Looking for a home in Chisago City, MN? Follow the timeless advice of getting your financial paperwork together and finding a good real estate agent who knows the area well, like us! After that, here are five tips to put you on good house-hunting ground:
1. Don’t Take a “Good Location” for Granted
You may have a preconceived idea of where the “good” neighborhoods to buy in are located in Chisago City. You might be right…or you might be wrong. Areas that were good five years ago may be currently full of foreclosures, which leads to decreased home values for the whole area. This might be attractive to you as a prospective buyer, but you also need to think about the long-term investment potential of a home. If a large percentage of the homes in a new development are sitting empty, check with your realtor to find out how fast they seem to be selling.
2. Qualify Under the New Mortgage Rules
Be sure that you have enough money for a down payment and the other costs associated with buying a home, including closing costs. For a traditional mortage, you’ll need to have at least 5% down.
3. Your Credit Scores Matter
Many lenders won’t consider lending to you if your credit score isn’t at least 640. Before you get very far into the process of looking at potential homes, make sure that your credit report is error-free and as spruced up as you can get it.
4. Foreclosure Buyers Beware
Foreclosures present an opportunity to buyers who may be able to get more home than they otherwise could have afforded. But they also present simultaneous risks, in that foreclosures are sold “as is”, and banks take a very hands-off and legally protected approach to them. Add the time it takes to navigate a foreclosure sale, and you want to be very sure that you have the resources you need and have done the researched needed.
5. Prepare for the Long Haul
The housing market may improve soon. Or it may not. Now is the time to think about longer-term investment, not quickly flipping a house or two.
2011 can be the year that you realize your dream of buying a home in Chisago City, MN! Use caution, common sense, and a realtor who knows the area.
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