2008 December | South of the River News

December 26, 2008

What to Ask Your Lender

Filed under: Home Tips — Tags: mortgage lender — Nichole Fredrickson @ 10:55 am

Lenders are easy to find. A trustworthy, qualified lender is not as easy to find. As one of the single largest purchases you will make, you need to be sure you are getting a mortgage that is good for you. Finding a loan that fits you is imparative.

Here are a few of the things you will need to discuss with your lender:

1. What are the most common mortgages you offer?

2. Which type of loan is going to be the best for us and why do you suggest that loan?

3. When it comes to interest rates, closing costs and other loan fees, are any of them negotiable?

4. Is private mortgage insurance going to be required with my loan? If yes, is there a minimum time frame that is required to keep that mortgage insurance? How much with the private mortgage insurance cost me up front?

5. Will your company service the loan or will it be sold on the secondary mortgage market?

6. Will I be required to escrow insurance or property taxes? If yes, will I ever have the opportunity to discontinue that escrow?

7. How long is my rate locked in? What happens if rates go down before closing, but after I have locked my loan?

8. What is your normal loan approval process time frame?

9. How long after I get a fully executed purcase agreement before you will have the loan ready to close?

10. Will my loan have any prepayment penalties if sell my home before a certain date? What about if i refinance before a certain date?

All the questions above are important questions to ask to better understand your mortgage. The Minnesota Real Estate Team has had great experiences with the experts at MN Home Loan Partners. You can reach them at www.mnhomeloan.com.

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December 25, 2008

10 Questions to Ask Your Home Inspector

Having a home inspection performed is an option that every home buyer has when in the negotiation process of the purchase. Not only does a home inspection allow you to get a closer look at the home and any problems that the home may have, but it is a great way to get to know your new home.

Allow a few hours to go through the whole inspection process. Before you have your prospective home inspected, there are a few things to ask your home inspector.

1. Are you a current member of the American Association of Home Inspectors?

2. Are you licensed with the State of Minnesota as a home inspector? How long have you been licensed?

3. In the average year, how many home inspections do you perform?

4. In regards to insurance, do you carry Error and Omissions insurance? Can you provide a copy of your insurance policy?

5. Do you have a list of past clients that I can contact?

6. Do you provide any guarantees on your inspections?

7. What does your normal inspection cover?

8. Do you provide a full report after the inspection? How long until I receive the report?

9. How long do you expect the inspection to take?

10. How much does the inspection cost?

You want to make sure that the inspector you use is licensed, and well versed in the type of home you are purchasing (condo, single family home, duplex, etc).

We work with a number of excellent home inspectors that have done amazing jobs for our clients. Feel free to contact me if you would like the contact info for them.

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Low FHA down payment about to go away

Filed under: Important Real Estate News — Tags: Dakota County, FHA financing — Nichole Fredrickson @ 3:22 pm

If you are a first time buyer or planning on using FHA financing for your next purchase, you need to read Alec Grebis’s post about the looming change with FHA guideline changes. There are still programs available for home buyers purchasing in Dakota County. Alec Grebis with Cornerstone Mortgage is definitely your ‘go to’ guy for the Dakota County programs as well as a local expert in FHA financing. Please see his post at The Mortgage Scoop Blog. http://www.themortgagescoop.com/?p=217

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December 21, 2008

Elko New Market Rescue Squad

Filed under: Local Events — Tags: Elko New Market Rescue, Marek's Towing — Nichole Fredrickson @ 10:51 am

This morning I was reminded of one of the many reasons why small town living is so wonderful. After a quick trip into town, I drove by an auto accident scene. After recognizing one of the families involved, we stopped to let the kids stay warm in my truck while the mess was sorted out. Growing up in Elko New Market, you get to know most of the people!

While we sat with the 2 small children whose van was totalled, we listened to Christmas music and talked about how amazing airbags are. When the Elko New Market Rescue Squad pulled up, the little girl got a bit nervous. To my delight, the first two men responding were old friends. They eased her jitters and explained that ‘only cool kids get to sit in the fire truck’ to get checked out by the medical professionals.

The volunteers of the Elko New Market Rescue Squad are a bunch of great guys and gals. When accidents happen and you are already scared or hurt, it sure is reassuring to have these guys on your side. They help to relax the situation while providing incredible protection and help.

If this little girl wouldn’t have been made to feel so special and secure in the crazy situation, it would have only traumatized her worse. The whole squad goes at their job professionally and is great at taking the ‘trauma’ out of the situation.

Even better yet, the gang at Marek’s Towing, helped answer questions about the vehicles and is amazing at helping understand what will happen and gives the ones whose vehicles are being towed all the information they need to deal with insurance. Being locals themselves, it is nice to know you are being taken care of by friends.

Kudos to both Marek’s Towing and the Elko New Market Rescue Squad! They help make Elko New Market a great place to call home!

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December 18, 2008

Elko New Market Housing Affordability Index

Filed under: Real Estate Terms — Tags: Dakota County, Elko New Market, Farmington, housing affordibility index, Lakeville, Scott County — Nichole Fredrickson @ 6:22 pm

The experts agree, now is the time to buy. With the decline in mortgage interest rates last month to the five percent range, and now dropping even more, getting a mortgage is completely affordable. On top of historically low mortgage interest rates, the ‘median sales price’ of home in the south metro area is about 20 percent less than this time last year. That is now the lowest since the last quarter of 2001!!! Those two factors combine to make an extremely attractive housing affordability index. According to the Minneapolis Area Association of Realtors, the HAI (Housing Affordability Index) rose nearly 28 points from last December in the Elko New Market and Lakeville areas. That means the HAI is at 180, the highest point in the last 9 years.

When the HAI is up, that symbolizes a ‘good buy’ for buyers. Even though we have been experiencing a ‘buyers market’ for a couple years now, today is the best time to buy. If you have been waiting for the perfect time to buy your new home, it is GO TIME. With a wide inventory in Elko New Market, Lakeville, Farmington and other areas of Scott and Dakota Counties, you will find just what meets your needs. Feel free to contact me at Nichole@NicholeFredrickson.com for more information.

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December 17, 2008

Great Learning Opportunity

Filed under: Local Events — Tags: investment property — Nichole Fredrickson @ 10:15 pm

Last night, I was lucky enough to spend an hour and a half with some very intelligent investors. Once a month, Ryan O’Neill with The Minnesota Real Estate Team and Rob Bonahoom with Cornerstone Mortgage Company, host a free seminar about investment property ownership. They cover nearly everything you will need to know to actually aquireyour first property. The best part of the seminar is that it is absolutely NO PRESSURE! Plus Rob and Ryan have each successfully built their investment property portfolios using the knowledge that they share with the attendees.

If you have ever wanted to get involved with investment properties, and learn how to build wealth using real estate, without the hype or pressure, this is the place to start. Feel free to join us January 20th at 6:30. Again, the seminar is free and no obligation. It is held at the office of Cornerstone Mortgage Company in Burnsville, MN. Registration is highly recommended, please send an email to Nichole@NicholeFredrickson.com to reserve your spot.

If you already own investment properties and could benefit from more detailed information on how to maximize the potential of those investments, the IP 201 seminar is a great alternative for you. Scott Ficek, one of Minnesota’s leading investment property Realtors, shares his knowledge and expertise in a free seminar format on a monthly basis. The next seminar date will be announced shortly, so be sure to subscribe to the blog feed so you won’t miss the date.

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December 15, 2008

Carbon Monoxide Detector Law

Filed under: Home Tips — Nichole Fredrickson @ 8:54 pm

Some of you may have missed the buzz or simply ignored it when you heard it, but i thought now is as good of a time as any to remind you
Don’t worry, it isn’t that bad. The carbon monoxide alarms can be battery operated or plug right in to an outlet. Prices have come down on many of the units. In fact “Kiddie” and “Home Hero” brands have models available with the carbon monoxide alarm and smoke detector in one unit. “Kiddie” runs just under $50 and will fit in many of the standard smoke detector bases already attached to your ceiling. “HomeHero” is also just under $50 and is NOT hardwired, perfect for existing homes that still have the battery operated smoke detectors. You can find them at Home Depot which has stores in Burnsville and Apple Valley, as well as Shakopee.

The new carbon monoxide (CO) alarm law requires that “every single-family dwelling and every dwelling unit in a multifamily dwelling” have “an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes.” (See MN Stat. 299.51) This law was effective as of August 1, 2007 for newly constructed homes, and just became effective August 1, 2008 for all existing single-family dwelling units. It becomes effective in August 1, 2009 for existing multifamily dwelling units. The alarms must be an approved device (conforming to UL2034 standards), and may be hardwired, plugged in, or battery-powered (if attached to the wall).

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December 11, 2008

Take the Trauma Out of Homebuying

Filed under: Real Estate Terms — Tags: homebuying process, homebuying tips — Nichole Fredrickson @ 9:26 am

So you are ready to make the wonderful decision of choosing a home! Congratulations! Although the process is fun and exciting, it can also carry stress. Below is the best list of tips to remember when you are ready to buy a home. If you have found other great ideas, please feel free to share them with us.
Just remember to be realistic about your timelines, and your goals, as well as your needs versus wants, and that should help too!

10 Things to Take the Trauma Out of Homebuying
1. Find a real estate professional who’s simpatico. Homebuying is not only a big financial commitment, but also an emotional one. It’s critical that the practitioner you choose is both skilled and a good fit with your personality.
2. Remember, there’s no “right” time to buy, any more than there’s a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.
3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.
4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.
7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-homebuying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually from 1998 to 2002, a home’s most important role is as a comfortable, safe place to live.

For more tips on homebuying visit www.NicholeFredrickson.com

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December 10, 2008

New Market Road Construction Done, Holiday Events Planned

Filed under: Local Events — Tags: Add new tag, Elko, Elko New Market, MN, New Market — Nichole Fredrickson @ 10:16 am

With a long fall full of detours, the Cty Rd 2 road construction project is finished until spring in downtown New Market. With the road widening, many local businesses are anxious to bring back old patrons and hoping to see some new faces as well.

There are a number of Holiday events planned in the next few weeks throughout Elko New Market. The first is an ornament exchange at Leo’s, a long-standing gathering place for locals. Bring in your wrapped ornament on Friday, Dec 12th at 8pm to partake in the fun. The next day, Saturday, Dec 13th there will be a community Bake Sake at Leo’s from 11am to 3pm and I am told that SANTA will be stopping by to check out the goodies!

Since it is a well known fact to native Elko residents that “Elko is the Center of The Universe”, Santa will be making a stop at the new sports bar and grill, End Zone, on Saturday December 20th from 12pm to 3pm!

Take advantage of the Holiday cheer and partake in some of the festivities! Without the burden of the County Road 2 road construction, you will have no trouble getting there! We will see you in Elko New Market!

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December 9, 2008

Good Faith Estimates

Filed under: Real Estate Terms — Tags: Add new tag, Good Faith Estimate, homebuying process — Nichole Fredrickson @ 3:00 pm

Clients ask, “What is a GFE?” A Good Faith Estimate is a document that is prepared by your mortgage lender during your qualification process. Most lenders will then update the GFE when you have found the exact property you want to purchase. It will outline the loan and the costs associated with securing that loan.

It will show you lenders fees. There is normally an origination charge, standard is 1% of loan price. If you are being charged more than 1%, you need to know why. There are processing fees, underwriting fees, appraisal fees and credit report fees. If there are a number of extra fees on your lenders GFE, you need to find out why.

There are closing costs on the GFE….. everything from escrowed homeowners insurance and ecrowed property taxes to keep in reserves to wire transfer fees.

The purpose of the GFE is to lay out for the buyer, what the costs of the loan are. Some will simply compare the bottom line, but i urge you to look at the entire GFE with scrutiny. You may pay $50 less with an internet giant, but with a trusted local company you will be better informed on the process and have LIVE people to talk to. Is that worth $50 to you?

The point is, if you are a first time home buyer or a seasoned investor, you need to know what the loan will cost. in some cases, the fees are simply junk fees and could be removed if the client asks. Other times it will show that you are not overpaying for the loan and it has nothing but the standard expenses attached to it. Unless you look at your GFE when you are buying a home, you will not know the answer to that question.

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