers is that properties are literally flying off the shelves. Homes are being listed and getting offers submitted almost the same day. So when you think you’re headed out to see 7 available properties, you may only see 3 that could still be purchased.

The second most common thing to be aware of today is that the Lending process is rocky. Their standards are changing almost daily, and the reputable companies are having a tough time keeping up with the new regulations as well as educating and serving their clients to the best of their abilities. Because of these factors, you need to be patient, flexible and understanding.

What happens when you expect the worst? Well, two things could result. The first would be that you never try anything, and the worst thing happens…NOTHING! The second possibility is that by expecting the worst you won’t be as disappointed if things don’t happen the way you anticipate, or you could be surprised and delighted if things go fine.

Let’s be clear: Home Ownership was abused by many sellers, buyers, brokers, banks, and builders alike back in 2000-2006. I’m not blaming anyone for where we are today, but you need to be understand these higher loan qualifications are to protect everyone – yourself included.

If you have questions about the market, please give me an email or a call and I will steer you in the right direction.

Best of Luck as always!

Minnesota First Time Home Buyers

Listen To Me On The Radio!

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