Foreign Nationals: Great Time to Buy in U.S.A.

Foreign Nationals are trying to purchase real estate in U.S.A. thanks to the economic downturn and the weak US Dollar & fantastic housing prices.

There are a few must and preparations before you make that first offer.

1) First and foremost, find professionals to work with.
In the United States, it is customary that a Real Estate Agent list a property for sale with a commission of 6%. This commission is meant to be split between the Seller’s Agent and the Buyer’s Agent. You will need to have representation goto: www.MikeKnowsRealEstate.com for representation anywhere in the U.S.A.

2) Get Pre-Approved for a Mortgage
I recommend highly calling your mortgage professional mikegendreau@edinarealty.com and getting your loan pre-approved prior to submitting an offer. This will require being in contact with a Mortgage Broker that has experience dealing with Foreign National Buyers. The Mortgage Broker will ask you the questions necessary to take an application for the lender. You will then provide that Mortgage Broker with all the credit and income information that the lender needs including letters from attorneys, banks and accountants all translated into English. Having the Pre-Approval will allow the Foreign National Buyer and the Seller to be confident that the loan will close.

The documents that are typically needed to get the loan Foreign National Loan approval are:

1 Copy of Visa (if applicable)

2. Copy of Passport

3. Three Personal Reference Letters from Country of Origin. Letter must be from a lending institution and include the following:

• Credit was extended to the Borrower
  
• Borrower is in Good Standing
  
• High Balance
  
• Current Balance
  
• Payment Amount
  
• Payment History
  

3) Employment Verification Must Include the Following:

• Must be on company letterhead from Country of Origin.
  
• Must state Income for for prior 2 years and current income.
  
• Length of Employment
  
• Position of Borrower
  
• Type of Business

For Self Employed Borrowers, please include:

• Percentage of Ownership in company
• Address of business for the past 2 years.

All letters must be translated into English by a certified translator.

3) Start a Banking Relationship Early
Most lenders will want to see that you have funds available in a US Bank account. They will require that your payments be automatically deducted from that account every month. It is also a great time to go ahead and put money in a US Bank Account while the Dollar is still weak.
Lenders will require you have an amount in the US Bank account equal to:
Your Down Payment - 25-30% of the Purchase Price
Your Closing Costs - be ready for 3-3.5% of the Loan Amount
Your Escrows - Escrows are the costs associated with State Property Taxes and Hazard Insurance that the bank will pay for you every year
Your Reserves - Most every bank requires Foreign Nationals prove 6-12 months of total monthly payments be already deposited in their US Bank account
The Total Monthly Payment includes:
Mortgage Payment - Principle + Interest
Property Tax
Homeowners Insurance (unless a Condominium)
Homeowners / Condominium Association Dues
I suggest using a bank that will give you Internet Access in your home country. I also suggest checking into the fees for transferring or wiring funds from your home country to the US Account. Citi Bank has offered “Free World Account Transfer” services so you can pass funds from your US Bank to your Foreign Bank for no fees. They may charge for exchanging money but a smaller bank would likely charge more. There are Foreign Exchange services that can act as intermediaries for low fees as well.
4) Don’t get caught up in the Short Sales and Foreclosures craze
There are ample properties at great prices. Short Sales and Foreclosures can be complicated transactions and can take far more time and effort from all parties to get the transaction completed successfully. In that time many things could happen to jeopardize the transaction or the loan approval. Foreclosures and Short Sales could also need costly repairs that will require your time, attention and money… so an inspection for mold is imperative.
If you are working with a pre-approval and a good Real Estate Professional, they can help you find a well maintained property with a motivated seller that will fit your requirements.
5) Consider Cash Flows
Make sure you understand Cash Flows - positive and negative - on the property you are interested in purchasing. If you are buying the property to rent (let) it is important to understand how much money you are making to make sure it fits your investment strategy. Entry and Exit strategies are important…but you will want to make sure you understand how every month will affect you financially.

Michael Gendreau

Professional Real Estate Consultant

mikegendreau@edinarealty.com

www.MikeKnowsRealEstate.com

651.779.2443

Tips For the HomeSeller

For many people, selling their home is a stressful experience. When you are ready to sell, my goal is to help you sell your home for top dollar, with the least amount of inconvenience to you. I like to eliminate the worry, so all you have to do is pack!
The way to reach this goal is to price the property accurately for the marketplace and get your property into its best condition. Many buyers nowadays work long hours in their jobs and want a home that is ready to move into without a lot of fix-up.

Imagine you are a buyer looking at your home. What do you think needs repair? The most common areas of concern are the roof, gutters, and downspouts. In addition, repair of missing or peeling exterior paint is often a condition of the loan.
Money spent on repairs can make a difference in the final sale price because buyers tend to overestimate the cost of performing repairs. Then they reduce their offer by an amount higher than necessary to compensate. If the lender requires the repairs to be performed before closing, the seller can, in effect, end up paying for repairs twice: first in a lower sale price and second in the out-of-pocket cost of the repairs themselves.
A better strategy is to perform the repairs before putting your house on the market. Simple repairs that make a huge difference in marketability and offer price are:* Replace cracked windows and torn screens.* Fix or replace any broken stairs or handrails.* Fix plumbing fixtures, leaking faucets, and so on.* Replace exterior lock sets and garage door openers if damaged.* Repair worn or damaged flooring.* Replace broken or leaking gutters and downspouts.* Remove any soil or landscape mulch from contact with wood.* Clean, repair, or replace the roof.* Repair or replace any worn boards on decks or porches.* Have your heater and air conditioning units serviced and filters replaced.
First impressions are key. Taking care of the necessary repairs before putting your home on the market is important to yielding top dollar and ensuring a quick, hassle-free sale. I'd be happy to come by and make some recommendations on how to create an inviting atmosphere. Homes that convey pride of ownership often receive the best offers.
Please call or email me if I can answer any questions or be of any assistance in helping you get top dollar when you are ready to sell.

When you are ready to sell, you'll want to maximize the emotional appeal of your home. People who are enchanted with your home upon walking in the door are more likely to buy, and at a fair price.
Here are some tips to enhance the emotional appeal of your home:
* Turn on the lights to create a warm glow and remove the shadows.* Make sure the windows are clean, and open the curtains or blinds.* Keep the kitchen and baths clean and sparkling. Don’t leave dishes in the sink.* Remove all clutter, make the beds, and pick up toys. * Pack away items that may detract from a buyer’s ability to mentally move into your home such as family pictures or teen posters.* Make the closets look bigger by packing up the clothes you are not using.* Create a relaxing atmosphere with soft music.* Make people feel at home with homey scents such as freshly baked cookies or bread or good potpourri.* Check for pet odors and keep pets safely out of the way when your house is being shown.* Clean out your basement and garage and neatly stack boxes you have stored there.* Add charm and appeal with fresh flowers and plants.
Set the stage to show your home to its best advantage. Please don’t hesitate to call or email me if you have any questions, or would like some professional tips on preparing your home for sale.

According to a recent report, about 75% of homebuyers surf the Web to begin their home search. That means home buyers are well aware of what properties are available on the market and the prices they are selling for. Therefore, now more than ever, pricing is the key to selling your home.
Some sellers think that a higher price will give them some negotiating room. But in fact many buyers don't even look at a property that is overpriced, much less make an offer on it.
This can lead to the property’s becoming “shop-worn.” Buyers often inquire about the length of time a property has been on the market. If it has been on the market a long time, they wonder if there is something wrong with it. The sellers then have to drop the price, taking less than they might have if they had priced it correctly to begin with.
Homes that are well-priced attract the buyers in their price range. The buyer's perception is that the home is a good buy, and then the seller is positioned to receive the listing price or close to it.
Please feel free to call or email me if you have any questions. I would be happy to provide you with a market evaluation on your home to make sure it is competitively priced in the marketplace so you will receive the best offer.

Buyers want the most house their money can buy. A large house with a choppy floor plan and small rooms can feel less spacious than a smaller home with an open floor plan.
Here are some things to do to visually create more space:
* Position mirrors in the right places to make a room appear larger. Make sure the mirrors reflect what you want to see more of, such as a favorite painting or a lovely window.* Choose a light color scheme to help open up a room. White, cream, pearl gray, or soft yellow seem more inviting and open because they reflect light.* Clear out the clutter. Keep decorative objects to a minimum. Porcelain figurines are distracting and can be easily broken. Pick up newspapers and magazines. Put away--or pack away--unnecessary items from countertops in the kitchen and baths. Clutter can make rooms seem smaller than they are.* Minimize the amount of furniture you have in each room. Either sell it or store it away.
A clean, well-maintained, and spacious home is not only more marketable, but can often command a higher price.
Please don't hesitate to call or email if I can help you further get your home ready for market.

Homes that have been well-maintained and convey pride of ownership appeal to perceptive, motivated buyers. Below are some simple steps you can take to ensure your home is in “show shape” when you are ready to sell.
* Clean or replace carpets and/or other flooring, such as vinyl or hardwoods.* Wash the windows and window coverings.* Clean the kitchen and baths until they sparkle.* Clear and pack away clutter and sell or store excess furniture.* Clean your closets--extra storage space helps sell homes.* Paint or touch up any rooms that need it. Use neutral colors, which have more universal appeal.* Take down family pictures and teen posters. These make it harder for buyers to imagine the home as their own.* Clean the basement and garage. Neatly stack and store boxes.
Your home's cleanliness and appeal create an unconscious impression. That impression can determine the likelihood of an offer.

What would buyers see if they drove up to your home? Take a look. Stand outside your home and try to look at it through a buyer's eyes. First impressions are lasting impressions. If buyers see paint peeling, a crack in a window, or an unkempt yard, they are apt to speculate that there are other, more substantial things wrong with the home.
That first impression, or curb appeal, can make the difference in the amount of money a buyer is willing to offer.
Here are some suggestions to enhance the curb appeal of your home:* Mow the lawn, clean up the yard, and prune the shrubs* Scrub or paint the front porch and door* Check porch/deck and hand railings to ensure they are secure* Wash the windows; make them sparkle* Pick up and put away toys and bikes* Check that lawn furniture is in good repair, or store it away* Add charm with pots of flowers* Repair and paint the fence, if necessary* Repair the roof, gutters, and downspouts as necessary
These improvements are essential. A prospective buyer, when met with an untidy home, can't help but wonder if there are problems with the rest of the house.
Sometimes it helps to have an objective perspective. Feel free to call or email me if I can answer any questions or make any suggestions to improve your home's curb appeal.

To View Thousands of Homes in the Twin Cities MLS goto:

http://www.mikeknowsrealestate.com/