BROOKLYN PARK REAL ESTATE FORUM: MARCH 3, 2022
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BROOKLYN PARK REAL ESTATE FORUM: MARCH 3, 2022
WHO WE ARE What started in a small town in South Dakota in 1930, has grown into a 1.6-billion-dollar family-owned, regional bank serving the financial needs of both personal and business customers. For four generations, CorTrust Bank has been a viable part of communities throughout South Dakota and Minnesota, with 37 locations. It is our rich history that motivates the work we do today. We’ve been around and we will continue to be around.
WHAT WE VALUE Connections with Companies We invest the time to fully understand our business customers’ industries and guide their financial decisions. Connections with Customers Our motivation to continually improve the services we offer is fueled by a constant source: our valued customers. Connections with Communities While the needs of the communities we serve have changed with the times, our value to give back has not.
FULL SERVICE BANK CorTrust is a full service bank, offering the following services: • Personal banking • Business banking • Mortgage financing • Insurance • Investments & trusts • Credit cards • And more!
NATIONAL DELINQUENCY STATISTICS • Pre-Pandemic - June 2019 – 2.5% • Start of Pandemic - March 2020 – 3.39% • During Pandemic – Summer 2020 – 7.76% • Increase of 225% from pre-pandemic • Back to, and in some instances better than, pre-pandemic levels
FORBEARANCE
• Forbearance: What is it?
• Defined: Refraining from the enforcement of something (such as a debt,
right, or obligation) that is due.
• Forbearance does not equal forgiveness.
• Forbearance Program Types:
• Programs available are based on loan type.
• Two-thirds of all consumer mortgages are federally backed or federally
insured.
• Federal Investment Examples: Freddie Mac or Fannie Mae
• Federal Insurance Examples: Federal Housing Administration (FHA) or
Department of Veterans Affairs (VA)
• Differences still exist between different government agencies as well as
private label mortgages.WHAT HAPPENS AFTER FORBEARANCE? REINSTATEMENT REPAYMENT DEFERMENT MODIFICATION
QUESTIONS?
? Stop into your local CorTrust Bank branch or
visit us online at CorTrustBank.com
Imran Qureshi
Vice President / Commercial Banking &
Cash Management Officer
NMLS 960280
(763) 703-3026
iqureshi@cortrustbank.comMINNESOTA HOUSING FIX UP LOAN PROGRAM
Minnesota Housing is a trusted state
agency that works with local lenders to
provide affordable home improvement
loans. From DIY projects to big
remodels, a Fix Up loan will help you
achieve your vision without breaking
your budget!HOW CAN A MHFU LOAN HELP ME?
You can make the home improvements, repairs, and
renovations you want, with financing you can afford.
• Affordable, fixed interest rates
• Lower rates for eligible energy efficiency and accessibility
improvements
• Loan amounts from $2,000 to $75,000
• Secured and unsecured loan options
• Higher loan-to-value ration on secured loans than traditional
loan products
• Repayment terms up to 20 years
• Hire a contractor or do the work yourself
• No prepayment penaltyWHICH LOAN IS RIGHT FOR ME?
Loan Type Security Type Maximum Maximum Repayment
Loan Term
Amount
Secured Secured by mortgage lien $75,000 10-20 years
Unsecured No equity or mortgage lien required $25,000 10 years
Secured Energy Secured by mortgage lien $25,000 10-20 years
Unsecured Energy* No equity or mortgage lien required $25,000 10 years
Secured Accessibility Secured by mortgage lien $25,000 10-20 years
*This project was made possible by a grant from the U.S. Department of Energy and the Minnesota Department of Commerce through
the American Recovery and Reinvestment Act of 2009 (ARRA).WHAT IMPROVEMENTS CAN I MAKE? General Home Repairs Energy Efficiency Accessibility & Remodeling Improvements Improvements • Porches & decks • Heating system & • Ramps • Bathroom or kitchen central air • House accessibility remodels conditioning modifications • Finishing a basement • Windows • Safety modifications • Siding & roofing • Insulation, attic air • Mold & radon sealing mitigation • Water heater • Garage
QUESTIONS?
? Stop into your local CorTrust Bank branch or
visit us online at CorTrustBank.com
Lisa Hauck
Vice President / Branch Manager
NMLS 2110607
(763) 755-4227
lhauck@cortrustbank.comGETTING STARTED WITH BUYING A HOME
Bank ID 405612 | NMLS 458038GET TO KNOW CORTRUST MORTGAGE
• You have access to full range of mortgage products to
meet all your needs
• We deal directly with Fannie Mae and Freddie Mac, so in
most instances your loan is serviced locally by us in Sioux
Falls, SD
• We’re a full service mortgage bank with personal banking
products, business banking options, mortgage financing,
insurance, and investments and trusts
Erik Sandell • With over 20 years of mortgage and banking experience,
Vice President / Branch Manager let’s get you started on finding the best financing
NMLS 1570180SO YOU’RE THINKING ABOUT BUYING A HOME FOR THE FIRST TIME. It’s a big purchase and one that comes with many questions. Like, which loan program is right for me? Do I need a down payment? How much home can I afford? Do I need to be pre-qualified? Where do I start? Don’t worry! CorTrust Mortgage is here to help answer these common home buying questions to ensure you get started down the right path to homeownership.
MORTGAGE PROGRAMS 101
• 1st Time Homebuyer Program • Repeat Homebuyer Program • Conventional Programs (Fixed, ARM, Jumbo) • Government Programs (RD, FHA, VA)
MORTGAGE DOWN PAYMENT 101
EXPLORE YOUR DOWN PAYMENT ASSISTANCE
OPTIONS INFORMATION PROGRAMS
• Many programs are • Less than 20% down • Down payment
available with down will require that the assistance is available
payments that vary loan is guaranteed or for qualified buyers.
from 0% (RD & VA) to insured, which is called
3% (conventional) to mortgage insurance. • FHLB, Minnesota
3.5% (FHA), and more Housing Step Up,
as you desire. • What exactly is Minnesota Housing
mortgage insurance? Start UpMORTGAGE AFFORDABILITY 101
EACH PROGRAM HAS THEIR OWN SETS OF
GUIDELINES FOR DETERMINING AFFORDABILITY
Things We Consider:
• Debt-to-Income (DTI) – 41-45% on average
• Credit history and scores – 620 minimum
• Gross household income
• Other debts
• Estimated house paymentGETTING PRE-QUALIFIED
• We highly recommend getting pre-qualified before you begin shopping • Once pre-qualified, you are ready to make an offer when the right property comes along!
MORTGAGE APPLICATIONS 101
GETTING PRE-QUALIFIED • Online/Internet • In-person • Email • Phone APPLICATION BASICS • Name, address, DOB, SS#, Phone#, & email address • Employer name & income – 2 year history • Landlord contact information – 3 year history • Bank account & other asset information • Liabilities – minimum monthly obligation • Other real estate owned, if applicable • Set of questions to complete WHAT YOU NEED • Paystubs • Tax returns – 3 years • W-2’s – 3 years
OTHER COSTS TO CONSIDER
BESIDES A DOWN PAYMENT, THERE ARE OTHER COSTS TO CONSIDER. • Closing Costs + Prepaid Expenses • Home Inspection (optional) • Home Repairs/Updates • Home Owner’s Insurance, Property Taxes, and Flood Insurance (if applicable) • Closing Costs Assistance is available for qualified buyers
THINGS TO AVOID
• Job changes • Adding new debt, such as applying for a new credit card • Missed/late payments • Large deposits • Closing credit card accounts
MORTGAGE CHECKLIST
GETTING APPROVED FOR A HOME LOAN CAN BE A SMOOTH PROCESS,
ESPECIALLY WHEN YOU ARE ORGANIZED AND PREPARED.
• Current pay stubs or other • Copy of driver’s license
income documentation
• Purchase contract
• Bank statements for past
two months • Copy of canceled earnest money check,
once it clears your account
• Most recent investment statement
• Divorce decree and/or child support stipulations,
• Tax returns for past three years* if applicable
• W-2s and/or 1099s for past • If self-employed, YTD profit and loss statement
three years* signed and dated
*First-time homebuyer’s require three years of financial information, while repeat buyers only require two yearsSIX STEPS TO HOMEOWNERSHIP
1. Call Your Loan Originator 4. Underwriting
• Check your credit • Income/assets are verified
• Discover mortgage options • Conditional approval
• Get pre-qualified • Submitted for final approval
2. Find a Home 5. Closing
• Select a real • Final walk through
estate agent • Down payment
• Sign a purchase • Sign official papers
agreement
• Have the home 3. Processing
inspected • Sign disclosures
• Pay earnest • Gather documents
money deposit • Lock interest rate
• Pay for appraisalQUESTIONS?
Erik Sandell
Vice President / Branch Manager
NMLS 1570180
(763) 488-3601
esandell@cortrustbank.comYou can also read
