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Joe Scherer's Blog

By Joseph Scherer | Agent in Dakota County, MN
  • How to buy a Shoreview Foreclosure

    Posted Under: Home Buying in Shoreview, Financing in Shoreview, Foreclosure in Shoreview  |  July 26, 2011 8:59 AM  |  279 views  |  No comments

    How to buy a Shoreview foreclosure

    So you want to buy one of the foreclosures in Shoreview? Whether you own house currently or are a Minnesota first time buyer, you will want to learn the basics of Shoreview foreclosures before going out to buy. While there are many great values in Shoreview foreclosures you will want to be prepared for how to negotiate your purchase transaction.

    Shoreview, MN Information

    The City of Shoreview is a great place to consider if you are planning on buying a home. Located in Ramsey County is a convenient second-ring suburb just north of Saint Paul. Family Circle magazine named Shoreview as one of the Top 10 best places to live in a 2008 article. With seven lakes in the community Shoreview, MN offers recreational opportunities for everyone. If you're searching for affordable Minnesota housing consider looking in Shoreview.

    Foreclosures are Bank-Owned

    A foreclosure can be a great value because as an REO (real-estate-owned), the bank is responsible for paying all the maintenance costs. As opposed to a short sale transaction, the selling bank has a distinct motivation to get the home off of their books. At the same time, banks who are selling a foreclosure want to get the highest value they can out of the property. In the lower price ranges it has turned into a sellers market meaning that many foreclosures sell for well above the listing price! Knowing what to offer for the foreclosure is critical in terms of being successful with your purchase.

    Factors in Buying Foreclosures

    There are two big factors for you to consider when determining how much to offer. The first is how long the property has been on the market and the second thing is the general property condition. Shoreview foreclosures that have just been listed are likely to sell for near the listing price (or even higher), while a bank that has a house that has been on the market a long time might be willing to negotiate for deeper discounts. Also, a home that is in poor condition may not be able to be financed so the bank may have to reduce the price far enough to attract cash buyers. I can help you determine these factors as we go out looking for Shoreview foreclosures.

    Financing and Foreclosures

    If you are planning on financing the purchase of a foreclosure there are some important things to know as well. First, the house itself must be in acceptable condition to the lender n order to qualify for most mortgage loans. Properties that are in poor condition will either require a cash offer or special mortgage financing such as the FHA 203k program. The selling banks will also usually limit the amount seller paid concessions towards the closing costs of your home loan. In most cases today the selling bank will limit their contribution to three per cent of the selling price. Finally a selling bank will never look at your offer if it includes a financing contingency and never if you do not provide a letter of financing preapproval along with your offer.

    First Step To Buy A Home: Get Preapproved

    For many MN first time buyers the big question is where do I start? Your first step to home ownership is to get preapproved for a mortgage. In so doing you will find out how much you are qualified for so that we can research homes in a comfortable price range.

    If you are planning on buying a Shoreview foreclosure please send me an email or give me a call. There are many great values out there but knowing which one takes some time and expertise. I would value the opportunity to help you in your quest for the perfect purchase!

    Joe Scherer
    Sales Executive, Licensed Realtor in Minnesota 
    Century 21 Premier Group 
    jscherer1111@gmail.com 
    Cell 612-991-6365 
    1660 S. Highway 100, Suite #578
    Parkdale Plaza
    St. Louis Park, MN  55416
    With a focus on Twin Cities real estate and surrounding communities.

  • Shoreview First Time Home Buyers-Avoiding Major Mistakes

    Posted Under: Home Buying in Shoreview, Financing in Shoreview, Property Q&A in Shoreview  |  July 21, 2011 8:15 AM  |  437 views  |  No comments

    Are you beginning to plan to buy your first home in Shoreview, Minnesota? There are some simple things that I would like to share with you about Shoreview real estate to help ensure you avoid some of the bigger mistakes that many first time buyers make. With some simple preparation you can avoid some of the most painful pitfalls.

    Shoreview Community Info

    The City of Shoreview is an awesome place to consider if you are considering buying a home. Situated in Ramsey County is conveniently located just north of St. Paul, MN. Shoreview got national press when Family Circle magazine named it as the <="" a="">fourth best place to live in their 2008 article. With seven lakes in the community Shoreview offers plenty of recreation opportunities. If you're searching for affordable Minnesota housing Shoreview is a great opportunity to consider.

    1) Get preapproved for your first time home buyers loan first! I have met far too many first time buyers who find their home before they get prequalified for a home loan. It can be a painful experience to go through the work of finding the ideal home only to find out you are not yet ready to qualify for a home loan. You can get preapproved with my preferred MN mortgage lender right over the telephone, even after normal business hours. There is no cost and no obligation so why not start the process immediately?

    2) Get educated about the process of buying a home as soon as you can. You can learn a great deal at a first time home buyer seminar or at a Home Stretch Worshop available through many communities around the Twin Cities. There is so much to know about the home buying process that it is well worth it to learn as much about it as you can…and as early as you can.

    3) Get a home inspection on the house you buy. While a professional home inspection is not usually required by your lender it can reveal major potential problems in the house before you are fully committed to the purchase. You can negotiate a transaction with a contingency upon a satisfactory home inspection so that if it comes back bad, you can back out of the transaction. Some first time home buyers will skip the home inspection because of the cost involved. This cost is cheap when compared to making a purchase of a home that later reveals multiple problems.

    4) Take good care of your credit after preapproval. After you have received your preapproval for a home loan your lender still might need to check your credit again. Make your payments on time and do not open up any new credit. You should avoid additional credit inquiries after your preapproval to avoid a reduction to your credit score.

    5) Do not spend your down payment money before closing. Your MN mortgage banker will give you a good faith estimate at loan application including an estimate for how much money you will need at closing. Make sure to save your money so that you're not caught in a bind on the day of closing.

    First Step To Buy A Home: Get Preapproved

    For many MN first time home buyers the big question is where do I start? Your very first step towards buying your first home is to get preapproved for a mortgage. By doing so you find out how much of a loan you are qualified for so that we can research homes in a comfortable price range.

    Joe Scherer
    Sales Executive, Licensed Realtor in Minnesota 
    Century 21 Premier Group 
    jscherer1111@gmail.com 
    Cell 612-991-6365 
    1660 S. Highway 100, Suite #578
    Parkdale Plaza
    St. Louis Park, MN  55416
    With a focus on Twin Cities real estate and surrounding communities.

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