Gene's Bit of Blogging
Communication
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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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Credit Repair, Buying a Home, Credit Reports/Fico Scores, Financing, Mortgage Lender, Mortgages, Working with a Mortgage Professional, Credit and Financial Counseling, Announcements and News, Gene Mundt's Client Services, First-Time HomeBuyers, Money-saving Strategies, Savings Advice, Communication, Asking credit and mortgage questions, home buying, Right Time to Buy a Home, Home Ownership, Clients, Interest Rates, Cost of Living and Bills
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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, Sr. Vice President - Chicago Bancorp: Posted on Thursday, February 02, 2012 1:12 PM
Answering Mortgage and Credit-Related Questions and Connecting the Dots ... How Can I Help??
Sometimes I wonder ...
Am I really getting through to my clients? My referral partners?
Now I know there are ways to measure some of that. Analytics are available and increasingly detailed for your website, social media, and more.
 But I still sometimes wonder ... am I providing the information or answers to questions that are really on the minds of those finding and engaging me?
I remember having some heart-to-hearts with my kids when they were young. Giving them a fairly thorough explanation on some topic ... only to find out afterwards that I had just given them a bunch of info they really could have cared less about.
What they'd REALLY wanted to know was ..... (fill in the blanks). I in my zeal to help them or explain something had totally misinterpreted what they really were asking me. Or I had assumed I knew what they wanted to know ... or should know. Confused it or saw it through my own agenda.
I do believe the information I typically provide my clients or referral partners is very worthwhile and has value. It IS information they should have at some point in the process.
But I also think that it can sometimes have holes within it. Or miss the mark, if it's not thee information they want, need, seek, or are ready to digest at the time. I can still be leaving many dots unconnected for them.
Obviously implementing better and more thoughtful listening skills all the time improves this issue. But I also realize that nothing solves it like simply taking the time to ASK ... "What it is YOU want or need to know"? "What questions do you have"? Or ... Simply ASKING ... "Did I answer the questions you have or provide you the information you seek"?
I'm thinking I should provide some real opportunity. Give YOU that chance now.
So ... Put your "Thinking Caps" on!
What questions do YOU have regarding mortgage lending, mortgage processing, credit, appraisals, securing loan approvals, or more ...that you'd like answers to ... or informationon ... that haven't been addressed?? What dots haven't been connected for you? Here or elsewhere ...
Simply ... How can I assist you and answer your questions better?
I'll be taking the questions asked ... and the topics raised ... and addressing them in upcoming posts. Should you have need for a more timely or personal response ... I will contact you directly.
This will prove very educational and insightful for me ... so I thank you ahead of time for your participation and your questions. I hope it proves educational and beneficial for all that participate, as well ...
* Should you have more direct mortgage and credit needsor questions, please contact me at any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316
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Credit, Buying a Home, Credit Reports/Fico Scores, Mortgages, Real Estate Advice, Gene Mundt's Client Services, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Communication, Asking credit and mortgage questions, Education Opportunities, home buying
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Thursday, January 19, 2012 3:23 PM
Mortgage Terminology ... Definitions to Help You Better Navigate
Your Home Buying and Mortgage Transaction
Words ...
That's all clients hear, if they don't understand the meaning of the words being used or thrown at them. And that leads to frustration, lack of action, confusion, and loss of interest ... something totally and completely maddening, plus a waste of time, should you be the potential client.
They MAY be hearing ya, but you're not getting through!
As a mortgage lender, I must keep in mind the fact that my clients (and referral partners) don't deal in the terminology of mortgages each and every second like I do. The abbreviations and industry-wide knicknames that I know so well, may be completely unfamiliar to those outside of the mortgage world.
So two things become glaringly obvious to me when dealing with the topic of mortgage words and terminology ...
We mortgage lenders must take care, slow down, and make efforts to speak in terms, and explain with words that clients can easily understand and remember ... and then do likewise when giving instructions or asking them to take action regarding their transaction.
And we must also take the time to educate, when necessary. Provide the definition of some of the terminology, abbreviations, and words that our clients (and referral partners) may be hearing during the course of their transaction, but not understand.
I make a Glossary of Financial Terms available on my personal website, www.genemundt.com. That way, any client (or website visitor) that is unsure of a word or term they are hearing or reading, can easily refer to my website glossary and find a clear, concise definition that helps them understand and better navigate their home buying and mortgage transaction. This feature has been a "hit" with my clients and many have thanked me for including my glossary on my website.
The words and terminologies that I see causing the most inquiries and confusion are:
- Annual Percentage Rate ... Referred to as APR: - An interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs.
- Gross Monthly Income: - The total amount the borrower earns per month, before any expenses are deducted.
- Loan-to-Value Ratio: - The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. (A VERY timely and important definition in the current market!)
- Origination Fee: - The fee charged by a mortgage lender to prepare loan documents, make credit checks, inspect and sometimes appraise a property; usually computed as a percentage of face value of the loan.
- Power of Attorney: - A legal document authorizing one person to act on behalf of another.
- Private Mortgage Insurance ... Referred to as PMI: - In the event that you do not have a 20% down payment, mortgage lenders will allow a smaller down payment. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance ... insurance that would offset losses by the lender should the borrower not be able to repay the loan.
- REO (Real Estate Owned): - Property which is in the possession of a mortgage lender as a result of foreclosure or forfeiture.
- Short Sale: - A Short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves heft fees for the bank and poorer credit report ourcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency. Each case is decided individually in that regards.
- Truth in Lending Act: - A Federal law that requires financial institutions to disclose specific information about the terms and cost of credit, including the financing charge and the annual percentage rate (APR ... see above).
- Underwriting: - The decision whether to make a loan to a potential home buyer based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan amount.
Many more financial, mortgage, and legal terms are available on my website at: Knowing and fully understanding the words, the requests, the financial documents needed, the costs and charges, the actions taking place within your home buying and mortgage transaction is so very important. Having a handy glossary to refer to and assist you in achieving that understanding can help tremendously.
Obtaining a mortgage today is
serious financial business ... and a task that has become increasingly
difficult to understand and conduct over the last few years. There is no denying that.
So, finding and working with a mortgage lender that will take the time, make the effort, to assist you with the details ... educate ... guide ... listen ... explain everything thoroughly ... has never been more important than now.
But ... that being said.
Should you, as a client or referral partner, still not understand
something being told to you or explained to you ... STOP YOUR LENDER IMMEDIATELY. Do not proceed until you get the answers you need and you feel comfortable resuming the course of the transaction or Closing.
Words. Don't let that be all you hear ...
* Work with a lender that has 35 years of experience and expertise ... all aimed at educating, guiding, assisting, and benefiting you. Contact me today ... and together, we'll get started on your successful home buying and mortgage transaction.
I can be contacted at any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316
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Buying a Home, Mortgage Lender, Mortgages, Real Estate Advice, First-Time HomeBuyers, Communication, Education, Seeking Advice, Helpful Hints, Home Buyers, Professional Service, home buying, Clients, Financial Glossary and Terminology
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Sunday, January 15, 2012 2:54 PM
I can't tell you how many times, as a mortgage lender, I hear rumors or misconceptions expressed to me regarding the mortgage process. So much of my time is focused on promoting the "un-learning" of what a client thinks they know as they enter the act of obtaining mortgage financing. So much time is used addressing frustrations with the process itself.  No one needs to think too hard or long as to WHY there are so many misconceptions or frustrations. If the process of mortgage financing was viewed as a "game" of some sort ... you'd definitely have needed a scorecard and notepad to have kept up with all the changes made in the "game" during the last few years. It's been mind-boggling, for sure. Last Sunday's Broncos vs Steelers game seems to have brought-up many of the same emotional issues I hear people address within the current mortgage process. It certainly highlighted alot of attention on the rules of football itself. How rules, playing by them, or ignoring them, can affect the outcome of a game. It made me think that by using an analogy of mortgage financing as a "game", I could perhaps make it easier for clients to understand the mortgage process. That I could address some of the most frequent misconceptions and rumors I hear from home buyers (and those refinancing) in a context that would be more easily followed and understood. Maybe I could utilize the analogy to explain and clarify the misconceptions that typically surround credit, and use of credit scores ... and the act of complying to underwriters' requests for information? So, I'm going to give it a try ... The first "rule" of the "game" of mortgage financing concerns how your credit scores are utilized in the decision of WHICH financing options and programs are available to you and WHAT interest rates you'll reap through those programs. Pretty much everyone I talk to knows that there are 3 major credit reporting bureaus and those are Experian, Trans-Union, and Equifax. But what many clients do not understand is that the "rules" of the mortgage financing "game" stipulate that: A mortgage lender must use the middle score rating from those three bureaus as the "qualifying" credit score ... and it is THAT credit score that really counts most heavily moving forward. You do not add-up the credit scores and then divide the score total by 3. The second misconception most often rests upon compliance during the mortgage pre-qualification and mortgage processing itself. And this for me, is where the analogy of mortgage financing and processing most closely imitates a "game". Admittedly, the "game" rules may seem a bit nonsensical at times. And also they may seem a bit strict and rigid. But the underwriters, Lenders, and government regulators have written the "game" rules as they now stand. The "rules" are written in stone and not up for discussion. And both "player" and "coach" must adhere to the rules in the "playbook" and "game" ... should they hope to avoid forfeiture ... or hope to be successful. Want to "win" your personal "game" of home buying or refinancing? Know, Follow, and Play by the rules. Work with an experienced "coach" (mortgage lender) that knows the rules well. Work with your "coach" to draw-up and execute a successful and winning "game" that will follow the rules quickly and efficiently. Be capable to "play" and execute your game. Certainly by viewing the home buying and mortgage experience through this "game" analogy, it becomes much easier for most to understand and navigate the homebuying and mortgage processes. And maybe a bit less frustrating ... * Should you be in need of an experienced mortgage "coach" to assist you during your home buying or refinancing ... contact me. The experience and expertise I have gained during my 35 years within the mortgage business will assist you towards a successful mortgage completion. I can be contacted through any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316 |
Credit, Buying a Home, Credit Reports/Fico Scores, Financing, Importance of Credit, Mortgage Lender, Mortgages, Refinance, First-Time HomeBuyers, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Communication, Mortgage Closing Costs, Asking credit and mortgage questions, Home Buyers, home buying, Mortgage Costs, Interest Rates, Pre-Qualification/Pre-Approval
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