Gene's Bit of Blogging
Credit
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Gene Mundt, Mortgage Lender: Posted on Monday, April 16, 2012 2:51 PM
Coulda ... Woulda... Shoulda! That's What You're Going to Say, if You Don't Buy Now!
Missed Opportunities!
Regrets!
Lost Potential!
Coulda ... Woulda ... Shoulda!
That's what you're going to be hearing yourself say ... if you don't buy a home while the current unique and beneficial housing market's opportunities exist.
Why? How do I know this?? Because I've begun to hear some Coulda ... Woulda ... Shoulda's ... stories related to me. People are telling me they're kicking themselves over lost opportunities.
Reports from many agents and potential home buyers alike, say homes in many areas of Chicago, Chicagoland, Will County (and elsewhere) are moving more quickly once again. (One Example relating this change in the housing market comes from Chicagoland Agents: Read this post from Howard & Susan Meyers, The Hudson Company, regarding the housing market on Chicagoland's North Shore: "The Worm Has Turned".)
Many markets are
healing and seeing rebounding prices. Sellers are receiving multiple
offers for their properties.
Opportunities have been lost by some potential home buyers, leaving these potential home buyers wishing THEY had taken action sooner.
A few of my own clients have said they regret not regaining control over their own finances or taking action to improve their credit prior to talking to me. They wish they had checked their Credit Report sooner and more often. They now know they'd be much further ahead and have more financing options open to them when they buy.
Many have stated they simply wish they had listened and followed their real estate agent's advice better. They mistakenly thought they were going to "low-ball" a bid and steal a home at a ridiculously low price, then ended-up losing out. The "low-ball" philosophy just didn't work.
Still others have been fence sitters. They've delayed making a sales offer too long and lost-out to other buyers capable and willing to make a home buying decision.
 Good news does still exist! Interest rates and housing prices remain low.
But do not doubt this ... time is of the essence. You need to take action.
Take steps NOW to prepare yourself. At minimum, find and team-up with an experienced, professional mortgage lender. Get the home buying ball rolling.
There are no negatives to having your credit report run. Most mortgage lenders will do it for free. I do. And whether you buy a home soon or down the road ... you win. You save money on all sorts of services because you've improved your credit scores. Insurance. Cell phone service. Credit cards ... you name it. The better your credit, the less you pay, the more money you save.
Avoid the Coulda ...
Dodge the Woulda ...
Protect yourself from the Shoulda ...
* Discover what home buying and financing options exist for you, whether in Will County, IL, Chicagoland, or any of the 50 states. Contact me today! We'll work together to get you on the right path to homeownership ... now ... or for the future.
I can be contacted through any of the following:
Direct: 815.277.4036 Cell/Text: 708.921.6331 Conveniently thru Skype: 630.219.1316
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Credit, Credit Repair, Buying a Home, Credit Reports/Fico Scores, Importance of Credit, Mortgage Lender, Mortgages, Real Estate, Working with a Mortgage Professional, Chicagoland, Will County, Agents and Brokers, First-Time HomeBuyers, Chicago, Asking credit and mortgage questions, Home Buyers, home buying, Right Time to Buy a Home, Home Ownership, Los Angeles CA agents and realtors, Los Angeles Home Buying, Winnetka and North Shore, Interest Rates, Pre-Qualification/Pre-Approval
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Gene Mundt, Mortgage Lender: Posted on Thursday, March 01, 2012 6:10 PM
How to Best Prepare Your
Credit and Financial Position BEFORE Beginning a Home Search Part 2
 Yesterday, I wrote Part 1 to this post. In that portion of this blog, I covered WHY it's important to Plan and Prepare for your home buying/mortgage financing well in advance to actually seeking your mortgage pre-approval or home search.
I also explained and listed what credit/debt, financial documents, and information you will need to gather and then supply to me/your lender when you reach that stage of seeking your mortgage pre-approval.
In this, Part 2 of my continuing blog, I reiterate the importance of adhering to the guidelines provided, especially if you're a first-time home buyer, never having been through the home buying/mortgage financing process before.
Following this pro-active guideline WILL improve anyone's home buying and mortgage financing experience ... streamlining it and enhancing the likelihood of your receiving better interest rates (saving money), more and better mortgage options to choose from, and a less-stressful/more successful mortgage processing.
So after collecting those things listed in Part 1 of this post, what's next?
Credit
- Always Remember: Call/Contact your Mortgage Lender, if you need ANY advice. If considering a purchase in the next 90 days, or in the next year (if you have credit issues especially,) contact me/your mortgage lender for a FREE tri-merge credit report. Find out just what/where you stand credit-wise, then take action!
- Manage your credit cards, making sure ALL balances are kept BELOW the maximum credit available (at worst), and below 10% of the limit (ideally).
- Know the ABC's of your TOTAL debt, from the following criteria:
 - Mortgages (Know the name and address of the Lender, Amount Still Owed, and Your Monthly Payment Amount)
- Home Equity Lines (Again, Know the name and address of the Lender(s), Amount(s) Still Owed, and Your Monthly Payment Amount(s).
- Student Loans (Again, Know the name and address of the Lender(s), Amount(s) Still Owed, and Your Monthly Payment Amount(s).
- Auto Loans (And finally, the same as above. Name, Address(es), Amounts Owed, and Monthly Payments)
- Installment Loans (Meaning: Boat financing, Recreation Vehicles, Motorcycles, Secured Loans, etc.)
- Credit Cards of ALL Types (Know who holds/offers the Card, Account Number(s), What is the Outstanding Balance on Each, and the Minimum Monthly Payment of Each)
Attending to the above IN ADVANCE of entering the mortgage pre-approval process or home search, negotiating a Real Estate Contract, and getting your loan documents together ... not to mention the home inspection process, finding a Real Estate attorney, and shopping for the Homeowners Insurance ... can make your life much easier and eliminate many of the stresses of home buying and financing.
Following these guidelines, can also be the difference between a smooth mortgage approval process ... and failure to be approved for the loan you need.
Invest in yourself and your future. Spend the time needed to get organized. Give yourself the time needed to polish-up those credit scores to the best they can be. Be prepared!
Successfully do the things I suggest above and in Part 1 of this blog ... and you can thank me when we talk about the financing for that new home you're dreaming of ...
* Contact me with your credit and mortgage financing questions and needs. Whether in Chicago, Chicagoland, or across any of the 50 states, I can help. With 35 years of mortgage experience and expertise, I can answer your questions, and assist and guide you successfully throughout your credit enhancement and mortgage process ... and into becoming a new home buyer. I can be contacted through any of the following means: Direct: 815.277.4036 Cell/Text: 708.921.6331
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Credit, Credit Repair, Buying a Home, Credit Reports/Fico Scores, Mortgage Lender, Mortgages, Mortgage & Transaction Processing, First-Time HomeBuyers, Choosing a Mortgage Lender, Debt, Asking credit and mortgage questions, Seeking Advice, Home Buyers, home buying, Pre-Qualification/Pre-Approval
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Gene Mundt, Sr. Vice President - The Federal Savings Bank: Posted on Saturday, February 25, 2012 9:51 AM
Considering Helping Your Child
Buy a Home? What Parents and/or Co-Signors Need to Know
 Within the current housing market, there is great opportunity to be found, especially if you're a first-time home buyer. Home prices are down ... lower than they have been for almost an entire decade. And Interest Rates?? The cost of borrowing, in regards to Interest Rates, is at historic lows ... truly a gift, should you be able to take advantage of them.
With all the positive opportunities that exist, many buyers, along with their families, are looking for ways to take advantage of these current positives by buying properties with the assistance of Co-Buyers/Co-Signors. Most considering this path to home ownership are parents and/or relatives.
As a mortgage lender, it is not uncommon for me to receive questions regarding this method of home buying. "Co-Signing" is happening more and more often. In mortgage terms, this method of buying/borrowing is called being a "Co-Mortgagor" ... a fancy term for "another borrower".
This practice is typically utilized when the "non-occupying" Co-Borrower (let's just say a parent) is the stronger applicant on a mortgage ... and his/her income, credit, and assets make for an approvable loan when the "main borrower/buyer" is not able to qualify for a mortgage on their own. Put another way, the child in this scenario is buying their first home, often has adequate credit ... but lacks the job history or income to qualify on their own.
Considering the (child's) parent's income and credit and debt, makes the loan approvable because the parents' "vitals" help the numbers ... meaning the debt-to-income ratios ... needed to reach the approval level. With FHA, the down payment requirement is only 3.5%, and the Borrower (who MUSToccupy the purchase residence) gets as good of Interest Rate as if they had borrowered on the mortgage alone.
Obviously this is great for the son/daughter, but what about the "Co-Signor, Co-Mortgagor, Parent" involved? The fact is, they will share the same debt and note responsibility as the main applicant. That debt/responsibility will appear on their credit report as their mortgage obligation. If the child misses a payment, the parents (Co-Signors/Co-Mortgagors) credit report will show as having a late payment. A very valid reason for all parties involved to give this great consideration prior to agreeing to start the mortgage process.
 Consider this tho ... Co-Signors/Co-Mortgagors (in my most recent Co-Signor/Co-Mortgagor case) were considering buying a home on their child's behalf, because they didn't think the child could qualify on their own. These parents were fully-prepared to put forward a 20-25% down payment, purchase the home in their own names, and then move the child in as a tenant. The ability to become Co-Signors/Co-Mortgagors changed the financial scenario they received significantly for them and their child.
How did it change? What are the differences to be found within the two methods of home buying?
The biggest difference is in how the bank perceived their upcoming ownership. Parents that just buy a property outright and rent it to their child are considered investors by the bank lending money. Investors pay higher interest rates to borrow money (typically a minimum of 3/4%) ... and/or their Closing Costs rise several thousand dollars. Why? Because the bank considers this type of loan a higher RISK because of the "occupancy" status of the property.
Now you know a bit about the ins-and-outs of Co-Signing/Co-Mortgaging. But if you're a parent, or someone considering Co-Signing/Co-Mortgaging, you're going to need to know ... where and how do you start the process? What financial documentation will be expected from you? What funds will be subject to verification?
Much of the process of mortgage financing will be the same for Co-Signors/Co-Mortgagors as for the actual resident(s) of the property. A handy list of those financial documents needed for mortgage application can be found via my website, by clicking ... "HERE".
What is probably the most common concern or question I hear from Co-Signors/Co-Mortgagors (parents), is ... "How has the mortgage process changed since I last participated in it"?
There is no denying the truth. For a great many parents the mortgage process will be unrecognizable from their own prior financing experiences. And admittedly, the requests for documentation and verification will seem a bit overwhelming.
But documentation and verification is what is required to move the modern mortgage process along to successful completion. Underwriters and end-lenders will not be deterred from it. Co-Signors/Co-Mortgagors must be prepared to have monies/accounts/downpayments verified, along with their employment, credit/debt, and more, just as their child will.
Now, more than ever, the mortgage process itself is specific to those borrowers taking part in it ... so individual and personalized instructions regarding your financial scenario will be provided by your mortgage lender. Listen. Learn. Comply.
If you do so, those requests are completed in a timely fashion, and the lender's instructions are followed, Co-Signors/Co-Mortgagors can help their child successfully establish credit, obtain historically low interest rates, and buy a home at very friendly housing prices.
Should this be a financial step you are considering within your own family ... contact me, or your own mortgage professional, to obtain information specific to your needs.
Becoming a Co-Signor/Co-Mortgagor for your child could be the gift that sets them down the path to a healthy financial future.
* For personalized mortgage information and service regarding your family's Co-Signor/Co-Mortgagor options in Chicago, Chicagoland, or across the nation, please contact me. I will put my 35 years of mortgage experience and expertise to work on your family's behalf. 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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Credit, Buying a Home, Credit Reports/Fico Scores, Mortgages, Chicagoland, DuPage County, Will County, First-Time HomeBuyers, Families, Debt, Mortgage Closing Costs, Asking credit and mortgage questions, Home Buyers, Children, home buying, Right Time to Buy a Home, FHA Mortgage Lending, Down Payment, Mortgage Costs, Closing Costs, Interest Rates, Pre-Qualification/Pre-Approval, Baby Boomers, Co-Signing Mortgages, Parents/Relatives Assisting with Down Payment/Home Buying
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Gene Mundt, Mortgage Lender - The Federal Savings Bank: Posted on Wednesday, February 22, 2012 3:49 PM
"Connecting the Mortgage Dots in Today's
Real Estate Market"
Carra Riley, Cosmic Cow Pie, and
Gene Mundt, Mortgage Lender Answer
YOUR Mortgage/Credit Questions
Looking for answers to your mortgage/credit questions?
Together, Carra and I will be discussing and answering mortgage questions, such as:
As someone with 35 years of mortgage experience, an
in-depth, multi-decades background as a licensed real estate appraiser, and as
a Certified Financial Planner, I have the extensive knowledge and expertise
needed to answer the questions you have ... and also provide the services you
need in Chicagoland and across the entire U.S.
 It's easy to take part in this Cosmic Cow Pie session. Just dial (347) 994.1903 and ask us your
questions! If you can't join us during
the live blogtalkradio program, you can listen to a replay of this program at
any time. Just go to Carra Riley's
Cosmic Cow Pie blogtalkradio site and "click" to listen at your
convenience.
I can always answer your mortgage and credit questions at a
more convenient time for you through any of the following means: Direct: 815.277.4036 Cell/Text:
708.921.6331 Skype: 630.219.1316
See you then!
For more Cosmic Cow Pie and Carra Riley's insights ...
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Credit, Credit Repair, Buying a Home, Credit Reports/Fico Scores, Mortgages, Refinance, Working with a Mortgage Professional, Appraisals, Condos and Townhomes, Announcements and News, Gene Mundt's Client Services, First-Time HomeBuyers, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Asset-Based Lending Program, Mortgage Closing Costs, home buying, Right Time to Buy a Home, Investors and Investments, HARP 2.0, FHA Approval for Mortgage Lending, FHA Mortgage Lending, Down Payment, Mortgage Costs, Closing Costs, Interest Rates, The Federal Savings Bank
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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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