Rochester, MN

Home Buying Advice from Rochester MN REALTORs David and Lois Marris

Whether you are buying your first home or you've bought a home before, ask yourselves these questions as you consider your options.

1. Does buying a home fit in with my overall financial goals?

Home Ownership is just one of many financial goals. Ask yourself these questions as you prioritize all of your goals:

• How long will I live in this home? We suggest 3 years minimum, preferably 5 years.
• Will I still have enough money for unexpected expenses and emergencies?
• Would buying a home financially stretch me beyond my comfort zone?

2.What can I comfortably afford?

Focus on what you can afford rather than "What Can I Borrow?" Consider:

• Down payment
• Interest rate
• Property Taxes
• Monthly heating/cooling costs
• Lawn care costs
• Association Fees
• Home Maintenance costs

We provide a pre-qualification tool which helps you decide what you can comfortably afford when considering home ownership. Our payment calculator will help determine your monthly payment.

3. What are the benefits of home ownership?

Historically, home ownership is one of the only investments you can use on a daily basis and still expect it to appreciate in value. As a general rule, most home owners can deduct their mortgage interest paid, property taxes and closing costs from their federal income tax returns.

It is difficult to put a dollar value on some home ownership benefits. Many families have told us over the years that the greatest benefit is stability. A roof over your head, good neighbors, a safe environment and a peaceful nights sleep are just a few examples of the value of home ownership.

4. What can I do to prepare myself if I can't buy a home now?

Start saving! Consider putting a little bit away each month for the down payment on your home. Protect your credit score by making payments on time all the time. Look into government programs designed to assist home owners.

It's also never too early to work with us. Call us to discuss your situation and we'll be able to keep an eye on good deals in your price range or mortgage and home buyer programs. Then when you're ready to buy, we'll have a head start!

Rochester Mn Real Estate Agents David and Lois Marris on Mortgage Applications

There are three main areas lenders review when you apply for a home loan:

• Income and Expenses
• Credit Score
• Down Payment and Closing Costs

Income and Expenses

Lenders will help you itemize your income and all of your expenses. They then calculate a debt to earnings ratio or "Housing Ratio". The Housing Ratio consists of the monthly housing payment to total gross monthly income ratio. This ratio is used by lenders to determine the maximum monthly payment a lender is likely to allow you to carry based on your income alone. To calculate your own Housing Ratio visit our web page Pre-Qual Calculator tool.

Credit Score

Your credit score is a number generated by the credit reporting agencies and represents your overall credit health. You can find your current credit score by visiting www.freecreditreport.com or www.annualcreditreport.com. As a general guideline, lenders would like to see a credit score of at least 650. If your credit score is lower than this, you'll want to improve your credit score by paying off debt and paying bills on time for 12 consecutive months.

Down Payment and Closing Costs

Right now, most lenders would like the buyer to have at least a 10% down payment when purchasing a home. If you have high credit and are buying a medium priced home, you may be able to find a 5% down loan pament. Jumbo loans (over $417,000) are often requiring 20-25% down payments. Your lender will take the down payment and closing costs into consideration when determining your qualification for a loan.

Mortgage related closing costs vary from lender to lender to it is important to compare vendors. A 1% origination fee is quite common these days and means you will pay 1% of the loan value as a closing costs. Some closing costs do not vary from vendor to vendor. Examples are a state deed tax, abstract update or title insurance costs, filing costs, etc.

We provide each buyer and seller with an estimated closing expense form to you will not be surprised by any costs related to the closing on your home.

Calculating Your Monthly Payment

Your monthly payment will depend on:

• Purchase Price
• Down Payment
• Interest Rate
• Property Tax rate
• Annual Hazard Insurance Cost

Visit our payment calculator to determine your monthly payment. Your payment will include your principal payment (P), Interest payment (I), 1/12th of your property tax payment (T) and 1/12th your annual hazard insurance payment (I). All together, we call this PITI: principal, interest, taxes and insurance.

Our web page offers more mortgage information and easy to use tools to help you with your home buying decision.

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Rochester MN Real Estate Agents David and Lois Marris are top REALTORs at Edina Realty. Edina Realty is the number one brokerage in Minnesota. Visit www.davidandloismarris.com to search for Rochester homes for sale. Contact: LoisMarris@EdinRealty.com, DavidMarris@EdinaRealty.com, 507-398-3251.

Up-to-date real estate market news from Rochester MN REALTORs David and Lois Marris.

Rochester MN will soon have not just one Walgreens Store, but two. Rochester City Council approved a zoning change which allows Walgreens to proceed with their plans to build on the corner of 11th Ave NW and Civic Center Drive. The first Rochester Walgreens store is being constructed on South Broadway near the Olmsted County Fairgrounds and Crossroads Shopping Center.

A second Walgreens is good news for Rochester. We have tried to attract Walgreens for years to no avail. Thankfully, Walgreens has seen the advantages of a Rochester location. We are delighted that the stores are coming at a time when we need the construction jobs and steady employment the national chain will provide our local economy.

Mayo Clinicpatients will also be delighted to hear about Walgreen's coming to Rochester. Many Mayo Clinic patients visit from across the country. Prescriptions have a been an issue for some as they need to fill them both here and in their home town. Prescriptions filled at Walgreens are entered into their company database. This allows a customer to have their prescription filled easily at any Walgreens location across the country. Patients tell us they are looking forward to this added convenience.

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David and Lois Marris are top producing REALTORS at Edina Realtyof Rochester, MN. Edina Realty is the top real estate brokerage in Minnesota. For more information regarding Rochester MN Real Estate visit our web page at www.DavidAndLoisMarris.com. Contact information: DavidMarris@EdinaRealty.com, LoisMarris@EdinaRealty.com, 507-398-3251.

Rochester MN Real Estate Agents David and Lois Marris of Edina Realty provide up-to-date information on the Rochester MN Real Estate Market.

The spring construction season is upon us and Rochester couldn't be happier. This year we have more to celebrate than just warm weather and sprouting flowers. New home construction permits are on the rise. That is good news for home owners hoping to sell their home, for home builders and the economy in general. It shows that we have begun to work through our over supply of housing and people are opting to build again. Construction crews are out in mass, happy to have work.

Twenty-nine new home permits were issued in the month of April. When you compare this with just 20 permits issued from January to March you begin to understand what all the excitement is about.

In 2004, a record 962 single family permits were issued. An abundance of single family home building continued into 2005. As the housing industry bubble burst we were left with an oversupply of vacant new construction homes. Recent signs lead us to believe we have worked our way through our vacant home inventory and people are ready to build again. We have seen a reduction in total available houses. Specifically we have seen a reduction in available vacant homes for 6 consecutive weeks, many of these being new construction.

While many people feel the real estate market is in a slump and you should not sell, we have a different opinion. If you need to sell, now may be the perfect time. Buyer demand is increasing and many sellers have yet to realize this. If you are considering the sale of your home, contact us at 507-398-3251 or DavidAndLoisMarris@EdinaRealty.com. We'll help you beat your competition to the market with a custom marketing plan designed just for you!

To read a full story on the jump in home building permits, visit the Rochester Post Bulletin.

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David and Lois Marris are top producing REALTORS at Edina Realty of Rochester, MN. Edina Realty is the top real estate brokerage in Minnesota. For more information regarding Rochester MN Real Estate visit our web page at www.DavidAndLoisMarris.com. Contact information: DavidMarris@EdinaRealty.com, LoisMarris@EdinaRealty.com, 507-398-3251.

Wednesday, May 6, 2009:

There are currently 812 single family homes available for sale in Rochester, 6 fewer than last week.

263 of these homes are vacant, 9 fewer than last week.

An astounding 42 homes accepted contracts this past week.

We continue to decrease our availability of both existing and new construction homes. Twenty-nine new home construction permits were issued in April compared to just 20 total for the months of January-March.

If you are considering selling your home, now is a good time to be on the market. Contact us for a detailed marketing plan for your home.

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David and Lois Marris are top producing REALTORS at Edina Realty of Rochester, MN. Edina Realty is the top real estate brokerage in Minnesota. For more information regarding Rochester MN Real Estate visit our web page at www.DavidAndLoisMarris.com. Contact information: DavidMarris@EdinaRealty.com, LoisMarris@EdinaRealty.com, 507-398-3251.