Not Available For All Buyers

Not Available for All Buyers - 2/26/2017 

Lenders regularly publish mortgage rates but they may not be available for all buyers.

Imagine that the mortgage payment based on an advertised rate influenced a buyer to make an offer on a home. After negotiating a binding contract, this buyer makes a loan application and finds out that for any number of possible reasons, that rate isn’t available.

Even if the person does financially qualify for a loan at a higher interest rate, it will not be the payment that the buyer expected when the contract was negotiated.

Lenders evaluate several factors such as the borrower’s credit score, debt-to-income and loan-to-value ratios. These variables are used to assess the risk associated with the repayment of the loan.

While mortgage money is a commodity, it isn’t priced the same way items are that involve cash for goods. The lender puts up the money today based on a promise from the borrower to repay over a long term, possibly up to thirty years.

The simple solution to avoid surprises such as the one described here is to get pre-approved at the beginning of the home search process. Since pre-qualification does not mean the same thing to all lenders, call if you’d like a recommendation of a trusted mortgage professional.

Source: http://www.betterhomeowners.com

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Homes for Sale: What $350,000 can buy around the Twin Cities

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Andover

Built in 2000, this six bedroom, four bathroom home has 3,640 square feet on a third of an acre.  This home features a large updated kitchen, three bedrooms on the upper level, a new roof, new siding and a three-car garage.

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Brooklyn Park

Built in 2005, this four bedroom, three bathroom home has 2,736 square feet.  This home features four bedrooms all on one level, upper-level laundry, granite countertops with a huge center island, an unfinished basement and a three-car garage. 

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Maple Grove

Built in 1989, this four bedroom, three bathroom rambler has 2,518 square feet.  This home features 3 main level bedrooms and two main floor bathrooms, a walk-out basement and an oversized two car garage.

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New Brighton

Built in 1985, this four bedroom, four bathroom home has 2,813 square feet, located in a cul-de-sac.  This home features hardwood floors throughout, 4 bedrooms on one level, a walk-out basement, and an oversized two car garage.

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Saint Paul

Built in 1999, this four bedroom, four bathroom home has 3,002 square feet, located in a cul-de-sac.  This home features a four car garage, a workshop underneath the garage, a large kitchen, and a private lot with mature trees.

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Homes for Sale: What $250,000 can buy around the Twin Cities

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Blaine

Built in 1975, this four bedroom, two bathroom home has 1,856 square feet.  Completely renovated home features updated bathrooms, stainless steel appliances, large master suite and a 2 car garage.

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Brooklyn Park

Built in 1995, this four bedroom, two bathroom home has 2,122 square feet, in a convenient location.  It features an open floor plan with a vaulted Living Room, Dining room, and Kitchen.  Also features an over-sized 3 car garage.

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Hopkins 

Built in 1951, this three bedroom, two bathroom home has 1,638 square feet.  Completely remodeled gorgeous home.  It features stainless steel appliances, hardwood floors, finished basement and close to major highways.

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Minneapolis

Built in 1911, this four bedroom, four bathroom home has 3,027 square feet. The home features a chefs kitchen, hardwood floors, wood stove, finished lower level and a detached two car garage.

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Saint Louis Park

Built in 1911, this three bedroom, two bathroom home has 1,720 square feet. The home features an updated kitchen, hardwood floors, finished lower level with a kitchenette.

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3 Reasons You Should Sell Your Home in 2017

If you have been sitting on the fence about selling your home, or think you should wait until Spring to sell your home.  It's time to jump off the fence, now is the time.  "2017 is shaping up to be the year of the home sellers", says real estate experts.

"Sellers have been in the driver's seat for the last two years, but this year is shaping up to be even better for several reasons" says Jonathan Smoke, the chief economist of Realtor.com.

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Here is what is driving such a hot sellers market in the Twin Cities.

1. Inventory Shortage

This is the classic supply and demand effect.  When inventory shrinks, available  homes become more valuable, and that's a great thing for sellers.

To put it into perspective, in July of 2007 the Twin Cities hit a peak of 35,906 homes for sale, and as of January 2017 there were only 8,212 homes for sale.  Down 25% from January of 2016, and down over 77% since the peak before the financial crisis. 

Smoke says, "Quite simply, sellers this year have the least competition". 

Not only are their fewer homes on the market, but those homes are spending a shorter amount of time on the market, which has always been a top worry for sellers.  Twin Cities median days on market showed a decrease of 19.5% since this time last year.

Smoke also says, "Many potential sellers don't want to think about having to prep a home for showings and deal with an indefinite period of having to keep things in perfect shape.  Fast moving inventory limits that pain."

2. Mortgage Rates are Still Low

Low rates, means lower monthly payments which brings out buyers, another positive for sellers.

Mortgage rates have been on the rise since this past October and experts are predicting rising rates throughout 2017.  Experts predict mortgage rates to rise close to 5% by the end of the year.  Another reason to sell sooner than later, so you can also capitalize on the low rates.

Others have predicted that if rates do go above 5%, home values will come down.

3. Home Prices are on the Rise

With such low inventory and a buyer demand that is outpacing current inventory, we are seeing home prices increase.  In the Twin Cities the Median Home Price has risen to $232,900 a 5.9% increase since this time last year.

"Higher prices particularly benefit the sellers whose property value plunged during the recession, sometimes to less than they owed.  Thanks to steady rising prices over the past few years, many homeowners who were underwater can now sell without suffering a big loss.


If you're wondering what your home is worth today, Call 763-331-4775/email Scott.Swennes@results.net or Click Here, for your free home value evaluation!