Gene's Bit of Blogging
Clients
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Gene Mundt, Mortgage Lender: Posted on Monday, May 07, 2012 5:39 PM
I May Not Be Yoda,
but I'm Darn Close!
Yesterday, I was reading yet another blog about the low interest rates presently available to home buyers seeking mortgage financing.
Seems another new historic low was announced. Something not quite so noteworthy anymore, as we all have grown used to hearing about how the rates have dipped, dipped, and dipped again.
 And therein lies my big worry, both as a mortgage lender and as a parent. I think buyers have grown quite weary and fairly complacent.
Low interest rates, such as we are seeing presently, should be news that sends home buyers (currently seeking and potential) all giddy. They should be doing a happy-dance.
But although rates remain a topic of interest for mortgage applicants I speak to, the rates we are seeing do NOT stimulate action in the housing market or number of inquiries for financing you would predict. So many potential buyers simply are doing nothing in response.
And I find that sad. That attitude translates into so much potential lost savings . So many opportunities simply being ignored.
I believe that many potential buyers falsely believe they cannot buy. That they will not be approved for loan. It's certainly the mantra repeated by the media. And it seems nowadays, everyone knows someone that knows someone that has an awful story to tell about the financing process. Heck, I even hear it within our own industry.
The truth of it is that there are many successes being celebrated out there. The majority (around 62%) of people that apply for a mortgage loan DO get financing and successfully
buy a home. (Remember, we've seen the result of and are suffering from no one being turned away.)
Now, do mortgage applicants have to work at finding their successes? Yes! Is it easy? No! Are
they frustrated at times throughout the process? H#*$ yes! Should the
process be like this? No! I'm a mortgage lender and I think it sucks that
buyers and those refinancing are put through the ringer like they are. But the
process is what it is ...
So if that is the truth ... and the process is what it is, at least at this point, I ask ... What are you, if a hopeful and/or potential home buyer, going to do? What's your reaction??
I've written some about this in the past ... my own personal experiences with rates, home buying, and financing over my 35+ years within the mortgage and real estate industry. It's been interesting, to say the least.
But over all those years, one thing has remained true for home buyers and those seeking mortgage financing: No matter how bad your financial situation. No matter your credit scores. The situation and your scores CAN be improved and turned around. Help is available.
Okay .. okay ... you're right. I need to add an asterik to those statements ...
- Asterik 1: With time, care, and patience.
- Asterik 2: If willing to do some hard work.
And therein, lies some of the current problem. Many people hate the asteriks. But taking that into consideration, my question becomes this:
If you ever hope to buy a home ... now or in the future ...
Are you going to let those asteriks scare you away from starting the process? Are you going to let the need for some hard work and patience intimidate you into foregoing inquiries about your home buying capabilities and options?
Are you going to let all those stories ... those asteriks ... steal REAL opportunity from you? REAL SAVINGS?? And yes, I said steal. I can talk to you all day and all night about what I think
is the right thing for you to do. And it
will be "yadda yadda yadda" ... just noise in
your ears. Or I can tell you this ...
I may not
be Yoda,
but I'm
darn close!
I'm a mortgage lender, yes. But more importantly, I'm a
husband, a dad, and now a grandfather too. And
that is where my message (and vast wisdom) to you springs from.
I've been there. I've stared-down
growing insurance costs. Rising taxes. Emergency repairs at the home. Health bills for braces, glasses, broken noses, emergency hospital
trips.
I've had to come-up with unexpected costs ... dues for
sports camps, traveling leagues. I've shelled-out extra for Size 15 Nikes.
I've looked college payments in the eye.
And I'll tell you ... your child you never thought you'd hear it from? Yep, even
MORE schooling ... LAW school! Then wedding
plans start. Times 2 ... within 6 months of
one another. Heart-tugging Grandchildren aren't far behind.
All of these expenditures and more might be in your
future as they were in mine, you just never know. So take it from someone that knows ... you need to look for, and take
advantage of, every savings when you can.
Listen to Yoda ...
The savings you
can and will reap by buying now and locking-in a historically low interest rate?? Cha-Ching!
The savings you can and will reap through the lower housing prices found in many
markets right now? Cha-Ching Cha-Ching!
Those savings WILL come in mighty handy later
... believe me.
Forget whatever negative you have heard. Take action.
Reach out. Pick-up a phone. Text.
Email. Whatever! Do it on your break. At lunch time. Before you head to bed.
Ask your questions. Don't just accept what you're hearing on the news ... or from others, no matter who they are. Fight for every option, work for every advantage, every opportunity you can
find. You owe it to yourself and your future.
Contact me. Even if you have challenging financial and credit
issues. Get started on bettering your finances and future. It costs you zippo ... absolutely nothing to talk to me.
You'll be glad we talked. I'll be glad to hear from you ...
* You can find me in several convenient ways:  Direct: 815.277.4036Cell/Text: 708.921.6331 At Skype: 630.219.1316 Through Your Mobile Device:
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Gene Mundt, Mortgage Lender: Posted on Tuesday, April 10, 2012 2:33 PM
A Tale of Two Brothers ...
and One Roller Coaster of a Home Sale and Mortgage Transaction
The headline in a local paper recently caught my eye. The ensuing article contained the obituary of a man that I had once been involved with in a mortgage transaction, years and years ago.
This transaction had taken place when I worked at my first job ... a Savings and Loan ... and it was perhaps what I'd call the most "interesting" mortgage transaction I've ever taken part in. It certainly made an impression on me.
Now it wasn't the actual financing portion of this transaction that made it so very interesting. No, it was the human drama that was introduced into it by the sellers of the property being financed by my borrowers. There was a "divorce" of sorts involved with these sellers, but they were not the typical couple going their separate ways.
You see, the sellers were not a man and a woman, but two brothers. Nevertheless, there was just as much "he said this" and "he said that" as any battling couple I had run into to that time, or have since ... if not more.
The processing of this mortgage transaction took forever because these warring brothers couldn't agree on anything. In fact, they were very lucky that their buyer hung in there throughout the arguing and many frustrations like they did.
These brothers had inherited a property from their mother when she passed away many years prior. They had finally agreed that they would put the house up for sale. After many disagreements, and first this brother and then that brother dragging their feet over unending silly and minor issues, they had negotiated a solid sale and found their buyer.
You'd of thought that would have pretty much ended it, wouldn't you? Happy ending, all is forgotten? But no ...
 The emotions that were driving this roller coaster of a deal from the beginning just kept rolling on ... and picked-up speed! I tell you, this was no typical family feud. These brothers had such serious issues between them, that one brother had actually legally changed the spelling and pronunciation of his last name so no one would suspect he was related to the other. That's serious!
The Savings and Loan carefully arranged accommodations to handle the Closing as delicately as possible ... and as swiftly. (Remember this was back in the day when Closings actually took part at the lending institution itself.)
The Board Room where most Mortgage Closings took place, would house one brother when they arrived. The other brother would occupy the President's office at the opposite end of the building. That way each brother could arrive by widely located, different doors to the building and not even see one another.
Still, the Closing took hours. And neither brother ever searched the other out to make peace before, during, or after the transaction was completed. To say that this Closing transaction demanded a lot of time and attention from the real estate professionals involved, the Savings and Loan's entire real estate department, and S&L staff ... would be an understatement. Everyone was physically and emotionally exhausted when this transaction was finally over.
But seeing that obituary made me wonder ...
Did these two brothers realize what havoc their "issues" played during that transaction? Or were they so wrapped-up in themselves that they didn't care?
Did they ever get past their dislikes and disagreements with one another? Or did they carry those bitter feelings to their grave?
I'll never know, but the thought of the latter is rather sad ...
Work with a mortgage lending professional that can lead you through your home buying and mortgage processing successfully. Contact me today! I will be happy to hear from you and have the opportunity to earn your trust and mortgage business.  I can be contacted through any of the following means: Direct: 815.277.4036
Cell/Text: 708.921.6331 The Convenience of Skype: 630.2191316
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Gene Mundt, Mortgage Lender: Posted on Thursday, April 05, 2012 11:06 AM
Ready, Willing, and Able. Yep, I'm THAT Easy ...
Ever hear the line, "There are no stupid questions"??
 Well, I think it's VERY true ... especially when you're talking about buying homes or mortgage financing.
NO question is too simple, too far left-field, or too inconsequential to be asked. If, as a Buyer or mortgage client, you don't have the answers you need to comfortably move forward at ANY step of the home buying and mortgage process ...
As a mortgage lender, I LOVE questions! I recommend ... no ... promote ... no ... plead with clients to ask them. It's that important. But how do I convince potential home buyers and clients to stop ... be unafraid to ASK their questions? Convince them that I'm Ready, Willing, and Able ... and Easy to ask??
In his blog, Eric eloquently addresses some scenarios that illustrate why it's so important to get Pre-qualified for a mortgage prior to searching for homes. He also broaches the hard fact that today's mortgage lenders face an uphill battle when trying to initiate "question asking" or inquiries. Some of that rightfully earned. And although I've personally never been accused of being a serial killer, I do pick-up on the negative vibes that emanate from many current buyers ... vibes that obviously can stand-in-the-way of their seeking me out or asking their questions.
So I go back to ... HOW do I assist, or convince, potential buyers to overcome those fears or dislikes? HOW do I get them to ASK their questions??
Some of the answer may lie in the hands of real estate agents. In ever increasing numbers, agents are refusing to show homes to potential buyers that have not taken the first step to home ownership ... that being Pre-qualification for a mortgage. Obviously this act alone makes Pre-qualification almost mandatory. And that's good, as they're ultimately doing buyers a great service.
 Pre-qualification is vital for many reasons, but perhaps none is more important than Pre-qualification provides the home buyer a huge opportunity to ASK questions and to educate themselves. Not only regarding their own finances, but the entire home buying process, and home ownership itself.
During Pre-qualification ... and then while in the processing of their mortgage financing ... buyers should find themselves in the enviable position of having an assortment of real estate professionals at their disposal to answer questions.
Mortgage Lender. Agent. Home Inspector. Title Company. Insurance Agent. Real Estate Attorney. Each educated about their personal transaction. Each available to them. It's truly a buyer's rare opportunity. Take advantage ... ASK questions!
You've probably heard ... the act of obtaining a mortgage and buying a home in today's current market is more complicated than it used to be. And that is very true. Now more than ever before, home buyers need real estate and mortgage professionals at their side that will take the time to help, to educate, to answer, to take action on their behalf, and to act for their benefit.
ASK your questions! Start asking them while searching for your mortgage lender. Continue asking them when seeking referrals for other real estate professionals. Ask them every step of your mortgage and home buying process. In fact, never stop asking them.
I'm Ready, Willing, and Able to answer them. Yep, I'm THAT easy ...
* I look forward to having the opportunity to answer YOUR questions and earn your mortgage business. Let me put my 35 years of expertise and experience to work on your behalf. Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316
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Buying a Home, Mortgage Lender, Mortgages, First-Time HomeBuyers, Buying or Renting, Choosing a Mortgage Lender, Asking credit and mortgage questions, home buying, Home Ownership, Clients, Pre-Qualification/Pre-Approval, Educational Opportunities, Choosing Your Real Estate Professionals
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Gene Mundt, Mortgage Lender: Posted on Thursday, March 22, 2012 12:40 PM
It is said ...
Times change, people change, situations change, relationships change ...
The only thing constant is change.
Author unknown
Yes, change is inevitable. That is true ... but I personally believe, that HOW you react to that inevitable change is what is important. It can be your defining factor moving forward.
And if any business industry has seen and had to endure change over the past few years, it's certainly been the real estate industry. Change has been radical and constant.
More change is coming. We have to look no further than April 9th, 2012 to experience that change too. That's the day that upfront costs for FHA Mortgage Insurance will go from 1.0% to 1.75% (on most all scenarios).
Buyers/Borrowers and Real Estate Professionals alike can be upset or complain about this upcoming change, but it won't stop it from happening. Perhaps then a positive outlook ... a "lemon into lemonade" outlook ... is the one we should tackle this change with? What I mean is this ...
Good news can still be found, even taking this upcoming change into consideration. It's not the end of the world. Rates have remained low for a long time and it appears that they will remain low a good while longer.
Now that is NOT to say that we won't see some increase, but rates should remain advantageous. And don't overlook that there IS still time for action prior to this FHA Mortgage Insurance change coming.
A Buyer still has time to find a property, get it under contract, APPLY FOR MORTGAGE through April 8th and avoid the higher fees. That means if you're a Buyer that has already begun the home buying process, this post serves as an "Alert to Action". Get Moving!!
If you're an Agent, you've still got the time and opportunity to communicate with Buyers in your pipeline that are close to taking some action. Let this news serve as a catalyst. All is not lost!
I've put together an illustration (below) of the realities, pros, and cons regarding the upcoming FHA Mortgage Insurance changes coming on April 9th. Utilizing real numbers, I hope to clearly demonstrate what a Buyer's mortgage payment will be PRIOR to the upcoming changes .. and then after them.
| Current | Proposed | Loan Amount = $200,000 |
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| Interest Rate = 3.75% |
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| Current Cost of Upfront Mortgage Insurance * | $2,000.00 | $3,500.00 | Current Monthly Payment for Mortgage Insurance * | $193.58 | $211.98 | Total Payment (Excluding Taxes/Hazard Insurance) | $1,129.07 | $1,154.42 | Change (Increase) in Payments | $25.35 |
| LOSS of Buying Power | $5,500.00 |
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In most cases, a $5,500 reduction in a Buyer's approval price CAN be overcome. And consider this ...
In the scope of things, THIS change ... an increase in FHA Mortgage Insurance costs ... still remains a better option than no FHA-insured loans at all. April 9th will come and go ... and it will not be the end of the world. Working together, we'll overcome it.
* Work with a professional mortgage lender with 35 years of successful lending experience from which to draw upon to benefit you and your finances. Contact me today, so YOU can take advantage of every financing and financial option available to you. I'll be glad to hear from you ... and have the opportunity to earn your business. I can be contacted through any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316
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Financing, Mortgages, Refinance, Announcements and News, First-Time HomeBuyers, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Mortgage Closing Costs, home buying, Right Time to Buy a Home, Clients, Mortgage Costs, Closing Costs, Interest Rates, Pre-Qualification/Pre-Approval, FHA Mortgage Insurance
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Gene Mundt, Mortgage Lender: Posted on Monday, March 05, 2012 5:13 PM
* Food for thought:
According to the 2010 Current Population Survey (conducted annually by
the U.S. Census Bureau), there are about 7.5 million unmarried
opposite-sex couples cohabiting in the United States today, a well as
another 620,000 same-sex couples. The same source reported that married
couples now account for only 48 percent of all households.
 More and more often, especially with young, first-time home buyers, I am assisting unmarried partners with their mortgage financing ... and I'm seeing huge differences in many of their money-handling styles and skills. While I see it in older couples too, the differences often are far more dramatic in the young. It's very clear ... one partner is the saver, the other is the spender. The conversations I have with them certainly reflect that too, as do their credit report(s).
Right now, I am working with a young, unmarried couple hoping to buy their first home and obtain a mortgage. Well, I should say ... SHE is hoping to buy a home. I'm not sure about him. SHE has been the catalyst of each and every call. Every piece of information or documentation I receive to advance their mortgage comes from HER. He has been forthcoming with little. He's also been very non-committal and evasive with answers. I'm a bit unsettled about him, to be truthful.
Now this young couple, may or may not end-up completing their sales transaction. I say their chances are 50-50 at best right now. The outcomes depends on how persuasive SHE can be. And if he quits dragging his feet and finally commits to the process.
It's just my opinion too, but I think this couple has bigger issues that should concern them. Their credit reports read like a life story. While both partners are young,
they are old enough to have already established financial outlooks, habits, and
distinguishable spending personalities. Theirs are vastly different on all counts. Extremes. And because of that, I see all sorts of problems before them long term. Red flags screaming out "Warning!" and "Caution!"
 Should this couple hope to have a long, happy, and successful future together, I'd suggest they have a sit-down and talk about their finances ...soon. Possibly even counseling. I think they need to be honest with each other about their financial histories (something I think she is possibly unaware of ... or doesn't understand the ramifications of) ... and their financial goals and dreams for the future. There should be no surprises ... no secrets kept between them.
They, as well as any couple (married or unmarried), should both know, understand, and then commit to what financial responsibilities lay before them. They should also know just how and what they hope to contribute as they move forward together ... and how and what they hope the other will contribute as well. An indepth, lengthy, honest conversation is warranted.
And as unromantic as it sounds, especially for this couple and other unmarried couples, this conversation needs to cover any future "what-ifs" ... and how those "what-ifs" affect them legally, should they part or die.
Unmarried partners must not assume that the legal options and protections provided them are the same as for married persons. It is my opinion that protections ... legal protections ... need to be arranged and put into place for each in this couple. That is especially so prior to a large financial purchase/commitment, such as this home ... or a car.
Unfortunately, I do not see much financial harmony within MY young home buying couple right now ... or the likelihood of any real indepth communications between them or any attorney occurring in the near future. Time will tell if they can make a "go" of this, or not. I'm hoping they prove me wrong ... and all ends-up well.
But I urge anyone hoping to buy a home with someone else, especially as a non-married partner ... discuss your plans and goals with one another. Then talk to a knowledgeable, experienced real estate attorney prior to making the financial commitment of buying a home or other large financial purchase. Understand and know your options and possible outcomes. Love and protect yourself enough to take these precautions ...
* In need of mortgage and credit advice? Some mortgage and financial planning guidance? Contact me. I'll put my experience and expertise as a mortgage lender and financial planner to work for you. Together will work towards a successful home purchase and find the financial solutions that suit your present financial needs and your future goals. Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316 |
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