As a mortgage lender, I get to meet many great people.  Often, they are smart, savvy and educated, yet struggle with financial concepts like budgeting and money management.  We believe in empowering our customers to make wise financial decisions, and part of that empowerment involves educating kids so they can grow up to be confident about how to manage their money.

For the next couple of months, we are running a special incentive to help parents teach their kids about smart money management in a fun, creative way.  Just stop in one our locations and open a minor savings account, and they will receive a free piggy bank, along with the Berenstain Bears’ Trouble With Money!  It’s a wonderful story that opens up a fun dialogue about money.  We look forward to seeing you and your children soon!

When it comes to a house, should I buy or rent?  It all depends on your personal circumstances, but there are three important questions you may want to ask yourself before you make your decision:

Can I afford to buy a home?  When considering the costs, it’s important to remember that in addition to the monthly mortgage payments of principal and interest, there are taxes, homeowners insurance, and ongoing costs to maintain your property.    

How stable is your job?  It’s a good rule of thumb to plan on being in a home for at least five years to make it worth the down payment and closing costs.  Do you feel confident you will continue to be employed for at least 5 years?  With our current weak economy, it may be unsettling to face potentially being unemployed and having a mortgage.  If you choose to rent, you would have the flexibility of moving if needed.

What is your credit history?  Financial institutions and landlords both check your credit, so it’s a good idea to be aware of your credit standing as it will be a factor in determining if you qualify for a home loan or lease. 

After answering these questions you should come away with a clearer sense of whether to buy or rent.  Always feel free to contact one of our  friendly mortgage lenders: Michelle Knopf, Julie Jacobson and Tracy Engman.

The epidemic of identity theft has greatly exceeded everyone’s predictions. Recent news articles estimate as many as 9 million Americans have their identities stolen each year. It can be very expensive and stressful to repair what a thief has created. We all must do what we can to stop this serious crime from increasing. Here is a list of several things that can help decrease the epidemic spread of this crime.

1. Destroy all personal information before throwing it in the trash. Keep an inexpensive shredder readily available and always be sure to shred documents, making them unreadable for thieves when they search the garbage.
2. Be very cautious of any internet solicitations. There are many identity theft scams just waiting for you to provide your account number and security codes. Consider only giving information to reputable sites you have worked with before or have accessed directly. Never use hyperlinks that come in emails and ask for personal information.
3. Keep your personal information as private as possible. Do not give it out to telephone or mail solicitors unless you know that they are from a reputable company and you have initiated the transaction yourself.
4. Keep close tabs on your wallet and purse at all times. Many of us carry a great deal of personal information in them. Consider reviewing what you carry in them and leaving some securely stored at home.
5. Check your mailbox for routine bank account statements, credit card statements and debit card and credit card renewals. Notify the sender the moment these do not arrive.
6. Monitor your credit reports at least once a year to insure the information is correct. Cancel old or unused cards or credit.
7. When using your debit card at an ATM, look for skimming devices attached to the machine for collecting the card info and pin number. Don’t allow people to be to close to you when using these devices. They might be a shoulder surfer and could be collecting your card information.
8. Use strong security codes and passwords. So many things we do these days require codes. Please do not use general information like birthdays, children’s names etc.

This is just a small list of ways to protect ourselves. If you have any other precautions to share feel free to do so. The FDIC website is also an excellent source of information on protecting your identity. With everyone working together we can slow down the progression of this serious and devastating crime.

Are you self-employed and concerned that you won’t qualify for a fixed rate home loan? Although, it is true that qualifying for a fixed rate loan may be more difficult for a self-employed borrower than it has in the past, by no means is it impossible.

Just like with any loan an underwriter looks at the borrower’s ability to repay the loan. The difference with a self-employed borrower is that the borrower carries the risk of their business’ success directly on them. This requires a thorough examination of not only the borrower’s personal credit and income, but also the viability of the business that their income is derived from.

There are a few commonly asked questions from self-employed borrowers inquiring on how to qualify for a home loan:

1. How long do I have to be self-employed before a bank will consider me for a home mortgage?  The general rule of thumb is two years. By the time a borrower has been in business two years it gives an underwriter a clear picture of the cycles of your business.

2. How do I prove my ability to maintain income? The bank will require your last two years of personal income taxes and the last two years of business taxes. Once we receive those taxes we spend time analyzing the income and expenses to give each borrower the maximum credit for income possible.

3. I have heard that the new underwriting rules are so strict that I may not qualify – does it pay to apply? It is true that changes to underwriting guidelines can make qualifying for a mortgage more difficult for self-employed borrowers. The biggest change is a tighter restriction on the debt to income ratio of our borrowers.

There is no cost to apply for a home loan and we will fully analyze your credit and income picture prior to incurring any cost to you. With current interest rates at near record lows, it might be worth taking the time to investigate refinancing or securing a new home loan.  Ultimately, each borrower’s situation is different, but I would encourage you to contact us to discuss your specific needs.  Meet our friendly mortgage lenders: Michelle Knopf, Julie Jacobson and Tracy Engman.

Have you ever wondered what our Leisure Club is all about, and what we do?

Our popular Leisure Club has been around and open to our customers for nearly two decades, taking many exciting trips and offering an array of exciting events. Over the years we have traveled to Alaska, the Caribbean, and the Pacific Northwest. We not only journey to far away places, but we also offer fun and exciting day or weekend trips to see the sites around our great state of Wisconsin. Whether it’s a Broadway musical, a summer picnic, or a sporting event, our Leisure Club provides entertainment and fellowship with old friends, along with many opportunities to meet new people.

Being a Leisure Club member also has many benefits. As a member, you will receive free personalized checks, discounted Travel and Gift Cards, free photocopy services, and safe deposit discounts.

Becoming a member is quick and easy! All you have to do is open an account with a minimum deposit balance of $1,000.00 and be at least 55 years young. One of our Personal Bankers can assist you in setting up an account specifically tailored to fit all of your banking needs. Contact us today to get more information or join the club by calling 715.359.4231.

Check out a complete listing of our current events schedule and even sign-up online to attend. We hope to see you soon!

Conventional wisdom has been that you should refinance your mortgage if you can lower your rate by 1%. That is still true, but some customers are even saving money by lowering their interest rate by less than one percent. Depending on your situation, it might make sense for you to refinance. Contact us today to see if refinancing is right for you! Your friendly Intercity State Bank mortgage lenders are: Julie Jacobson, Michelle Knopf and Tracy Engman.