Use These 5 Home Renovations to Get the Best Return on Your Investment

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Purchasing a home means making an investment from which you can profit in the future.

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Keeping your home up to date on maintenance, as well upgrading specific features, can increase the amount you make from your investment.

Specific projects can increase your turnover rate, whether you intend on living in your home for many years to come before selling, or plan to make it “flip” worthy. The value of your home determines how to calculate rate of return on investment.

It’s important to consider what prospective buyers are going to be looking for when they tour your home. If there is a leak in your roof, then having marble countertops or an updated steam shower isn’t going to matter. Maintenance costs can eat money quick; home buyers are afraid of that. So, make sure your remodeling efforts are for areas that are needed as well as wanted.

To help you get the most money out of your future home sale, we have provided five home renovations that will get you the most return out of your investment.

1. Routine Maintenance Comes First

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Your newly updated kitchen and bathroom will lose some of it’s glam if there’s water in the basement when potential buyers come to look at your house. Homeowners need to keep the existing structure of the home in tip-top shape. Take care of the necessities of your home first before you indulge in luxuries.

Try to think about your home from the buyer’s perspective. Most buyers don’t have an unlimited amount of money to spend on a house. They have to make their money count. They’re not going to want to spend it on the repair of essential systems. Usually, when buyers purchase existing homes, they consider upgrading things like the kitchen or bathroom themselves. After all, there’s no telling if they’ll have the same taste in style as you. You might think those marble countertops are gorgeous, while the buyer prefers butcher block.

If the maintenance is squared away on your house, then by all means, enjoy your new backsplash and jetted bathtub.

2. Kitchen

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So, you’ve decided to remodel your kitchen. But what exactly do you want to improve? Don’t try to go all out with flashy elements. Try to keep to a traditional look. You don’t know what type of taste your potential buyers have. Lean more towards a modern but simple look that goes with everything, for your kitchen. Wood cabinet refacing, neutral wall colors, commercial-look appliances, stone countertop materials, and natural wood or stone floors are fundamental upgrades that will have your kitchen looking fantastic while having the ability to fit every buyer’s cup of tea.

If you’re pleased with the way your kitchen looks, then maybe you’d like to upgrade that swamp green bathtub in your bathroom to a more modern look.

3.Bathroom

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If your home only has one bathroom, you might consider adding one instead of spending money on upgrading the one you have. Compared to the increase you’ll get from adding a new one, how much is a bathroom remodel worth? If you do choose to upgrade, there are some things to consider.

Think about how often you use your bathtub. Unless you have young kids, you probably don’t have time to use your tub every single day. It’s the same for other people as well. If you have a small bathroom, you might think about converting your bathtub into a walk-in shower instead.

Keeping the inside of your home beautiful is important, but what do people see from the street?

4. Curb Appeal

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Let’s face it; first impressions are everything. The first look the buyer makes in the direction of your home will determine if they are even interested in going inside. It sets the mood for the entire showing and course of the sale. Making sure your curbside appeal is captivating is undoubtedly an excellent place to spend your time.

Adding a front porch or a back deck can go a long way in boosting the exterior look of a home.You want to encourage a welcoming feeling that entices your buyers to come inside and feel comfortable. Siding replacement is a popular upgrade, as is the color of the paint and your front door.

There are also simple landscaping hacks you can complete, to give your home a touch of beauty. Adding some trees, bushes, flowers, and even a stone pathway can enhance the look on the outside of your house.

No matter what you do the inside or outside of your home, it won’t amount to what’s not there.

5. Extra Space

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Adding on to your house can be a perfect investment. People have different reasons for their desire for additional rooms. Some want sunrooms while others want to expand the home.

Homeowners who want more room, but can’t afford a larger home in their existing neighborhood, drive this demand. When expanding your home, your sale price will increase by the thousands.

Adding bathrooms have the most significant return rate. However, every room you add will increase the amount you’ll get from your investment. More and more people want dedicated places such as offices and man caves. Having extra space will be incredibly appealing to your potential buyers.

Overall, any upgrades you do to your home will increase its value. In turn, that increases your profit when you sell.

Taking care of your investment is a great way to guarantee a good pay-out in the future. When you decide to replace your 30-year-old roof to prevent it from leaking, you are ensuring your future buyers that they won’t have to do it after making the purchase. Put yourself in their shoes. What would you be looking for in a home? After answering that question, make a list and prioritize what you need to do first.

After remodeling your home and deciding to sell, you’re probably going to need to buy another one for yourself.

Contact Twin City Lending and let us match you with a new mortgage loan that fits into your vision.

What is a Home Appraisal, and How Does it Affect the Mortgage Process?

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Home appraisals are essential components of real estate transactions.

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Whether you’re buying, selling, or refinancing your home, an appraisal will be part of the process. However, despite the fact that they are a standard step in real estate deals, most people don’t fully understand home appraisals or how an appraiser determines a home’s value.

If you are among those that need an explanation of what an appraisal is, then keep reading – this article is for you.

Home Appraisals – What Are They?

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A home appraisal is an unbiased determination of a house’s value. Not just anyone may determine the appraisal estimate amount. Only a licensed, trained, and experienced individual may make the assessment. Most of the time the buyer and seller don’t select the appraiser. Instead, the lender will hire someone who is an objective third-party, separate from the other parties involved in the transaction.

In a real estate purchase or sale, an appraisal is needed to decide if the home for sale is worth the asking price based on thehome’s special features, specific location, and condition. If you are refinancing, the lender orders an appraisal to determine the appropriate loan amount to allow you.

Now you know what a home appraisal is and what purpose it serves. Let’s look at how the value of your home will be determined.

Also Read: How to Find The Best Mortgage Lender in MN

The Difference Between A Home Appraisal and Home Inspection

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Some people may confuse an appraisal with an inspection. While similar, some primary differences can help distinguish the two. Even though the two processes are similar, the goals of each are very different. An appraisal determines the value of the home, while the inspection uncovers damages to the property and estimates repair costs. Some aspects are present in both processes, while others are unique to one or the other. For example, both appraisals and inspections check the condition of all primary structures and systems within the home. Only inspections provide costs estimates for any repairs the home needs and only appraisals check the price of recently sold comparable properties.

Both processes are essential parts of real estate transactions and contain some of the same aspects, but they have very different purposes and goals. Now you know what a home appraisal is and what purpose it serves. Let’s look at how the value of your home will be determined.

What Determines An Appraisal Value?

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Home appraisals are more for lenders than they are for home buyers and sellers – although there are benefits for them, too. For this reason, the lender usually chooses the appraiser.Qualified appraisers are licensed and certified and have general knowledge of the local area. The appraiser cannot have anypersonal interest whatsoeverin the affairs of the transaction and must remain unbiased.

Standard factors that provide the final result of the appraisal value arerecent sales of comparable nearby properties and current market values.The home’s amenities, such as the number of bathrooms and bedrooms, functionality, square footage, and floor plan, also play a part in determining the market price. The appraiser will visually inspect the house inside and out, making notes of any conditions that might negatively impact the value of the property, such as water damage or cracks in the foundation.

Usually, when appraising a single-family home, the appraiser will use Fannie Mae’s Uniform Residential Appraisal Report. This report requires them to describe the inside and outside conditions of the property, comparable sales, and neighborhood. They will then analyze and make conclusions about how much the property is worth based on their observations.

Aside from the appraiser’s opinion, the report includes other elements such as:

  • A street map that indicates the location of the property
  • The comparable sales that they used
  • Sketch of the exterior building
  • How they calculated the square footage
  • Photos of the home from the street view, the front of the house, and back of the house
  • Photos of the comparable properties used
  • Market sales data
  • Public land and tax records

An appraiser will use all of these elements to assess the fair market value of a property. While the lender orders the appraisal, the borrower typically picks up the tab for it.

We know that home appraisals benefit lenders, but how can they affect you as a buyer or seller?

How Appraisals Affect the Mortgage Process

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Qualified appraisals performed by certified professionals have the potential to protect not only mortgage lenders but homebuyers and sellers as well. Both federal and state governments regularly monitor individual states’ licensed appraisal management companies and appraisers, providing standards that protect all parties involved in a home buying transaction.

For homebuyers, an appraisal ensures that they aren’t paying more for the home than what it’s worth. In addition to that, it can also be an excellent negotiating tool when discussing the price of the house. Adversely, an appraisal that determines the value to be lower than the asking price can stall the transaction until all parties are satisfied.

As for sellers, the benefits of appraisals aren’t as numerous. An appraisal that is lower than your asking price can cause a reduction in your profit. You can dispute the appraiser’s findings, but federal guidelines can make it difficult to challenge.

If you’re refinancing your home, a low appraisal may halt the process. The appraisal value has to be equal to or above the amount you requested to borrow before the refinance process can commence. However, for those who currently have an FHA mortgage, an appraisal isn’t required through the FHA streamline program.

As you proceed through buying, selling, or refinancing your home, an appraisal might seem like just another step to complete. It is essential to the process, however, and plays a crucial role determining the final selling price and loan amount for a house. Understanding what a home appraisal is and how appraisers calculate it helps you know what to expect and prepares you for any outcome. Appraisals protect buyers, sellers, and lenders alike, so it is helpful to understand them.

If you are looking to take out a loan local to the Minneapolis or St. Paul, Minnesota area, give Twin City Lending the opportunity to match you with one that fits your wants and needs.

7 Reasons Senior Citizens Benefit From a Reverse Mortgage

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A reverse mortgage is occasionally known as a home equity conversion mortgage and is available to seniors 62 years of age and older.

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A reverse mortgage is a fantastic opportunity for seniors.You may wonder, “how does reverse mortgage work?” In a traditional loan, the homeowner makes payments. When you enter a reverse mortgage agreement with a bank or lender, you, the homeowner, receive payments. As with any loan, it is vital to do extensive research and shop so that you select the perfect lender for your individual needs.

Qualifications

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Like any other mortgage, to qualify for a reverse mortgage, you have to meet specific eligibility requirements.

  • You must meet the age requirements, of course.
  • The home that you plan to implement a reverse mortgage against has to be your primary residence.
  • You also must have sufficient equity in your home.

The amount that you can receive from a reverse mortgage varies based on three factors: the borrower’s age, the type of loan program that the borrower chooses, and how much equity is left in the home after current mortgages have been paid off.

Once you determine that you’ve met all the qualification requirements and are satisfied with the terms, you can get to the business of reaping the benefits that a reverse mortgage offers.

Benefits of a Reverse Mortgage

There are seven significant benefits to seniors receiving a reverse mortgage.

1. You Remain A Homeowner

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The best part about a reverse mortgage for seniors is that they get to remain homeowners. As a senior, you deserve to live the rest of your days feeling comfortable and secure. With a reverse mortgage, you can get the money you need, for whatever you need, and never risk losing your home as long as it remains your primary residence.

2. Many Options For Disbursement

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The three most common ways you can receive payments are through a lump sum of money, allocated monthly payments, or through a line of credit created with the lender of your choosing. Some lenders may offer the option to combine the disbursement types to suit your needs best.

3. No Restrictions on Use of Funds

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Another great benefit of a reverse mortgage for seniors is that there aren’t any restrictions on how you spend the money you receive. It is common for seniors who consider a reverse mortgage to assume that you have to use the funds for specific purchases, but that just isn’t the case. Since it’s equity in your home, you can spend the funds how you see fit. The money you receive can be used to take care of healthcare bills, hospice care, adult day care, renovations, vacations, or any other payment you need to cover.

Since the advent of the reverse mortgage, seniors are now able to live with a bit more financial freedom. No longer will being low on funds because of a fixed income be a major concern. A reverse mortgage gives you a bit of breathing room, which is often much needed.

4. No Monthly Payments

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Monthly payments like those you make with a traditional loan are a thing of the past. Instead, you receive the payments. The homeowner isn’t even responsible for repaying the loan until the last borrower has left the residence, whether that be because the primary residence has changed, or because of a tragedy such as death. If the homeowner passes away, the house is sold to pay back the loan. Without a monthly mortgage payment, seniors can use the money they would spend on home a mortgage payment to pay for other more pressing needs that arise in the golden years.

5. Backed By The Government

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A reverse mortgage is backed by the government, making it a protected financial move that seniors can afford to make. The Department of Housing and Urban Development protects reverse mortgage agreements. Having a mortgage loan that’s backed by the government means that your money is insured, which protects seniors in the long run. The government assures and underwrites all of the payments so that seniors don’t have anything to worry about when it comes to receiving their money.

6. No Negative Effect On Other Government Programs

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Reverse mortgage payments come to you as tax-free income. A reverse mortgage loan also does not interfere with other government programs such as Social Security and Medicare. Without an adverse effect on any other government programs, a reverse mortgage gives you the financial freedom to use your money without fear.

7. Thorough Explanation Through Counseling

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Seniors receiving a reverse mortgage undergo counseling to cover all aspects of the process thoroughly. The reverse mortgage counselor seeks to make sure that the homeowner understands what the loan entails and the exact terms of the loan. You can rest easy knowing that the lender wants you to be well-informed. Education is monumental, and the counseling sessions will help you determine how you can secure the best rate possible with low interest for repayment.

The counseling benefit allows you access to a professional counselor who can answer any questions they may have about the reverse mortgage, such as “how does a reverse mortgage work?” After the counseling is complete, you receive a certificate. This certificate must accompany their application for the reverse mortgage.

Seniors have an incredible advantage in being able to receive a reverse mortgage. While remaining homeowners, you also get the advantage of receiving payments, in many different disbursement types, instead of making monthly mortgage payments. Greater financial freedom allows you to afford living more comfortably. You also receive a loan that is backed by the federal government, ensuring financial security.

To many seniors, financial security is essential because they are living off of a fixed income. Reverse mortgage payments allow you the funds to cover other bills, purchases, or needs without any restrictions. With thorough research and careful consideration, you can find a reverse mortgage lender that satisfies your requirements. Contact Twin City Lending today to discuss how we can work together to find a reverse mortgage right for you.

Let Us Say Thank You with 10 VA Home Loan Benefits

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Are you wondering if a Veteran Home Loan is worth the effort?

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Twin Cities Lending wants to say thank you to our veterans, active-duty servicemen/women, and their surviving spouses by helping you find the tools to save money when buying or refinancing your home.

We want to make relocating to the Twin Cities a profitable venture, and help you settle into the community. We want you to stay, so we hope can be a resource to keep you around. You might have been born here locally. Even so, we want to make sure you know options to save money on your home loan as an active-duty or veteran service member.

What is a VA Home Loan?

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A Veteran Home Loan is a loan package only available to qualified servicemen/women, Veterans, and their surviving spouses. The loan doesn’t originate from the government. Veteran Affairs administers the guidelines while qualifying lenders provide the financing. If the mortgage loan meets the VA guidelines, then a loan guarantee is completed to encourage lender participation. Even if the mortgage has defaulted, the federal guarantee is essentially a warranty to the bank that they will get their money back.

VA mortgages are more accommodating to lower credit thresholds than the average home loan, and no down payments are required because of the government guarantee. The VA guarantee enables lenders to offer mortgages with less rigid guidelines. They have a long list of benefits standard mortgages do not include. They are created to be affordable, so you end up getting more real estate for your dollar.

VA Home Loan Benefits

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Veterans have a way to purchase a home through va home loan benefits that they wouldn’t qualify for through standard loan methods. Even those who are easily eligible for a mortgage can save on out of pocket expenses and the overall home purchase cost.

1. No Down Payment

Hard to believe, but no down payment is required to buy your house. There are some cases where down pay payment would be helpful. In general, they aren’t necessary.

2. Below Market Interest Rates

Lower interest rates will reduce your monthly mortgage payment. VA home loans interest rates are 0.5 to 1 percent below the conventional market interest rate.

3. Lower Credit Thresholds to Qualify

There is no minimum credit score you must have to qualify for a VA loan, but should have satisfactory credit. The lender will need to see that you have consistent income to fulfill your loan payments by checking your debt-to-income ratio and your credit report. Private lenders might have additional requirements.

4. VA Guarantee

What does that mean for you? That means you don’t need mortgage insurance. Because the government is guaranteeing the loan, you aren’t required to use a private insurer. The VA Guarantee will cost you nothing.

5. You Can Reuse The Benefit

Have you already received a VA home loan? Not a problem. The benefits aren’t a “one time type and you’re out” program.

6. VA Home Loan Are Assumable

The buyer must qualify themselves to be able to assume the loan. The buyer is qualified for VA loan benefits. An assumable loan will give you an advantage in the real estate market. It simplifies the process for another Veteran.

7. You Do Not Have To Be a First Time Home Buyer

Yep, you don’t have to be a first time home buyer. In fact, if you are a first time home buyer, you might qualify for additional programs that will help reduce your principle in addition to a VA home loan. If you are a first time home buyer, research to see what your options are along with their requirements, before you start shopping for your house. Here is a list of HUD-approved counseling agencies in Minnesota.

8. No Fees For Paying Off Mortgage Early

For the standard home loan, if you pay your home mortgage off early, there is a penalty fee. That is how banks make their money, with a long loan life or penalizing you for early payoff. Do you feel like paying off your mortgage early? With a VA home loan, you can go for it, and knock out your mortgage before it’s due.

9. VA Could Be of Some Assistance if There is a Hardship

The point of these loans is for you to have quality housing. The VA has guaranteed the loan, so they want to be sure you are getting the benefit. Keeping your house is of great importance. There is help if you need it.

10. Decreased Closing Costs

VA rules limit how much closing can cost you. For once, hooray for government regulations. You will pay less than with a standard home loan.

Who is Eligible For a VA Home Loan?

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  • National Guard members and Reservists who meet the requirements of basic service
  • Active-duty service members
  • Veterans with a service-connected disability could be eligible
  • Spouses of military members that died while on active duty

Also, veterans who meet at least one or more of the following:

  • Served more than six years of service in the National Guard or Reserves
  • Served 90 consecutive days of active service during wartime
  • Spouse of a service member who has died as a result of service-related disability or who have passed away in the line of duty
  • Served 181 days of active service during peacetime

Dishonorable discharged veterans WILL NOT qualify.

VA Home Loan Calculator

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The va home loan calculator is a handy tool, and it provides you with a roughly estimated mortgage payment. Use it to compare how much you will save with a VA home loan vs. a standard loan.

At Twin Cities Lending we can help you utilize your VA home loan benefits on your next home purchase. We know the ins and outs of refinancing and would love to answer any questions you have about using your veteran home loan benefits. We are thankful for our servicemen/women and all they do for our country. Contact us so we can help.

What is a Mortgage Refinance and Should You Get One?

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If you are a homeowner, you probably hear the term “refinance” a lot.

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What exactly is it and is it something you should plan for in the future? Does a refinance hurt credit? Are there consequences or benefits? How long does a refinance take? Numerous questions revolve around this word.

It might be evident that “refinance” means to finance again. You may have an idea of what it means to refinance your home but want more specifics to officially decide whether it would be the best option for you. Below are some questions for you to consider.

What is a Mortgage Refinance?

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Simply put, a mortgage refinance is a loan that is issued to a homeowner to replace an existing one. The owner can customize the detail and terms such as the mortgage rate, length of the loan, and how much you borrow.

When you first get a mortgage, the terms might not work for you forever. So, you may choose to refinance to reduce a mortgage payment, get funding for home improvements, cancel mortgage insurance premiums, or pay off your home quicker.

Refinance loan transactions are common, tend to close more quickly than original mortgage loans, and usually involve less paperwork. You are under no obligation to refinance with your current lender. Twin City Lending encourages you to contact them today to discuss your qualifications for a mortgage refinance.

How Does Refinancing Affect Your Credit Score?

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You are probably wondering“does refinance hurt credit score?”While it shouldn’t have a significant adverse impact on your scores, when the bank looks at it, it will trigger a hard inquiry which can cause your FICO credit score to drop a few points.

How Often Can You Refinance Your Home?

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You can refinance your home however many times as you’d like. However, some banks charge a penalty for closing out a mortgage too soon. Some banks also require you to wait in between appraisals up to six months. Also, keep in mind that every time you refinance your home, you are going to get multiple hard inquiry reports on your FICO credit score. Every time a lender inquiries your credit, it will drop a few points. The more credit history you have, the more it will help you prove that you are responsible enough for them to grant you a loan.

How Soon Can You Refinance a Mortgage?

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There is no official time limit on how soon you can refinance your mortgage after purchasing a home. However, lenders have requirements and guidelines to satisfy. You must check to determine if there is a prepayment penalty included in your mortgage agreement. These penalties aren’t common since recent regulations now discourage banks from doing this, but it is still possible that you have one. Contact Twin City Lending today to discuss our guidelines for refinancing your home.

How Long Does A Refinance Take To Process?

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Refinancing your home usually takes less time than the original mortgage loan. An estimated 30-45 days is typical, but plenty of factors could lengthen that period. While some lenders can be unresponsive, some homeowners can be the same way. How quickly you gather the necessary paperwork and keep in touch with the lender can determine how long does it take to refinance a house.

Different Types of Mortgage Refinance Loans

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There are three different types of refinancing mortgages: rate-and-term, cash-out, and cash-in. Your circumstances will determine which one is right for you.

Rate-And-Term: With rate-and-term refinance the only thing that will differ from your original mortgage loan will be the mortgage rate, term limit, or both. They gear toward reducing the loan term and monthly payments so that you can pay off your home quicker.  Most refinances are rate-and-term.

Cash-Out: Cash-out refinance offers a lower loan term and mortgage rates. However, it does increase the amount you owe. You can expect the new loan balance to exceed the old one by five percent or more. Only owes the original amount is owed to the bank, so the money left over distributes to you at closing. Or, if you are using the money for debt consolidation, the creditors will receive the funds. Cash-out loans provide more of a risk to banks than rate-and-term loans. So, they have stricter approval requirements also. It might have a lower maximum amount lent, or it could require a higher credit score. Most lenders will limit the cash-out mortgage amount to $250,000.


Cash-In
: A cash-in refinance is the exact opposite of a cash-out. The homeowner will bring money to the closing to pay on the loan balance and amount owed to the bank. That could result in lower monthly mortgage rates and a shorter loan term. Another reason to opt for this type of financing is to do away with mortgage insurance premiums. Once the loan amount reaches 80% LTV or lower, it’s no longer due.

Mortgage refinance loans are not a bad thing, and it can save you money. The mortgage terms you have now might not always work for you. If you want to shorten the length of your loan, get a lower interest rate, reduce your monthly mortgage amount, or do away with your mortgage insurance premiums, refinancing may be the answer for you.

How to Find The Best Mortgage Lender in MN

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Buying a Home

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Buying a home is a huge decision. It may be among the most significant decisions you will ever make in your life. So it is vital to make smart choices during every step of the buying process. Most people don’t have the entire cost of a house saved up in their bank account, so they require a loan to cover the majority of the expense of purchasing a home. That’s where a mortgage lender comes in handy. When choosing a mortgage lender, do your research to ensure the company you decide on is reputable and trustworthy, and that their policies and procedures fulfill your specific mortgage needs.

Understand your Finances

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A good lender will be willing to meet with you to review your financial situation. They’ll help you determine how much money you can afford to borrow. You can find the best loan for your situation by knowing how much money you have and what amount you can afford. You need to have enough money to cover the down payment, first year of homeowners insurance and property taxes, and closing costs.

Finding a Lender

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Looking for the best mortgage lenders will require a lot of research. Your research needs to be very extensive because you are investing a lot of money and trust that a lender will give you the best loan possible. Some people choose an online mortgage lender, while others prefer to go through a bank or even a lending company. Sometimes the real estate agent you work with will suggest lenders they frequently work with for you. Smaller lending companies may be more personal and intimate, and large lending companies and banks may have the best interest rates. Thoroughly research all options before coming to a decision.

Research is Key – Word of Mouth Helps

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Finding a lender requires adequate personal research, and referrals can help speed up your search. Talk to your family and friends to discover who they used for their mortgage lenders. They can tell you whether they had a good experience or a bad experience. You can also get advice from your real estate agent. If you do use a real estate agent, make sure the lender knows this, as it could help reduce some of your closing costs that you will be paying.

While conducting your research, don’t be afraid to ask lots of questions and dig deep. Research the lenders’ reputations and check online reviews. The opinions of others will assist you in determining whether you would be happy working with a particular lender or not. Check out lender websites – they should have a plethora of information listed, such as loan rates, a live chat, a resource center with comprehensive tools like a mortgage calculator, and an online pre-approval application. If you can obtain information from previous clients, that is even better because they will be able to tell you exactly how each lender works. Check to see if the lenders you selected are in the National Multistate Licensing System Registry.

Excellent customer service needs to be a high priority, perhaps even above interest rates. Find out if the lender you’re considering treats clients like family and looks out for them, finding them the best interest rates possible.

Your lender shouldn’t be predatory. You should never be hounded to take an offer or be made to think there are no better options available – especially if the lender offers a loan with high interest rates. Request a breakdown of all costs and fees associated with your prospective loan, including application fees, appraisal fees, commissions, and any other hidden costs.

Also, find out how each company chooses appraisers. You want a company that uses credible appraisers who know the area you are buying a home in so they don’t decrease the value of the home just because of location.

Questions You Should Ask Your Potential Lender

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Mortgage lenders offer many types of loans and different payment structures of these loans. Before you settle on a particular loan, ask questions.

Down payment requirement and closing costs

Does your down payment need to be in full at the time of closing? If you lack funds for a full down payment, will you owe private mortgage insurance? Ask to see a good-faith estimate and whether the closing costs for your prospective loan can be estimated and shown to you.

Fees

Potential lenders can break down and explain their fees, and you can ask if any fee waivers are available. Ask how your chosen lender will receive payment. The lender may charge a separate fee, called an origination fee, that doesn’t appear in your loan estimate, so it’s always a wise idea to ask. What is your responsibility in regards to lender fees at the time of closing – and can can the mortgage lender waive any fees? There are no stupid questions you can ask about costs. A mortgage is a huge investment!

Pre-approval

It is wise to obtain loan pre-approval before acquiring a mortgage. Inquire if your mortgage lender conducts pre-approval for loans locally.

Communication

The biggest question you need to ask your chosen lender, saved for last on purpose, is how your lender prefers to communicate. Ask this question ahead of time because your communication preference could be a method that they rarely use, and miscommunication could cause a disastrous delay, especially if you’re discussing a time-sensitive portion of the loan process. Make sure you are on the same page when it comes to communication.

Picking the best mortgage lender in Minnesota may seem difficult because there are so many choices when it comes to lending options. You want to make sure you choose one that is right for you and your finances. Twin City Lending is one of the best mortgage lending companies in Minnesota, and they have amazing reviews. If you’re looking for a reputable lender, check them out first. The Twin City Lending staff will assist you in locating the loan program and interest rates that best suit your needs.