Sometimes it's good to pre-sign

Closing is when you sign all the papers that actually transfer the ownership of a property and the buyer gets the keys to their new home. It usually takes place about 3 to 6 weeks after the purchase agreement is signed and the inspection is completed.

Buyers and sellers usually all sit around the table with their closers and real estate agents as everyone signs the documents required for the transfer. Occasionally, however, not everyone can get together in the same place at the same time and pre-signing is a good idea.

Sellers have an easier time pre-signing because they don't have to sign any mortgage documents as most buyers do. They often pre-sign if they can't get away from work, have a hard time getting around or are going to be on vacation at the time of closing...they may even be living in another part of the country or the world. They arrange with their closer to sign documents prior to closing in the presence of a notary, and someone else (usually their real estate agent or a family member) is given Power of Attorney to sign the final settlement statement and any other last-minute items that may come up at the actual closing.

Buyers rarely pre-sign because most lenders require that they sign their mortgage papers on the actual closing day. Some lenders do allow pre-signing, however, and if you think it may be a problem for you to be present on closing day it's something to discuss with your lender.

We had a perfect example of when it's good for buyers to pre-sign last week. Our buyer was pregnant. Her due date was still a few weeks out, but she started having signs that she might deliver early. Their lender allowed pre-signing, so they signed several days before closing just in case they were in the hospital on closing day!

Winter Sense of Place

In case you were wondering...no, I didn't vanish...just went on vacation to sunny California...and didn't bring my laptop for a true vacation experience!



Lucky for us that it really was sunny rather than precipitating, as is more typical for this time of year in central California. It probably tells a lot about our sense of place that we didn't head for warm beaches...we traded our snowy creek view for snowy Tahoe lake and mountain views! It is worrisome, however, that they also have less snow than normal.

I was thinking about our sense of place before we left...we had such warm weather and little snow...I was wondering how it would affect us if these changes become the norm. Winter is such a wonderful time to cozy up inside, I think I'd miss not having that time away from the bustle of outside activity to spend more indoor quiet time thinking, planning, creating, learning. It does feel like winter today, (it's cold outside!) and although yesterday's warmth felt good I must admit it feels good to be back to winter.

We didn't spend all our California time in Tahoe...we also spent time in Sacramento, Napa and our favorite San Francisco Bay area. The hills/mountains in both SFO and Tahoe offer a very different housing experience. I love looking down to see your neighbors, and out to such magnificent vistas

There has been so much talk in the past year about inflated and declining housing prices. We're lucky to be in the Midwest, where prices rose nicely but not outrageouly and have dropped some but are now relatively stable...expecting a modest rise of 1-2% this year. Housing prices went through the roof in California, and they are now positioned for more significant price decreases...I just read an article listing the 10 markets with the highest risk of declining prices and 8 of them are in California (the other two on the opposite coast in Massachusetts).

It feels good to be back and settling into 'real' winter in the Midwest...although sitting out for lunch and fine wine in the Napa valley was a wonderful winter getaway experience.

I hope you find your own way to relax and refresh in this new year...I'm ready to get back to the joy of my work helping people fulfill their real estate dreams!

Does 100% financing mean I don't need any cash to buy a home?

Well, yes and no. 100% financing usually means your mortgage covers the total purchase price of your home, and often covers your closing costs as well. However, you will need some cash up front for your earnest money and optional inspection costs.

Let's walk through a typical 100% financing scenario...

Let's say you're buying a house for a purchase price of $193,300 and financing the total amount, including closing costs and prepaids.

Estimated closing costs (financing and closing fees) would be about $5,000 and prepaids (interest, taxes and insurance) would be about $1,700...for a total of $6,700...adding this total amount to the sale price gives a total financed purchase price of $200,000.

The most common amount allowed in financed closing costs is 3% of the purchase price. In this case that would be $6,000...leaving an additional estimated $700 for you to pay out of pocket.

This means that nearly everything is financed at closing, but you still need some cash for earnest money to submit with your offer to purchase the property. Earnest money is usually about 1-2% of the purchase price (about $2,000 in this instance), and is held in escrow for you until closing...it's the money that says you're serious about purchasing this property because this is money the seller would keep if you change your mind and back out of the transaction before closing.

If your purchase agreement is subject to an inspection, you should also budget about $350 for this cost, payable at the time of inspection at the time of the purchase agreement. If you cancel the agreement because of the inspection your earnest money will be refunded to you.

When you finance 100% of your purchase price and closing costs, most of your earnest money should be refunded to you at closing...based on the difference between estimated financed costs and actual costs at closing.

Questions? Want more information? Just let me know...we're here to help!

Everything in this example is used for illustrative purposes only, is based solely on estimates, and is not guaranteed.

Wednesdays Unplugged

Time seems to be such a rare commodity in today's hectic world. We're so technologically connected we tend to be on call 24/7, but our personal connections seem to suffer...as does our time to nurture ourselves and just 'be'.

My response for 2007 is 'Wednesdays Unplugged'...a day when I am unplugged from my computer, my cell phone, my appointments (my assistant is capably in charge for the day!) and simply 'Take Time'...time during the day for me and time in the evening for our children and their families to gather with us around our table to connect and share a meal during the middle of a busy work week.

Yesterday was my first 'Wednesday Unplugged'. It was interesting how strong the urge was to go down to my computer as I always do first thing in the morning. As the day went on, it became ever more apparent how great a gift these days will be...and how much it will challenge me to be truly 'unplugged' for the day. It made me think that this is what was meant by the admonition to 'remember the sabbath day, to keep it holy', counseling us on how important it is to take a day of rest from whatever our normal daily pursuits may be to refresh and nurture our souls.

Years ago my mother gave me a little hand-typed note which I still have on my bulletin board right next to my desk...I've copied it below. This is how I plan to focus my 'Wednesdays Unplugged'...never mind if it spills over to the rest of the week!

TAKE TIME

Take time to think - it is the source of power
Take time to read - it is the foundation of wisdom
Take time to play - it is the secret of staying young
Take time to be quiet - it is the moment to seek God
Take time to be aware - it is the opportunity to help others
Take time to love and be loved - it is God's greatest gift
Take time to laugh - it is the music of the soul
Take time to be friendly - it is the road to happiness
Take time to dream - it is what the future is made of
Take time to pray - it is the greatest power on earth

Search Sold Listings

More real estate property information is now available online. Now you can search for information on sold properties as well as active listings.

This doesn't include pending listings, which means you won't be able to look up information when there is a 'SOLD' sign in front of a property...wait until the sign is gone, which usually means it has closed and the sale price has become public information. Prior to that point the negotiated sale price is confidential and known only by those parties involved in the transaction.

You can use this data to help you determine the value of your home...or satisfy your curiosity and find out what your neighbor's house really sold for. Use search criteria that matches your home to find comparable listings to help establish your home's value. Although this data is fairly accurate, keep in mind that it doesn't tell you if the seller made any contributions to buyer closing costs, etc. This is fairly common, particularly in lower price ranges, so if a property sold for more than other comparable listings it's possible the sale price includes closing costs the seller paid on behalf of the buyer.

To check it out visit www.HomesMSP.com and click on 'search SOLD listings' under the search area listings header...or just following this link... http://www.minnesotahomes.com/Search.aspx?SearchType=20

Happy New Year!

New Year's Eve brought a beautiful blanket of snow, what a beautiful and gentle way to end 2006. We brought in the New Year with our tradition of fondue and games with friends and family. This year we played Sleuth and Quiddler...and managed to make it to midnight to watch the crystal ball drop and enjoy champagne, strawberries and dark chocolates.

I awoke to this idyllic view out my window this morning...what a special gift to welcome the new year. The ducks were even frolicking in the creek...pretty unusual for New Year's Day in Minnesota but nevertheless delightful.

Our wish for 2007 is that you will sense how important you are to the people in your lives, as well as to those you meet each day. The way we live has an impact far beyond what we'll ever know.