We’ve always had a healthy presence in Moorhead, serving many customers in business, personal and agricultural banking, plus mortgage, investments, real estate and trust/wealth management services.

Now we’re right here
This week, our refreshed location in Moorhead celebrates its Grand Opening! We’re proud to officially be part of the Moorhead landscape, and we’ll offer all financial services right from our new location. We have experts from most areas right in our offices, or we will make arrangements to get you connected with the bankers and financial professionals you need.

Celebrate with us
Here are the details of our Grand Opening:

June 18
Open house: 10 a.m.- 4 p.m.
Ribbon-cutting:  10 a.m.
800 30^th Avenue South

We’ll be having picnic-style food, and we’ll have free gifts and tours available.

Please join us if you can. Or, stop in when you’re on our bank of the river. We’re excited to show you our new space, and especially eager to serve you.

Keith Coalwell is a Vice President and Moorhead Branch Manager.  He graduated from North Dakota State University in 1991. In his time away from work he enjoys spending time at the lake with his wife Michelle, children Danielle, Lexie and Drew and granddaughter Camille.

First International Insurance and its independent agents are separate from our banking, investment and other services, yet the insights affect the overall financial health of individuals and families, so we’re sharing some timely insurance information here. 

If your home and/or property insurance rates have gone up, you’re not alone. And, yes, you can get the coverage you need for reasonable rates.

First, understand that rates are up partly because insurance companies are paying out more in claims due to severe weather and related disasters.

In fact, the Insurance Information Institute explains that events like “hurricane Irene, the Joplin tornado that was the single biggest insurance event in Missouri history, and widespread winter storms, tornadoes and flooding have made the past decade one of the costliest in terms of natural disasters in U.S. history.

“Since insurance companies bear a large portion of that cost, it only makes sense that they may need to charge higher premiums to pay for all the claims they’ve been receiving.”

We’ve also seen many insurance companies require packages for coverage, too, instead of covering just a home, or just an automobile.

Lower costs, upgrade coverage
It is possible that you could lower your home insurance costs and upgrade your coverage. Here are key areas we consider:

House – Replacement cost vs. market value
How much home insurance should you have? When you buy a house, the mortgage holder generally requires you to insure it prior to closing. Most consumers assume the amount of dwelling coverage will be equal to what they paid for their house. In some cases, this is incorrect.

Insurance companies don’t care about market value, which is what your house is actually worth. Insurance companies use the replacement cost value, which is what it would cost to rebuild your house in the same spot, same size and same quality of construction, at today’s costs. For instance, an older home in a rural community may have a market value of $120,000, but the exact house in a nice suburb may have a market value of $380,000. However, the cost to rebuild the house is the same in either location. Your insurance should cover the house for the full replacement value. Think of it this way: your insurance company will pay you to build a new home, not buy one down the street. Another consideration: Most of a lake home’s value is in the land; not the actual house on it.

For insurance purposes, insure your home to 100% of its replacement cost. We’ll help you do this—and revise it as you make home improvements, additions or other enhancements that change the replacement cost of your home. (Bonus: these typically also increase your market value. But remember, we’re not so concerned about that!)

Stuff – Replacement cost vs. cash value
This applies to pretty much everything in your house. Payment based on the replacement cost is usually the most favorable figure from your point of view, because you receive the actual cost to replace the property. For example, if your TV is stolen or destroyed, a replacement cost policy reimburses you the full cost of replacing it with a new TV (even if yours was outdated).

Specials – Jewelry, oriental rugs, home office equipment and of course WATER
Some items in your home have additional value that requires a rider, or mini-insurance policy for protection. Things like valuable jewelry, oriental rugs and home office equipment. We’ll help you find a reasonable rider for these items.

And when it comes to home insurance, if you have your basement/lower level finished, you should have separate water backup coverage in case of leaks, sump pump failure or, on another level, water damage to your roof. This is also a rider. Flood insurance, however, requires coverage through a national program—we can steer you in the right direction for that.

Activity – Home injuries covered
What if a neighbor falls at your house and hurts his back? Or a neighborhood child slips in your driveway and injures her ankle? A standard component of most home insurance policies is medical payment coverage. It covers medical costs if, heaven forbid, someone is injured on your property (and does not sue you). The typical coverage is $1,000, which doesn’t stretch very far these days, so it’s a good idea to increase that coverage to $5,000 or $7,000.

We shop, you save
We’re independent agents, and we have close working relationships with dozens of insurance companies, so we can provide exactly the coverage you need—nothing you don’t—at rates that fit your other financial goals.

Three-year checkup
Since the core idea of home insurance is to protect what you do have at rates you can afford, it’s a good idea to have a home insurance, or habitational insurance, check-up at least every three years—or if you get married, have a child, start a business or have another significant life change.

It’s a painless checkup, we promise, that just may save you money. Call us at (701) 293-5910, and we’ll find the right representative to fit your needs, whether we’re helping you with insurance now or you’d like to consider working with us. We look forward to bringing you peace of mind—that’s when we know we’ve succeeded!

See more about our insurance services.

Dan Toy served 20 years in the US Army before launching a second career in insurance. While in the military, he earned an Associate in Arts degree from Campbell University, a Bachelor in Science in Business Administration from Franklin University, and a Masters in Business Administration from Touro University. He currently works at First International Insurance as the Insurance Manager. In his free time, Dan enjoys golf and traveling. He and his wife, Amy, consider London one of their favorite destinations.

What you do today makes a big difference tomorrow.

This is perhaps most important with mineral rights management. Amidst the current Bakken Formation oil exploration and development in the Williston Basin, many landowners now face the issue of how to handle mineral rights.

Several years ago, I was working in oil and gas operations for a China-based company that had operations in North Dakota. I worked in both countries, and now I’m very glad to be back home in Williston. As it turns out, my oil and gas experience has fueled our bank’s mineral rights and land services, just as that area has grown very fast. It’s a fascinating area and we are proud to confidentially help people here navigate the details and capitalize on their mineral ownership.

Here are some guidelines for mineral rights and land services:

What are mineral rights?
In these cases, the minerals are oil and gas that can be extracted from the land. If you own mineral rights in western North Dakota or Eastern Montana, the chances are you’ve got oil! You also most likely have interest from oil and gas exploration companies looking to develop these minerals into a producing commodity, either by leasing your minerals or through a participation agreement.

We’re helping people who are existing First International Bank and Trust customers, and we’re working with new customers. We’re guiding friends and neighbors, and we’re assisting people who live around the world but own land in this area. We now manage more than 20,000 mineral acres.

If you have mineral rights
First of all, don’t sign anything without meeting with a mineral manager like me or someone on our team. We consistently help individuals who have agreed to documentation prepared back in the 1950s or 1980s that may not have their best interests in mind. There are many factors that can come in to play and throughout my mineral management expertise, I have successfully negotiated in excess of 500 oil and gas leases.

Minerals as investments
As with other investments, we’ll help you analyze how to handle your mineral rights. Depending on your age, occupation and especially your financial goals, we’ll help create a plan to utilize your rights to meet your goals and leave a legacy for future generations. This may include wealth management and estate planning.

They’re your rights
We focus on mineral rights and land services specific to you, and our plans help:
- Prepare you and your family to successfully manage your resources
- Protect against avoidable taxes now and in the future
- Provide financial resources for your lifetime and for your kids and their kids

We’ll take care of it
There are many unique nuances of mineral and land services, and we can help you handle them all. We will:

- Negotiate your lease(s)
- Collect revenue
- Convert and sort royalty checks into meaningful data
- Prepare income/production history to your specs (by well, product, producer, time period)
- Simplify tax reporting
- Consult on various ownership strategies i.e. Mineral Trust, LLLP, LLC

Only online tool in 1,500 miles
We have some customers who simply want one statement each year; others use our exclusive online management tools. In fact, we’re the only financial institution within 1,500-mile radius that has a secure, dedicated website for our mineral and land services. This convenient site gives customers 24/7, user-friendly access to Income and disbursement reports, mineral production and price graphs and custom maps of personal mineral holdings and wells

The right moves
If you have mineral rights or are looking for someone to review your current land services lease, royalty and ownership details, we’re eager to share our expertise with you. Call or stop in for a confidential conversation. Together, we’ll ensure you’re managing your mineral rights exactly right for you.

A native of Williston, Adam earned his bachelor’s degree from Dickinson State University, then spent years gaining oilfield experience in the Williston Basin, plus in China and other international venues. He has more than three years experience in trust and more than seven years in financial management experience. Now working through the intense, two-year program to become a Certified Mineral Manager, Adam focuses on mineral and land services, as well as mineral trust, mineral agency and partnership areas.

Not Insured by FDIC or any Federal Agency     May Lose Value     No Bank Guarantee

As Williston grows and expands at an amazing pace, we’re proud to open our third location: this one is at the intersection of 9^th Avenue and West Dakota Parkway. We think it’s also a perfect time to celebrate our 103^rd year in business!

You’re invited to celebrate our Grand Opening and 103^rd Anniversary. Here are the details:

May 10

Open house: 10 a.m.- 4 p.m.

Ribbon-cutting:  11 a.m.

1331 9^th Ave. NW

We’ll serve cookies, cake and coffee, and we’ll have free gifts and tours available.

Sneak peek

Here’s peek inside our new Williston bank location:

Six years in the making

The Grand Opening is almost exactly one year from our ground-breaking for the new Williston bank, but our expansion plans actually began in 2006. At that time, we considered remodeling our downtown location to accommodate our growth, but we opted to build this new bank. As it turns out, the timing was perfect. Some estimates say Williston’s population may double in the next few years.

We’re ready

Our office spaces and especially our staff members are perfectly positioned to handle all this new growth, both in terms of taking care of existing customers and serving new ones with all our banking, trust, insurance and investment services.

Of course, our other two locations will remain open. Existing customers will notice familiar faces at all our Williston banks, along with some new tellers, loan officers, investment and insurance representatives and support staff members. It’s exciting to welcome new members to our teams.

Please join our Grand Opening on May 10 if you can. Or, stop in when you’re nearby. We’re excited to share our new space, and especially eager to serve you.

Glendon Olson is the Williston President and has worked for First International Bank & Trust since 1991. He graduated from North Dakota State University in Fargo. When he’s away from work he enjoys hunting, fishing and spending time with his wife and two children.

I’ve had a date circled on my calendar for many months; March 25, 2013. That’s the Grand (Re-) Opening of our Minot bank location in the Arrowhead neighborhood.

In June 2011, the Souris River flooded this beautiful city so many of us proudly call home. Nine employees at First International Bank & Trust in Minot lost their homes in the flood. Many of our friends, neighbors, customers and other Minot businesses were deeply impacted by the devastation. Even more people continue to help us all recover. We’re grateful, and we’re proud to be back.

Even in the midst of the Minot flood, there was never any question that we would rebuild in this neighborhood. Our strong commitment to the neighborhood drove our plans, construction and now we get to celebrate the actual opening.

We’ve operated out of a temporary facility in Arrowhead while we rebuilt our bank. The new location actually is more visible, and you’ll notice some nice additions inside and out to help us better take care of our customers.

A second circle we invite you to join

I also have April 18 circled on my calendar, and I hope you will, too. That’s when our new Minot office will host their Grand Re-opening Celebration as well as Chamber of Commerce’s Business After Hours. We’re eager to show you our new space and hear how you, your business and especially your family is doing in your own Minot flood recovery.

We’re also adding a third location in Williston, and we’ll let you know the celebration dates for that Grand Opening, too.

Meanwhile, we appreciate your support during this time of transition, and we look forward to seeing you—and serving you—soon. Take care!

John Drady is the Minot President and Western North Dakota Market Manager. He’s been with First International Bank & Trust since June 1994. When he’s away from work he enjoys spending time with his wife Julia and his children, Jessica & Joshua.

By Justin Walseth, Vice President – Mortgage Department Manager
First International Bank & Trust, Member FDIC

Read Part 1: Setting Your Budget and Part 2: Pre-qualification Process

You’ve found a nice three-bedroom in your dream neighborhood. Your pre-qualification letter helped prove to the sellers that you are serious about buying, and they accepted your purchase agreement. Yippee! Next step to buying your first home– the mortgage approval process.

I like to joke that in the past you only needed a pulse to get a mortgage and now you need a blood sample. This is an exaggeration, of course, but the truth is that patience and communication are keys to the home buying process. It is my job to get you to closing, so lean on me for help and reassurance when you need it.

Here’s what you can expect in this part of the home buying process:

Application

First, the paperwork: your lender will provide you with a formal application or contract to complete. You will need to submit your personal financial documents (or update them, depending on the amount of time that has elapsed since pre-qualification), determine which, if any, loan programs you may take advantage of, and sign a variety of disclosures.

Locking in

The mortgage interest rate will be one of the most important variables in this process, and you need to determine during application whether you will lock in the current rate or hold off a while in hopes of a better deal. Interest rates are very volatile, and there is no guarantee waiting will be in your favor, but you can wait until up to seven days prior to closing to lock-in the interest rate.

Four steps to approval

Now, the heavy lifting shifts to the mortgage expert and other service providers. There are four boxes that need to be checked in order for your application to be approved.

1. Title work. This is basically making sure that the person selling the house actually has the legal authority to do so, without any liens or conditions on their ownership.
2. Appraisal. Is the house worth what the seller wants for it? If it isn’t, the bank may decrease the amount of money it is willing to loan. At that point, you will need to renegotiate or back out of the offer.
3. Homeowners insurance. Bottom line: you need it, and we have agents that can help.
4. Credit approval. The fancy word for this is underwriting. Because the decision-making at First International Bank & Trust is local, I know where your application is every step of the way.

Problems, though rare, may arise in any step of the process, so like I said before – be patient. Expect to supply paperwork a few times and answer some odd questions. It is normal for your lender to come back to you three or four times for clarification or additional information. And don’t forget about our online mortgage resources for additional assistance.

With any luck, your patience will pay off and your mortgage will be approved! Now all that stands between you and your first home is closing. We’ll pick up there next time.

Justin Walseth is a mortgage expert in Fargo with more than 10 years of mortgage lending experience. He graduated from MSUM with a degree in Finance and Economics. When he’s away from work he enjoys golf, basketball and tennis as well as spending time with his wife and two children. 

By Justin Walseth, Vice President – Mortgage Department Manager
First International Bank & Trust, Member FDIC

After setting your budget, and maybe even before you identify the home of your dreams, the next step for a first-time homebuyer is the pre-qualification process. Pre-qualification is a non-binding agreement from your lender that you can borrow up to a certain limit, and happens before the formal application process.

Getting the big picture

First, you’ll need to provide information that helps us understand your total financial picture. This includes:

• Personal identification for you and any co-owners, such as a spouse. Things like your full name, date of birth, social security number and previous addresses are standard.
• Credit score and history (we pull this for you). Credit score is important, but it is one of multiple factors in the pre-qualification process – so if your score isn’t great, don’t panic!
• Information about your income, debt and other assets.

Because every situation is unique, don’t be surprised or offended if we ask you for some additional information. And if you have any questions, you can always call us or visit our online mortgage resources.

Running the numbers

First International uses a robust electronic underwriting system that requires a minimal amount of information from you and allows us to determine your eligibility and interest rates almost immediately.

Your eligible interest rate is also based on a number of factors:

• Credit score
• Whether you are taking advantage of a housing program such as those offered through the Federal Housing Administration (FHA), Veterans Administration (VA) or the North Dakota Housing Finance Agency (NDHFA).
  
• Down payment. The higher the down payment, the lower the interest rate.

While your final interest rate will not be determined until after the complete application, verification and final underwriting process – and you have locked it in – this process provides a good benchmark.

A common misperception when it comes to interest rates is that the bigger banks can negotiate lower interest rates for their customers. This is simply not true!

What if I don’t get pre-qualified?

Unfortunately, there are circumstances where an individual gets turned down for a loan. As your lender, we use this opportunity to help you address the issue head-on. Whether you need to establish a credit score, eliminate debt or save more, we can talk to you about strategies that will help.

The letter

The goal of pre-qualification is to walk away with a non-binding pre-qualification letter stating that, barring any significant changes to your financial situation, you can indeed afford the home of your dreams. This letter can give you a leg-up on other homebuyers because it signals to the home owner that you have the means and are serious about buying. So congratulations! You’re one step closer to ditching the apartment.

Justin Walseth is a mortgage expert in Fargo with more than 10 years of mortgage lending experience. He graduated from MSUM with a degree in Finance and Economics. When he’s away from work he enjoys golf, basketball and tennis as well as spending time with his wife and two children. 

Most companies claim they care about their employees. Many say they treat their employees like family.

My employer built me a home. How’s that for a caring family?

In June 2011, the Souris River flooded Minot, North Dakota, devastating most of the city. Nine employees at First International Bank & Trust in Minot lost their homes in the flood.

Running out of the bank
The memory is as vivid as yesterday. The day after Father’s Day 2011, a co-worker’s wife called and told us to turn on the TV news. Predictions for the amount of water Minot would be receiving – more than twice the previous day’s reported prediction – were unfathomable. We literally ran out of the bank that day. We had 48 hours to evacuate our homes, and none of us wasted any time.

Waiting, wondering
We had to be out of our homes on Wednesday, and can you guess what we did on Thursday? We went to work! Evacuated from our homes and living elsewhere, all we could do was wait and listen for news. I received an email from my daughter in Colorado on Friday around noon; who was watching the Robinwood Estates Facebook page for updates.  Her email said: Crying. This just posted: Robinwood/Country Club/The Evergreens all under. That had been our home. For the next three weeks, the most my husband and I could witness of the damage was through binoculars.

“We want to do something”
The week after the flood, First International’s Minot president, John Drady, came into my office, looked me in the eye and said, “The bank has decided they want to do something.” Nine people had lost their homes, and at this time in Minot, housing was already difficult to come by. There was a new set of townhomes being built on the east side of town, and John said the bank would purchase the homes as temporary housing for the employees who had lost theirs.

I was dumbfounded. As empty-nesters, my husband and I didn’t need much room – but at the same time, we couldn’t live with friends and family forever. It took me about a second to take him up on the offer. After 167 days of living with faithful friends, my husband and I moved into a brand new, two-bedroom, two-bath townhome.

Flooded with help
New home aside, the way the bank rallied around those who lost their homes is truly inspirational. As the river rose, bank employees came from Fargo, Watford City, and other branches to help sand bag. And as the water subsided, the bank encouraged employees to take Fridays off to help colleagues clean out their homes and repair their lives. First International even opened a deposit account for employees to make anonymous donations for their colleagues who lost their homes.

My colleague Stacey’s beautiful, renovated Victorian home had water up to the ceiling, but he still managed to save it. FIB&T’s CEO, Steve Stenehjem and his wife, Gretchen, showed up one of those Fridays and Steve operated a pay loader all day to help dig up the rotting hedge around Stacey’s yard. (And boy, did he enjoy operating the big equipment!)

Today’s “normal”
More than a year has passed since the flood, and life is finally getting back to the new normal. In June, First International broke ground on its new Arrowhead branch building, which was destroyed in the flood. We’re all back to work and the other employees who lost their homes are again living comfortably with their families.

Doing right
One thing that has changed is our perspective. It is a cliché, but they say adversity brings out a person’s true character. In the case the Minot flood, it proved the spirit of First International Bank & Trust is one of community, caring, and doing right by your friends and family, no matter the cost.

Do you have a story to share from the Minot or Fargo floods? Share it here or on our Facebook page.

Kim has worked in the loan department of the Minot Broadway branch for 10 years. She loves anything to do with cooking, so you can either find her in the kitchen or relaxing with a cup of coffee watching Food Network! Her husband, Bill, is a district judge of the Northwest District. Together they have 5 children; Emily, Lindsay, Alex, and twins, Megan and Mallori and 3 grandchildren; Madison, Braden and Sydney.     

First time home buyers are some of my favorite people to work with. Taking the leap from renter to owner is a significant event in an individual’s or family’s life, and I am honored to be part of it.

Along the way, I’ve learned things that will help you, too. Check out these considerations about what type of first home you can afford:

1. Prevent payment shock: Know before you look

The first step in buying your first home is setting your budget. Before you even begin looking at homes or engage a realtor, you really need a sense of what kind of home you can afford. Understanding your budget helps prevent what I call “payment shock.” No one wants to experience that.

2. Set your home budget

The basis of a budget is your income, so take a close look at your take-home pay on a monthly and annual basis. This includes salaries, bonuses, commissions, and if you are entering into a mortgage with a co-owner, his or her income as well.

3. Find your numbers

Then we can talk about the two main components of a housing budget – your monthly payment and the down payment.

When setting a monthly budget, a good place to start is with current expenditures. How much are you paying for rent, on a monthly basis? Then, think about how much you would feel comfortable spending – and remember that there are typically a number of extra expenses associated with owning a home. Utilities, maintenance, insurance and special assessments are all important parts of a homeowner’s monthly budget that may be new to you.  Keep in mind that determining what you are comfortable spending is a very personal decision and may be different than what you can afford on paper. So don’t rush.  For help, check out our Rent vs. Buy calculator.

The second factor – down payment – can really scare people off, but it shouldn’t. It is a common misperception that you need a significant down-payment (think 20 percent) in order to purchase a home, and that is simply not true. In fact, there are a number of programs out there to help individuals secure a home with a minimal down-payment and a fixed interest rate. The Federal Housing Administration (FHA), Veterans Administration (VA) and state agencies like the North Dakota Housing Finance Agency (NDHFA) can be a great resource. Some of these programs have no income limitations and you don’t even need to be a first-time buyer. Your mortgage expert can help you evaluate your options.

After establishing a budget that you’re comfortable with, you’ll need to get pre-approved. We’ll talk about that next time.

In the meantime, visit our mortgage page for more resources to help you determine if you’re ready to buy

Justin Walseth is a mortgage expert in Fargo with over 10 years of mortgage lending experience. He graduated from MSUM with a degree in Finance and Economics. When he’s away from work he enjoys golf, basketball and tennis as well as spending time with his wife and two children.