8 minute read
Homebuying tips from lenders
more and more buyers looking for a down payment they can afford.
As you can see, in order to ensure your own success in the homebuying process, it’s important to enlist the services of a lender who specializes in this important work. The good news is there’s lots of them out there!
As we continue our series of articles on the successful pursuit of homeownership, we’d be remiss if we didn’t discuss what to look for in a lender. These professionals have an important role to play in advancing homeownership equity, and you need to make sure the lender you choose to work with will take the time to accommodate your unique needs. This is especially true when it comes to utilizing special programs such as first-time buyer financing and down payment assistance.
The fact is most loan officers are paid on commission. That is, they make more money by successfully closing more loans. Just as there are myths around homeownership that cause people to believe its simply not achievable for them, there are myths in the mortgage industry around working with lower income buyers using FHA financing or down payment assistance that cause some loan officers to believe such transactions are risky. The Minnesota Homeownership Center and the Homeownership Opportunity Alliance are working with the state’s lender professional organizations to dispel these myths, which are listed below so you know what to look for as you talk to mortgage lender professionals:
MYTH: Transactions using down payment assistance are less likely to close successfully.
FACT: There’s no difference in the closing rate between transactions using down payment assistance and those not using this resource.+
MYTH: Processing transactions using down payment assistance takes too much time and effort.
FACT: Teams with the expertise onboard to quickly and efficiently process down payment assistance transactions have a larger and growing pool of potential business to draw from. Down payment assistance is becoming more and more common in transactions due to rising home prices and interest rates.
MYTH: You can’t use more than one down payment assistance program in a single transaction.
FACT: Many down payment assistance programs can be combined, or layered, in a single transaction. Guidelines around this vary from program to program, and from institution to institution.
MYTH: Working with lower-income households lowers my annual earnings.
FACT: Since lower-income households are one of the fastest-growing segments of
To assist your search even more, we asked several local lending representatives active in the Homeownership Opportunity Alliance for their best pieces of advice. Here’s what they had to say:
“Anyone looking toward homeownership and who has questions, doubts or just need help on where to start, should reach out to a local housing non-profit agency. There is a large network of organizations that specialize in helping people create a path to homeownership. Many of these services come at no cost to the buyer and provide education and resources that will demystify the process and help make their homeownership dreams a reality.” –Brian Crosby, VP Community Accountability Officer, Associated Bank
“Just get started and take that first step. Talk to a homeownership advisor. Attend a homebuying class. Meet with a lender. Learn ‘where you are’ so you know what you need to do to get where you need to be. You may be surprised to learn you are already there!
Homeownership Is Within Reach!” –Tiffany Phillips, Mortgage Community Development Loan Officer, Bell Bank Mortgage the homebuyer market, there’s more business available at this level than any other. More transactions equal higher income.
MYTH: Transactions using government loans such as FHA or VA are riskier for sellers than conventionally financed transactions.
FACT: Buyers approved for government loans are no riskier than those using conventional financing. Government loans do require a more stringent property appraisal process than conventional loans, but the required fixes to complete the sale are not likely to derail the transaction. Additionally, from a practical standpoint, government loan buyers are a fast-growing segment of the market, and strong growth will likely continue as rising home prices and interest rates attract
“Buy the home you can AFFORD. Sit down with a homeownership advisor. Take a class. Sit down with a lender and do a consultation. Learn about your options (FHA; conventional; etc…). And there’s no such thing as a closing with no money brought to the table. Even with down payment assistance, there are still other costs such as prepaid escrow and title fees that need to be accounted for. Most important, you should never settle for a ‘fast no.’ There are lots of lenders willing to work with you as you work to get to ‘yes,’ no matter how long it takes.” –Trent Bowman, VP Community Impact Manager, Bremer Mortgage
As you can see, each of these lenders lists working with a homeownership advisor and taking a homeownership education class as critical components for success. You can find advisors and classes for yourself at HOCMN. org. Homeownership is possible. We can show you how.
For more information on the Minnesota Homeownership Center and its advisor and education services, visit www.HOCMN.org.
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Continued from page 4
School for Recording Arts] for four years. During Covid, we tried to do curbside there. To the founder of the school, David T. Ellis, I’d like to just say a really, really big thanks to him. He didn’t know how much he helped me.
MSR: What’s the vision for the future of your business?
CS: My two-year goal is to pay back my loans that I took to build this. It took $450,000 to just create this kitchen right here, which is a catering kitchen. I love cooking for schools.
I would like to get two school contracts. I’d also like to reach the point where I can offer prepped meals, so that when people pass by after school, they can grab a meal to take home. Sometimes, your mom or dad isn’t home, so you don’t have dinner ready. house and on my truck. I want ple, have someone to manage big corporate accounts and to have a banquet manager. owner,” notes Spears.
MSR: What does success look like for you?
MSR: What advice would you give aspiring entrepreDon’t give up. Sometimes it’s hard. Stick with it. Don’t just say, I want to be an entrepreneur and make money. You’ve got to love it. Once you have that love for it, that desire will make you push yourself more, just to West Indies Soul Food is located at 839 University Ave W Suite 103, St Paul, MN. For more information go to the restaurant website, or call (651) 726-4120.
Chris Juhn welcomes reader comments at cjuhn@spokesman-recorder.com.
Continued from page 4 enough money to cover your necessities, including housing, utilities, food and health care. If you do not currently have a consistent income, it may be worth furthering your education or gaining new skills to increase your income potential.
Monitor your spending
Spending more money than you have on items and experiences is easier to do than it may originally seem. By tracking your spending, you can identify where your dollars are going and potential areas for improvement.
Proactively save
Once you have a steady stream of income and understand where it’s going, you can then begin to proactively start saving. One easy and effective way to do so is to set up automatic transfers from your paycheck into a savings account.
Look for financial education opportunities
Working with a financial institution like Bremer Bank or finding financial literacy classes to fill any gaps in your finance knowledge and learn more about available resources are valuable ways to build wealth. Understanding how money works, how to invest, how to improve your credit score, and how to effectively manage finances can go a long way. This is especially true for BIPOC communities who have historically faced barriers to education and financial literacy.
Create a financial plan neurship, with a study by the Association for Enterprise Opportunity reporting that Black business owners have 12 times more wealth than Black wage earners.
Financial institutions like Bremer Bank, professional financial planners and community organizations can serve as a valuable resource in working with you to create a personalized financial plan.
Homeownership Homeownership is a critical way to build generational wealth, providing stability and allowing families to build equity to pass down to future generations. While BIPOC families have historically faced discrimination in the housing market, making it more difficult to buy homes, many programs and resources are available today to help combat these challenges.
Investing
Building generational wealth is crucial for everyone – especially for the economic empowerment of BIPOC communities. Education and knowledge, homeownership, entrepreneurship, and investing are all essential tools to leverage when building generational wealth.
“These plans help identify your goals and your understanding of where you are now and where you would like to be in the future, regardless of whether you’re an individual or a business
Entrepreneurship
Starting a business is an opportunity to create a legacy and build wealth to pass down to future generations.
BIPOC communities have a long history of entrepre-
While investing in stocks, mutual funds, and real estate can provide significant longterm return, limited access to investment opportunities and education, particularly for BIPOC communities, paired with fears about financial uncertainties or downturns can cause natural hesitation. Before investing, seek the expertise of financial advisors and investment professionals who understand the opportunities and unique challenges faced by BIPOC communities.
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The most important part of setting and reaching your savings and wealth building goals is seeking information to fully understand your financial situation and options — and Bremer Bank can help! Our team of banking experts are well-equipped to help guide you down the path that makes the most sense for your per sonal financial needs. Learn more at bremer.com.
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Prep
Continued from page 12 a Minneapolis firefighter and former Nebraska teammate (1983-85), who hosted Sheppard during his recruiting visit, learned about Sheppard’s greatness upon his arrival on campus.
“We had this rule,” recalled Rucker, a 1980 Central graduate who played cornerback. “If you miss a tackle, you run the stadium stairs. Von let it be known that we [the defense] were going to be running a lot.”
Rucker and his teammates on defense didn’t think much of it, just a bunch of babble from an overconfident freshman. “We ended up running the stadium steps,” Rucker said
VIEw
Continued from page 12
Staurowsky co-authored
“College Athletes for Hire,” a landmark study on the financial shortfall for athletes on full scholarships, as well as a study that exposed how NCAA sports “robs” predominately Black college football and basketball players of billions in generational wealth. She also gave expert testimony in the O’Bannon lawsuit trial.
Over the years, tthe professor and former college
RIChaRdSon
Continued from page 12 player I can be every day. I’m trying to learn from the guys around me at this level and in the big leagues.
“I’m just trying to be a sponge and just be ready anytime.”
Woods Richardson was in a dueling no-hitter with Rochester Red Wings starter Cory Albert on April 28, in one of
