Five Tips for First Time Homebuyers

New home owners with keySpring is the start of home buying season as well as wedding season. After many couples walk down the aisle, they begin saving for their first home.

According to a study by the National Realtor’s Association, 33% of recent homeowners were first time buyers. It can take first time homebuyers 60-90 days longer to make a home buying decision, due to being new at the process. The Loan Officers at Great Midwest Bank are here to make the process simple, fun and fast.

If you are looking, or will be looking soon, to buy your first home, read over these essential tips before you start.

  • Create a wish list; identify your wants and needs.
  • Look past cosmetic dislikes, such as paint colors and wallpaper, which can be updated later. Consider homes that meet your structural needs; number of rooms and layout, which are harder to change.
  • Look for homes that fit your future plans – though you may not have kids now, you may in the future. Look at room size, location to the master, bathrooms (with bathtubs), yard, street traffic and school districts. All which will also help for future resale.
  • If you are able to, don’t buy a home after one visit; go back multiple times and inspect it top to bottom.
  • Be ready to move quickly once you find the right home, get pre-approved with Great Midwest Bank well in advance of your home search.

Ready to dive into a new home? Great Midwest Bank can help you through the process. Contact a Simply…Local Loan Officer today to get started.

If you are also in the process of planning your wedding, stop by our booth at the Brookfield Bridal Expo, this Sunday, March 8th at the Sheraton Hotel in Brookfield, where we will answer your home buying questions and help you get your ducks in a row.

Posted in Banking, first time homebuyers, Get Your Ducks in a Row!, Homeowner tips, Loan Officer, Local Bank, Mortgages, Pre-Approval | Leave a comment

5 Simple Steps to Save Successfully this America Saves Week

By: Tammy Greynolds, America Saves Communications Coordinator

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America Saves Week (February 23 – 28, 2015) is an annual opportunity for individuals to assess their savings and take financial action. America Saves’ mantra – and the focus for America Saves Week – is simple: Set a Goal. Make a Plan. Save Automatically. When you know what your current financial picture looks like, you can be more proactive in setting yourself up for future success.

Try these five simple steps during America Saves Week to help yourself save successfully:

  1. Assess Your Savings.

Like your health, you should assess your savings annually to make sure you’re savings priorities are on the right track. Complete this simple 12 question assessment to find out your current standing and help you plan for the future.

  1. Evaluate your Savings Preparedness.

Check off your savings accomplishments on the Saver Checklist to further evaluate where your savings habits need strengthening for your future goals.

  1. Take the America Saves Pledge.

Those with a savings plan are two times as likely to save for emergencies and retirement than those without one. Join the nearly 400,000 American Savers who have already committed to save. When you make the pledge, you can choose to receive text message tips and reminders to help you save towards your goals.

  1. Share Your Savings Goal.

Take part in the 2015 #imsavingfor Photo Contest. Share a selfie that shows what you’re saving for on Facebook, Twitter, or Instagram, and enter the contest at http://americasavesweek.org/imsavingfor for a chance to win $500. Savings never looked so good.

  1. Make Your Savings Social.

Are you on Twitter or Facebook? Join America Saves in encouraging your friends, family, and colleagues to save this week. Better yet, join one of the five – yes, five! – Twitter chats that America Saves will be a part of this week to get real-time savings tips and advice.

America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.

Posted in Banking, Budgetting, Financial Planning, Get Your Ducks in a Row!, Saving, Useful Tips | Leave a comment

This America Saves Week: Take Your Financial Future into Your Own Hands

By: Katie Bryan, America Saves Communications Director America Saves

America Saves Week, February 23 – 28, 2015, is the perfect time to review your finances, set your savings goals for the year, and set up a system that will allow you to save automatically. That’s why the America Saves Week theme is – Set a Goal. Make a Plan. Save Automatically. Did you know that only half of Americans report having good savings habits? Even if you are already saving, it’s good to take a look at your greater financial picture and decide whether there’s potential to save more or set a new savings goal. Join thousands of others who are pledging to pay down debt, save money, and take financial action during America Saves Week. Not sure what to save for or what to save for next? Here are the most popular saving goals of those who have pledged to save through America Saves:

  • Save for Emergencies – Research has shown that low-income families with at least $500 in an emergency fund are better off financially than moderate-income families with less than this amount. Nearly a quarter of savers who have taken the America Saves pledge have chosen “emergency savings” as their first wealth-building goal. Learn more.
  • Save for Retirement – Retirement savings is a top priority for many savers. Saving for retirement now will ensure that you have enough money to maintain a comfortable standard of living when you stop or reduce the amount of hours you work. Learn more.
  • Save for Education – Saving for education is the second most popular goal savers select when they pledge to save with America Saves. There are many different things to factor in when saving and paying for college. Learn more.
  • Pay Down Debt – Getting out of debt is the #3 goal savers select when they pledge to save. The good news is that there is hope. With planning, discipline, patience, and maybe some outside help, almost anyone can reduce their debts and start to accumulate wealth. Learn more.
  • Save for a Home – For decades, home ownership has been the main path to wealth for most Americans. Today, home equity – the market value of a home minus the balance on any home loans – represents more than four-fifths of the typical family’s wealth. Learn more.

Not sure how to save for your goals? Here are some saving strategies to help:

  • Save Automatically – The easiest and most effective way to save is automatically. This is how millions of Americans save at their bank or credit union, and how millions of employees save through 401(k) and other retirement programs at work. Learn more.
  • Save at Tax Time – Do you spend weeks eagerly anticipating your tax refund? When the money finally comes in, is it gone tomorrow? Many people view tax refunds as unplanned bonuses. They see the money as a gift from the government, to use for splurges or treats. But a tax refund provides the opportunity to improve your financial situation.  Learn more.

Take the America Saves Pledge, or re-pledge, today to set your savings goal and make a plan to save. When you take the Pledge, you can also choose to receive text message tips and reminders to help you save for your goal. And don’t forget to follow America Saves on Facebook and Twitter. America Saves Week is coordinated by America Saves and the American Savings Education Council. Started in 2007, the Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving status.

Posted in Banking, Budgetting, Financial Planning, Get Your Ducks in a Row!, Local Bank, Saving, Useful Tips | Leave a comment

7 Ways to Turn Saving Money into a Habit

By: Brittany Lyte, Wise Bread

Piggy

The spending and saving habits of your past don’t define your future — your current ones do. And this America Saves Week is a great time to start with a clean slate. Hitting the reset button won’t cure all your financial woes, but when it comes to adopting good saving habits it’s truly half the battle. The other half, of course, is drafting a well-planned road map for success. Luckily, we’ve got a primer to get you started. Read on for our guide to adopting seven money-saving habits that stick.

  1. Set a Goal

How much money would you like to save? And for what?

When you pinpoint a clear savings goal — be it a new car, a down payment on mortgage, or a backyard swimming pool — it becomes a whole lot easier to conjure up the self-restraint required to achieve it. It needn’t be a big ticket item, either. Simply having a goal to visualize, like a college savings account for your children or a fund for spontaneous weekend escapes, will help keep you focused, motivated, and disciplined.

  1. Map Out a Timeline

Once you’ve figured out what you’re saving for and how much money you’ll need, it’s time to figure out how long it will take to reach your goal. If you want to save $4,000 for a trip to France, for example, figure out how much money you’re willing and reasonably able to part with each paycheck and then calculate how many paychecks it will take you to get there. This savings plan is the road-map that will help steer you to the day when you’ve finally saved enough money to book those airline tickets.

  1. Set Benchmarks

The act of consciously putting away a set amount of money on a set schedule will help build the muscle memory you need to turn saving money into a habit. And since this is the key to adopting a new behavior that will serve you long after you’ve reached this particular savings goal, it’s important to stay on track. Break down your timeline into weekly, monthly, and quarterly savings targets and be sure to verify that you’re meeting them every time.

When you take a large goal and compartmentalize it into a series of smaller ones, it becomes a whole lot easier to accomplish.

  1. Start Small

If you’re struggling to make ends meet and the idea of feeding your family, filling up the gas tank, and paying the bills while also contributing to your savings account seems impossibly daunting, remember that no amount you invest in your savings is insignificant. Even $1 a day makes a difference. The key is identifying the largest amount of money you can commit to stowing away on a regular basis without thwarting your ability to make good on all your other financial obligations. Don’t shortchange yourself, but beware of setting a goal that’s overzealous. The process of meeting your goal should be a challenge, but it shouldn’t be impossible.

  1. Reward Yourself

Reward yourself when you reach major savings milestones to help keep up the momentum. For example, after a month of successfully meeting your weekly savings benchmark, treat yourself to a meal at your favorite restaurant or grant yourself the license to splurge (a little!) on your next shopping trip. Remember, your reward needn’t require you to spend any money, and it certainly shouldn’t bump you off track. A relaxing home pedicure, a guilt-free movie marathon, or a sunset stroll through the park does the trick just as well as anything you can buy.

  1. Don’t Let Yourself Slip

Likewise, it’s important to implement consequences in the event that you fall short on one of your savings benchmarks. If you come up 20% shy of your quarterly benchmark, hold yourself accountable. Spend a night in that you otherwise would have spent out on the town. Calculate how much money you saved by forgoing an evening of food and entertainment and funnel that amount straight into your savings account. Then break out your savings timetable and devise a new plan to help get yourself back on track.

  1. Snuff Out Your Bad Habits

If you’re still struggling to stick to your plan, see if you can identify any wasteful spending habits  so you can nix them. Keeping track of every outgoing dollar over a two-week period can reveal unhealthy spending habits you never knew you had. Online budget planners offer easy tools to score and analyze your every dollar, but old-fashioned pen and paper works just fine.

What will you do during America Saves Week to kick off your new savings habit?

Brittany Lyte is a columnist for Wise Bread (+WiseBread) — top personal finance blog and winner of PC Magazine’s Top 100 Website Award.

Posted in Banking, Budgetting, Financial Planning, Get Your Ducks in a Row!, Local Bank, Saving, Useful Tips | Leave a comment

Step 1: Complete a Mortgage Pre-Approval

ducksHave you been thinking about diving into the housing market? Then it sounds like the perfect time to GET YOUR DUCKS IN A ROW with Great Midwest Bank!

The mortgage process may seem overwhelming from the outside, but from our viewpoint, it’s simply a collection of steps each prospective homeowner must take to move into their dream home. Lucky for you, we have over 80 years of experience in the mortgage industry and have had the pleasure of serving folks in metro-Milwaukee, Madison, and Chilton over that time.

Step one is simple: Complete a mortgage pre-approval online or visit one of our conveniently located branches to complete a no-hassle pre-approval with one of our experienced loan officers.

Thinking about cutting corners? Take care of this step FIRST, and then we’ll help you get to the next step in the mortgage process.

So take a deep breath, and know that we’ll be with you every step of the way. We’re in this together. Not the same boat, but definitely the same pond.

Have any questions? Feel free to give us a call!

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Should a Home Seller Pay the Buyer’s Closing Costs?

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Assisting a buyer with paying all or part of their closing costs may just be the ticket to getting your home sold—even in a hot market.

Depending on the buyer, they are usually required to make a minimum down payment. While you (as a seller) also have closing costs to pay, a buyer’s closing costs can also run into the thousands of dollars. Buyers sometimes struggle with having enough money to pay the closing costs.

So how does it work? Let’s say that your home is on the market for $200,000. Buyer closing costs may be $5000. The buyer offers you $190,000 and they decide THEY will pay the closing costs. Or they offer you $195,000 and YOU pay the closing costs. In effect, your bottom line will be the same.

It’s important when selling your home and negotiating the final sales price, that the real estate agent provides you with what is called a “net sheet”. It’s an estimate of the money that you would receive from the sale of your home after paying commission, your closing costs, pro-rating property taxes and the balance of your mortgage. If you decide to pay all or part of the buyers’ closing costs, that would be deducted from your money too.

First-time homebuyers are often in need of help with paying closing costs. However, many second-time buyers are selling their homes and have lost a lot of value over the past several years. They may just get enough money for the down payment and may need help with closing costs too.

And, if you are selling your home and buying another one, it’s also an option for you to consider. Sure, the loan amount may be a little higher to cover the closing costs. Only you can decide if it’s worth it to pay a little bit higher payment each month — or come with funds over and above your down payment.

If you’re in the market to buy or sell, contact one of our Loan Officers.

Posted in Buying & Selling, first time homebuyers, Homeowner Info, Loan Officer, Local Bank, Mortgages, Real Estate Agent | Comments Off

11 Questions to Ask Yourself If You Are Thinking of Selling “For-Sale-By-Owner”

????When the time comes that you decide you want to sell your home, the question you might ask yourself is, “Should I list my home with a Realtor or try to sell it myself?”

The choice is yours. However, we wanted to give you 11 questions to ask yourself to help you make an educated decision.

  1. Do you have access to accurate data regarding selling prices, square footage, floor plans and amenities of other homes that have sold in your surrounding area within the last 6 months?
  2. Do you know how long it has been taking to sell a home in your area?
  3. Will you be available to answer phone calls and show your home to prospective buyers?
  4. Will you be able to screen prospects to make sure they are qualified (or worse yet, thieves)?
  5. Do you have a plan to market your home so people know it’s for sale?
  6. Can you handle criticism if negative comments are made about your home?
  7. Are you able to negotiate the highest sales price—either on the phone or face-to-face?
  8. Do you have access to purchase contracts and all state-required disclosures?
  9. Do you know how to obtain title insurance, deeds and any other legal documents needed to transfer ownership?
  10. Will you be available to meet appraisers, inspectors and contractors during the process?
  11. Do you understand all the fees you will be charged at closing and exactly how much you will end up with?

If you’re not so sure about the questions above, consult one of our Loan Officers – we’ll do all we can to help point you in the right direction!

Posted in Banking, Buying & Selling, For Sale by Owner, Homeowner Info, Loan Officer, Local Bank, Mortgages | Comments Off

4 Reasons to Use A Piggy Bank (And What To Do Once It’s Full)

GMB - piggy bankIn an effort to further encourage all of our customers to follow our 2015 financial resolutions, we wanted to highlight one of the easiest, most convenient ways to save: the piggy bank.

Every person receives a piggy bank at some point in his or her childhood. It’s one of the most effective ways for parents to teach their children the value of saving money rather than spending it. More importantly, the piggy bank is also a good reminder for parents and young adults who may have forgotten the importance of saving.

Below are five reasons why every person, young or old, should be using a piggy bank:

  • It helps organize loose change. Rather than losing all of those nickels and dimes under the couch cushion or in your car, hold onto them and place them inside a piggy bank. Not only will this help cleaning up the house and car, it will also further reinforce good money savings habits.
  • The money adds up. When it comes to finances, it’s always important to set goals… Using a piggy bank is an easy way to help you reach those goals. Whether you’re looking to save for a new car or for a warm winter vacation, adding to a piggy bank will visually show how close (or far away) you are from making that purchase.
  • Sets a great example. Piggy banks are an easy and effective way to teach youngsters in the family about the importance of saving. They may not be saving up for a big purchase, but they certainly want to save up for something, whether it’s a new toy, a new phone, or a new video game. Teaching them the benefits of using a piggy bank will go a long way in the future.
  • Reinforces “Always Be Saving”. Saving should always be top of mind. As Benjamin Franklin famously said, “A penny saved is a penny earned”. Whether you’re depositing a portion of your paycheck into a savings account or stuffing change into a piggy bank, every little bit helps. With a piggy bank, you’re literally able to watch your money grow every time you save. This is a great habit to keep with you throughout your adult life.

Now, we know what you’re thinking. What do you do once the piggy bank is full? There are a couple of options.

  • Reward yourself with a treat! Whether it’s a new designer handbag, a lobster dinner, or a small vacation, (and put the rest inside a Great Midwest Bank savings account).
  • Donate a portion of the money to a local charity in your area, (and put whatever is left inside your Great Midwest Bank savings account).
  • Invest some of the money, (and put the rest into a Great Midwest Bank savings account).
  • Put all of it into a Great Midwest Bank savings account. If you don’t have a savings account, stop into any of our nine conveniently located branch locations and learn about our your options today.

Happy Saving!

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Places Where Germs Hang Out

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Bacteria is everywhere—and most people talk about it in terms of making sure your bathroom is kept germ free (if that’s ever possible).

However, there are other places in the home to consider.

Door Knobs and Light Switches – Use disinfecting wipes.

Kitchen Sponges – Soak those in water with some lemon juice and then microwave for about 1 minute.  Replace your sponges every month or so.

Kitchen Drains/Kitchen Faucet Handles – Pour baking soda and white vinegar down the drain.  Wait 5 minutes and then flush with boiling water.  Wipe down handles with disinfecting wipes.

Cutting Boards – Scrub with baking soda and rinse with hot water.

Computer Keyboards – Disconnect the keyboard and spray with compressed air.  Then wipe down keys and spaces in between with rubbing alcohol.

Pet Bowls – Wash pet food and water bowls at least every week – every day would be ideal.

Posted in Homeowner tips, Just For Fun | Comments Off

Finding Lost Money

??????????????????????????Did you accidentally leave some money stashed away in a savings account following a long distance move?  Or do you think a deceased loved-one had an insurance policy that never got paid? Maybe even stocks, bonds and retirement accounts?

Here are some links where you can do your research (maybe you’ll find your name (or a relative’s name) on the list!):

MissingMoney.com – Forgotten bank accounts, stock dividend checks, utility company deposit refunds, etc. (free)

PolicyLocator.com – Life insurance policies that have not been cashed in (costs money)

PBGC.gov – Government website to find unclaimed pensions (free)

UnclaimedRetirementBenefits.com – Government website for unclaimed retirement and 401k accounts (free)

TreasuryDirect.gov – Government website for unclaimed savings bonds (free)

Stop in to any of our branches to speak with a teller about checking and savings options at GMB or contact Dan Murphy to discuss investing.

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Selling Your Home? Don’t Overprice it!

???????????????????????????????????????????????????We recently read an article about why sellers overprice their homes. You may not be thinking of selling your home any time soon, but we thought this was a good reminder that when it comes time for you to do so, the local real estate market dictates the price based on similar types of homes in your area. However, it is common for sellers to think that their situation and home is “special” and justify to themselves why they think their home is worth more.

Here are some of the reasons sellers provide as to why this happens:

  • They deserve to make a profit.
  • They don’t want to bring money to closing.
  • They feel their home is better than similar homes.
  • They want to recover the actual cost of home improvements.
  • They need the extra money for a larger down payment.
  • They think buyers will negotiate.
  • They think that a real estate agent should be able to sell it if only they found the right buyer.

It’s understandable that a seller considers the price they paid for the home. Add to that the real estate commission and closing costs and the desire to make a profit…However, the market doesn’t always co-operate and an overpriced home will be on the market for a longer time period. While you might have some buyers look at your home, you may not receive any offers.

If you are thinking of selling your home, we suggest that you interview at least two or three real estate agents and review their market analyses. If you’re looking for some direction, please contact one of our Loan Officers because we know some of the best, hard-working agents in the area.

Posted in Buying & Selling, Loan Officer, Local Bank | Comments Off

2015 Financial Resolutions

financeWith the start of a New Year comes a new opportunity to set financial goals for yourself.

Many New Year’s resolutions relate to exercise, work-life balance, or being less connected to technology.  We are also encouraging you to take on these five Financial Resolutions for 2015.

  • No matter how much you’re currently saving, you can always be saving more. In fact, there’s a great phrase to remind you of this financial resolution for 2015. Just think ABS – Always Be Saving. This financial resolution is at the top of the list for a reason: it should be top of mind.Work towards this by having a portion of your paycheck automatically deposited to a savings account (preferably to which you don’t have direct access to transfer funds out electronically or write checks).  Looking for a good Savings Account option?  Check out our GMB products here.
  • Cut down expenses. With the holiday season fresh in your head, you’re probably wondering, “Where did it all go?” Spontaneous purchases made in 2014 more than likely contributed to your current feelings of financial instability. To improve upon this for 2015, before making that luxury purchase ask yourself, “Do I really need this?” Challenge yourself to shop online without buying – sleep on any purchase over $100 if you can – just leave it in your cart and come back the next day.  Or walk into a store and browse.  Walk out without buying and come back when it’s convenient.
  • “A goal without a plan is just a wish”. This saying from French writer, Antoine de Saint-Exupery, can certainly be applied to budgeting one’s finances. Nobody is going to plan your budget for you. In formulating a plan, it’s important to create realistic targets. Once you’ve created a plan, it’s important to put it into action. Keep track of your budget using tech-friendly tools like Mint.com. Don’t have time to budget?  Then at least set a monthly savings goal.  Again, be realistic just to get into the regular habit.
  • Plan for retirement. Whether you’re just starting your career or you’re on the last leg of it, planning for retirement is a crucial step for every individual. More importantly, planning for retirement has lasting effects on not only your own personal financial stability, but also your family’s. From employer matching to claiming certain saving tax breaks, there are plenty of ways to jump-start your retirement planning. Ask our own Dan Murphy for advice along the way!
  • Set up an emergency fund. Put this money aside and only use this fund when unexpected but necessary payments appear, like a quick car fix, or major housing repair. Consider starting it with this year’s tax refund. If you’re interested in a ballpark estimate of your refund, use your last paystub to calculate it with this great tool from Turbotax.  It’s also available as a Smartphone App.  Sleep comfortably knowing that you are prepared no matter what curve balls the future has in store for your finances.

If you’re not already doing so, make sure you start following us on Twitter. We frequently post helpful tips and share great advice on how consumers can reach financial goals such as these and achieve stability. Don’t worry, we’ll be sure to check up to see how you’re doing…

Here’s to a successful and prosperous 2015!

Posted in Budgetting, Checking & Savings, Financial Planning, Local Bank, Saving | Comments Off

Have a Simply…Local, Simply…Merry Christmas!

christmasThere’s not too much we love more around here than the holiday season! If you’re following us on Facebook, you’ve most likely seen us getting into the holiday spirit in more ways than one this year.

Why do we love this season so much? Well, not only is there an abundance of cookies and desserts to devour, but there are also plenty of holiday and Christmas memories to share! Below are two such stories from a couple of our most beloved GMBers.

Have you ever heard or seen of the movie Four Christmases? Well, Michele Martin, a Loan Processor in our Brookfield branch, knows the feeling the couple in this film went through. This is how she celebrates the holidays with her family every year, and she wouldn’t have it any other way.

michele“Our family has a pretty traditional Holiday. We always spread out the Holiday Cheer by celebrating 4 Christmases within a week (Ty loves it!). We always start out with my side of the family, then Christmas Eve is spent with Rob’s extended side of the family. On Christmas morning, we always open up our stockings first, then pass out all the presents. Then, we go around the room and each of us will open up one present at a time. We actually take a break for breakfast, were we always have Quiche. After breakfast, we will continue opening presents. In the afternoon we will go out to my In-Laws house and sort and open even more presents, the same as at home. For dinner we always celebrate by feasting on a delicious meal of steak and shrimp.

It is a very busy week, but I love spending so much time with my family!!!”

 

lynn zLynn Zabel, a Loan Representative at our Brookfield branch, remembers Santa visiting them on Christmas! She says this childhood memory was just part of the holiday magic. Here’s her holiday story.

“Christmas as a child was always a magical, sparkly time. Aunts, uncles and cousins all gathered together at grandma and grandpa’s house for the festivities. We would sing Christmas carols and it never failed… every time we started singing Jingle Bells the back door would fly open and in would be Santa Claus with a joyful “Ho ho ho!!!”  He had presents for all of us kids and knew us all by name! I remember thinking how very special we must be for Santa to come and visit us every year. It was many years before I realized that Santa Claus bore a striking resemblance to my godfather, and that he was always mysteriously missing when Santa was there. The memories bring back both smiles and tears.

The magic is long gone, and so are many loved ones, but I still try to make the holidays sparkle for my grown kids and their significant others. I LOVE to give gifts to the ones I love and make each package look like its own masterpiece. Mimosas and cinnamon rolls are a Christmas morning tradition, and so is the food coma after eating Christmas dinner. Our lives are far from perfect, but two things we do very well: Laugh and Love. It doesn’t get any better than that.”

Every family has their own special holiday traditions. Lynn’s and Michele’s are just a few we’ve had the pleasure of hearing about over the years. Whether it’s a childhood memory or a new family tradition, it’s always great to spend time with loved ones this time of year.

Since we’ve shared some of our stories and memories, we’re interested in hearing some of yours! Visit our Facebook page and tell us your fondest holiday memory or share a favorite family story.

From Wisconsin’s Simply…Local, Simply…Social Bank, we wish you and your family the happiest of holidays!

 

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The Credit Scoring Mystery

?????????????????????????????????????????How your credit score is calculated is like the secret formula for Coke –  the average consumer doesn’t really know!

However, FICO has provided five categories that are considered when determining a credit score.

Payment History: 35%
Length of Credit History: 15%
Amount Owed: 30%
Types of Credit: 10%
New Credit: 10%

What follows is a short synopsis of each category:

Payment History – Notice that this category holds the most weight. It looks at late payments. Thirty days late is not as significant as 60 to 90 days late. It also looks at the last time the payment was late—the more time that passes, the better. They also consider how many times a payment has been late. Let’s say you’ve made 56 payments on time, with only one of them being late — that has less impact than if you’ve made 56 payments and 12 of them were late.

Length of Credit History – While the percentage is on the lower end of the scale, it still matters. They consider when you first started using credit, the number of accounts and how long you’ve had them. If you’ve just started using credit, it’s possible to still obtain a good credit score, but everything else has to be positive.

Amount Owed – If there are high balances or credit cards have been “maxed out,” the credit scoring formula figures that it is a greater risk and the credit score will be lowered. As a side note, closing a credit card account – or paying an old collection – that currently has an outstanding balance can actually HURT your credit score.

Types of Credit – This is one of the areas driving credit score confusion because the scoring models do not reveal what “mix” of credit helps or hurts a credit score. Typically, they are looking for auto loans, the number of mortgages loaned, installment loans and credit card accounts, and whether those are “balanced” versus having 5 car loans and no credit cards.

New Credit – Opening new accounts is not a bad thing, but it may hurt a credit score if a person applies for a lot of credit in a short period of time. They consider how many accounts were applied for, how many new accounts were opened, and over what time period the new accounts were opened. Inquiries (meaning if you were shopping for the best rate for a car loan and talked with 5 banks, same for a mortgage in a 30 day window) do not have as much impact as if you applied for 5 different credit cards.

If you’d like to know more about credit scoring, visit MyFICO.com. If you’re thinking of starting the home buying process, we suggest you watch this short video with Madison Loan Officer, John Schroder, for helpful tips on credit reports and how they can affect the mortgage process.

Posted in Banking, Credit, Loan Officer, Mortgages | Comments Off

All Credit Scores are Not the Same

????????????????????????????????????????????????????????????????????????????????????????Credit scores are one of those things that has consumers (and sometimes lenders) scratching their heads and saying “How did they come up with THAT credit score?”

The one you hear about the most are FICO scores (acronym for the Fair Isaac Corporation, the creators of the FICO score). It’s the one that most mortgage lenders use as one of the benchmarks to see if you qualify for to refinance or purchase another home. Usually 3 scores are provided and the lender uses the middle score as the basis for granting (or denying) a loan.

However, not everyone uses FICO scores as a guide. Here are some other credit scoring models that are used:

Auto Loans: If you apply for an auto loan thru a dealer, they have developed their own credit scoring models which are completely different from those used by lenders.

Insurance Companies: Your insurance premium you pay for homeowners or car insurance also depends upon the credit score model that insurance companies use. Oh, and it will vary with different insurance companies.

Vantage Scores: If your occupation/employment requires you to be “licensed” (especially in the financial services industry) and one of the requirements to obtain (or maintain) your professional license, Vantage Scoring model software is used.

Free Credit Reports: According to law, you are entitled to one free credit report (per bureau) every year. While it won’t be exactly what lenders see when they order a credit report on your behalf, it will be “in the range” and is a good indicator of what to expect.

You are entitled to one free credit report—PER BUREAU. Go to AnnualCreditReport.com and you can request one credit report from EACH of the bureaus listed.

A word of caution! Be careful when signing up for offers to provide you with a FREE credit report. If you are asked to enter your credit card number, what you are really signing up for is a credit monitoring service—that may cost you over $300 per year.

Please let us know if you’d like us to review your credit report. We may be able to make suggestions on how to increase your credit score. Sometimes it just takes a little tweaking to increase it by 25 to 50 points.

Posted in Credit, first time homebuyers, Mortgages | Comments Off

OUR CUSTOMERS ARE SO GREAT!

GREATOver the last couple of months, we’ve been asking one very clear and simple question: “What Makes Great Midwest Bank…GREAT?”

From comments and reviews on social media to over 300 completed customer surveys, we’ve received some truly GREAT responses.

  • I have been with Great Midwest Bank for 30 years. To me it is the best bank in Wisconsin. Now if this was not the greatest bank, do you really think l would stay with them all these years. Every one is very friendly and greets you with a smile. GREAT MIDWEST should be everyone’s bank.
  • The staff is always so friendly and helpful. My husband and I actually like going to the bank because we feel like family.
  • GMB lenders are helpful in answering questions, always respond in a timely manner, and give clear explanation to new buyers/customers about their mortgage process.
  • The friendly, personal, and feel-at-home atmosphere that accompanies the professional service we receive.
  • The friendly environment. I needed a loan for my condo and it was accomplished it less than 30 days.

We’re honored and humbled to receive such a positive reaction from our customers. This reminds us of the impact our hard work and dedication has on the lives of others in every Simply…Local community from Chilton to Madison and Milwaukee. We’ve been proudly serving Wisconsin homeowners since 1935 and we look forward to serving many more.

If you know someone that needs assistance in the home buying, refinance, or construction loan process, send them to Wisconsin’s Simply…Local Bank for a GREAT experience.

Posted in Banking, Customers, Just For Fun, Local Bank, What Makes Great Midwest Bank so Great? | Comments Off

Tips for Hosting Thanksgiving

tgivingFrom setting the dinner table to putting up holiday decorations, there is plenty to do this time of year. Planning to host Thanksgiving dinner? Well, then there’s even more work to get done.

Lucky for you, you’ve made it to our blog! Below is a list of five tips you’ll need to host a successful dinner party this Thanksgiving:

  • Set a schedule and start time. Most recommend having guests arrive sometime in the late afternoon. This allows the host all day to prepare for guests and hopefully some of the little ones will have worn themselves out by then. Key word: hopefully.
  • Put down the devices. The holidays are a time to spend together, not looking down at a phone or tablet. Make sure everyone in the family, especially the little ones, knows that Thanksgiving dinner is one of those times.
  • Have a fun game or activity planned that everyone can participate in. Not everyone watches (or likes) football. Often times this will lead to the start of a family Thanksgiving tradition.
  • Before you start carving, let the turkey rest after it comes out of the oven. This is a good time to use the dripping to make gravy, make some mashed potatoes, or warm up desserts in the oven for after dinner.
  • After a long day of hosting, it’s time to kick back and relax. But only for a few minutes, because you’ll soon have to get ready for the holiday shopping season. There’s plenty of time to sleep in 2015, right?

For more tips, visit us on Facebook and follow us on Twitter. We’ll be posting fun, creative, and interesting articles throughout the week.

Have a blessed Thanksgiving!

Posted in Holiday entertaining, Just For Fun, Thanksgiving | Comments Off

How to Shop for a Real Estate Agent that’s Right for You!

???????????????????????????????????????????Buying or selling a home can be exciting.  But it can also be a mixture of fear, anxiety and anticipation because it means a new chapter in your life.

So, choosing the right real estate agent is one of the first things to consider when making a move.

While friends and family may refer a real estate agent to you, recognize that their home buying or selling needs may be different than yours. The Internet is a good way to do your research, but you should only consider it a starting point in your search for a real estate agent that represents your interests.

First of all, there are many intangibles that you’ll need to consider:

  • Is the agent’s personality compatible with yours?
  • Do you sense they are honest and trustworthy?
  • Does the agent have a clear understanding of your objectives and needs?
  • Do they have a list of references?

Here are some additional items for you to verify when shopping for an agent to represent you:

Licensing – While a real estate agent must pass certain tests and must be licensed by the state, you should also check to make sure their license is valid and in good standing. Have they had any complaints filed against them?

Education & Specialization – It’s important that real estate agents continue their education. They can also take courses if they’d like to “specialize” in certain categories of a real estate practice, like “short sales/foreclosures” or “senior housing.” Ask if the person has any educational designations and what areas of real estate they special in.

Local Knowledge – A good agent will have local information at their fingertips, including housing trends, how many houses on the market versus the percent sold, sales price trends, and a list of professionals that they do business with to help make your real estate transaction as seamless as possible.

Experience – While a certain amount of experience is important, it should be only one of the things to consider. Good agents are highly motivated and eager to earn your business in hopes of future referrals.

Posted in Buying & Selling, Customer Service, first time homebuyers, Homeowner Info, Local Bank, Real Estate Agent | Comments Off

Is it Time to Build a Home? Questions to Ask Yourself!

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There comes a time in your life when you might ask yourself, “Is it time to build a new home?” It can be a tough decision. Your current home may be “good enough.” Or you look around and there are some things that you would change to make it more livable for you and your family.

Building a home is much more time-consuming than buying an existing home. You’d need to have meetings with the builder. Make inspections. Change things. Pick out cabinets, sinks, countertops, flooring. It could take 6 months to a year.

But, if you truly want the “ideal home,” then consider building. You’ll have to make up your mind to be patient and devote the time it will take for you to work with the builder through the entire process.

And, if you like the home you are living in now but would like to change a few things, you might want to consider “modifying” it. Maybe you would like to add a family room. Increase the size of the garage. Add a second story. Change the kitchen layout or add a fireplace. One of the things to consider is the “market value” placed on your home improvements. Here’s a link to Remodeling Magazine’s website so you can compare:www.remodeling.hw.net.

Whether you decide to buy, build or remodel a home, please contact one of our experienced Loan Officers. We have a variety of products to fit your needs and will help you decide what works best.

Posted in Construction, Dream Home, Homeowner Info, Mortgages, Remodeling | Comments Off

How a Great Real Estate Agent Can Help You Buy Your Next Home

??????????????????????????????????????????????????????????????Over the years, we’ve worked with a few truly great real estate agents that have helped friends and customers through the home buying process.

There are a lot of good Realtors in our communities, but if you’re hoping to work with the best, here are some things to ask your Buyer’s Agent:

  • Will they compare prices in neighboring towns, neighborhoods and subdivisions?
  • Will they honestly give you the pros and cons when you narrow it down to a few properties?
  • Will they immediately recommend properties BEFORE you find them online yourself?
  • Will they explain the purchase agreement and other documents in detail?
  • Will they preview the property BEFORE showing it to you?
  • Will they be on your side when negotiating with the seller?
  • Will they follow up with you after the sale?
  • Will they provide names and phone numbers of people they represented?

Every buyer’s situation is different, so you’ll probably have your own list of questions to ask, but, in general, these will help start the conversation when interviewing real estate agents who will do a great job representing you when you buy your next home.

Oh, and if you would like us to refer a couple of great agents that we’ve have worked with in the past, we encourage you to contact one of our Loan Officers in your area.

Posted in Banking, Buying & Selling, Customer Service, first time homebuyers, Real Estate Agent | Comments Off