Gene's Bit of Blogging
Credit Counseling
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Monday, January 09, 2012 6:19 PM
HARP 2.0 Update ... from Fannie Mae
There's a bit more insight and information out on the HARP 2.0 update, at least from Fannie Mae's perspective ...
 Beginning Monday, March 19th (2012), Fannie Mae will unveil their new software (more forgiving), and then folks ... stand back! There's going to be a flood of calls, emails, inquiries to be shared!
Best I can tell, the new guidelines for approval will be relaxed or expanded in comparison to the old, meaning more Borrowers/Homeowners will qualify for Refinances than before.
But ...a few details still remain to be addressed. Nothing has been presented to us (mortgage lenders) in concrete and in its' entirety yet. So before the new items and guidelines are implemented ... I remain optimistic, but cautious at this time.
It appears that the best change will be related to a greater "disregard" for property values, or in our industry's vocabulary, LOAN-TO-VALUE, or LTV.
In other words, "current market values" may not be the deal-killer that they are presently. Again, it appears that as long as the Borrowers/Homeowners can qualify on CREDIT, INCOME, EMPLOYMENT, and SATISFACTORY MORTGAGE PAYMENT HISTORY ... they may get the RATE RELIEF and PAYMENT RELIEF that will help them stay in their homes.
Others will simply enjoy a monthly savings, that may help them better position themselves to save and then buy again later down the road, should they wish. That, and keeping more homes from entering the housing supply and further adding to the supply of Foreclosures and Short-Sales, is how everyone "wins" ... including Realtors, Homeowners (Sellers AND Buyers), and the economy in general.
Stay tuned, as there will probably be more updates between now and implementation of HARP 2.0. Good thing because March is only 2 months away!
* Should you have questionsregarding HARP 2.0, credit, credit repair, mortgages and refinancing ... or be in need of mortgage service, please do not hesitate to contact me. I will be happy to put my 35 years of mortgage and real estate experience and expertise to work on your behalf. I can be contacted through any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316 |
Credit, Credit Repair, Financing, Importance of Credit, Mortgage Banker, Mortgages, Working with a Mortgage Professional, Credit and Financial Counseling, Announcements and News, Mortgage Crisis, Debt, Credit Counseling, Homeowner Affordability and Stability Plan Update, 2011, HARP 2.0, Fannie Mae/Freddie Mac
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Friday, December 23, 2011 3:02 PM
The New Year is Upon Us.
Make '2012' the Year of YOU!
The headline reads ...
Average rate on 30-year fixed mortgage falls to record 3.91 pct., 15-year flat at 3.21 pct.
And yes ... this
means if you're one of those that have earned good credit scores, you could
receive this record low interest rate for your mortgage.
Remarkable, isn't
it?? And to just prove how very
remarkable it is ... I tell you, I've been in the mortgage business for 35
years and when I started out back in the mid-1970's, the average mortgage rate
was in the 6% range. Again I say,
remarkable!
But this post
isn't really meant for those that have good credit scores. (Although I hope you read it and take action
to contact me too!) No, it's message is
meant especially for those that DO NOT have stellar credit or credit scores ...
Why? Because perhaps even MORE remarkable than
this much-broadcasted historical low rate ... is the prediction by many top
financial analysts that these rates (or something close to them) are projected
to last well into the New Year of 2012.
And THAT means that even those without good credit scores presentlymayhave time to improve their scores and still take advantage of good rates in the
near future.
I call THAT
extremely remarkable too! Perhaps even
more so.
So here are my
questions for you: Does that sound like
YOU??? And if it does describe your
present credit scores ... and you hope to buy a home someday ... what are you
going to do about it?? Are you going to
remain on the sidelines and let this unbelievably good opportunity slip through
your fingers??
The New Year is
upon us. Does YOUR New Year resolution
for 2012 include improving your credit habits and credit scores? Does your resolution include the possibility
of a new home? Home OWNERSHIP to fulfill
your dreams?? If so, NOW is the time to
act.
 As the old saying goes, "A
journey of a thousand miles begins with a single step". Improving your credit is a journey. Take that
single step by contacting me now ... or your mortgage lender ... to get started
on your personal journey to credit improvement or repair for 2012.
And I say that whether your future holds the
wish for a new apartment, home ownership, or just better opportunities for
employment, better insurance rates, improved cell phone costs, or any of a
hundred different ways your life can improve with better credit scores.
Whenyou can save
money ...Whenyou can improve your life ... When you can make life easier for
yourself by taking this important step ...
When you can fulfill your dreams ... WHY wouldn't you? WHY aren't you??
Make 2012 the
year you ACT. Reach out to me however is
most easy or convenient for you and get started. Credit improvement does take time to
accomplish. And although they say these
fantastic interest rates are going to hang around awhile, that amount of time
may be needed to make the improvements required.
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Credit, Credit Repair, Buying a Home, Credit Reports/Fico Scores, Financing, Importance of Credit, Mortgage Banker, Mortgage Lender, Mortgages, Real Estate Advice, Working with a Mortgage Professional, Credit and Financial Counseling, Gene Mundt's Client Services, First-Time HomeBuyers, Buying or Renting, Obtaining Mortgage Quotes, Pre-Approvals, & Info, New Leaf credit-improvement program, Debt, Asking credit and mortgage questions, Credit Counseling, Helpful Hints, Home Buyers, home buying, Right Time to Buy a Home, Home Ownership
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Friday, December 02, 2011 2:01 PM
The Relationship Between Your
Credit Scores and Your Mortgage ... More Than "Kissin' Cousins"
Recently I was reviewing a credit report with a prospective homebuyer. After going over a few different pieces of information together, we began to talk about differing mortgage programs available to him for his home purchase.
It's fair to say, that this young man's credit scores were ... well, shall I say, "challenged"? They were close to getting his foot TO the door of a new home, but not quite THROUGH that door. He had some work to do.
But it quickly became quite clear that my young client was not grasping just how his credit scores would be utilized and the very important part they would play in determining ... not only IF he could buy a home ... but WHICH mortgage programs, if any, would be available to him for his home purchase.
His comment to me was, "so if my middle credit score is lower than the guidelines allow, why can't you just use the highest score of the three?" Aaahhhhh ... if it were only that easy!
So for those reading this post and hoping to become a home buyer soon or in the future ... here are some basic, but important facts that you need to know regarding your credit scores and their relationship with mortgage programs ...
There are 3 credit bureaus:
The information found within your credit report(s) determines your FICO Score (an ancronym standing for Fair, Isaac and Company). Your FICO Score can range anywhere from 300 to 850. The higher the score, the better your credit is considered. The higher your credit scores, the more mortgage financing options you have. The higher the credit scores, the lower the interest rates you receive for your mortgage financing.
See what I mean about credit scores and mortgage programs being "Kissin' Cousins"?
When I am determining which mortgage programs are available to my borrower, it is the middle credit score (between highest and lowest score) that is key. It is their middle credit score that determines (allows or dis-allows) the use of any particular mortgage program. And again, the higher that middle credit score is, the more mortgage options available and the better the interest rate for their mortgage financing.
My young buyer learned quickly that his lower credit scores were going to be an obstacle to buying the home he wanted ... in the time frame he had hoped for. The good news is that I was able to suggest a few courses of action that will boost the two lower credit scores up above required lending guidelines in a fairly timely manner. And my buyer is lucky enough to be negotiating a sale with a patient builder that is willing to allot him more time in which to build his credit scores. All good news.
But what if this hadn't been the case? The "Kissin' Cousins" weren't able to smooch? There would have been no deal!
Knowing your credit scores is important. Whether buying a home or not. It's SO VERY EASY to obtain your credit scores ... and inexpensive to do so. And for potential home buyers it's absolutely essential to get educated about credit scores well in advance of starting the home search. I would suggest that anyone hoping to buy a home, run/research their scores (at minimum), ONE YEAR PRIOR to the date they hope to purchase a home.
I run FREE credit reports for anyone looking to pre-qualify for a mortgage loan with me. I also run FREEcredit reports for my past clients, as part of my continuing mortgage service. Many other lenders do likewise. Why would anyone not take advantage of this FREE, important, and extremely beneficial service??
The relationship between your credit scores and your mortgage is a very close and important one. The relationship between your credit scores and the cost and availability of so many important services and products in today's world are ... yes ... more than "Kissin' Cousins".
Take charge of your credit scores today! Cozy up to them and get to know them better. Kiss and smooch them for all their worth. And contact me to get yourself started ...
Skype: 630.219.1316
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Credit, Credit Repair, Buying a Home, Credit Reports/Fico Scores, Financing, Mortgage Banker, Mortgage Lender, Mortgages, Real Estate, Real Estate Advice, Credit and Financial Counseling, Education, Seeking Advice, Credit Counseling, Home Buyers, home buying
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Jane Peters, Los Angeles Real Estate - Guest Blogger: Posted on Wednesday, November 09, 2011 11:34 AM
If You Are Thinking of Buying a Los Angeles Home, Rein in your Holiday Spending
As a mortgage lender, I cannot applaud the message in this blog by Jane Peters (Los Angeles Real Estate)loudly enough or counsel you to heed it any more urgently ... whether buying in Jane's area of expertise, Los Angeles ... or or in mine, the Chicagoland area.
Especially heading into the holiday season,
the temptation to buy or open up new credit can be great. For those
buying a home, contemplating doing so, or those just recently closed
on their loan ... adding to your debt, opening new lines of credit, or
even simple credit inquiries can prove catastrophic and lethal to your
transaction.
Heed the advice that Jane Peters offers within her post.
Listen to your mortgage lender too. Put your purchases and new credit
applications on the back burner and out of your mind until you have
achieved the goal you are seeking ... that being your new home at the
best purchase price and interest rate possible.
Working with professionals that will
advise you prior to, throughout, and after your home buying transaction
is vitally important. In Los Angeles, that professional is Jane Peters, Los Angeles Real Estate ... Gene
You are excited about buying a Los Angeles home and have been very good about keep your credit immaculate. However the holiday season looms putting your hard work in jeopardy.
Your
shopping list sits in front of you beckoning. You are probably not
going to pay cash for all those gifts, or write a check.
 You may open
store credit, apply for a new credit card, or simply jack up your
balance on your existing credit card. Too many enquiries on your credit
in a short period of time is going to cause your credit score to drop.
Simple opening a new line of credit can cause your score to drop by 52
points and raising your credit card debt can also decrease your score by
around 68.
This drop in score can cause a potential homebuyer to miss out on getting the best mortgage rate. If you are thinking of buying a Los Angeles home, The Mortgage Reports advises
caution, especially during the holiday season.
Don't open any new
lines of credit, finance any expensive purchases, increase your credit
limit, or make any other rash financial moves.
Buying or Selling Los Angeles Real Estate:
Buying or selling a Los Angeles home can
be a daunting process in a city this size, especially if you're new to
L.A. Town. You'll need a resident expert to show you around and help you
narrow down the areas where you might like to live. I will help you
find the perfect home in the right area to fit your lifestyle, budget
and needs!
When I list and sell Los Angeles homes for
my clients I strive to make the experience a pleasant one. My mission
is to provide outstanding service while utilizing the best practices and
systems available.
If
you are an absentee owner, you'll need someone to handle all the
details that you can't handle remotely. That's where I come in - I'm
there when you can't be. I also specialize in lease property in Los Angeles.
For more information on how I can best serve your Los Angeles real estate needs, don't hesitate to fill out the contact form or give me a call at 310-473-6919.
 Jane Peters, connecting you to the L.A. real estate scene.
Buying or selling real estate in Los Angeles can be an overwhelming process.
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Credit, Buying a Home, Credit Reports/Fico Scores, Real Estate, Real Estate Advice, Localism Posts, Home Services, Selling Your Home, First-Time HomeBuyers, Buying or Renting, Debt, Mortgage Closing Costs, Education, Rental Properties, Credit Counseling, Real Estate Professionals, home buying, Home Ownership, Los Angeles CA agents and realtors, Los Angeles Home Buying, Los Angeles rental properties
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Monday, October 10, 2011 5:33 PM
During the process of mortgage pre-qualification, many questions get asked. Among those questions are those pertaining to the applicant's credit and credit scores. This isn't surprising at all, given the enormous importance credit plays in mortgage lending.
 What is surprising to me though, is NOT the number of those applicants that don't know their credit scores. Nope. It's the sheer number of those people that think they DO ... and then are totally wrong. It turns out they truly have no clue just how "financially fit" they are.
Now I'm not talking people that are trying to misrepresent the reality of their credit scores. That happens, although I don't understand why someone would try this. I'm obviously going to find out the truth when their credit report is run.
No, I'm talking those that honestly do not know. And being in the dark about credit and credit scores? It's just not financially healthy.
Credit, and credit scores, are written about and talked about often and in great detail everywhere ... and there's a good reason for that. Now more than ever, your credit scores play such a huge part in what you are charged when buying items. Or whether you get those things you want or need to live or work.
Credit scores can be the bottom-line determinate as to whether landlords will rent to you. Whether you will get a utility company to turn service on in your home, apartment, or business when you apply for it. Whether you can get a cell phone provider to put you under contract for cell service. In today's world, all very important things.
Nowdays, you must carry car insurance to drive. What you pay for that auto insurance will be dictated by your credit scores. Other insurance premiums will be affected, as well. Those credit cards with the low low interest rates that you see advertised all the time? You won't be eligible for them, if your credit scores are too low.
Credit scores can't just matter to you when you're hoping to buy a home ...
Everything related above is why it's so important for you to get aware ... and stay aware ... of your credit scores and credit standing. You have to pay attention on an ongoing basis.
 Look at it this way ...
Your financial health needs must be addressed much like your physical health needs do. You need a yearly financial check-up, just like you do with your physical check-ups ... only your financial check-up is the act of running your credit report at least once per year.
Again, you don't become financially "fit" just when you're hoping to buy a home. Being knowledgeable about your credit and your financial health should be a lifelong and ongoing regimen. So get knowledgeable about your
financial fitness. Find out your credit scores and then stay
educated about maintaining and improving them.
* Have credit questions or needs? Want to know your credit scores? Get on track to buy a home? Improve or repair your credit and finances? Contact me now. With over 35 years of credit and mortgage experience and expertise ... and my "New Leaf" credit improvement program, I can help you accomplish your goals.
Direct: 815.277.4036 Cell/Text: 708.921.6331
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Credit, Credit Repair, Buying a Home, Credit Reports/Fico Scores, Importance of Credit, Credit and Financial Counseling, Money-saving Strategies, Savings Advice, New Leaf credit-improvement program, Debt, Education, Seeking Advice, Credit Counseling, home buying
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