Firstly, let me tell you this is not about scaring anyone – it is about educating people. It is absolutely essential that every home buyer and real estate agent understand what I am about to explain. There’s a reason that we don’t send you out shopping for homes before actually being pre-approved. There are actually a number of good reasons and most of them are for your own protection, not ours.
Thank you to this month’s first time home buyer class attendees. We held our monthly first time home buyer class Thursday and as usual, those who attended came in with a host of questions that are typical of the first time home buyer in Minnesota. Here are a few of the questions and answers from this week’s class:
Real estate radio programs are all over the airwaves today. Our show is truly designed to educate you about what you need to know in today’s mortgage and real estate market in the Twin Cities and answer questions about your own real estate and mortgage needs, and, it’s brought to you by experts.
Beyond that, a full pre-approval will help you to understand all of your loan options and set you up in a place as a home buyer where you are educated and prepared for your home purchase. There are a large number of first time homebuyer programs available in Minnesota. During our pre-approval process, we’re validating your ability to qualify for a variety of different down payment and closing cost assistance programs available to you as a first time homebuyer.
When you are buying your home, you will hear a number of terms, some synonymous with others…. Some may conjure up the same image yet be very different. Lets look at one of the those examples of mistaken identity.
Appraisals and Inspections
As of 1:00 p.m. on Tuesday, October 12, Minnesota Housing lowered all first-time home buyer program interest rates, with the lowest rates currently under the Minnesota Mortgage Program (MMP) at 3.625% for government loans and 4.000% for conventional loans (conventional rate includes all pricing adjustments).
In addition, for clients who are ready to buy and interested in 100% LTV financing, consider using the Affordable Advantage product, now at 4.375%.
Here is a brief overview of the program:
100% financing with competitive rates available to qualified borrowers
NO MORTGAGE INSURANCE REQUIRED!! (Yes, I am shouting this! This can make a HUGE difference in your monthly payments!!!)
Up to 3% of the purchase price allowed in seller-paid closing costs for the buyer.
FHA intends on lowering upfront mortgage insurance premiums, but raising the monthly mortgage insurance premium. This will make an impact for those who are looking to purchase a home but are down payment sensitive.
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