As we all know, this rate environment has created challenges for many buyers. However, there is a pool of potential buyers who are committed to purchasing – Gen-Zers. According to a recent Rocket Mortgage® survey*, 71.5% of Gen-Zers (ages 20 – 26) plan to buy within six years and, of those, half plan to buy in one to three years. A Home Buyer Readiness Program, and the right mortgage lender, can help your buyer determine what they can afford, timeline, and help them develop a specific action plan to achieve their goal of homeownership. Your lending partner will address their fears, assess their home buying readiness, and uncover misconceptions about…

A MARKET UPDATE FROM THE DESK OF TOM HOTTER… Is the wild ride we’ve all experienced in recent years over…?!?  2023 is certainly proving to bring its own set of challenges.  Interest rates have risen and fallen 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 for the remainder of 2023 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…

You’ve thought about it. Every time you pay your rent. Every time you get the urge to paint the walls of your apartment. Every time you attend your friends’ housewarming parties. But are you ready to buy a home? If you’re not sure what to do to determine if you’re ready, read on. We’ll help you think through the various aspects of determining if you’re ready to buy a home! Should You Rent or Buy a Home? First, you’ll want to think through whether you’re better suited to rent or buy a home. There are a lot of pros and cons to each scenario, and each will be dependent on…

Recently, there have been a lot of changes in the mortgage industry.  Some of these changes came from Fannie Mae and Freddie Mac when they announced new pricing adjustments that were effective on  May 1, 2023.   These changes have a direct impact on the interest rate and closing costs potential buyers would have to pay for a loan.  We used to consider a 740 credit score the gold standard in lending, but now that has increased to 780.  Fannie Mae and Freddie Mac were also considering charging an additional fee if the buyer’s debt-to-income ratio was over 40%.  With today’s purchase prices and higher interest rates, this would have caused…

There are many down payment assistance programs available in Dane and surrounding counties.  Some provided by employers.  Some provided by non-profit organizations.  Others provided by government agencies.  There are also down payment assistance programs offered by banks.  Associated Bank has its own proprietary down payment assistance program called Program for Assisting Today’s Homebuyer (PATH).  PATH is a grant program funded by Associated Bank and can only be used with an Associated Bank retail first mortgage purchase or construction loan product.  What makes PATH different from many other programs offered by employers, non-profit organizations and government agencies is the PATH grant is fully forgiven at closing.  Typically, other down payment assistance…

As prospective buyers navigate their way through homeownership affordability in a post-pandemic world, home lenders nationwide are preparing for sweeping changes to mortgage rates behind the scenes.  While lenders already tie their rates and fees to purpose, credit score, loan-to-value, and property type, there are now new factors to consider. Income, debt ratio, and homeownership history will also impact what borrowers pay to obtain a home loan.  In other words, accurately quoting mortgage rates is now becoming more specialized for loan officers than ever before.  In January of 2023, the FHFA announced a series of changes that will impact any lender who writes conforming loans backed by government sponsored enterprises…

To buy or not to buy?  Do you have clients that are questioning if they should list their current home because they are afraid they will not find a new home before their current home sells? Are they in need of the equity in their current home to purchase their new home?  There may be a solution to give your clients peace of mind when looking for a new home.  The solution is called a bridge loan.  A bridge loan uses the equity in their current home to cover the down payment and closing costs on the new home.  A bridge loan can allow a buyer to write an offer…

Happy New Year All! As we all know, 2022 was a Whirlwind.  Employment numbers, inflation, interest rates, the stock market, and the overall cost of living seemed to try their hardest to put us all in our places.  Thankfully, last year’s assortment of curveballs is in the rear-view mirror, and we can start fresh with a blank slate and true optimism in the New Year. With interest rates falling and borrowers who had been waiting on the sidelines now starting to get into the game; our projections of another fast-moving and (very likely) even more competitive year in the housing market seem to be coming to fruition.    With the…

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…