Tag Archives: loan

Beef Up Your Offer

June 20, 2013 by

With home prices rising, potential buyers need to make their offer stand out. To help beef up your offer, here are five questions you should ask:

  • Do I have a strong pre-approval letter? Get pre-approved for a loan from a trusted lender. This letter is evidence of how much you can borrow and shows that a lender has done a credit check and verified income and assets, so your ultimate mortgage approval can go more smoothly.
  • Do I know what the seller wants? Working with a reputable real estate agent, you should determine the seller’s motivations. In some cases, sellers want to close quickly. Other times, they may be waiting to relocate and a speedy closing is less important.
  • Can I avoid contingencies? Sellers who do want to close quickly may get antsy about contingent offers—such as when the buyer needs to sell a current residence. Try to avoid contingencies if possible.
  • Is my offer price strong? A good real estate agent should be able to advise you on comparable sales and listings in the neighborhood you want. This information can help you strengthen your offer.
  • Do I have the cash to close? It’s helpful to have your cash amassed in a liquid account to cover the down payment, closing costs, and other expenses.

If you answer “yes” to all or most of these questions, then you’ll be on stronger footing when it comes to making an offer on a home.

Mike Becker is a mortgage banking regional sales manager for Bank of the West – Member FDIC, Equal Housing Lender. Becker lives and works in Omaha and can be reached at mike.becker@bankofthewest.com. 

Homes for Heroes

Photography by Bill Sitzmann

When mortgage loan officer Michael Petrovich with The Private Mortgage Group in Omaha was offered the chance to work with the national Homes for Heroes program, he says it seemed like a perfect opportunity to show his thanks to those we depend on.

The program—which uses the tagline ‘Service Deserves Its Rewards’—offers discounts on real estate-related services to active and retired military, police officers, firefighters, teachers, and other civil servants that serve our communities and our country.

“My dad was a fireman for years with the Omaha Fire Department, and a good friend of mine’s dad is a retired Omaha police officer,” Petrovich says. “I also have a lot of friends in the military. [The program] sounded like an opportunity to help out a lot of friends and family, and this was an area I felt I could really make a difference…saving them some money when buying a home.”

Petrovich says as a Homes for Heroes affiliate member, he offers “hero” homebuyers free home appraisals, which are often required for home purchases and refinances handled by his firm. Waiving the fee saves the homebuyer $400. Fellow Private Mortgage Group employees Pete Coen and Jeremy Wilhelm are also affiliate members.

“[The program] sounded like an opportunity to help out a lot of friends and family, and this was an area I felt I could really make a difference.” – Michael Petrovich, The Private Mortgage Group

“We can offer the discounts to any qualifying client in the Omaha/Fremont territory we cover. All they need to do is sign up on the Homes for Heroes website, and it directs them to all the affiliates in the area,” Petrovich explains.

Real estate agents make up a large number of HFH affliliate members nationally. Locally, Prudential Ambassador Real Estate agents Michelle Gustafson, Gary Gernhart, Mamie Jackson, and Matt Anderson are affiliates. “We know the agents [at Prudential], and we’ve worked together to offer clients the HFH discounts. It’s been a team effort,” Petrovich adds.

The Homes for Heroes program was first created in 2002 by a group of lenders and Realtors in Minneapolis in response to the tragic events of 9/11. Petrovich was among the first Homes for Heroes affiliate members in Nebraska, joining in November 2012 when the program first launched in Omaha. The 501(c)(3) nonprofit, comprised of Realtors, lenders, and other real estate-related service providers, now has approximately 750 affiliates nationwide serving homeowners in 44 states.

Steve Minino, a Realtor with NP Dodge Real Estate, is another Homes for Heroes affliate in Omaha. Along with Realtors Deb and Mark Hopkins (all part of the Hopkins Home Team), Minino got involved when he learned about the program on the local news.

“We saw the advantages right away and jumped on board…being able to help our local heroes while getting some great exposure for us,” he says. “It was definitely a win-win situation.

“My family also has a long tradition of members serving in the Marine Corps. We liked the idea of helping out family and friends who serve and who could really benefit.”

“We saw the advantages right away and jumped on board…being able to help our local heroes while getting some great exposure for us. It was definitely a win-win situation.” – Steve Minino, NP Dodge Real Estate

As an affiliate, Minino says he offers 25 percent of his sales commission back toward the purchase process for Homes for Heroes clients. “This money is typically applied toward the closing costs being paid by the homebuyer,” he says. “If the buyer is not responsible for closing costs, then the money is donated to a charity of their choice.”

Minino also donates another five percent of his commission directly back to the Homes for Heroes organization, which they use to fund other projects, including the rehabing of homes to accommodate injured veterans.

“We’re currently working with several Heroes clients, and we hope to grow that number in the next six months or so.”

Millard Public Schools teacher Stephanie Poltack and her fiancé, Aaron Mackel, recently purchased a home together in West Omaha and took advantage of discounts offered by several local Homes for Heroes affliliates. “My Realtor, Judy Kramer with Prudential, told me about [Homes for Heroes] and referred me,” Poltack says. “Through the program, we received closing-cost assistance and got a discounted home inspection, and The Private Mortgage Group gave us a free home appraisal. I believe we saved $1,325 in all.

“Being a first-year teacher and a first-time homeowner, I’m very appreciative of all the help we received…It meant everything to us,” Poltack adds. “We were able to use the money saved to go out and buy a washer and dryer. It’s a great program, and I think if more people were aware of it, more would take advantage of it.”

“Being a first-year teacher and a first-time homeowner, I’m very appreciative of all the help we received…It meant everything to [my fiancé and me].” – Stephanie Poltack, teacher

Nationally, several media outlets and Hollywood celebrities have helped publicize the good works being done by Homes for Heroes’ affiliates nationwide, including Sean Hannity with Fox News, actor Gary Sinise, and the Orlando Magic basketball franchise. However, the nonprofit has grown primarily through word of mouth via the internet and news media.

Petrovich says one of the goals of the Omaha-area affiliates is to raise awareness of the Homes for Heroes program in Nebraska and encourage participation by our local heroes.

“We’re getting together to discuss ways to advertise,” he said. “We’ve placed ads in the Fremont paper, hung posters in firehouses and around town…We want our civil servants and military to know we support them and say thank you for serving our country and our community.”

Strict Banking Requirements

May 25, 2013 by
Photography by Bill Sitzmann and Great Western Bank

With interest rates having been at all-time lows for over a year and forecast to remain at record lows for the foreseeable future, it’s likely that either you or someone you know has refinanced their home recently. But does the same hold true for commercial building owners? Have business owners and those with commercial leases been able to take advantage of such low rates? Have entrepreneurs seeking new loans been able to set their dreams in motion, even in these tough economic times?

According to Gary Grote, Omaha group president for Great Western Bank, while commercial loans may not have been impacted by the low rates as much as residential loans have, there still has been a significant effect in the commercial market.

“The difference between residential and commercial is that in the commercial loans…there may be pre-payment penalties that apply until the maturity day,” explains Grote. “So you can’t always just pick up the phone and…refinance on a whim like with a residential mortgage.” He does add that though it may not be as “easy” to refinance a commercial loan, “many people have already taken advantage of the low rates…and we continue to see opportunities.”

Craig Lefler, senior vice president and manager of commercial banking with Mutual of Omaha Bank, agrees with Grote, saying while there may be a few more obstacles for commercial loans to be refinanced, there are still ample opportunities for businesses to seek lower interest rates on existing loans. “A lot of commercial real estate loans are done by banks on a five-year type of basis and some of those, depending on the bank, may have a penalty for early payoff. That would certainly be a consideration for [when it comes to the] cost of refinancing the loan.”

“The difference between residential and commercial is that in the commercial loans…there may be pre-payment penalties that apply until the maturity day.” – Gary Grote, Great Western Bank

Both Grote and Lefler say that although rates are at historic lows and there are many opportunities available for commercial loans to be granted as well as refinanced, the process and underwriting standards are higher than ever.

“After the financial crisis, credit certainly tightened up and [banks] returned to more prudent, conventional underwriting standards,” says Grote.

Lefler agrees that there are more stringent standards and more in-depth analyses today than in the past. However, those are countered by the benefit of lower interest rates. “It’s a mixed bag,” he says.

Interest rates for commercial spaces are different than those for residential mortgages. Grote explains that the typical five-year loan originated from the trouble that the Savings and Loans went through in the 1980s. The S&Ls offered CDs for two to four years at fixed rates. They then would loan money at fixed rates for 10- or 15-year loans. “When the rates went up, they got burned because their cost of money increased but their loans were at a fixed rate.”

He shares that banks typically keep five-year commercial loans on their balance sheets while traditional home mortgages are sold off to other organizations.

“A lot of commercial real estate loans are done by banks on a five-year type of basis and…depending on the bank, may have a penalty for early payoff. That would certainly be a consideration for [when it comes to the] cost of refinancing the loan.” – Craig Lefler, Mutual of Omaha Bank

As another option, Grote says that some banks, such as Great Western, may offer certain clients 10– and 15-year fixed rates. But he says that this is a unique situation.

Thirdly, he shares that the Small Business Administration has a popular product called the SBA 504 Program, in which a portion of the loan allows the borrower to do a 10- or 20-year fixed rate. “So there are options out there, and it just kind of depends on the property and the borrower and where they’re at in their life cycle and what makes the most sense for them.”

Depending on whether the loan is for owner-occupied real estate or investor real estate, Grote explains that the lender will underwrite the occupant’s financial statements or the investor’s ability to rent space. Both men recommend that businesses have their financial records in order and ready to be submitted for review.

“Be organized and be able to quickly produce their financial statements in an organized fashion,” says Grote. “That helps banks respond quickly and be able to give good guidance and good answers.”

Lefler adds that, in addition to the financial records, the lender will also consider “the projection, going forward, of how the space will be used and ultimately, from the lender’s point of view, will the debts get repaid.

“My sense is that there is a feeling that banks are not willing to lend money on new business ventures and to projects like this, but I would say that this is not true,” says Lefler. “In our market, which is stable, banks play an active role in these spaces on a daily basis.”

The Budge Porter Story Comes Home

October 25, 2012 by
Photography by Scott Drickey

Budge Porter lost many physical capabilities when he broke his neck tackling a teammate in a 1976 Husker football practice. The catastrophic injury left him a quadriplegic confined to a wheelchair.

What he’s never lost is determination and, remarkably, a positive outlook. It’s what helped him build a successful stockbroker career, woo and marry his college sweetheart, and start a family when many doubted he could do those things. He and his wife, Diane, are parents to three children.

His will has continued carrying him through recent setbacks.

“Every step of our lives we’ve been told this can’t be done,” says Budge. “We have the character between the two of us, working together with great friends and family, to beat all those odds…”

“Disappointments are not foreign to us,” Diane says. “There were many hopeless feelings and times of despair through all this, but I think so often what’s saved us is that you get to the point where you’re either going to laugh or cry, and we’ve chosen always to laugh. You kind of know in your heart of hearts it’s always going to work out, and it always does. It’s like you’ve got to throw it up to God or whatever and just say, ‘Whatever happens, it’s going to work out, and we will survive.’”

Budge Porter Project

That indefatigable spirit is what’s motivated friends and well-wishers to build a completely barrier-free home for this never-say-die warrior and his family. The nonprofit Budge Porter Project is a volunteer, donation-fueled effort led by Omaha home designer-builder Brad Brown, whose company Archistructure has supervised construction of the rustic ranch-style home at 13522 Corby Street. The home is expected to be completed by year’s end.

“Budge has got this captivating spirit about him,” says Brown. “You look at a person who’s been dealt what some feel is a bad hand, and you might expect they’d get bitter. If anything, Budge has turned it around and looks at life as every day is a blessing and an opportunity. I don’t think it started off that way, but it’s led him to a sense of inner peace.

“He’s a very open and caring person. When you’re around him, you feel like a breath of fresh air.”

The 1,900-plus square-foot home includes an elevator, a therapy pool, a tracking-lift system, ramps, and various features built at wheelchair level and wherever possible, subtle and aesthetically pleasing. Those are big-ticket items the Porters could never afford themselves, but donations in excess of $120,000 have purchased them.

“Budge has got this captivating spirit about him. You look at a person who’s been dealt what some feel is a bad hand, and you might expect they’d get bitter. If anything, Budge has turned it around and looks at life as every day is a blessing and an opportunity.” – Brad Brown of Archistructure

Subcontractors and suppliers have given time and materials. Consolidated Kitchens and Fireplaces owner Sam Marchese donated all the cabinets and countertops. He also co-signed Porter’s home loan and hosted an August 15 fundraiser. Steve Reeder gifted the lot.

Accepting help doesn’t come easily for Porter, who hails from a long line of orchard and farm owners. They’re a tough, independent lot. His father and grandfather both played at Nebraska. When Budge and brother Scott carried on the football legacy there, the school had its first and only three-generation athletic family.

“He feels somewhat embarrassed and undeserving,” says Brown, “because he’s always made it on his own. I told him, ‘This is a hand-up, not a hand-out, and it’s something these guys are tickled to give back.’ It makes us all feel so good.”

To customize the home to Budge’s specific needs, Brown had to ask personal questions and view Budge in intimate situations. Diane says Kent Pavelka’s public relations company made a video documenting what Budge contends with daily.

“I looked at Kent and Sam and Brad, and they were all crying,” says Diane. “They didn’t realize what the simple act of getting in and out of bed is for Budge. He’s so good about downplaying all the stuff that goes with his injury, and he doesn’t want people feeling sorry for him. But I’ve often said if people really knew what it takes to be him every day, it’d be very hard to keep positive because it’s exhausting. A lesser man would not handle it as well as he has.”

Budge Porter Project

The experience gave Brown a deeper appreciation for Budge’s “courage” and bonded the two men even more. “We were really good friends, but we’re definitely brothers now,” says Budge.

The Porters have always managed dealing with the challenges of paralysis, but then Budge lost big in the 2000 stock market crash, which also cost him many clients similarly hard-hit. Osteoporosis forced him to retire in his mid-50s and go on disability.

A stretch of the Papio Creek behind the family’s previous home eroded, causing such severe damage to the property the home’s value plummeted. Health scares resulted in long, expensive hospitalizations. Finally, Budge swallowed his pride and filed for bankruptcy. The family gave up their home. Getting a loan and finding a new place to live proved daunting.

It seemed like more than one family could bear. “I don’t like to make excuses,” Budge says.

He’s heartened by how others have responded to their plight. “We’ll never be able to repay all these people other than just to tell them we’re forever grateful. We’re rich beyond compare with friends. We intend to be good stewards of these benefits.”

Budge views the home as “a legacy” for Diane and the kids when he’s gone. He hopes to inspire and assist others through the Budge Porter Project.

“I would love to see us form a foundation to raise future monies to help others in need along these same lines. There’s a lot of people far worse off than us, and we feel for them and pray for them and we just hope they’re as fortunate someday to have the type of friends we’re blessed with to give them a hand.”

Donations are still being accepted and may be made at budgeporter.bbnow.org.

Read more of Leo Adam Biga’s work at leoadambiga.wordpress.com.