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• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about any second mortgage on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.

After you have this information, you should call Drew McKinney at M&I Bank, 952-582-5033 and ask about the Home Affordable Refinance application process.

Please be patient
M&I Bank is just getting the detailed program requirements and it may take time before they are ready to accept applications.

What if I am not eligible for a Home Affordable Refinance?
If you did not answer yes to all of the questions above, you may be eligible for a Home Affordable Modification.
Making Home Affordable Modifications

If you can no longer afford to make your monthly loan payments, either because your interest rate has increased or you have less income or you are experiencing a hardship that has increased your expenses (like medical bills), you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.

Do I qualify for a Home Affordable Modification? Answer these questions:
1.       Is your home your primary residence?
2.       Is the amount you owe on your first mortgage equal to or less than $729,750?
3.       Are you having trouble paying your mortgage? For example, have you had a significant increase in your mortgage payment OR      reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
4.       Did you get your current mortgage before January 1, 2009?

What do I do next?

If you answered yes to all of these questions, you may qualify for a Home Affordable Modification. The next step is to gather the information you will need to provide to your lender. This includes:

• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about your assets
• Information about any second mortgage on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.
• A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).

After you have this information, you should call Drew McKinney at M&I Bank 952-582-5033 and ask to be considered for a Home Affordable Modification.

Please be patient

M&I Bank received the detailed program requirements on March 4, 2009 and it may take some time before we are fully operational. However, Treasury has encouraged M&I Bank to immediately assist delinquent borrowers at the greatest risk of foreclosure.

Times have changed in the mortgage business.  About 20 percent of those who easily qualified for loans at competitive mortgage rates just two short years ago will now be turned down.  Those who do qualify are required to pay larger down payments, provide more extensive underwriting documentation and proof of credit worthiness.  Here are five quick ideas for surviving the crisis.

Tip 1:   Restructure mortgage priorities;

Rather then shopping for a home and then looking for a loan with the best mortgage rate, reverse the order.  Seek out my mortgage service first by select the right loan, and get pre-qualified, or better yet, pre-approved.  Pre-approved unlike pre-qualified has underwriting approval for income and assets.  Then go house hunting.  Mortgage rates may rise in the short term, but those losses will likely be offset by further deterioration in home prices.

Tip 2:  Bolster Credit Scores;

Even if your credit situation hasn’t significantly changed since last year, your overall credit score may have moved.  A higher score can mean a lower mortgage rate; therefore, check your rating while applying for a loan.  Also, review a copy of your credit report to make sure that there aren’t any errors.

Tip 3:  Increase your down payment;

The best way to get a preferential mortgage rate with less scrutiny is by boosting your equity with a large down payment.  But what was considered hefty in the past is not so big today.  My lending requires between 3 percent and 5 percent down, and 10 percent isn’t uncommon.  To get a really great mortgage rate without hassles you may need to ante up as much as 20 to 25 percent.

Tip 4:  Stay in Reality;

Access to the easy money is over, so consumers need to be realistic about their expectation.  Homes will likely be appraised at lesser values and ratios of loans to actual equity are more conservative.  If you lower your expectations, you’ll reduce the chances of disappointment and rejection.

Tip 5:  No Stone Unturned;

If you qualify, consider our government backed loan programs.  The FHA loan program is currently offering attractive mortgage rates with down payments as low as 3 to 5 percent to qualified buyers.

Mortgage rates are stable but could rise in the not too distant future.  But all is not lost, good loan are still available to whose who apply with strong credential, but prior planning helps immensely.