Welcome to November! This year certainly has gone by quickly, as we experienced going through the last couple of years and how fast it seems those went by, 2022 has gone even faster, and presented a wider range of challenges across the mortgage and real estate industries. Much of what we are experiencing has not happened for 20+ years, and some of it since the early 1990’s, this dramatic shift has forced lenders and loan originators (and yes, consumers as well) to think and approach things differently. It is normal for fear or concern to set in, it is human nature, however, our ability to take those concerns and turn…

A MARKET UPDATE FROM THE DESK OF TOM HOTTER… Is the wild ride we’ve all experienced in recent years over…?!?  2022 is certainly proving to bring its own set of challenges.  Interest rates have risen since my last market update and the buying frenzy has somewhat subsided… BUT, home values remain strong and multiple competing offers are still common at certain price points.  So, what does the future look like in Q4 and beyond?  Here are a few things to consider when discussing market affordability and positioning buyers for the best chance of an accepted offer. Buy now… Timing a market for lower interest rates or declining home values is…

On Monday, July 11th, former First Midwest Bank locations opened as Old National Bank. The merger enables Old National Bank to build on both organizations’ longstanding history of service, enhance its ability to champion community initiatives and drive positive change throughout its footprint.  What does this mean for you and your buyers? It means you can work with a local lender that has the resources of what is now the sixth largest bank headquartered in the Midwest. All Old National Bank’s signature mortgage loan products, the one-time close new construction loan, Professionals Program for Doctors and Tenured Professors and the Community Experts and Heroes Program, are still available.  One product…

“What is going on with rates and what are my options?” Sound familiar?  You are not alone.  The last time conforming fixed rates increased at this dramatic rate was in 1979.  Today’s 30-year conventional fixed mortgage rate is 6% or higher in some places, which hasn’t been seen since 2008.  Home buyers have been making offers on homes site unseen and for thousands over asking price.  We have been hit with record breaking inflation and gas prices, supply chain issues, the Great Resignation, computer chip shortages, and more.  It is easy to see how it may appear doom and gloom for the housing industry.      Time to dust off those ARMs…

Happy Spring, sort of……I am guessing we are going to end up going straight from Winter to Summer since we have apparently missed Spring! I am sure we have all been busy preparing for the Spring buying season.  I know I have many, many Pre Approvals and not as many Accepted Offers as I was expecting.   I am hearing from fellow lenders and Realtors that we are all in the same boat for the most part.  Lack of inventory is an issue as well as rising rates.  Frustrating but, understandable after the past 2 years of a booming market.   As a Lender, I have noticed more interest in Arm…

BY CLINT ZIEGLER, Assistant Vice President – Mortgage Loan Officer at State Bank of Cross Plains With the current inventory of homes for sale in Dane County down more than 10 percent from last year at this time, many people on the hunt for a home are considering building as another option for their situation. While there are distinct pros and cons for both building and buying a home that make either option a viable solution, the financing process can be more complicated to navigate when building.  Consider all Expenses When applying for a typical mortgage to purchase an existing home, the total out-of-pocket cost likely includes: Down payment Monthly…

Helping your clients understand the home buying journey, and their partners along the way, could mean the difference between a positive experience and a negative one. Buying a home is an exciting and rewarding life event. But without the right guidance, the process can become more difficult than it needs to be. Understanding and following these guidelines will help make your path to homeownership as smooth as possible. Preparing to Buy Even before you have a specific home in mind, it’s important to prepare. Assemble Your Team: A good lender and a good realtor make up your core team. Your lender should agree to help you throughout the entire process, and…

How can buyers, realtors, and lenders, successfully navigate this arena? There are a number of different home loans available and while those of us who deal with these options everyday are familiar, home buyers only focus on these details when buying a home. As this may be infrequent, it makes sense to hit the highlights in order to guide conversation points and answer questions. Fixed Rate Mortgage A fixed rate mortgage provides for consistent monthly payments for years to come. Two of the most common fixed rate mortgages are the 30-year fixed and the 15-year fixed.  30-year fixed A loan with a fixed interest rate and a repayment plan spanning…

Do you have a listing that won’t sell because the kitchen and bathroom are outdated?  Does the home need new windows or flooring?  Associated Bank may be able to help with Fannie Mae’s HomeStyle Renovation loan.  HomeStyle Renovation makes it easy to finance your home improvements as part of the first mortgage.  Down payment as low as 5%.  Competitive fixed rate and only one closing required.  Borrow up to 75% of the as-completed appraised value of the property for renovations.  This loan program is eligible for primary residences, second homes and investment properties.  Single family detached homes, condos, townhouses, PUDs, manufactured homes and 2-4 unit properties as well.     Borrower…

Rates: Rates have been low since the pandemic started in March 2020.  Lately they have inched up, but still remain low.  Nadia Evangelou, senior economist and director of forecasting at the National Association of Realtors, expects interest rates will continue to rise in the year ahead, largely due to inflation. The Federal Reserve is reducing its monthly bond purchases and this will cause mortgage rates to go up as well.  Evangelou expects 30 year rates to average 3.3% in the first quarter of 2022 and 3.5% for all of 2022.  This isn’t a huge jump, so homebuyers shouldn’t panic. Inventory: It is likely that the lack of homes for sale…