Sunday I was showing properties to my buyer when they walked into the house of their dreams (pic above, house in Minneapolis) and decided to make an offer on it. Monday morning we found out that their was a murder that took place in the home in 1978.

The state of MN law requires sellers to disclose suicide or murder in a property. My buyers decided to back out this morning due to a fear that the house would be haunted!

They just could not see themselves living in a home where someone was murdered.They asked me if I could live there and I really don't know. If it was 30 years ago and it was not highly publicized, I don't think it would bother me, but then again, I was not considering buying it! If it was your dream home would you still buy it? Let me know!

Holli@HomesbyHolli.com

Mortgages

Gone are the days when you just had to fog a mirror and the banks would beat down your door to give you a loan. However, it's still relatively easy to get a mortgage for anyone who should get a mortgage.

The banks have tightened their lending standards and are looking much harder at the borrowers credit-worthiness and also at the home for true market-value and the health of its marketplace.

Several things to consider when evaluating your chances of getting a mortgage

• Credit - banks are looking for borrowers who make their payments on time (rent, utilities, credit cards, ...). As long as you make your payments on time, your credit score should not be a problem.


• Downpayment - zero-down programs are getting harder to find. They still may be out there but realize the less you put down, the higher your interest rate will be. Many banks require 3% or more down for you to secure a good interest rate. 10% down for investment (non-owner-occupied) properties and 20% down to avoid paying Private Mortgage Insurance (note - PMI is currently tax-deductible for many borrowers and is temporary, often lasting five years or less)


• Type of Loan - FHA loans still allow 3% down which may even be a gift from a relative


• First Time Home-Buyer Programs - talk with your mortgage professional about programs local communities, state or federal government have available for first-time home-buyers


• Neighborhood - banks are asking their appraisers to look hard at the neighborhoods borrowers are purchasing in to ensure (a) there isn't a gross oversupply of homes and (b) the prices are relatively stable. If either of these items are not met, they will likely require a higher downpayment to lend $$ for that home.


• Time in Home - If you plan on being in a home for five years or less, think twice about purchasing. The recommended minimum is 7-10 years to ensure you can sell and at least break even. The crystal ball is quite cloudy for predicting how home values will perform in the next few years.

Finally, a couple parting thoughts... negotiate to get the best possible price on your home and remember, it's not a matter of timing the market, what's important is your time in the market.

Now go out and take advantage of those deals!

Yesterday I went to do an open house in Coon Rapids that I had scheduled from Noon to 2 pm. Thankfully I remembered that it was daylight savings time because the seller of the property reminded me of it a few days before. I was right on time arriving to the home and I walk in and my seller was cleaning. I said...."Hey! Are you going to leave?"
She said...."Well yeah, but not for another hour, why are you so early?"
Ta da...whoops! It was Sunday, the day of daylight savings time. She frantically left and got out of the house. Turns out that it didn't really matter because I had no buyers come thru the open house.
I watched 2 hours of TV on my seller's couch! Sometimes it is fun to hang out in other people's home, but I was glad when it was over.
Hopefully you all remembered to turn your clocks ahead an hour and were on time for work today! But would it really matter anyway if you were an hour late? Probably not.

A Perfect Storm





In a philosophical moment as I was waiting for the light to turn green, I thought about the stroke of luck that has made home-ownership possible for many people who a few years ago couldn't afford a home.

• Several factors have lined up at the same time to bring about this great occurence for people. Rates are down to almost record lows (around 6%)Prices have fallen 2-5% or even more in some areas
• There are LOTS of homes to choose from
• Mortgage laws now protect buyers by prohibiting lenders from lending more to buyers than they can afford

All this has happened at once, a confluence of events, the crossing of the streams, a rabbit from the hat, ... With the result that home affordibility is at the highest point it's been for years!


If you are thinking of buying a home, now is a great time to "buy low"! It truly is a perfect storm!