The message below about refinancing homes that are “upside down” or “underwater” and a new program that MAY end up helping a few of the responsible homeowners who have been limited in their ability to refinance due to declining market value of their homes.

RE-PULL A CREDIT REPORT AT THE CLOSING TABLE? Starting with new applications as of yesterday, 6/1/10, Fannie/Freddie are requiring that lenders pull a final credit report just prior to closing. If a buyer’s credit scores have lowered, new debt has occurred, etc, then this could stop a closing in its track.

Yes, we are a mortgage company in Burnsville, and no, Life Planning may not be a typical suggestion from a mortgage lender. I think that is the beauty of it! We want to offer you the tools to make your life more fulfilling as well as help you get financing for that new home in Dakota County. No strings, no commitments, no cost…. We think it is that important!

We all know that getting prequalified for a mortgage before shopping for a home is an essential part of the process. But are you thinking about home expenses when you are figuring out what monthly mortgage amount you are comfortable with?

So you are a first time home-buyer, and you have just closed on your first home, a great piece of Burnsville real estate. Now what? Homestead, utilites, FAQ title questions, first mortgage payment…. Many first time home-buyers have questions after closing. Every transaction is different, so don’t be afraid to call your loan officer or title company for guidance.

Interest rates have ticked up a little bit more over the last week, Freddie Mac’s mortgage market survey shows rates just over 5.25% on a 30 year fixed mortgage, those are the highest rates since august 2009. What’s awesome is that Minnesota Housing is standing by their word and they are still offering interest rates for first time home-buyers at 4.625 percent on first time home-buyer programs. Also, City Living for St Paul and Minneapolis as well as Dakota County Bond programs still show interest rates below 5% on 30 year fixed rate mortgages. So, it’s still a great time to buy.”

What happened last week to rates? Wow! It was a crazy volatile week with some major upward movement on Wednesday/Thursday. Mortgaged-backed securities simply fell apart. We’ve known to plan for the worst (3/31 marks the date the government ceases participation in buying MBS) and hope for the best; knew this was coming, and it did. Thank goodness things have backed off slightly from last week’s highs (but we can’t become complacent in the least)

The Obama administration announced new efforts to help the resolve the mortgage crisis. Under intense scrutiny for not doing enough to help homeowners who are ‘upside down’ in their homes or are unemployed, they hope this will help dig the nation out of it’s mortgage troubles.
The program is designed to help address the mounting problem of decreasing property values. The administration hopes that the banks holding the mortgages will work toward reducing the principal balance on mortgages that are higher than the market value on the home. The problem is that the banks are holding out.

Yes, I’m speaking metaphorically. But it is a great way to describe the real estate market in Minnesota. So humor me…..

Incentives, low mortgage rates, down payment assistance programs, 6 percent seller paid closing costs….

[ March 11, 2010; 6:30 pm to 8:00 pm. ]
Planning For Tomorrow- TODAY: Issues And Concerns For Your Aging Parents
Thursday, March 11th, 6:30-8PM

Join Rebecca Ross, member of The Minnesota Real Estate Team, and Carrie Guarrero of Cornerstone Mortgage, while they discuss the following issues: Elder Law (Power of Attny- Health Care Directives- Contract review), Financial Concerns (Wills and Estate Planning), In Home [...]