Minnesota Mortgage Opinions Please! Is It Harder to get a Home Loan?

With all of the seemingly continuous changes in the mortgage industry recently, Minnesota Public Radio (MPR) is asking the question, “Are home loans harder to get?”
As part of their Public Insight Network, MPR wants real answers from real people like you. It is an opportunity to share what you know with others about this important financial topic.

I find this question extremely interesting as I am certain other professional REALTORS® will as well. I will be even more interested in tuning in to hear the stories and subsequent discussions that arise from the survey. I want to hear stories from first time buyers and those attempting to buy a second home or investment property. I would love to hear examples from loan officers as to what has changed when qualifying a new client. As home prices have dropped considerably, there are deals out there, but can interested buyers get the loans? This is a very timely topic and a great opportunity for the average person to share their personal view.

Have you or someone you know recently applied for a home loan or tried to refinance?

Whether you are a homeowner, buyer, loan officer or real estate agent, MPR wants your story. Here is a forum to share your experience good or bad.
CLICK HERE to Visit MPR Public Insight Network to complete the form and share your experience. Your opinion and story could be used in an upcoming show and/or you could be contacted to provide additional information and opinions on your experiences. It is a way for the individual to have to have a voice by sharing real world experiences in regard to home loans and mortgages. Rest assured that your opinion and information will be confidential. MPR will not quote you on the radio or web without your permission.

Not familiar with Minnesota Public Radio? Minnesota Public Radio® is a non profit public radio organization. Headquartered in the heart of downtown St. Paul, Minnesota Public Radio is a premier organization operating a regional network of 37 stations, from Minnesota to areas in Wisconsin, North Dakota, South Dakota, Michigan, Iowa and Idaho.

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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2008 terieckholm.com

With No Nehemiah or Genesis for Homebuyers, What will Cause the First Domino to Fall?

Most people understand the concept of the domino effect on the real estate market. The starter homes must sell first so the owners of the starter home can move up to the next price level, which allows another home to sell and another; much like a child’s game of dominos.

Fortunately the real estate market has had continued to have a reasonable pool of first time buyers in the mix these past few months due to low interest rates, home prices and unique assistance programs. Early this year, the government gave the controversial but beneficial programs like Nehemiah and Genesis a reprieve. These seller funded non-profit organizations had been scheduled to be disbanded early in the year but were allowed to continue to fund first time buyers. These programs give buyers down payment assistance for FHA loans that require a 3% down. With additional assistance from the seller for closing costs, a first time buyer with a good job and credit score, is able to purchase a home without having to save up for a down payment.

The reprieve may be over. This weekend I read an alarming news release from a Minnesota mortgage broker pointing out how the Mortgage Bailout Bill could slow the recovery of the real estate market. The senate version of the new mortgage bail out bill will put a stop to all programs offering down payment assistance. They will in essence remove the finger that starts the first domino to fall. First time buyers will again be required to save up for that down payment. With prices increasing everywhere from the corner grocery to the gas station down the street, it will be a daunting task to become a first time homebuyer.

I expect that like in the 1980’s and earlier, young people will start saving again for that first home as soon as they graduate either high school or college. But back in the decades of big hair, 8-tracks and parachute pants, homes were priced more reasonably. It was much easier to save up 3% of $60,000 ($2,000) for normal Minnesota starter home in 80's than it will be to save 3% of a $200,000 ($6000) for a starter home at today’s prices.

So whose finger will give the push that starts the domino’s chain reaction in today’s real estate market? Loans funded by the Veterans Administration? That is one possibility. VA loans have always been available to those who have served in the armed services as a way to homeownership with little or nothing down. It is a very good program that I anticipate we will be seeing more service men and women taking advantage of in the future. But those who have not served will be forced to save.

Bottom line is the mortgage bailout will save some homeowners from losing their homes but at what cost? Will it delay the recovery of the real estate market? Only time will tell.

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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 terieckholm.com

Rethinking the 2008 Bridal Registry—China, Silver and a New Home?

Wouldn’t it be great to take one of those little barcode readers beyond Target’s towels, toasters and flat screens and head out to the nearest neighborhood and tag something that a new bride and groom really need, their first home? Shopping the Parade of Homes or at a Sunday Open House, you could click on your favorites and receive the front door key just in time to be carried over the threshold. Only in a perfect world, right?

I know it is a crazy idea but brides and grooms getting married this year are going to face a tougher time finding a loan as first time buyers. Zero down loans have all but disappeared from the landscape and first time buyers will need cash in their pockets to put toward a new home. As mortgage programs continue to change and evolve over the next year, there is a reality to saving for that down payment. A forward thinking young couple might want to divert some of their wedding funds and gifts into an real estate investment in which they can begin their lives together.

Starting this year, new home buyers are going to NEED a down payment for a house. Not just a few bucks either. In most cases a buyer will require a minimum of 3-5% to put down. With an average Minnesota starter home in the $200,000 price range, 2008 brides and grooms will need to save at least $6,000-$10,000, plus closing costs.

But all is not lost for first time buyers, but a little forward thinking is in order. There is a lot of money involved in most weddings; both on the party planning and the gift recipient side. A savvy bride and groom might be able to figure away to have the perfect wedding AND a dream home.

New Home Gift Registry Young couples getting married register for gifts to let their friends and family know exactly what they want and need. If you need a house, why not let your guests know? Maybe the insert in the wedding invitation should read:

“The couple is registered for a small number of necessities at Target, JC Penneys and Macys. If you would prefer not to shop, they are also saving for a down payment for a new home and would a appreciate monetary gift toward their dream.”

I don’t know what Miss Manner’s would say about but I think a financial wiz like Susie Orman would applaud the idea.

Wedding Budget With the average dream wedding going for over $20,000, maybe a little arranging of the budget is in order. Those saved dollars from the dream wedding can go toward that dream home instead. Now, I am not suggesting cheaping out on anything or everything, just take a look at where you can economize on your budget. Maybe you can go forego the fancy invitations or select a less expensive dress. Maybe that trip to Hawaii would be a better choice for your fifth anniversary and a road trip to the Duluth to create newlywed memories along the north shore of Lake Superior should be considered instead. Whether on wedding details, reception or the honeymoon, a 25% savings on the average wedding is $5000 cash that could go toward your dream home.

So brides and grooms start thinking about your future lives together and create a plan for your dream home. Though those scanners will not work outside of the Parade of Homes, I do! As a professional Realtor, I have helped many young couples find the home of their dreams. I know the north and east Twin Cities housing market and can help you spot a deal from Forest Lake to Andover. I will assist you in writing a fair offer and negotiate a deal so your dream can become a reality. Working with an agent to find your first home, takes the stress out of the home buying process so you can focus on preparing for your big day.



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If you are buying, selling or relocating to Minnesota and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2008 Teri Eckholm http://www.terieckholm.com/

Mortgage Options are Changing

Did you know that over three dozen subprime lenders have gone out of business since the beginning of 2007?

The mortgage industry is changing and if you are in the market to purchase a home, it is imperative to understand what is going on. Pre-approval with a trusted, experienced loan officer will be more important than ever in the coming months as the industry deals with the fallout.

Don't be frightened out of the home buying market. Be informed and get pre-approved. It is still a buyers' market in Minnesota. There a large number of good homes at the best prices the Twin Cities has seen in years. It is still a great time to buy a home.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com

Avoid Being SOLD by a Credit Bureau!

Did you know that for as little as $25 a credit bureau can buy your personal information after you apply for credit?

When you apply for a loan, you are required to fill out an application with personal information including name, address, and phone number. Based on the information you supply, the loan officer will pull your credit and mortgage history including you FICO score and other details. There is no law that prevents the credit bureaus from making a profit on the sale of this collected data. And there are many mortgage companies and other financial vendors that will pay top dollar for the opportunity to solicit your business.

Credit bureaus sell names, addresses, phone numbers, mortgage histories andFICO scores for as little as $25 to $100 to financial institutions and mortgage firms as a way for loan officers to solicit your business.

There is a way to prevent your information from being sold. Prior to applying for any loan program, opt out. Visit http://www.optoutprescreen.com which will provide you with a convenient and easy way to prevent your information from being sold by credit bureaus.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com