Posts Tagged ‘mn mls’

How Home Buying Calculators Help You Plan a Home Purchase

Real Estate Advice | Posted by homesforsaleinminnesota
Jan 18 2010

Have you decided to stop renting and become a first time home buyer? That is great news! Purchasing a home is an important investment and there is need to do extensive research and planning in order to find the best match for you. One tool frequently used to organize the financial side of the process in a home buying calculator.

There are several websites that offer free, easy to use calculators and tools. Here’s what you need to know about using home buying calculators when mapping out your financial plans in the home buying process:

1. Get to estimate monthly payments. Based on the mortgage amount, term of the loan, and interest rate, you can use this tool to estimate how much you have to pay monthly. Getting to correctly estimate your monthly loan payments on your new home will serve you well, especially when it comes to your budget and figuring out which home you can actually afford to buy. You can see a full range of payments by placing in different mortgage amounts to see what could best fit your budget.

2. Forecast mortgage effects. Numerous people have fallen into a dilemma because they are not well versed enough to compute the accrued interest and charges over the repayment period applicable to mortgage loans. The home buying calculators can help you project monthly payments and the remaining balance of the loan for a period of many years, giving the clear and precise figures of the true value of your mortgage.

3. Study the possibility to get tax write-offs. A home buying calculator can be used to project mortgage interest rate tax to get a fairly accurate assessment on how much you can use for a tax-write off. This tool can also aid in projecting your long term budget, and any tax benefits that you can get that will allow you to afford a bigger loan than originally estimated.

4. See how you will build equity. One of the biggest benefits of making monthly payments towards a mortgage instead of a rental property is the equity you are building. Homes that appreciate in value provide a very high return on your investment, and you can project just how much value this is using a home buying calculator. Take the time to graph the equity chart for a clear visual on your investment.

5. Annual interest charges can be estimated. When selecting the right loan package for your budget, you need to be aware of the total amount of interest that you will be paying. Monthly payments towards home mortgage loan payments should make a reflection on the principal balance, not just on paying interest rate, so try to find different interest rates and with the aid of a home buying calculator and use this to compare the total amount of interest you will be paying per year. Use the home buying calculator to compute the projected monthly and annual interest balances.

Home buying calculators offer several benefits for both future and current homeowners. Many of these calculators are readily available from mortgage lenders and realtors, but you can also find a number of free calculators online. Use the calculator as a tool for planning our your finances during the home buying process, and experiment with different loan amounts and interest rates to make the best choice for your budget.

When looking for Minnesota homes for sale, the internet is an invaluable resource. New homebuyers can use the MN MLS to view active listings of homes and real estate throughout the state.

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Understanding Closing Costs as a First Time Homebuyer

Real Estate Advice | Posted by homesforsaleinminnesota
Sep 09 2009

An important part of the homebuying sales process and sales contract is the closing costs. Few first time homebuyers realize that closing costs can be as much as 15 percent of the sales price and many lenders require you to pay for the closing costs upfront. While some lenders can roll the closing costs into the loan package, knowing what these are ahead of time may help you plan your budget better and even negotiate down the final price so that you can afford the total closing costs as part of the deal.

It’s important to remember that the maximum loan amount offered by the lender is based on the sales price and not the net price (sales price minus closing costs) paid by the buyer. Closing costs are allocated in several different ways, and you can work with your Realtor and lender to arrange the best possible plan with your available funds and stay within your budget.

The first step in understanding closing costs is to learn what buyers are typically responsible for. Barron’s ‘Smart Consumer’s Guide to Home Buying’ explains that it’s important to understand that custom – and not law – dictate how closing costs are allocated and what the buyer and seller are required to pay as part of the contract.

The buyer is typically responsible for all fees and discount points of the loan. These are often added at the end of the contract by the lender, and vary significantly by financial institution. Some bankers will waive this fee for preferred customers or as part of your contract, but it’s important to get an accurate estimate of this as early as possible during your loan financing process.

Buyers are also responsible for paying the premium of the home owner’s title insurance policy; in most cases, they will need to pay for this before the home purchasing process can even begin. It’s generally a good idea to have extra cash available to pay for this premium so it doesn’t get rolled into the loan, and the premium cost varies by the insurance company you choose to work with. It helps to shop around, so do some research about homeowner’s insurance policy rates and options before signing any contract.

The following costs are usually the responsibility of the seller. Commissions on sales – commissions are given to agents of both the buyer and seller. Commission payouts are set depending on the buyer’s and seller’s agreements with their respective agents.

Home Inspection Costs – All home inspections and other property testing costs should be shouldered by the seller before the home is actually purchased.

Title’s insurance – Insurance on the title are traditionally shouldered by the seller as part of closing costs. Many first time homebuyers incorrectly assume that they need to take care of these costs.

Recognizing each component of the closing costs can give any homebuyer an accurate estimate of the final contract price. You can ask for an estimate from your lender way ahead of the signing date as most are willing to breakdown all these costs and explain how they fit in your loan package.

Searching the internet is one of the best ways to find Minnesota houses for sale. Searching the MN MLS is one of the best resources for locating homes by price, neighborhood, and other criteria.

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Understanding Maintenance Costs of Various Home Styles

Real Estate Advice | Posted by homesforsaleinminnesota
Jul 28 2009

First time homebuyers should understand the fact that each kind of home has different maintenance costs associated with them. Knowing what these costs are can certainly help buyers make an informed decision.

Some homes are imposed with special fees such as neighborhood association fees and even additional taxes depending on the town or city government. These fees must be factored in when buying any home especially if you are working on a budget. I’ll enumerate the basic fees bundled with some common types of homes.

Condominiums: Condos or flats are increasingly becoming popular for first time house buyers. Condominiums are a form of real property wherein individual units in a multi-unit complex or building may be owned but each owner has access to common facilities such as hallways, main entrances, stairs and elevators. As such, you’ll need to pay fees depending on your stake in the building.

Ilyce Glink, who is the author of the book ‘100 Questions Every First-Time Home Buyer Should Ask’ says that each owner must pay maintenance fee equal to his total share of ownership in the condominium. This is calculated by first getting the total expenses in operating the building and dividing this to an owner’s percentage of ownership. The total expenses of a building may include a reserve account used for emergencies and this may vary anytime.

Townhomes: Townhomes, also known as ‘row houses’, are independently owned homes that typically don’t incur fees beyond your regular expenses. However, some townhomes are part of a homeowner’s association, in which case you will need to pay a monthly fee for maintenance. This fee typically covers the cost of painting the exterior and landscaping common areas.

Mobile houses: These are pre-fabricated houses built on factories and are then taken to the build site. Normally, mobile home owners are solely responsible for their own maintenance expenses that include electricity, water service, and sewage and garbage disposal. Mobile houses can also be located in mobile parks. Some parks charge homeowners for a fee to lease the land they locate in.

Single-Family Home: Also known as detached houses, maintenance costs of these houses are solely the responsibility of the homeowners. Single-family homes may also be located inside a community or a village though homeowners will still be responsible for all costs such as maintenance and repairs, lawn upkeep, electricity, water and sewerage services and other utilities.

Ascertain the total maintenance costs from a Realtor first before approaching any loan company or officer. Lenders may at times include maintenance fees and other costs in your loan package. Give all the information you got from your Realtor to your loan officer and inform him/her of your budget to acquire a loan that will fit your needs.

Whether you’re interested in a town home or a single-family house, there will be several costs involved with home ownership and maintenance. When you’re searching for the right fit, consider making a checklist or worksheet that lists all of the different home options and related fees. Having a side-by-side comparison of the total costs involved can help you make the most informed decision for your new home purchase.

Homebuyers now have the convenience of searching for Minnesota homes for sale online. People can search the MN MLS to find properties all throughout the state, listed by price and/or by neighborhood.

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Buying Your First Home & Understanding Different Home Types

Real Estate Advice | Posted by homesforsaleinminnesota
May 23 2009

No matter where you are in your life, buying a home may be in your very near future. National statistics indicate that most people move between five to seven times during their lifetimes, which means you’re likely to move at least once every 5-10 years.

There are different types of homes that can match the unique needs of buyers. There are condominiums suited for the budget and lifestyles of bachelors and newly weds. In contrast, single-family detached homes have the space that can accommodate a large family. Always consider what each type of homes offers and how can they fulfill your needs when looking to buy a new home.

Condominium: Condos are perfect for those who are looking for an affordable way to live in a city. Condos became popular during the 70s and buying one does not mean you actually own the unit in the strictest sense, explains Ilyce Glink, who wrote the book ‘100 Questions Every Home Buyer Should Ask’. Instead, you are investing in the shared properties of the complex such as the stairs, walls, flooring and ceilings.

Town Homes: Town homes are very similar to single-family detached homes but they are clustered together in rows and this is the reason they are sometimes referred to as ‘row homes’. Most town homes give the owner full ownership of their houses but some are part of homeowner’s associations. Homeowner’s associations oblige its members to pay monthly fees for the expenses of common amenities such as parking lots, laundry room and playgrounds.

Single-Family Houses: Single-family houses are very popular for first time homebuyers. There are a lot of styles and variations that you can choose from if you are considering to buy a single-family house. These houses can be built on one’s own lot or built within a small community. Owners of single-family houses have the sole responsibility for all expenses concerning maintenance and ownership of their house.

Mobile Homes: These homes are really portable or moveable houses. You do not need to buy land but most mobile parks charge for rent. Mobile homes have simple home amenities and are relatively more affordable than other types of homes.

Pre-fabricated Houses: Pre-fabricated houses are of higher quality and are made of more durable materials than mobile homes. Like mobile houses, pre-fabricated houses rent the land below it and can be moved from one site to another.

Being familiar with the varied advantages and disadvantages of each kind of homes will make searching for the right home easier.

Anticipating your future wants and needs will also aid you in your decision. Know what your medium to long-term goals are, or your plans for the next five years, and treat your home as an investment. If you’re single then maybe a condominium is the right home for you since it is affordable and will allow you to have an urban lifestyle. But if you have a family and want stability, you want to consider settling in a single-detached home or a town home as these have ample space to sustain your entire family.

If you are a new homebuyer searching for houses for sale in Minnesota, using the internet is one of the easiest ways to find what you are looking for. The MN MLS allows you to search by price and location, throughout the state.

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