What Does Renewing Your Tabs in MN Have to Do With Buying a Home

If you’re like most people this year, then auto tabs have nothing to do with buying a home but if you’re planning on buying a home in MN, then the state’s new requirement that you show proof of insurance to renew your tabs gives you an excuse to talk to your insurance agent on upcoming insurance savings on your home.  We’ve discussed saving money on utilities but homeowner’s insurance is an overlooked element of saving money on your monthly mortgage payment. Each person’s situation is unique but here’s a sample of some things you can learn about on your call: …

How Underwriters View Owner Occupied Vs. Non-Owner Occupied Transactions

There are many times when a homebuyer truly intends to occupy a home as a primary residence only to be told by a mortgage underwriter and subsequently their loan officer that their claim of having the intention to occupy a property as a primary residence was not adequately credible. This often happens when a property purchase is being made while another property is being retained. The consequence of a decision on the part of the underwriter to not agree with a homebuyer’s intent to occupy a property as a primary residence can lead to larger down payment requirements and inferior …

How to Refinance Your LLC Properties’ Mortgages into Your Own Name

Attempting to navigate the process of refinancing mortgages out of the name of a LLC and into your own name with a conventional mortgage can be a lot like walking across a minefield with a blindfold on.  Perhaps one of the main reasons for this is that the guidelines that affect these transactions have trickled out here and there, over a long period and have been amended periodically.  Here is a summary of guideline considerations to take into account when considering refinancing your investment property loans from a LLC into your own name: Are LLC’s eligible to be refinanced from …

Long Term Mortgage Rate Forecast Going Into Winter Market

As the winter weather hits or threatens to hit, many people who have actively or passively been searching for a home ask, “Should I just postpone the idea until spring?”  There are many reasons to either wait or hasten the purchase of a home.  If you happened to be considering mortgage rates as one variable in your decision, we thought that we’d share the one reliable forecasting model that we follow for long term mortgage rate forecasts: Mortgage Rate Forecast for 30 Year Conventional Loan 30 Year Conventional Mortgage Rate. Percent Per Year Average of Month. Month Date Forecast Value …

Fannie Mae and Freddie Mac Near Deal to Bring Back 3% Down Financing

The Wall Street Journal published that a deal between the FHA, Fannie Mae and Freddie Mac is much closer to becoming real than had been anticipated. Nobody knows the exact timing of the implementation of the deal but there are two significant parts that will benefit the consumer. The first element has to do with making it crystal clear to lenders what is expected of them when delivering loans to Fannie Mae or Freddie Mac or getting them insured by HUD. This clarity will mean that lenders won’t be afraid of loan risk nearly to the extent that they now …

Top Three Reasons to Feel Good About Buying a Home in the Twin Cities

It doesn’t happen very often where, in a compact period of time, I see a wealth of reliable data released that shed such sunny light on the decision to buy a home in the Twin Cities but lately that has been the case.  If you’ve been contemplating such a decision, here are 3 great reasons to feel good about your decision and its timing in ascending order. Reason 3: CNBC Ranks Minnesota as a Top State for Business. CNBC’s announcement may seem boring, and it definitely is, but from the perspective of a homebuyer or homeowner, it’s critical.  This is …

Today’s Rate vs. Today’s Rates – Mortgage as a Second Language

The mortgage industry is almost cruelly filled with nearly impossible jargon.  Most of it is inconsequential from the consumer’s perspective and only serves to make communication easier for industry insiders.  However, when it comes to the concept of choosing an interest rate from your lender par rate, buy ups, buy downs, discount points and lender credits are a must know. Definitions: Today’s Rate – “Today’s Rate” is a myth perpetrated as a reality.  It is something the mortgage lending industry came up with because it’s an intellectually condescending industry that doesn’t believe that its clients can do math or understand …

Down Payment Assistance Programs in MN

Deb Muelken (NMLS ID 364933) of iLoan (NMLS ID 4474) outlines the various options for down payment assistance to use with mortgages in Minnesota on the Twin Cities Real Estate Radio Show.  For more information on how these programs might be of help to you, contact Deb at 651.353.8531 or by emailing her at deb@iloanhomemortgage.com! Trouble listening?  Click Here

Fannie Mae Increases Down Payments on MyCommunity® and Standard Loans

In another backward-thinking move, Fannie Mae has very subtly announced that they will be increasing their down payment requirements by decreasing their maximum Loan to Value Ratios for MyCommunity® mortgages and for standard mortgages on 1-unit primary residences effective on or after the weekend of November 16, 2013.  The previous allowed down payments were at 3% based on a Loan to Value Ratio (LTV) of 97%. The difference between 95% LTV and 97% LTV financing may sound slight but on a macroeconomic level, it’s huge.  It will postpone purchases for multitudes of buyers; particularly first time homebuyers who might find …

Planning Your Home Purchase With a Mortgage Recast

Often times, seemingly in a fantasyland, home buyers might want to buy their new home first non-contingent on a home sale and sell their retained home shortly after moving into their new one without a financial inconvenience.  They might want to do this to get a better price due to negotiating from a position of strength or it might simply be a matter of logistical convenience.  Whatever the reason, the difficulty arises when they want to use the equity from the home that they’d be selling to achieve a lower payment on their mortgage for their new home.  Most would …

Principles of Locking or Floating Your Mortgage Rate

At some point during the application process, your mortgage rate needs to be locked in.  This short video will provide you with the basics regarding “locking” or “floating.”  For more information, follow our interest rate forecasting page or call your loan officer for details.  Enjoy the show! Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is …

Tell a Veteran to Miss a Payment to Qualify for a Short Sale and You May be Up Against the CFPB

Statistically, over half of the Consumer Finance Protection Bureau (CFPB) complaints to the Office of Servicemember Affairs (OSA) have to do with mortgages.  Of these, 58 percent of them had to do with loan modification, mortgage collection practices or foreclosure . . . and yes . . . short sales would fall under this category.  While this is a broad range of complaints, I’d like to focus on servicemembers with Permanent Change of Station (PCS) orders and how they relate to short sales. For Realtors processing short sales on behalf of servicemembers, they’ll want to know that the CFPB is …

The Only 10 Reasons a Lender Needs Tax Returns for a Fannie Mae Mortgage

Giving a pound of flesh in income and asset documentation has become the norm but it’s likely that unjustified lender paranoia has led them to ask for a bit too much of their clients.  My recent rant on this issue concerned verifying large, non-payroll deposits but now my rage has turned to the simple request of tax returns.  I’m not talking about FHA loans, VA loans, RD loans or Freddie Mac loans (although if you’re curious about Freddie, see attached), because if you’re looking for one of these, you’re going to be asked for a lot of paperwork.  I’m just …

Different Mortgage Types and What They Mean to Buyers and Sellers in a Competitive Market

This podcast outlines the differences between Minnesota mortgage pre-approvals and how they affect purchase transactions.  Homebuyers and home sellers can learn the risks and benefits of each different type and how they relate to their transaction.  This is essential information for understanding the implications of your choice on loan type for your purchase in a seller’s market.  If you’re a seller, it’s essential for understanding the risks and advantages of accepting an offer that comes with one type of mortgage financing vs. another. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & …

You’re A First Time Homebuyer? So What!

I know, my headline may be a little offensive to some, but I had to get your attention. This is going to be well worth your 4 minutes to learn a few things about first time homebuyers and first time homebuyer programs. I’m sure you have heard of Toys R Us and Babies R Us, right? Ever heard of Entitlements R Us? Nope.  It doesn’t exist.  And I’m going to break the notion that just because you are a first time homebuyer, that you are entitled to those programs or any down payment assistance. (besides, entitlements are only for the government). …

Verifying or Sourcing Large Deposits for Your Mortgage – Make Sure You’re Not Being Asked for Too Much

In the last 4 years, an effort has been made on the part of mortgage lenders to ensure precise accuracy on income, liabilities but also on making sure that their money is really their money.  Consequently they look for “Indications of Borrowed Funds.”  One such indicator of potential borrowed funds is a large and irregular deposit on a bank statement and, when found, they can lead to the Spanish Inquisition of Letters of Explanation and documenting the origins of these funds.  When this guideline originally came out, it arrived without much clarity so naturally everyone took the strictest interpretation of …

Homebuyers: Thinking About A Lowball Offer? Think Again.

 If you are under the impression that the Minnesota real estate market is still a buyer’s market, it may be time to put away the bell bottom hip huggers and burn the flower power polyester pullover.  Okay, that may be dating back a bit too far but you get my point.  Let’s time warp to 2013. Long gone are the days of putting in a lowball offer and hope it sticks.  It won’t and it doesn’t anymore.  I know, I know…your friends, family and colleagues who purchased homes just a few years ago still boast that they got their home …

If You’re Going to Claim to “Owner Occupy” Your Home, You Better Mean It

More and more, people are finding that their intent to occupy a home when getting a mortgage may not mean what they think it means.  More and more, loan officers are also finding out that it may not mean what they think it means.  One of the Mortgage Loan Officer national testing questions asked what intent to occupy meant and the correct answer, for testing purposes, was that the buyer would have to move in within 60 days.  Now, both on refinances and on purchases, it’s becoming important to know how long one will be staying there as well. While …

When it Comes to Your Credit Report, Be Yourself.

It’s important in life and in mortgage lending that you be yourself.  Accordingly, when your loan officer is presenting you and your loan application to an underwriter, you do everything you can to be as accurate and honest as possible.  You take a detailed loan application and cough up unending amounts of documentation so, . . you’re good right?  Actually, there’s a 25% chance that’s not quite right. One in four consumers found an error in a credit report issued by a major agency, according to a study by the Federal Trade Commission.  Five percent found errors that could lead …

Buy a Home Now vs. Wait – Who Needs a Forecast for that?

Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. works cooperatively with other real estate agents across the United States in attempting to find ready, willing and able buyers for homes …