Buying a Home Getting Financing that is Just Right for YOU! Rather than being affected by short-term fluctuations in the economy, housing markets are largely shaped by longer-term demographic trends. Over the next decade, two generations will dominate activity in the housing market—the millennials (born 1981–2000) and the baby boomers (born 1946–1964). Statistics show that millennials are renting more than ever before, opting for one monthly payment rather than mortgage interest, property taxes, maintenance expenses, and any other costs associated with homeownership. Younger people also have greater student-loan debt than previous generations, so buying a home may seem just too far out of the budget for most. The thing about renting, though, is that you do not get any of your money back when you move. Long-time homeowners build equity that can be useful later in life. A paid-off house is a valuable asset that can be tapped into for college, to start a business, or retirement, to name a few.
Malinie Staben NMLS ID #536957
Debbie Lentz NMLS ID #536955
Mike Fosdick NMLS ID #422481
Alan Schmitz NMLS ID #1107752
Your money has home sweet home people Like our construction and home loans team, who will help you find financing that fits your unique needs — for a home that’s uniquely yours.
402.827.6969
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Strictly Business AUGUST 2020
While COVID was blamed for a decline in existing home sales in March, prices remained strong. In fact, home prices increased in every sales region in the country, as they have for 97 consecutive months, with the median home price in the country increasing 8% for the month compared to March 2019. In the Midwest, that increase was 9.7%, second only to the West, where prices jumped 13.9% year-on-year but sales dropped significantly. National Association of Realtors Chief Economist Lawrence Yun says that while we can expect to see some slight temporary interruptions in home sales in the short term, all signs point to prices continuing to rise. In early March, the 30-year mortgage interest rate plunged to its lowest level in 50 years, at 3.29%, when the Fed dropped the federal funds rate to zero. Rates have remained in the high 2% to low 3% range since then, sending many homeowners rushing to refinance and lock in the lower rate. We heard stories of lenders across the country being overwhelmed with refinance applications. For people looking to sell homes in Omaha today, the market is ripe with buyers, and financial institutions are keeping busy, for sure. Because the housing market in Omaha also is one of the most competitive going, it’s more important than ever that people looking to purchase a home get their financing pre-approved so they can submit an offer on their dream house quickly when they find it—because it won’t last. Luckily, Omaha is home to some top-drawer financial institutions that are ready and able to walk you through every step of the financing process to get you the mortgage that works best for you. We talked to three residential mortgage lenders in Omaha recently to get a feel for the types of lending products and services they are offering and the types of home-buying activity they’re seeing. Union Bank & Trust—which just announced plans to build a second location in Omaha, at the intersection of 144th Street and West Doge Road—offers all of the traditional mortgage products, including conventional, FHA, VA, and USDA loans. They participate in the Nebraska Investment Finance Authority (NIFA) and also offer construction loans and non-owner-occupied investment property loans. “This year has been a very busy one for purchasing and refinancing homes,” said Union Bank & Trust Vice President of Residential Mortgage Mike Fosdick. “We have not seen any reduction of business due to COVID-19 but we have seen a change in how we provide the lending services. When our lobbies were closed to walk-in customers, for example, we were closing loans in the parking or through our drive-up window.”
Mike Fosdick Union Bank & Trust
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