Minnesota Mortgage Blog

Did you know that your real estate purchasing power is at an all-time high? When you consider today's historic low interest rates and the rock-bottom prices of homes across the country (according to the National Association of REALTORS®, the median cost of existing single-family homes in 2011 was $158,000), it's obvious that now is the right time to make your new real estate purchase.
 
Interest Rates
Today's interest rates are astonishingly low. The average rate for 30-year fixed-rate loans over the last forty years has been around 8.9 percent. Today those numbers have been dipping into the 3 percent range, with a record low set in February. At the beginning of April the rate on 15-year mortgages hit an all-time record low.
 
Rates this low just can't last forever. And there's really no way to predict when they'll begin to climb — and continue to climb. Freddie Mac recently predicted that the rate on 30-year fixed loans would reach 4.5 percent in 2012 and average out at 5.4 percent in 2013 — still low, but higher than they are now.
 
Housing Prices
First you've got rates at historic lows; pair that with today's super-low housing prices and you've got the perfect situation to maximize the amount of house you get for your money. "Distressed" properties such as foreclosures and short sales coupled with the abundance of homes on the market are conspiring to keep the median home price under $200,000.
 
The Cost of Renting
Once upon a time, people often rented homes because they couldn't afford to buy. But with so many Americans suffering foreclosures, layoffs or other challenges to homeownership, renting is on the rise — and so are rental rates. It's actually more economical to own in most areas of the country than it is to rent. The influx of renters into the market has driven demand sky-high, and costs are shooting up while availability is declining.
 
Opportunity Is Knocking
So when you look at interest rates and housing prices, toss in skyrocketing rents and the availability of homes to buy versus homes to rent, you can see we're in an unprecedented period in terms of the overall affordability of real estate. Nationwide housing affordability, as measured by the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), rose to a record level during the fourth quarter of 2011.
 
There Is No Time Like the Present
Whether you're looking for your starter home, an investment, a retirement property or to downsize or upsize, there are multiple compelling reasons to take action — and they won't last forever.
 
If you are ready to investigate how you can turn today's real estate market to your advantage before the opportunity slips away, I am available for a no-cost consultation to look at your options and see what real estate purchase works best for you, your family and your financial situation. Contact me today to discuss how you can harness your true purchasing power.

Call Jamie Larkin at 651-484-1474 to get qualified to purchase or refinance your home today

Jamie@jamielarkin.com

btaining a home mortgage doesn't have to be intimidating. It's probably one of the biggest financial transactions you'll ever make, with many steps and requirements that are probably unfamiliar. Understanding how the process works is a great way to remove a lot of the stress you may feel when making such a substantial decision.
 
Below are six steps to completing a loan application and purchasing a new home. If you have any questions, feel free to contact me for a free, no-obligation consultation.

1. We review your mortgage options based on your specific financial needs. There are a lot of choices and it is my goal to help you find the program that is right for your personal, unique financial situation and goals and to ensure you completely understand your options and the loan program you select.
   
2. Complete the loan application. I will help you complete the loan application. Some of the documents you'll need are listed here, but I may have to ask you for additional paperwork as we move through the loan process:
   

   Assets: Bank statements for past two months Investment account statements for past two months Life insurance policy Retirement account statements for past two months Income: Current pay stubs or, if self employed, past two years' of tax returns

   Liabilities: Credit card account(s) Auto loan account(s) Personal loan account(s) If you currently own real estate: Mortgage account(s) Home equity account(s) Home insurance policy information

   
3. The loan package begins processing. The loan processor gathers the necessary documents into your loan package. You should obtain homeowners insurance as you'll need to provide information about your policy to the processor.
   
4. An appraisal is performed by a licensed inspector. Both refinances and new home purchases require an appraisal, in most cases.
   
5. The Underwriting team goes to work on your loan. This is the first review of your application to check all the pieces are there and all the numbers are adding up properly.
   
6. I send you regular updates on the progress of your application. I will reach out to you all through the loan process to make sure you are in the loop. You can expect a call or email form me when certain milestones are reached, such as:
   
   • When the appraisal comes in
   • When Underwriting gives the final approval
   • When your loan is ready to fund
   
   As always, I am here to answer any questions you may have about your application and the process. I may also need to request additional information from you.
   
7. Your loan funds and closes. Once your loan has been approved, the funder orders the loan documents and the title company sets up a meeting where you sign them. After the loan has recorded, the transaction is complete and your agent may now give you the keys to your new home.

 
Congratulations!!
 
If at any time you have questions about this process or about home loan financing in general, please feel free to contact me. There is no charge for a consultation, so why not start today?

Jamie T. Larkin - Mortgage Advisor

Serving Minnesota and Wisconsin

1. Diversity in your financial portfolio
2. Rental rates are climbing as demand for rentals increases
3. Rising income from rental fees over time mean more cash in your pocket as you pay off your mortgage
4. Tax benefits of depreciation and expenses*

1. Perform your own financial review.

   

   • Create a budget. Decide how much you are comfortable spending on your housing. Use online mortgage calculators to take a look at different scenarios. Remember you'll also need to factor in taxes, homeowners insurance and home repairs and upkeep – you can't call the landlord to fix a broken water heater when it's your water heater.
     
   • Your loan officer will offer guidance and explain the different options available to you as you start the process.
     
2. Gather documentation.
   Your loan officer will need information on your finances, employment history and credit. In general, the documents you'll need include:
   
   • Pay stubs for the previous month
     
   • W-2 forms for the last two years
     
   • Child support/alimony documents
     
   • Awards letter for Social Security and 1099 for disability income
     
   • Information on rental properties, commissions, or other sources of income besides salary
     
   • Bank, stock and securities statements for the last three months
     
   • If you own rental property, provide rental agreements and two years of tax returns
     
   • For gift funds – a gift letter, evidence of transfer and sometimes evidence of withdrawal
     
   • Cancelled rent or mortgage payment checks for past 12 months, if not available on credit report
     
   • Divorce decree
     
   • Explanation of discrepancies in credit
     
   • Self-employed applicants will need additional documentation, including two years' of tax returns
     
3. Remember these "don'ts".
   • Don't go shopping for new furniture yet. Or buy a new car, jewelry or other high-end items. You don't want a ding on your credit report before your loan officer takes a look at it.
     
   • Don't move your money to a new bank, make large transfers between accounts or make large deposits or withdrawals. All your finances must be documented and you want it to be as easy as possible to track your money.
     
   • Don't change jobs. Your lender is looking for a stable work history as that is an indicator of your reliability in regards to making your loan payments.
     
   • Don't pay off all your debt. It sounds counterintuitive, but you need to show a good payment history, so having accounts open to which you make regular payments is actually a good thing.
     

A home purchase is the biggest transaction most people make in a lifetime, but it doesn't have to be intimidating or even confusing. Once you've prepared by following the steps above, the fun part begins: selecting your loan officer and real estate agent and starting your home search. Remember, there are many programs out there to fit many different financial profiles, and with rates at historic lows and home prices also super affordable, you've made a good decision for your future!
 
Contact me today to start the home loan process and get on the path to becoming a homeowner!

Thank you,

Jamie Larkin - 651-484-1474  jamie@jamielarkin.com

Lets face it time is your money. The more clients you can manage, the more successful you will be. Actually, let's modify that: The more serious, qualified clients you can manage, the more successful you will be. If you are spending time with prospective homebuyers who turn out to be unable to qualify for a home loan, you are wasting your time and losing out on income.
 
Protect Your Time and Resources
Working with preapproved buyers is the best way to ensure you are putting all your energy into clients who are likely to follow through – and who are capable of following through – on a purchase. Having a trusted mortgage lender partner who provides free preapprovals to all your prospective buyers is crucial to ensuring you are focusing on the right clients and managing your time in a way that will maximize your profits.
 
Prequalification vs. Preapproval
There is a big difference between prequalification and preapproval. With a prequalification, the lender makes a cursory examination of the prospective borrower's finances to estimate how much money the client may qualify for. Preapproval, on the other hand, is actually an extensive process during which the mortgage lender examines the client's debt, income, savings, assets and credit report to ensure the borrower can repay the loan. In essence, preapproval states that the prospective buyer is qualified for and would definitely be approved for a loan. Buyers who take the time to go through the process are serious buyers; buyers who are preapproved are qualified buyers. These are the people you want to spend your time helping.
 
Making Your Offer Count
In addition to ensuring your client can purchase a home, preapproval also helps you guide them to the homes they can actually afford by letting you know what their budget will be. Plus, an offer from a preapproved client will be taken much more seriously by sellers, as they can see that the buyer is qualified for and can receive the loan to follow through on the offer. The mortgage lender provides the client with a letter stating the dollar amount the client is preapproved for, which you can add to the purchase offer.
 
Getting Preapproved
I offer free preapprovals to any prospective homebuyer who is serious about buying a new home. As a professional loan originator, I can work with our mutual clients to review their assets and debts, explain their options and help them decide on a price range they can afford and that they are comfortable with. It is my goal to provide our client with information to help them make an informed decision, and to help ensure you are focusing on the warm leads that will turn into homebuyers.
 
A great way to maximize your time and capture leads while they're hot is to invite your trusted loan originator partner to your open houses. The preapproval process can start immediately and you can see which attendees are serious about purchasing in the near future.
 
Call me today to discuss how I can help you maximize your profits and grow your business by ensuring you are dealing with preapproved, serious buyers.

Take Care,

Jamie Larkin - Mortgage Advisor

jamie@jamielarkin.com

What is identity theft?

Identity theft occurs when someone uses your personal identifying information, like your name, Social Security number or credit card number, without your permission, to commit fraud or other crimes.
 
How can you find out if your identity was stolen?

The best way to find out is to monitor your accounts and bank statements each month, and check your credit report at least once per year from each of the three major credit bureaus. You can request a free credit report at www.annualcreditreport.com.
 
You can minimize your risk of becoming a victim of identity theft by making it more difficult for identity thieves to access your personal information. Here are some tips from the Federal Trade Commission to help protect you from becoming a victim.

• Shred financial documents and paperwork with personal information, before you discard them.
  
• Protect your Social Security number. Don't carry your Social Security card in your wallet or write your Social Security number on a check. Ask to use another identifier, if possible.
  
• Don't give out personal information on the phone, through the mail or over the Internet, unless you know whom you are dealing with.
  
• Never click on links sent in unsolicited emails. Use firewalls, anti-spyware and anti-virus software to protect your home computer; keep them up-to-date.
  
• Don't use an obvious password like your birth date, your mother's maiden name, or the last four digits of your Social Security number.
  
• Keep your personal information in a secure place at home, especially if you have roommates, employ outside help or are having work done in your house.
  
• Purchase an identity theft insurance policy to recover stolen funds or to pay for legal and/or other fees associated with recovering your identity.

By using these simple tips as a precaution you can greatly reduce the chances of having your identity stolen. Be sure to share them with your friends and family!   

If you are looking to refinance or purchase a home in MN or WI please contact Jamie Larkin at 651-484-1474 or apply online today!