Gene's Bit of Blogging
Credit and Financial Counseling
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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, Sr. V.P./ Mortgage Lender - The Federal Savings Bank: Posted on Wednesday, April 18, 2012 2:06 PM
New Changes to Mortgage Rules
and Regulations Don't Have to be
This Summer's "Beanball" and Knock Buyers Out of Their Home Buying Game
 The ever evolving mortgage business requires an expertise and personal commitment by its professionals to provide excellence in service and quality, not to mention results. And part of that commitment includes education and the imparting of knowledge to the public, their clients, and referral partners to industry guidelines and changes to those guidelines.
A recent announcement from HUD, on the processing of those loans intended to be insured with an FHA loan, indicates that further credit tightening is warranted when a Borrower owes more than $1,000 in bills in collection.
In the past, an Underwriter could use discretion and approve such credit scenarios. Now, that is no longer the case ... and that scenario is NOT approvable. Now a Borrower MUST pay-off that debt to qualify, or at minimum, have established a sufficient past history of paying back their creditors on a monthly basis, if not in full. And that includes medical collections, an area where some leniency was also applied in the past.
Now debate may rage about the intelligence or need for this new HUD decision, but the debate changes nothing. The bottom line is: This new ruling is in effect. And that means further education of the home buying public is absolutely necessary regarding it at this time, for it WILL impact Buyers who:
- Have the required minimum Credit Score, but have outstanding, past due collection accounts.
- Do NOT have the funds needed to pay-off debts/collections in their entirety ... but still have the necessary savings for Down Payment and Closing Costs.
The above just points out one more huge reason we in the real estate industry need to educate the public about the home buying and mortgage process better ... and the importance of getting ALL Home Buyers, not just some ... "pre-approved" for their purchase and/or mortgage financing (sooner than later)!
 So Buyers, please take note: This new ruling recently "pitched" at us by HUD does NOT mean your "beaned" and out of your home buying game. It just means this ...
Since HUD is stating that a 3 month payment history, or longer, is needed to approve a scenario with Collections totaling $1,000 or higher ... if you're looking to buy a home in a projected time frame of 6 months from this date, you should absolutely get "pre-approved" NOW!
If you're hoping to become a home buyer, contact me (or your own lender). Take action to stay in the game! Don't hesitate or wait any longer. It's
best to start the "pre-approval" and mortgage financing process
earlier than later. Give yourself, and your mortgage lender, the time to work-out any
credit issues that might be present ... and start collecting the financial
information and documentation needed for mortgage application.
If an agent/broker, pass
this advice on to ALL your potential buyers and everyone else you know so they too can pass it on. Educate as many as possible to these new changes. Save
home buyers, and yourself, the disappointment of starting the home buying and "pre-approval" process "too
late".
As a matter of policy, it is my opinion that it is extremely important that ALL home
buyers talk with a mortgage lender to be "pre-approved". That this should
be established as a priority and absolute necessity.
Home Buyers should know, and respect, the
fact that Agents/Brokers invest much time, effort, and dollars into
their services and those receiving them ... and respect that fact.
These facts together dictate that (in the over-riding cases) ALL Home
Buyers be "pre-approved" prior to their Agent showing them homes.
In the long-run, Buyers are much better served adhering to a "pre-approval" rule.
There are fewer surprises and last-minute issues to see to once actual
mortgage processing begins. The entire process will run more smoothly
and be more enjoyable.
HUD, and other governmental agencies, can "pitch" us new rules and regulations now and in the future ... but it does NOT mean
they have to be "bean balls", knock Buyers out, or keep them from buying a home.
Good, complete
preparation by Home Buyers, their Mortgage Lender, and all their real estate professionals, can mean
these changes are addressed and handled fully to the satisfaction of HUD. Successful home buying and Mortgage Closings can be a result ...
* Get the professional mortgage information and service you need to buy your home, whether in Will County, IL, Chicago, Chicagoland, or across the U.S. in any of the 50 states. Work with a "big league"
mortgage professional that knows and understands how to guide and
assist you through today's challenging mortgage processing and home buying experience. Contact me today! I'll be glad to hear from you and happy to have the opportunity to earn and win your trust and business. I can be contacted through any of the following:
Direct: 815.277.4036 Cell/Text: 708.921.6331
Conveniently at Skype: 630.219.1316
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Buying a Home, Credit Reports/Fico Scores, Mortgage Banker, Mortgages, Real Estate, Working with a Mortgage Professional, Credit and Financial Counseling, Mortgage & Transaction Processing, First-Time HomeBuyers, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Debt, Education, Asking credit and mortgage questions, Home Buyers, home buying, FHA Mortgage Lending, Closing Costs, Pre-Qualification/Pre-Approval, HUD
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Gene Mundt, Mortgage Lender: Posted on Tuesday, February 28, 2012 10:29 PM
How to Best Prepare Your
Credit and Financial Position BEFORE Beginning a Home Search Part 1
I won't lie to you. The bygone era of planning and then starting your home buying search by just looking in a newspaper are long gone. That's true in my Chicago/Chicagoland area ... or anywhere else across the U.S.
 Today, the planning and preparation for buying your home is far more detailed in nature than in the past. Home buyers are called upon to be much more involved in their processing and much more organized with documentation than ever before.
And their planning and preparation for buying their home needs to start long before actually beginning a property search. And yes ... I would suggest even before searching-out a real estate agent.
Much of the preliminary preparation and planning can be done by a potential home buyer on their own before seeking a pre-approval for mortgage financing, if following this guide. I do however, promote finding a knowledgeable, experienced mortgage lender to help you through this preliminary process. Most mortgage lenders will be happy to assist you throughout this period.
 (Note: Should more severe credit issues need to be resolved, I strongly recommend immediately seeking-out the services of a qualified mortgage lender to guide you through the specifics of your credit repair. Do this sooner than later, as the more time allowed for the repair process, the better. Raising credit scores takes time.)
I've now got you convinced to give this preliminary preparation a try, right? Great! So where do you start?
Income
- Compile the last two (2) years of Tax Returns and W-2's or 1099's. (Only the U.S. Returns are needed). Please note: That if any income is derived from a business or self-employed venture, the Corporate Returns will be needed from the most recent 2 years.
- If NOT self-employed, create a file folder to keep ALL paycheck stubs. If paid by direct deposit, please know/learn how to retrieve or request the last 30 days of paycheck history online or from your employer.
- If receiving documentable income from alimony, child support, or other sources ... written confirmation will be requested. Typically a minimum of three (3) months of documentation will be required, as well as proof of the length of time the income will continue (typically 3 years or greater).
Assets/Funds
- Checking/Savings Accounts: Keep ALL bank statements and ALL pages of same. The most recent two (2) months (* 60-days of a transaction history/report) will be required at mortgage application. PLUS, the next statement from the account that the Earnest Money Check was written from will be needed. (If Earnest Money was donated, that money will have to be verified from the donor's account. Same statements apply for the donor).
- * If quarterly Statements, the most recent quarter ended will be required at time of underwriting.
- Stocks/Bonds/Mutual Funds: Two (2) months (or the most recent quarterly statement) of most recent Statements will be needed. Funds to be used for Closing will need to be liquidated (sold) and moved to a verified account to be deemed "available" come Closing.
- Retirement Funds: Proof of statement indicating the name of the Borrower, name of the Fund Holder/Administrator, and the account number/balance. If used at Closing, the terms of the loan or withdrawal, must be attained prior to Underwriting. Funds to be liquidated MUST be tranferred into and documented as "available" in an already verified account.
- Gift Funds: Proof of fund transferred from the Donor to the Borrower(s) must be verified. A GIFT LETTER form is needed. It will be provided by the Loan Officer/Banker, for the Borrower. A specific process must be followed, so please ... consult with YOUR banker.
- Cash/Coins: Unverifiable and NOT Acceptable. Consult with your Loan Officer/Banker well in advance.
Remember, the more of this preliminary documentation you have compiled and ready prior to starting your home buying and mortgage financing venture, the better. It can mean the difference between navigating a smooth loan approval process or rough waters.
Part Two of this blog ... will cover the topics of what CREDIT and DEBT you will required to verify during your upcoming mortgage pre-approval and application. Please watch for the very important Part 2 to this post ...
* Should you be in need of or seeking an experienced, knowledgeable mortgage lender in Chicago, Chicagoland, or elsewhere across the U.S., please contact me. I'll put my 35 years of mortgage expertise and experience to work on your behalf ... prior, during, and after your mortgage process. I can be contacted for information and mortgage service at any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316 eFax: 312.624.6738
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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 Sunday, January 01, 2012 11:52 PM
Announcing the "Comeback Kid" ... PMI! (Private Mortgage Insurance) In the good news department, it appears that the private mortgage insurance companies may be loosening up their guidelines and appear to be regaining a lost share of business that FHA has been enjoying.  Coupled with the higher monthly mortgage insurance costs associated with FHA loans now, and the "availability" of privately issued mortgage insurance, more Conventional loan scenarios are taking hold. Of those options at 5% down, single premium (paid upfront at closing) is emerging from the pack. With the single premium upfront private mortgageinsurance, borrowers pay a lump sum at closing as part of the total costs of their mortgage. This eliminates any monthly private mortgage insurance costs for the borrower, allowing them to qualify for a higher priced home and mortgage. Even better, the Borrower does NOT necessarily have to pay for it themselves. Sellers can pay (if negotiated into the Sales Contract) and Lenders can also pay (usually by virtue of charging a higher interest rate or fees). Even more importantly, the public is slowly learning that they don't need 20% down payment to purchase a home, that options DO exist at 3.5%, 10%, or 15% down. Spread the word!! * Discover your (or your clients') downpayment and/or private mortgage insurance options. Contact menow. Together we will discover the mortgage options most advantageous for your home purchase and financial future. I can be found through any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316 |
Buying a Home, Mortgage Lender, Mortgages, Real Estate Advice, Credit and Financial Counseling, Announcements and News, Real Estate Contracts, Selling Your Home, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Mortgage Closing Costs, Seeking Advice, Home Buyers, home buying, FHA Mortgage Lending, Down Payment, Mortgage Costs, Sellers Assisting with Closing Costs, Private Mortgage Insurance
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