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unmarried couple buying a house

Should You Buy A House Before Marriage?

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Are you an unmarried couple buying a house? If so, don’t worry because this situation occurs regularly, and there are three main concerns you need to address.

A Legal Agreement

Married couples don’t necessarily need legal agreements when they purchase property, because state laws cover a lot of eventualities, but if you are unmarried you should have a legal agreement between the parties. This will cover who owns what percentage, who is responsible for repairs, what both of you would like to happen in case one of you dies, who is responsible for the mortgage and other issues. Be sure to contact a good real estate lawyer in your state that can help you sort out the various scenarios that unmarried home ownership creates.

You Both Should Qualify for the Mortgage

Image result for mortgage qualification stat chart pic

Banks and lending institutions will be more likely to lend loan money for an unmarried couple buying a house if both buyers can individually qualify for the loan. Two substantial incomes along with solid 700+ credit scores can pave the way for quick home ownership.

Note: If you do have trouble financing your home, be sure to consider alternative methods like MN contract for deed. A good contract for deed lender can sometimes look past issues like foreclosure and even recent bankruptcy in order to get you into a home. Contract for deed has its own set of requirements, but these can be less stringent than those of a traditional mortgage lender. And hey, if you do need some extra cash, check out the best survey sites and work to make a bit of extra money each month.

Title It Correctly

Image result for home title picture

There are two main ways to title your property. Married persons usually appear on the title as joint tenants. Rocket Lawyer tells us that:

Joint tenants (JT), or joint tenants with rights of survivorship (JTWROS), are the forms of ownership most commonly used by married couples. In general, this means that both parties own 100% of the property and there is no divided interest as there is with TIC (tenants in common) The “rights of survivorship” clause means that the property passes directly to the other party outside of the will. This is an excellent benefit to ensure that the property does not go through probate. Unlike TIC, however, one tenant cannot sell their interest in the property, because they have an undivided 100% interest. Any sale has to have the consent of both parties. Joint tenancy is not restricted to married couples, but if you choose this form, make sure you know what it means.

An unmarried couple buying a house would probably choose tenants in in common. Rocket Lawyer explains:

This means that each “owner” has the right to their interest (percentage) of the property, but to their interest only. For example, if you purchase a cabin with a business partner, and you put up 70 percent and he puts up 30 percent, you own 70 percent of the property. If anything happens to you, your 70 percent passes to your heirs, not to your partner or his heirs.

This arrangement is beneficial for unrelated parties, because you call the shots about who inherits your property. It may have to go through probate, but if you’ve left clear instructions about your wishes, it should not be a problem.

An additional benefit is that you can sell your share any time you want, without the consent or approval of your partner(s). You also have the right to mortgage, transfer, or assign your interest–and so do your partners.

As you can see, there are some complex issues to discuss with your legal team regarding proper structuring if an unmarried couple is buying a house, so again, make sure you get qualified legal advice as you proceed.

For more info, check out our blog here. Tons of awesome content that will help you in your home buying journey!

6 Tips for Realtors to Boost Your Social Media Presence

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Real estate social media is here to stay, and true professionals need to know how to make it work for them.

Real Estate Social Media

The days are gone when Realtors could put all of their listings on MLS, send out a newsletter, hand out cards and wait for the business to roll in. The pre-2020 real estate buyer or seller uses real estate social media to find agents and properties, and you need to know how navigate that area. Following are six ways you can use real estate social media to your advantage:

Real Estate Social Media: Instagram

According to Meiggs, it’s key for Realtors to grow more Instagram followers and post photos regularly. This is important!

Real Estate instagram

New listings, sold homes, before and after pics of landscaping you suggested that improved curb appeal and resulted in a sale and even just holiday greetings will help generate buzz about you and your company. So, remember, growing your Instagram followers can be a huge help for your business.

What About Facebook?

You need to be there, your company needs to be there, and when you engineer sales you need to post that good news there also.

Real estate social media facebook

Facebook is like social media marketing 101, and you need to be fluent on this platform. Understand how to post, how to drive traffic to your pages, and how to advertise if you have the cash to do it.

Are You Using Twitter?

The current U.S. president certainly understands the power of Twitter as he can instantly reach millions of followers.

Real estate twitter

As you gain followers, your new listings can be sent as soon as you have signed the client, and that’s a lot of quick and free advertising for you.

LinkedIn is Hugely Important

You will be vetted by prospective clients, and a lot of them will search for your LinkedIn page.

If you don’t have one, your credibility will take an instant nosedive. Furthermore, your LinkedIn site—which some call Facebook for business—needs to be current and updated regularly. A stale LinkedIn page can almost be worse than not having one at all.

Be Hands-on with Real Estate Social Media

While you may not always embrace DIY, if you are able to do you own social media marketing, you can quickly disseminate information that will benefit your business. New listings, properties under contract, and completed sales can be acknowledged as they happen.

If you don’t feel comfortable managing your own social media accounts, look carefully for someone that will move quickly and handle the job efficiently.

Sending a Newsletter?

real estate newsletter

Our last tip is a bit old-school, but a monthly newsletter can provide clients and those on your mailing list with lots of great info about the local real estate market.

Newsletters are a great addition to real estate social media platforms and you will find many clients that look for your monthly newsletter with great anticipation. You can use email or snail-mail for this.

As you know, getting the offer is one thing and seeing a deal through financing is another.

With mortgage interest rates nearing the formidable five percent range, you may have clients that just can’t qualify for a conventional mortgage loan. If this happens, be sure to contact us at C4D. We are the MN contract for deed experts and we find a way to get difficult deals done. Don’t let any deal die without contacting us first.

5 Hurdles for Minority Home Buyers in Minnesota

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If you are a member of a minority group, you may have a more difficult path to a minority home loan. If you don’t come from generational wealth, financing could be a huge problem.

Everyone faces obstacles when contemplating their first-time home purchase, but these difficulties can be more pronounced and harder to overcome if you are a minority home purchaser. Let’s look at the top five:

Insufficient Income for Minority Home Loan

Minority Home Loan

 

The debt-to-income ratio calculation is a method used to determine whether a prospective applicant for a minority home loan can afford the purchase.

While this number varies, many lenders and government agencies use 43 percent as the figure. In other words, no more than 43 percent of your income can go toward your mortgage payment. Even if you have a great credit score, your income may be too low for your minority home loan.

If you’re struggling, you might want to look into some side hustles and learn about more passive income ideas.

Down Payment Trouble

Down Payment

Image credit: zillow.com

You may have great credit, a steady job, and a promising future, but if you haven’t been able to save for a minority home loan down payment, you may have to access available aid sources. A gift from a relative, or loan from Minnesota Housing, a legitimate governmental agency are two places to look.

Access to Credit

Let’s face it, even in 2018 you may still encounter racial bias when applying for your minority home loan. Check out these North Carolina statistics from WUNC:

“For all 203,939 loan applications in North Carolina in 2015 and 2016, 52,881 were from minorities, and had an overall denial rate of 11.5 percent. 151,058 were from whites, and had an overall denial rate of 6.3 percent.

In 1,415 of North Carolina’s 2,117 Census Tracts where at least one loan application came from a person of color, the loan application denial rate was higher for minorities than for whites.”

High Prices for Minority Home Loan

We mentioned the 43 percent debt to income ratio previously, and we know that since the 2009 recession, housing prices have dramatically increased.

If your debt-to-income ratio will only qualify you for a $150,000 home but there are none available in that price range, you can be out of luck. Higher home prices impact everyone, but while the wealthy can usually find a way to get their deals done, first-time minority homebuyers with good credit but low incomes can have a problem.

Just take a look at the graphic below from ABODO showing where minorities are buying the most and fewest homes. Interesting, huh?

Minority Homeownership

Image credit: abodo.com

Minority Home Loan with Bad Credit?

Creditcards.com tells us that:

“Minorities are less likely to have access to credit than white Americans. (Recently), 20 percent of whites did not have access to a credit card compared with 47 percent of African-Americans and 30 percent of Latinos.

African-Americans and Latinos are less confident that they will be approved for credit than whites. In (recent years), 67.7 percent of whites were very confident or somewhat confident that they would be approved for credit, compared to 45.3 percent of African-Americans and 53.7 percent of Latinos. While 19.5 percent of whites were not confident that they would be approved for credit, 28 percent of African-Americans and 30.7 percent of Latinos were not confident.”

If you are a minority, the simple act of applying for credit may put you at a disadvantage. And earning money is tough, much like using the best survey sites to make a quick buck can take a while.

While minorities may face uphill battles on the path to home ownership, MN residents should look to contract for deed as a great alternative to traditional financing. If you need more information, contact us — an excellent place to start.

Five Renovations That Add Value to Your House

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The title of this post should really be “Five Renovations That Add Value to Your House THIS Year in YOUR Local Real Estate Market.” The five best projects to do before you sell will depend on the year and your location. That said, home renovations on a budget can take a lot of work. 

Health/safety issues and other big red flags should always top the list. If the roof leaks, your foundation cracked, or the walls contain mold, solve these problems.

After that, invest renovation dollars in appearance and the impression your house makes. Do the research: check the 2018 Cost vs. Value Report, and ask your realtor how to be competitive in your market.

home renovations on a budget

Curb Appeal is Out in Front

A house makes its first impression from the curb out front, which is why Curb Appeal consistently ranks #1 for Return on Investment. A lush lawn, for example, whether it needs reseeding or grooming, will repay what you put into it. As will well-tended plants and an inviting front door area with fresh details and good lighting.

The Cost vs. Value Report recommends some other projects for 2018. Replacing the garage door had the highest increase in ROI, up 18.6%. Outdoor living space has been a buyers’ priority in recent years, so the ROI for adding a wood deck is now up 17.7%. And, the report says, stone veneer is currently popular.

Kitchens and Bathrooms Count

Good kitchens and baths add value: People spend time in those rooms every day, and buyers often don’t want to take on expensive remodels. But buyers also don’t expect a house to be brand new, so you can add value without a full renovation.

The cost-conscious 2018 Report suggests that a little renovation is enough, and inexpensive small projects add up. Fresh paint, a new faucet, new lighting fixtures, and simple, matching pulls on cabinets and drawers go a long way, while refinishing cabinets costs much less than replacing them.

It’s important to ask your agent about the market before you make plans for home renovations on a budget. If comparable homes for sale all have granite countertops, you might need to invest to keep up.

Energy and Weather Upgrades

What is true for countertops is also true for energy upgrades. You might assume, for example, that today solar power and panels are always a winner. If everyone around you does have them, that’s one thing. But if not, think carefully about this renovation.

In some climates, solar panels just can’t bring ROI. They can even turn buyers off because technology changes so rapidly; like the latest phone, home technology becomes yesterday’s news fast. Also, leased panels add to the monthly payment. Realtors have found this added cost discourages buyers despite the panels’ money-saving potential.

However, no matter where in the world you live, there are always ways to make your home more energy efficient.

Depending on your climate, good weather-proofing around doors and windows, and servicing or replacing the HVAC system, can be a better investment. Attic insulation, where applicable, has always had high ROI. Some communities even offer free energy-efficiency assessments and advice that can help you add value.

Wonderful Wood

The wood floor remains eternally popular, for practical and aesthetic reasons. If you have wood floors, refurbishing them to look their best is worth the investment. You may not get full ROI, but floors are a large visual in any house, and beautiful wood floors have a “wow” factor.

If you don’t have wood floors, you may want to invest in them, or in laminates that resemble wood but cost less. After all, you are moving out, and it’s important to think like a salesperson.

Home Renovations on a Budget

Whatever home renovations on a budget that you choose, don’t underestimate decluttering, deep-cleaning, and staging. Realtors agree they are key steps to presenting a home that prospective buyers can imagine living in, and that is what sells houses.

All your personal stuff, signs of everyday life, and anything other than minimal, fairly neutral décor, needs to disappear. Let people see the house itself, a house where they could potentially live, rather than the house where you live. Remember to declutter closets and storage areas, too, to highlight their spaciousness.

Deep-clean the house from ceiling to floor, including washing walls, cabinet corners, and inside appliances. Buyers will notice and like sparkling cleanliness, which often does increase their offers, adding real value. Don’t neglect smells as part of your cleaning.

Staged homes consistently sell more quickly and for more money than empty homes. You or a professional stager can arrange rooms for easy flow and to display the lifestyle the house offers. Emphasize features like fireplaces and views, and define “extra” rooms as offices, family spaces, etc. Create vignettes that give spaces atmosphere and tell a story. These steps matter outside as well, so declutter and groom your landscaping, and stage outdoor living areas.

No amount of renovation will compensate for a cluttered, dirty house. And these three steps are the frosting on the cake of your other home renovations on a budget.

If you’re looking for a home to get started in Minnesota — contact us today!

Home Renovation Tips

Home Renovation Tips: Must-Have Tools

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Need help with some home renovation tips? We know, the thought of renovating your property can be both exciting and slightly daunting. Figuring out what needs to be done is one thing, but putting your plan into action and locating the necessary tools can soon seem a bit too much. However, it doesn’t have to be such a stressful ordeal. But according to A+ Kitchen & Remodeling, “Home renovation doesn’t need to cost an arm and a leg. If you know what you’re planning on doing, and you follow a home remodeling & renovation guide, plus only buying tools that are essential to get your plans underway and eventually completed — it doesn’t have to be that difficult.

This time, we’ll be looking at the essential tools you’ll need to help get your renovation project underway.

Home Renovation Tips

The Hammer

Surely this goes without saying but owning a hammer is absolutely essential. It’s arguably the most essential tool for your house. They are ideal for hanging up posters, knocking in nails, pulling out nails and aiding any general fixes around the house. While it’s fairly difficult to go wrong buying a hammer, there are a few things you may want to look out for. First, ensure it’s drop forged. This means it’s been made with more care and will last longer. It will be more expensive but it’s far less likely to rust.

The Ladder

Another household essential, owning a ladder will see you experience fewer problems when trying to reach areas that would usually prove difficult. We won’t list all the obvious advantages of owning a ladder, as there are too many. What will we say, is that owning a ladder will help you solve problems such as changing light bulbs and hanging frames with ease. Otherwise, you may try and balance yourself on a chair, table or something without the structural stability of a ladder, and this is a health and safety concern.

The Hand Saw

If you’re not too keen on spending a small fortune on a power tool, stick to a trusty handsaw, or even a tracksaw for that extra safety. At some point, it’s going to come in handy, whether it’s for a quick DIY job, or cutting wood for the fire in winter, handsaws are handy to have around the home. Additionally, they’re not that expensive to buy!

The Drill

For those who see themselves as avid DIYers or remodelers for luxury, this is essential. While having a hammer is essential, a drill comes in handy whenever you need to fix loose screws and fittings, as well as making light work of new additions such as wall hangings. Drills essentially speed up your renovation process. Instead of spending time screwing nails into a new door, or stabbing your hands with screwdrivers, drills relieve that pressure and the simple hit of a button.

The Pliers

Pliers will come in useful when you need to pull out those nails you incorrectly drilled into your new wall! Again, pliers will come in handy in almost every DIY project. Additionally, they’re fairly inexpensive for such an important tool.

The Tape Measure

Another classic tool you’ll be needing to renovate your property is a tape measure. Easily forgotten, but incredibly important, the tape measure is your best friend when it to comes to home renovation. You’d find it pretty difficult to begin a home renovation without a tape measure, as measuring would become, well, pretty much impossible. When it comes to building projects, you’re going to need a tape measure, otherwise things are left wonky and you’ll be wasting time!

The Level

Last but not least, the level. When it comes to home renovation, there’s nothing worse than setting up a shelf, only for the leveling to be off. This doesn’t just apply to shelves, every project you undertake in your renovation may require a level at one point. Buying a level will save so much time when it comes to determining if something is level or not.

Home Renovation Tips: Tool Wrap

These are the 7 tools your home renovation cannot be completed without. While they are fairly obvious, you’d be surprised to know how many people forget to purchase such tools, even when there are coupon websites available to them. The above items won’t even set you back too much, yet, their role in your home renovation project cannot be undermined. If you do require a tool that’s not on the list and you’re not keen on spending a fortune on a tool you’re only going to use once, then tool hire might be an idea for you!

Better yet, buy a toolbox to keep these in! Except for the ladder, as you may have some trouble fitting that in. If you’re a homebuyer, you will not regret owning these tools. 

Pest Inspections

5 Pest Inspections Before Moving Into A New House

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Moving to a new home, for the most part, is thought to be an enjoyable experience. Sure, the unpacking, moving and general moving process might come with a few stresses, but overall it’s quite exciting.

However, stepping into your new home, or a property that you’re looking to buy or rent and noticing that there are signs of pests will make you want to turn around and leave. The first question you might be asking is ‘why didn’t they fix the pest problem?’ And while that’s a legitimate question, some pest problems are very discrete and can only be noticed by those who know what signs to look out for. But a thorough pest inspection is now necessary.

Spotting pests can be tough, especially bed bugs, ants and small rodents. These pests know how to remain undetected, at least to the untrained eye. Below are the 5 common signs there is a pest problem in the property you’re looking to purchase.

Inspect the Flooring

One of the most telling signs the property is suffering from a pest infestation is the state of the floor, specifically the carpet. Bed bugs, despite their name, will set-up camp anywhere that’s warm, dark and discrete.

Check the corners of the carpet and inspect furniture, curtains, sofas. These are all hotspots

. Even if the furniture won’t be there when you move in, bed bugs are likely to find a way to remain. Pests will however, have a tough time finding a way into or under concrete flooring. So, if you are contemplating moving into the property, be sure to have the carpets cleaned professionally or at least inspected by a professional pest control company.

Search for Smears and Marks

While it’s important to check for leaks, be sure to also check for any areas where there are marks or smears, as this may be a sign of cockroaches and/or rodent infestations. These spots are commonly found inside cupboards, floorboards and at the back of cabinets. While it may seem strange looking for these signs, identifying them and addressing it to your potential landlord or real estate agent could save you time and money. It also means you won’t have to solve the problem yourself.

The bedroom is another place you will want to look for smear marks, as if there’s and abundance of them, it’s highly likely there’s a bed bug infestation. Again, if this is the case, you must ensure that you have the problem inspected by a professional pest control expert. Bed bugs won’t necessarily cause you too much harm, but they are unsightly and can make your nights restless and grim.

Floorboards – Check Them!

Mice and rats are adept at hiding, even more so than insects. Ever hear scuttling late at night? It’s likely that a mouse or rat is under your floorboards, in your roof or even in your walls. Rats especially are masters of squeezing their way into tight areas to build nests.

Lookout for bite marks, chewed areas on wood and scratches on furniture and walls.

Look for Cracks and Fissures on the Exterior of the Property

Spotting cracks and fissures on the outside walls of the property is incredibly important. These gaps make for perfect entrance areas for pests such as wasps, ants, spiders and other unwanted insects. One of the worst-case scenarios is if wasps have already infiltrated the walls, as it’s likely that they have done this to make a nest.

While the usual fix for cracks and fissures is sealing with concrete, filler or other sealants, doing this with the wasps inside may make matters worse. Wasps are able to eat through dry wall, so before you seal the wall, spray soap solution into the crack (only if it’s safe to do so) as they will suffocate. After this has been done, seal the wall with sealant.

Of course, you can always wait until the colder months arrive, as they won’t be able to survive the drop in temperature. Following this, inform your landlord and/or the real estate agent and they will contact a pest control expert to fix the problem.

Pest Inspections in the Garden

If you’re moving, or viewing properties in the summer, be sure to check for any wasp, ant or insect nests that may be hiding in the garden. It might be that the garden has been vacant for some time and wasps have set-up a colony there. Unless you’re experienced in removing wasp and bee nests, contact your real estate agent and they will seek an appropriate pest control expert.

Additionally, you might find that the exterior has been affected by nesting birds, specifically the excrement they leave behind. Bird control is something that is commonly forgotten about because of other more prominent pest problems (rodent and insect infestations) but is still something that needs to be acknowledged.

These are 5 of the most important pest inspections you need to get into the habit of doing when you’re viewing a a new house with your real estate agent in Minnesota or all across the country.

Types of Mortgages

Should You Fear Certain Types Of Mortgage Loans?

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We all know that mortgages (there are many different types of mortgage loans) were the problem that caused the 2009 economic meltdown. Remember the movie The Big Short?

And while it was very difficult to obtain even the most basic and standard mortgages in the first few years following the crisis, things have begun to loosen up, and you now do have some different options.

Different Types of Mortgages

The Standard Mortgage Loan

Your parents probably got a 30-year mortgage. That meant that the total amount of their loan was divided into 360 equal payments. The word “equal” can be deceiving, however, because the amount of interest v. principal collected for every payment varies. At the beginning of the loan, most of the payment goes toward interest, while the smaller remainder is applied to the principal.

Types of Mortgage Loans: An Example

With a $300,000 standard repayment 30-year mortgage at 5.25 percent, the payment amount would be $1657. In month one, $344 would go toward principal with a whopping $1313 applied to interest. By year 30 this changes drastically, and the last payment provides only $7 toward interest and the rest finishes off the principal. Note that this arrangement greatly benefits the bank, because during the first few years of the mortgage, most of the payment goes toward interest and you basically make no progress paying down the loan. This is why it is a good idea to make sure you are going to stay in a home at least for five years if your goal is to pay down the principal.

The 15-Year Mortgage

Years ago, 15-year mortgages were introduced. Our same $300,000 loan paid off in 180 equal payments over 15 years instead of 30 would cost $2412. Sure, that’s $755 per month more, but if you followed the 15-year amortization schedule you would not only have your home paid off in only 15 years instead of thirty, but you would save $135,900! If you could make the larger payment, the 15-year mortgage is the way to go.

The Adjustable Rate Loan

Types of Mortgage Loans

These mortgages can be trouble, but they do have serve a purpose. Persons with lower credit scores can sometimes qualify for a mortgage with a floating rate. If general interest rates rise, so could your mortgage payment. If they fell, your payment could stay the same or actually decrease. The problem is, a two percent rise in interest rates would cause our $300,000 loan to rise to $2047 per month—a substantial increase.

Interest Only Mortgage Loan

While these loans can lower your monthly payment, you make absolutely no progress paying down your principal. These can work for flippable properties, but should be avoided for primary residence purchases.

Exotic loans like these are what caused the beginning of the last major housing crisis, and banks may not be very willing to make this kind of deal in the post-2008 era.

You Can’t Qualify?

Can't Qualify for Mortgage

Like we’ve said before, it would be great if everyone could go to a bank and get a traditional mortgage. Sometimes, however, because of credit issues, job loss, divorce, tax problems, or many other circumstances, the bank just says no. If this happens to you, don’t give up. We at C4D have developed a system where we use MN contract for deed to get you into a home. We deal with compromised credit every day, and we urge you to give us a call or email us before you just decide to keep renting. We’ve helped a lot of people!

MPLS real estate

Minneapolis Real Estate Market: Where We Stand

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We’d like to get technical this week about the Minneapolis real estate market and summarize the comprehensive and extensive report from the Minneapolis Area Association of Realtors.

While of course what’s happening in the Minneapolis real estate market doesn’t exactly mirror the entire State of Minnesota, it does give us a clear picture of what is going on in our region.

Interest Rates

Minneapolis Real Estate Interest Rates

The Federal Reserve moved again, and raised interest rates for the seventh time since 2015. This second 2018 rate hike raised rates by another 0.25 percent. While this didn’t immediately increase the 30-year mortgage rate, rates will inevitably rise.

New Twin Cities Listings

  • New listings decreased 2.7 percent to around 2000.
  • Pending listings also decreased 4.1 percent to around 1400.
  • Inventory decreased significantly by over 18 percent.

New Listings Minneapolis

What Happened in May?

May was a strong sales month for the Minneapolis real estate market, however, as the median home sales price increased 8.4 percent to $271,000, while days on market decreased 9.6 percent to only 47. The all-important supply figure—in other words how much inventory is available—fell a whopping 12 percent to 2.2 months.

Minneapolis Real Estate Market Trends

Minneapolis Real Estate Trends

So what do these trends mean for the MN Realtor? First, interest rates are on their way up. Mortgage guru Rachel Witkowski recently said:

“Here are several predictions from the largest housing and mortgage groups for the 30-year fixed-rate mortgage:

  • The Mortgage Bankers Association predicts it will rise to 4.6 percent in 2018.
  • The National Association of Realtors expects it be around 4.5 percent at the end of 2018.
  • Realtor.com says the rate will average 4.6 percent and reach 5 percent by year-end.”

When rates near the five percent mark, two things can happen. Buyers can become nervous and there can be increased activity as they worry that their buying power may soon be diminished, but after a sales flurry, home prices can begin to decrease because that ethereal buying power actually will dwindle, and this will result in less demand.

Ride the Minneapolis Real Estate Market Wave

As a savvy Minneapolis Realtor, you can use these trends to your advantage as you can nudge buyers into making offers now before higher rates injure them, while at the same time you can counsel sellers to take offers quickly as their homes could be less valuable in the near future.

When It Does Happen

If you’ve been in business for a while, you know that tough real estate market conditions will reoccur. Whether this happens late this year or early next year, higher interest rates = lower stock prices = a weaker economy, and that all can pressure home prices. If a recession does occur, monetary policy will undoubtedly tighten, foreclosures will increase, and financing in general will become more difficult.

And you also know that your clients are going to start looking at charts like the one below from howmuch.net. They’ll want to know what they can actually afford. So, be prepared to guide them into making smart decisions.

Remember Us

This is when you need to realize that we at C4D can make deals happen when others cannot. As your MN contract for deed experts, we strive to find ways to take your marginal deals and get them approved. We have taken many hard working but credit score challenged individuals from renters to owners. Please contact us and see what we can do after the bank has said no. You may be pleasantly surprised!

Actionable Tips For First Time Home Buyers in 2018

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Whew! It seems everything has accelerated in the past couple of years. You graduated from college, got married, landed a nice job, and now there is a child on the way. Your apartment in Chicago on the 32nd floor is just not going to do it anymore, so it’ s time to think about purchasing your first home. Where to even start? Well, how about starting right here. Here are some great tips for first time home buyers.

Tips for First Time Home Buyers: Your Realtor

First Time Homebuyer Broker

Establish a relationship with a buyer’s agent. You’re looking to your agent for tips for first time home buyers, so after you explain your needs and price range, this person will find properties for you to view, make the appointments, keep a record of what you have seen, negotiate deals and write up offers to purchase. And guess what, there is no cost to you, since the seller pays all commission expenses!

Next Tip: Clean Up Your Credit History

Bad MN credit can be a problem as it can injure your ability to get good bank financing at the lowest possible rate. Go to Credit Karma, look at your credit score, view your credit report, and dispute any errors you find.

Tip #3: Pay Down Those Cards

As any Minnesota mortgage lender will tell you, if you have a high credit utilization rate, your projected monthly mortgage payment will be higher. Savvy first time home buyers plan well in advance to reduce credit card balances.

Tip #4: Work on Those Student Loans

As Student Loan Hero tells us:

“Spending a few more years getting your student loans or other debts paid down could mean that you would qualify for a lower interest rate or a higher loan amount. Once you have a better credit history and more secure income history, you will have more options available when you finally are ready to take that leap into homeownership.”

Become aware of the many repayment options available to MN student loan holders, and strengthen your monthly cash flow.

Tips for First Time Home Buyers - Student Loans

First Time Home Buyer Tip #5: Save for that Down Payment

You will be asked to show that you have anywhere from three to ten percent or more down-payment money available. While some lenders allow you to accept this money as a gift from your relatives, others like to see that you have saved it. Few lenders, however, will accept a borrowed down payment. You can also look into something like a home improvement loan as well.

Tip #6: Be Realistic and Discerning

Our friends at U.S. News tell us:

“When you look at houses, focus on the right things. Don’t be distracted by the owner’s odd décor, paint colors, dirty carpet or anything that is easy to change. Granite countertops and stainless-steel appliances are easy to add later. You can’t easily add another bedroom, a better location or a more functional floor plan.”

Tip #7: Be Serious and Ready to Go

Don’t casually look for houses without having a plan to move if you find your dream house. You could find a gem on day one, but be stuck for six months in an apartment lease. Great opportunities may present themselves fleetingly, and you need to be ready. But be prepared to take some time to shop around for home insurance — don’t forget about this!

Tip #8: Check Out the Neighborhood at Different Times of Day

That nice, quiet three-bedroom dream home may turn out to be a nightmare if you only saw it on a quiet Sunday afternoon. Check traffic patterns and activity at different times before you make an offer.

Tip #9: Talk to the Neighbors

Homebuying Neighbors

No one can give you a more realistic view of the area than someone that has lived there for years. Knock on doors, talk to people you see, and frankly ask them if the neighborhood is a good place to live. You’d be surprised at the genuine answers you will receive.

Be sure you check in on the home and neighborhood safety as well. You don’t want to become just “another statistic.”

Final First Time Home Buyer Tip: Don’t Give Up

If you have found your dream home, but have been turned down for conventional financing, there are alternatives. C4D, our company that specializes in helping those with bad credit in Minnesota, may be able to help you find your path to home ownership through a contract for deed. Go here to find out more about this legitimate and widely used method that can get you into a home even if you have credit issues.

And if you’re looking for even more tips for first time home buyers, you can check out some more great information from our friends over at Bankrate. They have a fantastic blog post which shares many more tips for first time home buyers. You can check it out here.

The American Dream: Immigrant Homeownership

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The housing market needs immigrants, and the gap between native-born and immigrant homeowners has been shrinking for several years. But housing for immigrants is a tough subject to navigate. And the biggest question is … is it possible for more immigrants to become homeowners in 2018?

There are many ways to enter the U.S. legally. For example, student visas are relatively easy to get if you are enrolled in a US educational institution. Since foreign tuition rates may be higher, many universities recruit foreign students and will actually help them receive visas.

If you are a non- US citizen starting a business and you plan to invest money in it and therefore create American jobs, there are visas available. You can get a visitor’s visa–for vacation purposes–or you can apply for an immigrant visa. You may be able to get a green card that allows you to work in the US. If you do remain in this country after your visa has expired, however, you become undocumented, and that can lead to difficulties.

I’m Staying Here Anyway

Whether you have a green card, a student visa, a business or professional visa, or whether you may be here illegally, you may decide that you want to buy a house. Maybe you’re tired of renting, are pretty sure that you are not going to have legal trouble if you stay, and like most Americans, you want to build future equity. You may have read that even financially secure US citizens may have trouble getting mortgages. If that’s the case, should you as a non-US citizen even consider buying a house, and furthermore, can you even do it?

Yes! It Can Be Done

President Trump’s failed university offered this advice to its students in a 2010 blog brought to us by The Weekly Standard.

“First of all, you do not have to have a social security number to buy or sell a home in the U.S. Some mortgage lenders require one; however, there is not a law requiring one. You do need to have some form of government issued identification, even if it is from another country (such as a passport or driver’s license).

Those without a social security number will need an ITIN (individual taxpayer identification number) number which is issued by the IRS to foreign nationals for paying taxes on money they earn in the U.S. (The author) noted that while it is difficult for illegal immigrants to get mortgage loans, several banks have programs designed for those immigrants. ‘Lastly, it is not illegal to own real estate in the U.S. even if one is in the country illegally,’ she wrote. ‘If getting a mortgage is not an option, one can always pay cash.’”

Housing for Immigrants

Problems That Can Arise If You Don’t Have the Cash

While a cash purchase may be completely legal, obtaining a mortgage–if you don’t have the cash–can be difficult for the following reasons:

  • Hard to prove foreign income.
  • Banks may not believe your foreign accountant.
  • Lenders may fear that you will be deported.
  • Thin credit or no credit history.
  • Bad credit MN.
  • No ITIN or SSN.
  • Low credit score.
  • Other legal issues.
  • Massive student loan debt.

Immigrant Housing No Cash

Housing for Immigrants: What Now?

So, you’re here, you’ve found a great home, you have a job, you can afford a modest mortgage payment but you just can’t convince a lender to take that risk and allow you to become a homeowner. Now is the time to think non-traditional financing. With a contract for deed, you can pay for your home on installments, and after you have completed all of your payments, you will own the property. These transactions can be accomplished by two willing parties without concern of bank denial. There are even reputable Minnesota lenders like C4D that can help you do this.

Rent-To-Own

Contract for deed’s cousin, rent-to-own might also be a viable option. NOLO says, “A rent-to-own agreement is made up of two agreements: a standard lease agreement, and an option to purchase; these may be incorporated in one document or two separate documents.” In this scenario, a portion of your rent goes toward a down-payment that you can use to obtain future financing.

Rent To Own for Immigrants

Exotic and Risky?

Don’t let a conservative banker derail your plans for home ownership. Of course, alternative home financing plans can be costlier and have some inherent risks. Didn’t you take a risk, however, when you came to the US in the first place?

Just Do It

As we have shown, they are ways to purchase a home even if you’re not a US citizen. Make sure you understand all of the options available to you and start with a bank or mortgage broker, and if that doesn’t work, consider MN contract for deed or rent to own, even if you have bad credit or immigration issues.

For more immigrant housing resources, view the links below: