Resolving Major Mortgage Myths

The amount of content available today on any topic is staggering. Sometimes all this information can lead to confusion and we don’t get the full story on any one topic. The housing market and home affordability often fall victim to scary headlines. Read on to dispel some major mortgage myths you may be coming across.

Myth #1: Homes Are Not Affordable

While it is true that average home prices are increasing and mortgage interest rates have ticked up slightly, housing inventory is also increasing and interest rates are still near historical lows. Those factors combined with potential tax benefits of owning a home still put homeownership squarely within reach for those who desire it.

Myth #2: You Have to Have Outstanding Credit to Qualify

There are very few people with perfect credit. While your credit score is a player in the qualification process, it is not the only factor that lenders will be looking at. Your income, payment history and credit score all combine to give lenders a picture of your financial health. There are also multiple loan programs available and each one has a set of requirements so working with your Mortgage Consultant and Cambria Mortgage can help you find the right program based on your current situation.

Myth #3: You Must Have 20% For a Down Payment

While having 20% for a down payment is great, it is not the only way to purchase a home. There are multiple programs available for qualified buyers that require as little as 3% down.  There are also programs for veterans and those in rural areas that require no money down. On top of these programs, there are also options for borrowers that include down payment assistance. These programs are often part of a county or city initiative and a call to your Mortgage Consultant can help you identify if there is a program available in your area and if you would qualify.

Myth #4: Renting is Cheaper Than Owning

The debate over owning or renting continues to rage. While there are benefits to both, the long-term financial impact of owning a home often puts ownership in the win column. Even with slightly higher interest rates, the tax benefits and appreciating home values provide homeowners with incomparable long-term value. Aside from the financial impact, there are also intangible factors to being homeowners that include pride in ownership and a sense of security.

Call Cambria Mortgage

To get started, call me at Cambria Mortgage at 952-486-6131 or email me at Owen.Riess@CambriaMortgage.com. I will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.

Thank you, Owen Riess

#Mortgage #Minnesota #RealEstate #OwenRiess

VA Home Loans for Purchase

Features and Benefits of VA Home Loans

Millions of veterans and service personnel are eligible for a VA home loan. Even though many veterans have already used their loan benefits, it may be possible for them to buy homes again with VA financing using remaining or restored loan entitlement.

Before arranging for a new mortgage to finance a home purchase, veterans should consider some of the advantages of VA home loans:

• There is no down payment required in most cases. Conventional loans typically require a 5 percent down payment, and FHA loans require 3.5 percent.
• No monthly mortgage insurance premium to pay. FHA loans come with both an upfront and an annual mortgage insurance charge. Conventional buyers typically need to pay for private mortgage insurance unless they’re making a down payment of 20 percent or more.
• Limitation on buyer’s closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
• Lower average interest rates than other loan types. VA loans continue to have the lowest average interest rates of all loan types.
• No prepayment penalties. VA buyers can pay off a loan early without any financial penalties.
• An assumable mortgage, typically subject to VA and/or lender approval. You may be able to have someone take over your mortgage payment, which can be a big benefit in an environment of rising interest rates.
• Foreclosure avoidance advocacy from the VA loan program. The VA has staff members who advocate on behalf of homeowners to find alternatives to foreclosure.

Common Misconceptions about a VA Home Loan

Guarantee that the house you buy, whether it is new or previously occupied, will be free of defects. The VA appraisal is not intended to be an “inspection” of the property. If you have any doubts about the condition of the house, it is in your best interest to seek expert advice before you legally commit yourself in a purchase agreement.

Most sellers will permit you, at your expense, to arrange for an inspection by a qualified residential inspection service and negotiate with you concerning repairs to be included in the purchase agreement. Such action can prevent later problems, disagreements and disappointments. Remember, VA guarantees only the loan, not the condition of the property. It is your responsibility to be an informed buyer and assure yourself that what you are buying is satisfactory to you in all respects.

VA cannot guarantee that you are making a good investment, or that you can resell the house at the price you paid. Neither does the VA have authority to provide you with legal services.

How to Move Forward with a VA Home Loan

Contact me with your DD-214 and I will help you determine your eligibility and obtain your Certificate of Eligibility (COE) from the Veterans Administration.

Once I determine your eligibility I will work with you to get you pre-approved so you know exactly what price range you should be shopping in, so that you can shop for a home with confidence.

I will recommend an experienced Realtor that has worked with and helped veterans purchase homes. Some sellers may have misconceptions regarding the VA Home Loan process and having an experienced Realtor will educate and inspire confidence in the program.

From here you will work with your Realtor and within your pre-approval range to find your dream home.

I am a certified military housing specialist and a veteran and I will work for you. Don’t hesitate to contact me today at (952) 486-6131.

Semper Fi

 

Owen Riess

NMLS #543286

Spring Forward / 2017 Housing Market

Some Highlights:

• Don’t forget to set your clocks forward this Sunday, March 12^th at 2:00 AM EST in observance of Daylight Savings Time.
• Unless of course, you are a resident of Arizona or Hawaii!
• Every hour in the United States: 649 homes are sold, 177 homes regain equity (meaning they are no longer underwater on their mortgage), and the median home price rises $1.86!

If you are thinking about selling or buying, just want to know the value of your home in the current market, call me anytime to discuss financing options or for a great Realtor referral.

Let’s “Spring Forward” together with confidence.

Owen Riess, Mortgage Consultant, NMLS #543286

No Matter What the Groundhog Says, Here are 5 Reasons to Sell Before Spring!

Is spring closer than we think? Depending on which groundhog you listen to today, you may have less time than you think to get your home on the market before the busy spring season.

Many sellers feel that the spring is the best time to place their homes on the market as buyer demand traditionally increases at that time of year. However, the next six weeks before spring hits also have their own advantages.

Here are five reasons to sell now.

1. Demand is Strong 

Foot traffic refers to the number of people who are out, physically looking at homes right now. The latest foot traffic numbers from the National Association of Realtors (NAR) show that the number of buyers out looking for their dream homes in December reached the highest mark since February 2016.

These buyers are ready, willing and able to buy…and are in the market right now! Take advantage of the strong buyer activity currently in the market.

2. There Is Less Competition Now 

Housing inventory just dropped to a 3.6-month supply, which is well under the 6-month supply needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices; however, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last four years. Many of these homes will be coming to market soon.

Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home, while only 21% prefer an existing home (38% had no preference).

The choices buyers have will increase in the spring. Don’t wait for this other inventory to come to market before you sell.

3. The Process Will Be Quicker

One of the biggest challenges of the housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. There is less overall business done in the winter. Therefore, the process will be less onerous than it will be in the spring. Getting your house sold and closed before the spring delays begin will lend to a smoother transaction.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 4.7% over the next 12 months according to CoreLogic. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate around 4% right now. Rates are projected to rise by half a percentage point by the end of 2017.

5. It’s Time to Move on with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take back control of the situation by putting your home on the market. Perhaps, the time has come for you and your family to move on and start living the life you desire.

Call me today to get pre-approved for your next purchase or just to talk real estate and what’s happening in our market now. And, if you need a great Realtor referral call me and I’ll get you into good hands.

That is what is truly important.

Owen Riess

NMLS # 543286 and owen.riess@cambriamortgage.com or (952) 240-3020

 

Semper Fi Marine

For those of you that don’t know me , I am Owen, and David was my step-father.

David met my mother Rose about seventeen years ago. Both widowers, Rose was working at the grocery handing out taste samples and David stopped by, and the picture I’ve imagined is David making loops around the store to stop back again, until one of them said ‘how about some real food”. Then, it wasn’t long before they jetted off for Hawaii and got married on the beach.

David, Ruth and Tony’s family was tamer than our disparate boisterous clan of often twenty or thirty at a time but David endured with humor, strength, and generosity. I wish to thank the Enquist’s for the kindness and love they have shown to my Mother all these years.

David and I bonded immediately because of our shared Marine Corps experience, and as a United States Marine David had mastered the qualities of improvise, adapt and overcome, and he needed these skills to handle the interaction with our side of the family. Whenever we would see each other it was always that firm handshake of his and a ‘hey Marine’ or ‘hi Jarhead’.

We Marines have a different attitude than most with a ‘rush into the fire fight’ mindset but the thing that has always separated the Marines from the others is a respect for history and tradition, and from the first to the last we honor the Marine Corps with the moto of ‘Semper Fidelis’ or “Semper Fi” which means “Always Faithful” and it’s what guides Marines to remain faithful to the mission at hand, to each other, to the Corps and our Country, no matter what.

It was a greeting David and I shared when we parted “Semper Fi Marine”.

David was a man who had a clear sense of right and wrong, and he was consistent in what he believed, in his faith, family, life and work. David lived by the core values that are the Marine character – honor, courage and commitment.

As all warriors are, David was strong and gentle. He gave his all to care for his family, and his friends with a great spirit of kindness and the grace of God.

Someone wiser than me wrote:

“I have no desire to move mountains, construct monuments, or leave behind in my wake, material evidence of my existence. But, in final recognition, if the essence of my being has caused a smile to have appeared upon your face, or a touch of joy within your heart… then in living I have made my mark!

David made his mark, and we many are grateful.

So today I am reminded that the first code of honor in the Marine Corps is never leaving another behind. Marines always bring home their deceased. They honor them and they bury them. Today, in the great tradition of the Marine Corps, we honor this fellow warrior with gratitude and dignity.

Semper Fi Marine

Eulogy for a fellow Marine by Owen Riess

Five Things Your HOA Board Wishes You Knew

Five Things Your HOA Board Wishes You Knew by Joe Winkler

HOA Boards of Directors and the residents they serve create a solid foundation for successful communities. Residents who volunteer their time to run for a seat on their HOA Board oversee the success of their communities by undertaking the critical task of making important decisions that bring the biggest benefits to increasing property values and facilitating the enjoyment of the community. From our experience talking with members of HOA Boards, we have heard a few things that Board members wish homeowners knew so homeowners can gain a clearer understanding of the Board’s responsibilities and the factors that influence their decisions.

Here are the top five things HOA Board members wish homeowners knew.

 1. Board Members Want Homeowners to Attend Board Meetings

HOA Boards conduct meetings on a regular schedule and residents are encouraged to attend. By showing up to the community’s Board meeting, homeowners learn about important issues facing the community. At the meeting, residents have the opportunity to share their thoughts and opinions and gain a greater understanding of the factors that will ultimately play into the Board’s decision-making process. Board members are seeking resident input, feedback and guidance as they decide on what is best for the community at large.

2. They Want to Do What is Best for Homeowners

HOA Board members have a single purpose in mind: to increase property values by protecting the community. They make decisions with this overarching principle in mind. Both the HOA Board and a community’s homeowners association property management company share this goal. While some Board decisions might seem arbitrary or nitpicky, residents should remember that the Board and management company are required to use this as a basis to guide their decision-making.

3. The Board is Always Looking for Help

Board members want residents to volunteer for committees, run for a position on the Board and offer to undertake responsibilities to help the Board function more smoothly. The members of the HOA Board are volunteers and do not get paid for their service. They are willing to lend their time and attention to important issues to help protect the property values of the entire community. Residents with special skills or knowledge are encouraged to support fellow residents by volunteering their time for general needs or by serving on a committee.

4. Board Members Must Uphold the HOA’s Governing Docs

Board members have a legal fiduciary responsibility to uphold the governing documents for their community, whether they agree with the documents or not. Board members are not trying to be punitive or unreasonable when making certain decisions for the community. They are simply serving on a Board of Directors with important legal obligations. As a reminder, homeowners who are unhappy with any of the guidelines outlined in their community’s governing documents can open the conversation to make a change. Each community’s governing documents will outline details to initiate the process.

5. HOA Management Companies Are There to Help Residents, Not Just Enforce Rulings

HOA Boards hire management companies to provide advice on best business practices and help them understand the legal implications of their decisions. Since Board members volunteer their time, the management company provides administrative support like community inspections, communications services and expertise based on their lengthy experience in community management. However, Board members want residents to know that management companies have no authority to make decisions regarding the community. That role falls solely to Board members.

If residents have questions or concerns about how your community is run, we advise them to contact their management company. In addition, residents should attend Board meetings to get a more accurate picture of what is happening in their community and share their opinions. Between Board meetings, residents should contact their property manager. Managers are available to answer questions, clarify misconceptions and keep residents informed. Finally, we encourage residents to consider running for a position on their own community’s Board of Directors and to share their experience and expertise for everyone’s benefit.

Thanks Joe Winkler

Military Housing Specialist Certification

USA Cares maintains a current listing of certified participating lenders/real estate and housing professionals; this is where military consumers can find loan officers and housing professionals who understand their unique needs and subscribe to the recommended Standards of Practice as they work together to make affordable and sustainable housing decisions. http://www.usacares.org/

USA Cares exists to help bear the burdens of service by providing post-9/11 military families with financial and advocacy support in their time of need.

If you are a veteran, or know a veteran looking to purchase a home please don’t hesitate to contact me at (952) 486-6131 or Owen.Riess@CambriaMortgage.com

Semper Fi

Homeowner Association Rules: How They May Affect Your Buying Decision

Beyond the mortgage, maintenance and property taxes of a new home, you may not be aware that many newer communities require you to be part of the Homeowner Association (HOA). If you’re wondering about what the HOA entails and how this can impact the home and community you live in, here are some facts that may be important to know before you buy.

What Is A HOA?

If you happen to have a Homeowner Association present in your new community, it’s important to know that this body works to enforce the rules of the neighborhood. Made up of a group of volunteers that live within a given area, different community members will be responsible for different aspects of the community. While there are annual fees for an HOA and they vary from place to place, communities with this type of association often come with a higher price tag on the market.

The Types Of Rules Enforced

The rules that are enforced by a HOA differ depending on the community, but they can range from issues as diverse as the height of fences to the number of pets per residence to the amount owed for fines. While you may have found your ideal home in a great community, it can be worth looking into the rules of your local HOA so that you can determine if they’ll work for you. If there are any red flags, you may want to consider your options or decide if the sacrifice is worth it.

Dealing With The Rules

It’s important to stick to the rules of the community you live in because you can be taken to small claims court if you don’t pay your fees or respond appropriately to complaints. If you’re in a position where you disagree with the rules and would like to pursue another option, you will want to make a written request to the board and wait it out. You may not get a response very quickly due to the voluntary nature of most HOA, but it’s important to be compliant with the regulations until your request is approved.

It’s great news if you’ve found your dream home in a nice new community, but it’s important to be aware of the HOA rules that you’ll have to comply with. If you’re currently on the market for a new home, contact me at owen.riess@cambriamortgage.com or give me a call at (952) 486-6131 and I can connect you with a great local real estate professional that can guide you through the process.

Owen Riess

Mortgage Consultant, NMLS #543286

A Veterans – Certificate of Eligibility (COE)

The Certificate of Eligibility is a form from the federal government that indicates the veteran has met the service requirements for the VA mortgage.

There are two ways a person can get a Certificate of Eligibility (often referred to as the COE).

The simplest way to get the COE is to contact me at (952) 486-6131 or Owen.Riess@CambriaMortgage.com and I will assist you with obtaining the COE. Approved lenders can access a VA Home Loan specific website and print out the COE for the veteran. This process can be done within a few minutes.

The other way to get a COE is to complete form 26-1880. This form must be filled out and then the lender can submit the form via the aforementioned website. The form is rather short, asking for basic information such as name, date of birth, home address and phone number.

Along with the 26-1880, the veteran will also have to present one of the following items: DD-214 or their Statement of Service.

The Certificate of Eligibility (COE) will state whether or not the Veteran is exempt from the VA Home Loan ‘Funding Fee’.

The DD-214 is a form for veterans who have been discharged from active duty. The person’s years of service along with details of their separation are included on the form. Veterans that do not have a copy of their DD-214 can request one from National Personnel Records Center.

For people that are still serving as active duty personnel, a Statement of Service will be used in place of the DD-214. This statement should indicate when the person’s active duty began and needs to be signed by either a senior commanding officer or the assistant to the officer.

A person needs two forms in order to prove eligibility for a VA Mortgage – their Certificate of Eligibility and either DD-214 or Statement of Service

If you are a Minnesota Veteran considering home ownership I will be honored to help you with your VA Home Loan.

Owen Riess, Veteran, Mortgage Consultant, NMLS # 543286

(952) 486-6131 and/or owen.riess@cambriamortgage.com

What does an association manager do?

What does an association manager do?

I share this information because I truly believe property owners deserve the best. Because I think your property should be more than just the place you live. Your property is part of a larger community, and as a part of that larger community home owners have increased responsibilities to protect each others investment.

Associations

Sometimes, properties are part of a different kind of community: associations. When developers and homeowners get together and form an association, they become a stronger and more connected community.

To best serve their associations, boards oftentimes hire an association manager. Somewhat like a property manager, an association manager handles a wide range of services: administrative, financial, insurance and physical management of the association.

Management

Associations have a lot of moving parts, I get it. That’s why association managers work alongside your board members to manage the properties in your association. There services range from performing regular site reviews to coordinating with trusted professionals to carry out maintenance requests.

Financial

Association managers take the timely preparation of finances off your plate. They provide the board and association with monthly financial statements, oversee invoices, collect association finances, and coordinate tax filing information, annual insurance renewals and more.

Administrative

association managers coordinate all the communications between your Board, contractors, business owners, and other service providers. Whether that means preparing agendas for your Board meetings, distributing new member packets, or communicating bylaws to members.

If you or anyone you know is considering purchasing in a condominium or planned unit development have them contact me about the financing, and let me recommend a great experienced Realtor to assist you.

Owen Riess