Loan Documentation Need for Buying a Home in St. Paul

Nov 302011

One of the most important things when obtaining a mortgage these days is having your loan documentation available. Lenders are required these days to back up your qualifications with satisfactory documentation. This can be a tedious process but if you get organized early you can avoid surprises during the process.

Most lenders will accept either faxed, mailed, or emailed documentation. Start by making both a paper folder as well as a computer folder where you will store all of your financial information required for the loan process.

As a general note, whenever a document is referred to it means the entire document. In other words if you have a 7 page bank statement, you will always need to submit the full 7 pages.

Documentation Tips

1) Find your W2s and federal tax returns covering the last 2 to 3 years. You will not need the state returns, just the federal. Tip: Sign and date your copy of the tax returns prior to giving to your lender.

2) Bank statements. If you have online banking, simply download the entire statement. In most cases a simple print-out of the web page is not satisfactory. The statement you download must include the bank name, the account number, your name, etc. This is usually only shown on the actual bank statement.

3) Investment statements. Most of these are only issued quarterly and lenders will generally accept the most recent quarterly statement.

4) Child Support or Separate Maintenance. Whether you owe it or receive it, you may need to document it. In this case you will need a copy of the entire court decree. If you are using it for income they will also need copies of the deposits into your bank account showing you receive it regularly.

5) Previous Foreclosure or Bankruptcy. You will need to provide verification of the dates of these. If you don’t have the paperwork handy check with your attorney.

While this is not a complete list of documentation that you may or may not need for your home purchase, it should give you an idea of the types of documentation you will need. By getting organized early and providing complete documentation early to your lender you will avoid surprises during the loan process.

Support local businesses this year!

Just for Fun 1 Response »

Nov 242011

I received this as one of those junk emails that get forwarded around. This email made good sense to me:

As the holidays approach, the giant Asian factories are kicking
into high gear to provide Americans with monstrous piles of
cheaply produced goods –merchandise that has been produced at the expense of American
labor. This year can and will be different. This year Americans
will give the gift of genuine concern for other Americans. There
is no longer an excuse that, at gift giving time, nothing can be
found that is produced by American hands. Yes there is!
It’s time to think outside the box, people. Who says a gift needs
to fit in a shirt box, wrapped in Chinese produced wrapping paper?
Everyone — yes EVERYONE gets their hair cut. How about gift
certificates from your local American hair salon or barber?
Gym membership? It’s appropriate for all ages who are thinking
about someealth improvement.
Who wouldn’t appreciate getting their car detailed? Small, American
owned detail shops and car washes would love to sell you a gift
certificate or a book of gift certificates.
Are you one of those extravagant givers who think nothing of
plonking down the Benjamines on a Chinese made flat-screen? Perhaps
that grateful gift receiver would like his driveway sealed, or lawn
mowed for the summer, or driveway plowed all winter, or games at
the local golf course.
There are a bazillion owner-run restaurants — all offering gift certificates. And, if your intended isn’t the fancy eatery sort,
what about a half dozen breakfasts at the local breakfast joint.
Remember, folks this isn’t about big National chains — this is
about supporting your home town Americans with their financial
lives on the line to keep their doors open.
How many people couldn’t use an oil change for their car, truck or
motorcycle, done at a shop run by the American working guy?
hinking about a heartfelt gift for mom? Mom would LOVE the
services of a local cleaning lady for a day. My computer could use a tune-up, and I KNOW I can find some young
guy who is struggling to get his repair business up and running.

OK, you were looking for something more personal. Local crafts
people spin their own wool and knit them into scarves. They make
jewelry, and pottery and beautiful wooden boxes. Plan your holiday outings at local, owner operated restaurants and
leave your server a nice tip. And, how about going out to see a
play or ballet at your hometown theater. Musicians need love too, so find a venue showcasing local bands.

Honestly, people, do you REALLY need to buy another ten thousand
Chinese lights for the house? When you buy a five dollar string of
light, about fifty cents stays in the community. If you have those
kinds of bucks to burn, leave the mailman, trash guy or babysitter
a nice BIG tip. You see, Christmas is no longer about draining American pockets so
that China can build another glittering city. Christmas is now about
caring about US, encouraging American small businesses to keep
plugging away to follow their dreams. And, when we care about other
Americans, we care about our communities, and the benefits come back to us in ways we couldn’t
imagine.
THIS is the new American Christmas tradition.
Forward this to everyone on your mailing list — post it to
discussion groups — throw up a post on Craigslist in the Rants and
Raves section in your city — send it to the editor of your local
paper and radio stations, and TV news departments. This is a
revolution of caring about each other, and isn’t that what
Christmas is about?

Como Park – Giving Thanks 5k.

Como Park No Responses »

Nov 232011

Como Lake is one of the nicest areas in Como Park, why not take a quick Thanksgiving day jog around the lake? The Giving Thanks 5k starts bright and early at 9am (check in starts at 7.45am). Click here for more details.

Race Schedule:

7 AM – CC Race Event Worker (CCREW) Volunteers set up course, finish line & registration area.

7:45 AM – Pre-registered Check-in, shirt & bib # pick-up & Race Day registration opens

8:50 AM – Registration Closes & Start Line Assembles for Pre-race Announcements

9 AM – START!

Post race refreshments await participants on historic Como Lake promenade overlooking the lake

10:30 AM – CCREW begins clean-up

Thank you and have a gratitude-filled ThanksGiving Season!

Driving Directions

* USATF certified 5k course map

Entry Fee: $25 pre-registered/$35 race day

Have a fun and safe Thanksgiving, and remember to give thanks for all we have.

Como Park Success Series

Como Park No Responses »

Nov 212011

This has to be by far one of my favorite success stories we have had this year in selling a home in Como Park. We just received feedback from our client and it was amazing.

“After three years of having my house on and off the market with not even one offer, I decided it was time for a change. I met with Shawn Korby after interviewing several real estate agencies. Shawn presented a different view of the situation and described the cutting-edge strategies he and his team would deploy to locate a new owner for my home. Shawn’s sincerity, energy and insight gave me the confidence I needed to sign with the Hartmann/Korby Team right then.

With Shawn and his team, every step was clear and purposeful. Each team member played his or her role flawlessly. Sharon turned my highly-staged, white-walled house into a true “home” where people wanted to stay. Neighbors remarked about a simple but creative marketing piece they received in the mail ”I had no idea your house was so charming!” – and again, this was after three years on the market. Travis was awesome with the details. He kept me hopeful and encouraged with real information, and updated me with every little change. Shawn held the vision and was always a quick phone call away.

The team did their magic on the first open house, getting 17 potential new buyers! I was awestruck. We had never seen that kind of turn out, especially with actual potential buyers (rather than window shoppers). Within two days I had a full-price offer which closed shortly thereafter.

Besides their talent and sincerity I was amazed by the affect of their truly unique insight about how to locate the target buyer, even in this challenging market. The prior three years’ efforts had attracted primarily the wrong market for this home (older, downsizers, or young suburbanites). Perhaps it is their pulse on new technology or their team strength or simply their culture and values; whatever it is this team immediately identified the target shopper for this home and marketed accordingly with great success.

I can’t thank them enough for taking this incredibly stressful situation and handling it with confidence and ease. I strongly recommend Shawn Korby and the Hartmann/Korby team as real estate professionals. ”

Sincerely,

Laura Gilbert

What is an Appraisal and How Does it Work in MN???

Buying a home, First Time Homebuyer No Responses »

Nov 182011

Many MN first time home buyers are a little surprised when I suggest that they hire a home inspector to review the home they are purchasing. Some think that this is the job of the house appraiser hired by their lender. The two services are very different however and it’s important to obtain both.

What is an appraisal?

If you are getting a mortgage to buy your new home, your mortgage banker will usually require that the property be appraised to determine its value. Most mortgage programs require this as a way of making sure that their loan is based on a real property and that you have paid a fair price for the home. The main job of the appraiser is to review similar properties to the one that you are purchasing which have sold within the last 6 months. By doing so they see if the purchase price you have paid is in line with what buyers of similar properties have been paying.

An appraiser does indeed check the quality of the home and may reject a home that is in overall poor condition. However, as hired by by the mortgage lender, they will be looking for only those items deemed important by the lender.

If a home appraises for a value lower than the sales price this may interrupt your financing. Either the contract has to be renegotiated or the transaction may end up getting cancelled. If an appraisal is required by the lender you will in all likelihood be required to pay for the appraisal ahead of time as the appraiser will need to be paid even if the transaction does not close.

What is a home inspection?

A home inspector’s service has nothing to do with property value, but is entirely focused on the quality and condition of the home. Where an appraiser might spend as little as twenty minutes in the home itself, a home inspector might spend 3-4 hours with you while they check over every corner of the home.

While an appraisal will be required by your lender, a home inspection is an optional service. However, even though it is not required we highly recommend that our buyers obtain a home inspection.

When you write a purchase agreement for a home we can make it contingent upon a satisfactory home inspection. By doing so, if your home inspector identifies issues with the quality of the home, we can go back to the seller and negotiate for the repairs. If there are major problems with the home that cannot be negotiated between you and the seller, you will have the right to cancel the purchase agreement and get your earnest money back.

After writing your purchase agreement is written you will usually have a deadline of between 5 and 7 days to get your home inspection accomplished.

If you are planning on buying a home soon, please call me and I’ll help you plan the process.

Set those clocks back tonight!

Uncategorized No Responses »

Nov 052011

It may shock you to know, the average American owns 3.27 clocks / time devices. Be sure to set them back tonight. At 2am on Sunday, the 3 or 4 clocks you own should fall back to 1AM.

Down Payment Assitance Funds Have this in Common.

Finance No Responses »

Nov 022011

Many Minnesota first time home buyers are taking advantage of the down payment assistance funds available through the Minnesota Housing Finance Agency. If you are renting today, chances are that by using MHFA down payment assistance you will find that it is cheaper to buy a home versus renting one.

All three of the down payment assistance funds have a couple of things in common:

1) You need to put a minimum of $1,000 of your own money into the transaction

2) There are maximum income limits

3) You cannot have more than $5,000 of liquid assets left over after closing.

4) These funds can be used in combination with FHA, VA, USDA, or Conventional first mortgage financing offered through Minnesota Housing

5) They are second mortgages on your property because you are essentially borrowing the down payment. However they have zero per cent interest and no monthly payments due.

6) They are available to qualifying first time home buyers anywhere in Minnesota.

Let’s look at some of the differences between some of these down payment assistance programs:

1) $3,000 HAF assistance used with the Minnesota Mortgage Program. The basic benefit to this program is that you can use it in combination with the MMP first mortgage program which will always have a better interest rate than the CASA program. Generally this program has lower maximum income limits except in designated “spotlight areas”.

2) $4,500 HAF assistance used with the CASA program. This program is available to buyers who either have incomes too high to qualify for the $3,000 program or who need the additional $1,500 assistance. The underlying CASA first mortgage program has a higher interest rate than the MMP program.

3) $8,500 Home Help. This program can be used in combination with the CASA first mortgage program. The income limits are a bit more conservative than with the $4,500 HAF assistance and this program has restrictions on the quality of the home. Generally speaking, as a program that utilizes national sources for funding, it is not a good program for homes that were built before 1978 on which there is any chipping paint.

Want more information on MN down payment assistance?

If you are a Minnesota first time home buyer it may be a perfect time for you to looking into buying a home. Please contact me for a referral to a local Minnesota mortgage banker who can assist you with determining your qualifications for down payment assistance.