Liz's Lending Corner

Condo Buying 101: Mastering the Process with 8 Expert Tips

Wed, 20 Sep 2023 17:10:01 GMT

Condo Buying 101: Mastering the Process with 8 Expert Tips

Liz's Lender Corner

There are many reasons to seek condo ownership – easy maintenance, awesome amenities, security, the list goes on! Whether our clients are looking for a second home on the ocean, or looking for urban living downtown, we want to make sure they understand the ins and outs of condo financing, and how it is evolving.

1. Condo Approval is Crucial

To secure a conventional loan for a condo, the condominium complex itself must meet specific eligibility criteria - this process is known as condo approval. It ensures that the condo community is financially stable, well-managed, and adheres to certain standards. These standards have become stricter in recent years, so it is very important to reach out to a lender at the beginning of your condo search and make sure you have them check the eligibility of each building you are interested in.

2. Alternative Financing Options

Not all condos are eligible for conventional loans. There are specific requirements for the percentage of owner-occupied units, the condo association's budget and reserves, and insurance coverage. Non-warrantable condos, which don't meet these criteria, may require alternative financing (our team does have non-warrantable condo products available).

3. Homeowner’s Association Fees

It is always good to consider the fees associated with buying a condo or a townhome. Know that there will be association fees, as well as monthly maintenance fees. These fees are part of your debt-to-income ratio (DTI) and can affect your loan eligibility. In addition, some HOAs will collect multiple months upfront or will charge a move-in fee at the time of closing, so it is always good to budget for those items when looking at condos.

4. Special Assessments

Be sure to inquire about any recent or upcoming special assessments within the condo community. Special assessments are additional fees imposed by the condo association to cover unexpected expenses or major repairs. They can affect the eligibility of the condo project and financing. These projects can sometimes be great additions to a building that adds value to your purchase and are not always negative!

5. Reserve Funds

Take time to examine the condo association's reserve funds. A well-funded reserve fund is a positive sign, as it indicates the ability to cover future maintenance and repairs. Inadequate reserves could raise concerns for lenders.

6. HOA Litigation

You might want to be cautious if the condo association is involved in ongoing litigation. This could affect the complex's financial stability and your loan approval.

7. Condo Questionnaire

As part of the loan process, lenders order a condo questionnaire from the HOA management company. This document gathers information about the condo association, including its financials, insurance, and management. You can ask your lender for information from this questionnaire if you need to know more than what was in your condo bundle.

8. FHA vs. VA vs. Conventional

While we have mostly focused on conventional loans, it is worth noting that the Federal Housing Administration (FHA) and the Veterans Administration (VA) offer condo loans with different requirements. FHA and VA loans may be an option if the condo complex is not eligible for conventional financing, however, they are usually stricter on their eligibility. Make sure to check with your lender to make sure that the condo you are interested in is approved for your unique loan type.

At the end of the day, buying a condo is extremely rewarding! It's crucial to work with an experienced real estate agent and a lender well-versed in condo financing to navigate the process successfully. Careful evaluation of the condo complex's financial health and eligibility is key to a smooth transaction.

We hope you consider our team for your next condo purchase!

Warm regards,

Liz Peter Mortgage Team

Luminate Home Loans

Live in Minnesota? Looking for a Home? Good News!

Wed, 09 Aug 2023 22:11:28 GMT

Live in Minnesota? Looking for a Home? Good News!

Liz's Lender Corner

Are you interested in learning more about down payment loans with a minimum down payment of $1000? Let us introduce you to the amazing programs available with Minnesota housing!

Discover the various down payment assistance programs offered by the Minnesota Housing Financing Agency (MHFA) and get in touch with me (Liz) for all the details. Each program has unique qualifications, so having a professional guide you through the process is highly beneficial. Our team works with these programs daily, and we'll assist you in determining the most suitable one based on your qualifications and needs.

Key features of the program include:

Minimum down payment: $1000*
Loan options: Conventional, FHA, and VA loans
Credit score requirement: As low as 640
Maximum income limit: $175,400 per year
Deferred and monthly payment loans are available

Even if you are not a first-time homebuyer, don't worry! MHFA offers a Step-Up program designed for buyers who have owned a home before. Eligible properties for these programs include single-family homes, condominiums, townhomes, and duplexes.

If you're eager to learn more about the market or explore the possibility of owning your dream home, feel free to reach out to me and my team. We are dedicated to helping you achieve your homeownership goals!

Warm regards,

Liz Peter Mortgage Team

Luminate Home Loans

*This information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines. Loan program and terms of repayment are based on a 30 year fixed term. Interest Rate and Annual Percentage Rate as well as any / and all credit offered would be subject to pricing and underwriting of the individual applicant.

How to Invest in Real Estate With No Income Documentation

Fri, 07 Jul 2023 22:08:23 GMT

How to Invest in Real Estate With No Income Documentation

Liz's Lender Corner

We are proud to announce a new product that allows our clients to invest in real estate without having to provide any income documentation at all!

This type of loan is called a Debt Service Coverage Ratio or DSCR loan and allows us to use the property’s expected cash flow to qualify for the mortgage instead of the borrower’s current income.

Here are some other items that you should know about this exciting new loan program:

Credit scores starting at 680
Up to 80% LTV
Loans up to $2 million, Minimum loan of $75,000
No limit on total number of properties
Borrower must own primary residence
Non-warrantable Condos now allowed
Condotels now allowed

This loan is great for borrowers who lack a consistent two-year work history, or maybe have started a new business. E-mail us today at lizpeterteam@goluminate.com to learn more about this great opportunity to build your real estate investment portfolio.

Warm regards,

Liz Peter Mortgage Team

Luminate Home Loans

Want to Buy Before You Sell? A Bridge Loan May Help!

Fri, 09 Jun 2023 22:06:21 GMT

Want to Buy Before You Sell? A Bridge Loan May Help!

Liz's Lender Corner

We believe in empowering our clients to achieve their homeownership dreams with ease and confidence. That is why we're excited to introduce you to an innovative solution that can open doors to your new home even before selling your current one: the bridge loan.

This month in our Lender Corner, we'll shed light on how bridge loans work and how they can be your key to a smooth transition between homes.

What is a Bridge Loan?

A bridge loan serves as a financial bridge between the sale of your existing home and the purchase of a new one, eliminating the need to wait for your current property to sell before moving forward.

This invaluable tool allows you to seize the opportunity of securing your dream home without the stress and pressure of timing the sale perfectly. We partner with our very own Luminate Bank to make this as easy as possible and keep communication in-house, so you don’t have to worry about dealing with multiple parties.

How Does it Work?

So, how does a bridge loan work? Essentially, it's a short-term loan that provides you with the necessary funds to purchase your new home. The loan is secured by the equity in your current property, which serves as collateral. This means that instead of waiting for the sale proceeds from your current home, you can tap into its value to access the funds you need for your down payment and closing costs. Once your existing home sells, the bridge loan is repaid.

What Should I Do?

Don't let the fear of selling your current home before buying a new one hold you back from achieving your homeownership goals. Contact us today to learn more about how bridge loans can work for you.

We look forward to being a part of your homeownership journey!

Warm regards,

Liz Peter Mortgage Team

Luminate Home Loans

Why Looking Up Mortgage Rates Online Can Be Misleading

Thu, 04 May 2023 22:03:10 GMT

Why Looking Up Mortgage Rates Online Can Be Misleading

Liz's Lender Corner

When it comes to interest rates, it can be tempting to look up rates online. However, interest rates are unique to each person's financial situation, and looking up rates online may not give you an accurate idea of what rates you may qualify for.

For example, I searched online for the “national average interest rates” and one of the first results was a very big national bank quoting a very attractive rate. However, when I clicked on that link and went to find the small print on their website it read “This number is based on rates in the state of Texas at a loan amount of $200,000 with 20% down.” That is a very specific scenario and could be misleading if you are trying to use that number for your own purposes.

Here are some things that make your interest rate unique to YOU:

Credit Score: Your credit score is a major factor in determining your interest rate. If you have a good credit score, you may qualify for a lower interest rate. On the other hand, if you have a lower credit score, you may be offered a higher interest rate.
Debt-to-Income Ratio: Your debt-to-income ratio is another important factor in determining your interest rate. If you have a high amount of debt compared to your income, you may be offered a higher interest rate.
Loan Amount: The amount of your loan can also impact your interest rate. Generally, larger loans may come with a higher interest rate. However, Jumbo Loan products usually have a lower rate than higher conforming loans.
Loan Type: The type of loan you are applying for can also impact your interest rate. For example, a fixed-rate loan may have a higher interest rate than an adjustable-rate loan. Also, there are affordable loan programs that offer better rates for borrowers within a certain income bracket.

We want to be by your side through the buying process to help you navigate these factors and find a loan that fits your unique financial situation. In addition, it is important that you have a lender by your side to help you understand the nuances of interest rates and how they may impact your overall loan terms.

Please reach out with any questions – it is our passion to offer advice and support to our clients!

Liz Peter Mortgage Team

Luminate Home Loans

What to Do With Those “What If” Scenarios

Mon, 10 Apr 2023 21:58:19 GMT

What to Do With Those "What If" Scenarios

Liz's Lender Corner

Many of us dream of owning a home, but with that dream comes the responsibility of a mortgage. Life can be unpredictable, and unexpected events can happen, which may affect our ability to make mortgage payments. Here are some "what if" scenarios to consider and how you can prepare for them.

What if I lose my job?: Losing a job can make it difficult to make mortgage payments. If this happens, talk to your lender as soon as possible to see what options are available. You may be able to take a payment break or reduce your payments temporarily.
What if I get sick or injured?: A serious illness or injury can affect your ability to earn an income and make mortgage payments. This is another instance where you’ll want an expert mortgage team on your side to help.
What if interest rates rise?: If interest rates rise, your monthly mortgage payments will increase. To prepare for this scenario, consider fixing your mortgage rate, which will protect you from interest rate rises.
What if there's a natural disaster?: A natural disaster can damage your property and affect your ability to make mortgage payments. You’ll need a mortgage team that can help you navigate all of the stress around payments.

In summary, owning a home is a big responsibility, but it's important to be prepared for unexpected events that may affect your ability to make mortgage payments. Talk to a professional mortgage lender as soon as possible if you encounter any issues, and be aware of the options available to you. By taking these steps, you can minimize the impact of unforeseen circumstances and ensure you're able to repay your mortgage over the long term.

Liz Peter Mortgage Team

Luminate Home Loans

Preparing for the 2023 Spring Market

Thu, 02 Mar 2023 22:56:07 GMT

Preparing for the 2023 Spring Market

Liz's Lender Corner

While the temperatures in the Twin Cities are still below freezing – the real estate market is already heating up.

As we enter the spring season, many potential buyers are starting to look for their dream homes. If you are one of them, you may want to consider getting pre-approved and prepared for buying a home. Here are some tips to help you get started:

Get pre-approved: Getting pre-approved for a mortgage is a crucial step in the home-buying process. It will help you determine how much house you can afford and give you an edge over other buyers who have not been pre-approved. The sooner the better, because there might be something that you need to change on your credit or income to hit your target purchase price and you want to have time to do that before we are in the height of the market.
Save for a down payment: Start saving early for your down payment to ensure that you have enough money when you are ready to buy. There are also down-payment assistance programs, so make sure to ask us about how we can help you apply for assistance with your down payment!
Work consistent hours: One of the main things we look at when approving borrowers is income. If you are an hourly employee, you will want to make sure that your year-to-date income is at a good average. This will help your buying power when getting pre-approved.
Be prepared to move quickly: In a hot market, homes can sell quickly. Be prepared to move quickly when you find a home you like. Have your pre-approval letter and down payment ready and be prepared to make an offer as soon as possible.

Buying a home can be an exciting and rewarding experience, but it can also be stressful and overwhelming. By following these tips and working with a trusted team of professionals, you can navigate the home-buying process with confidence and find the home of your dreams.

Please reach out to us at any time – we look forward to hearing from you!

Liz Peter Mortgage Team

Luminate Home Loans

Doctor Loans May Be the Answer for You

Fri, 06 Jan 2023 22:52:49 GMT

Doctor Loans May Be the Answer for You

Liz's Lender Corner

Calling all doctors – we have a loan program that’s just for you! When you need flexibility in financing, this program is perfect for to doctors in school, those that are just starting out, as well as established doctors.

Here are some of the program highlights:

100% financing up to $1,000,000
95% financing up to $2,000,000
No mortgage insurance
Purchase or rate term refinance
1-2 unit properties (with other financing, duplexes require 3.5 – 15% down payment)
Medical doctors who have a minimum of M.D., D.O., D.D.S., O.D., D.P.M., D.V.M., or D.M.D. degree and an employment contract or verification of terms of employment acceptance
Dentists, Podiatrists, Ophthalmologists, Veterinarians

If you or someone you know fits any of the above requirements, send them my information. I’d be happy to chat with them and see if we can help them get into a home while they continue to save lives!

Liz Peter Mortgage Team

Luminate Home Loans

Affordable Homeownership & How Down Payment Assistance Can Help You

Mon, 19 Dec 2022 22:49:41 GMT

Affordable Homeownership & How Down Payment Assistance Can Help You

Liz's Lender Corner

When people first start their home-buying journey, one of the most common concerns is about the down payment amount. I always tell these clients what I’m telling you now – it’s possible to buy a home with as little as $1000 down when you have the right tools and people on your team. Here are a few tips to get you started:

Check out down payment assistance programs and talk to Liz about the details. Every program and state is different and has different qualifications, so having a professional to help you navigate is always best.
Look into FHA Loans and if the lower down payment is something that works for your financial situation. While they do require mortgage insurance, sometimes FHA loans can be the best option when you don’t have a lot to put toward a down payment.
Don’t be afraid to talk to a relative or friend. If you have a supportive network of people, you may be able to get help for a down payment from them as a gift. You might be surprised at how willing people are to help you get your first home!

If you want to learn more about the market or the possibility of owning a home, reach out to me and my team. We want to help you get into your dream home!

Liz Peter Mortgage Team

Luminate Home Loans

How People Are Getting Into Their Dream Homes in Today’s Market

Fri, 04 Nov 2022 21:47:31 GMT

How People Are Getting Into Their Dream Homes in Today’s Market

Liz's Lender Corner

Have you been hearing too many conflicting opinions about the housing market? Or maybe you’ve seen one too many memes about how millennials “can’t afford a home?” If so, you’re not alone…but me and my expert team are here to guide you!

You may have heard about the recent rate drop, but the fact is, rates are always changing. Combine that with the knowledge that everyone’s financial situations vary, and you can very quickly feel confused and overwhelmed about what you should do. Yet, there’s no reason to feel like this when you have a mortgage expert on your side.

Situations like these are exactly why I always encourage clients to reach out to us for loan estimates that are specific to the many factors that are unique to different buyers. It’s always my goal to educate and send our buyers in with a full understanding of their payments and the different options that they have when shopping for a home.

For example, you likely didn’t know that we have a 3-2-1 Buydown program where the seller and buyer agree to fund an account that will subsidize a rate reduction of 3% of the interest rate for the first 12 months, a 2% rate reduction for the following 12 months, and a 1% rate reduction for the following 12 months.

This (or another program) may be exactly what you need to get into your new home! Don’t believe me? Just check out some of our recent reviews before you get in touch with us to learn more.

Liz Peter Mortgage Team

Luminate Home Loans

How You Can Position Yourself to WIN in Today’s Housing Market

Wed, 12 Oct 2022 18:25:27 GMT

How You Can Position Yourself to WIN in Today’s Housing Market

Liz's Lender Corner

As a homebuyer, we know how dark and difficult it can feel to navigate the housing market right now. With people talking about higher rates and telling you “not to buy,” it can be disheartening to look for your dream home. Luckily, I’m here with my team at Luminate to light your path to homeownership ��

While the number of offers on homes has slightly decreased, we are still seeing homes sell with multiple offers every day.

Every time I send a preapproval letter to my clients, I prepare them to WIN. Here are a few of the things I discuss with my borrowers and their agents:

Quick Closing: Often, a seller is going to want to close as quickly as possible. Our team has put together an expedited process to make sure we can get you closed in under 3 weeks.
Appraisal Waiver or Appraisal Gap Guarantee: One of the reasons cash offers stand out with sellers is that no one wants to deal with a home appraisal. We can help alleviate this fear with an appraisal waiver or appraisal gap coverage that greatly strengthens your offer.
Reputable Lender: After 17+ years in the mortgage industry, my priority has always been to keep the client's goals in focus. Our borrowers have won multiple offers because of our name on the preapproval letter. Agents that have worked with us, know that we will get the job done for our clients. Every time.

We’re here to help YOU stand out in this market and WIN your dream home. Don’t believe me? Just check out some of our recent reviews before you get in touch with us to learn more.

Liz Peter Mortgage Team

Luminate Home Loans

Renting vs. Buying: What’s Best in Today’s Market?

Tue, 20 Sep 2022 22:29:00 GMT

Renting vs. Buying: What’s Best in Today’s Market?

Liz's Lender Corner

With interest rates continuing to rise, do you find yourself asking questions like, “Should I hold off on buying a home?” or “Should I put up with my lease for another year?” If so, let me help you out—the answer is NO!

So, why exactly should you ditch the rent? Well, that’s because you could be…

Saving Money: Even with rising rates, you could end up paying more in rent with rising prices. Plus, owning a home also means you get some tax breaks!
Earning Equity: Did you know that in the last 6 months, the average homeowner gained roughly $64,000 in equity due to the appreciation on their home? The sooner you buy a home, the sooner you can start building equity as well!
Living In Your Own Space: No more landlord, pet fees, unreturned deposits, or noisy neighbors. You get to make the space completely your own and stay there as long as you like.

The decision between renting or buying can be a hard one to make. But my team and I are here to support you on your journey to owning your dream home. Whenever you’re ready to buy, we’re ready to help.

Get in touch with me to learn more about what products we have that can help get you into your dream home sooner than you think!