May 10, 2023

This paid piece is sponsored by Central Bank.

We all know that when it comes to mortgage rates, we’re not in 2020 anymore.

But that doesn’t mean your dream home can’t become reality.

“There are a lot of options out there, including different types of loans that people might not be aware of,” said JoAnn Linn, assistant vice president of mortgage lending at Central Bank, NMLS #1254154.

JoAnn Linn

“People might have held out – thinking the rates we saw a few years ago would be the standard, and now they’re realizing this will be the norm for a while.”

The good news: In the last few weeks, rates have been holding steadily at two-month lows. And, for a limited time, Central Bank is offering mortgage rates as low as 5.50 percent/5.753 percent APR.¹

“The days of 2 to 3 percent were a true anomaly,” said Adam Cooper, Central Bank mortgage loan officer, NMLS #1963175. “But, as cliché as it sounds, the old saying remains true: ‘Date the rate, marry the home.’ Meaning you can always refinance. But waiting and missing out on compounding appreciation, year-over-year, will be more detrimental than waiting for rates to drop a half point.”

Adam Cooper

His colleague, mortgage officer Peter Jenkins, NMLS #1136071, agrees. “Buying a house is still one of the best wealth-building tools you have, so start building wealth as soon as you are ready.”

Peter Jenkins

Central Bank has a team of mortgage lending experts ready to guide you no matter what your situation or homebuying needs.

We caught up with them for their best advice as buyers navigate what could be the new normal rate environment.

What’s your best advice for borrowers as they face a rate environment higher than many are used to?

It starts with prioritizing your budget, Jenkins said.

“Find the items that are most important to you to spend your money on and work on cutting other fluff out,” he suggested. “This will allow for a nice home and more options in your budget, with flexibility if something comes up financially you weren’t expecting, housing or otherwise.”

What might surprise borrowers about getting a mortgage today?

Current buyers might have more equity to apply to their dream home than they realize, Jenkins said.

“It becomes more of a reality than they thought possible because they have solid equity,” he said.

“And new home buyers have many options for down payment assistance, especially for public safety workers like police and firefighters. Even doctors find there are unique options to consider.”

If you think your credit score or down payment might be a problem, Linn says there could be options for you.

“I see a lot of people come in with credit scores that maybe aren’t the best and we can potentially work them into a South Dakota Housing loan for instance,” she said. “We have channels to work within, including down payment assistance when buyers qualify. So, we educate buyers about that, and it really takes a sit-down conversation to go through those options.”

Veterans find potential additional financing options, too, Cooper said.

“The number of programs available to assist with financing is far greater than when I bought my first home,” he said. “It can be much easier to obtain home ownership than you might think.”

Is there anything borrowers should be prepared for that’s different today than a year ago?

In some ways, the homebuying landscape is more advantageous to buyers than it was a year ago, Cooper said.

““There’s more demand than available homes, but I think overpaying for properties has pulled back,” he said.

Competition isn’t as fierce, Jenkins agreed.

“If you are patient, you don’t have to waive appraisals and inspections like you did a year or two ago,” he said. “It’s back to a more balanced buyers and sellers’ market. Appraisals and inspections confirm you made a good decision on a house and protect you from buying a money pit.”

The affordability gap has closed some, as home prices and rates keep going up, Linn pointed out.

“Some people are finding houses they could have afforded a year ago are more out of reach now so that’s hard,” she said. “We are starting to hear about multiple offer situations again, which is exciting for sellers but can be challenging for buyers.”

It’s important to get prequalified, she added.

“Some people just want to go look at a house and they’re not prequalified and don’t think they need to be, but we always suggest it,” she said. “Especially if you’re self-employed, it’s important to have that conversation early in the process.”

Why should borrowers work with Central Bank as their lender? What sets the mortgage lending team and bank apart?

It starts with relationships and experience, Linn said.

“We’ve got a great community bank behind us, and we service our conventional mortgages in-house, so you can call us directly or stop in the bank even after your purchase,” she said. “We’re open to talking through individual situations and we have great connections with realtors and title companies, plus *Central Insure to handle any of those needed services.”

Central consistently responds to the market with competitive products, Cooper added.

“Our mortgage team has grown, which isn’t always the case in our industry,” he said. “We are always pivoting with the market to continuously provide competitive products that help people achieve home ownership affordably, which is important for our community.”

Personal help and consistent service are key, Jenkins said.

“Technology is wonderful, but people still want a person they trust to help them with one of the biggest decisions they ever make,” he said. “Central Bank lenders are known for their quick responses and consistent service. You have access to us personally from start to finish and after the transaction is done. I have people that text me years later for help on nights or weekends because they feel like I’m on their team.”

Ready to get started with your Central Bank home loan? Click here to learn more or stop in any Central Bank location.

Member FDIC,  Equal Housing Lender | NMLS #447201

¹Standard credit qualifications apply. Annual Percentage Rate (APR) effective 5/5/23 and subject to change without notice. APR reflects a loan amount of $100,000 with a 20% down payment. This is an example of the credit terms available. Offer valid for the purchase of primary residence only. Minimum 680 credit score required. Maximum loan-to-value cannot exceed 95%. Loan-to-value > 80% require PMI. Automatic payment from a Central Bank checking account required to receive special offer. Not available with any other loan specials.

*Not a deposit. Not FDIC insured. Not insured by any Federal Government Agency.

Not guaranteed by the bank. May go down in value.