First off, a huge thank you to all that took the time to respond to my socials. I appreciate each one of you! If you don’t follow me, please check out my LinkedIn profile as I share mortgage tips, and it is a way to carry on the conversation. So, let’s get these questions answered!
“Are the interest rates coming down yet?” – Ashley Jiminez
Right now everyone is asking this question and unfortunately the current answer is no. But as we all know the interest rates are ever-changing. Over the last month they have been hovering around low sixes to even seven percent halfway through this last month. According to Forbes, they predict that if signs of economic distress take longer to manifest, potential rate cuts could be delayed until late 2025 or even into 2026. If you would like a more in depth look at my prediction on interest rates, see the April newsletter edition.
“What are all the closing costs I should expect?” – Beth Hottel
This is a great one. One of the things we give the highest regard to in the Sentinel mortgage department is being transparent. We will not try and “slide one past you” at all, much less with closing costs. Closing costs are often some of the expenses we forget about as borrowers. So, what are closing costs? Closing costs are the fees and expenses, in addition to the down payment, that are paid at the closing of your real estate transaction. In total these costs typically will be 2% to 5% of your loan amount. Some of these fees include an origination fee, processing fee, underwriting fee, appraisal fee, credit report fee, tax service fee and title fees. This seems like quite a list, but it will be spelled out on at least two forms for you. It will be on your Loan Estimate which you will receive at the beginning of your loan but as its title states that is just an estimate. The final amount of what you are paying is filled out in your Closing Disclosure form that you get towards the end of your loan. As your lender, I will walk you through each one of those fees so we are on the same page about everyone of them.
“What are the most common types of loans?” – Kendra Magelky
This is a great question that made me have to think! The most common loans in South Dakota are Convention Loans. These are loans not backed by the government and are offered by private lenders such as Sentinel. They typically require a good credit score and a down payment often around 10%. One thing Sentinel has to offer that others may not is if you finance a conventional loan through us, it stays with us. We do not sell it to any other institution it stays with us for the length of your loan. So, you never have to question who to reach out to if you need anything, you’ve got my number. The second most common loan in South Dakota is VA loans largely here in the Black Hills. With Ellsworth Airforce Base and the ever-changing and growing community of Box Elder VA loans are essential for growth. We at Sentinel are happy to support our active military and veterans with finding homes.
