Gene's Bit of Blogging
Pre-Qualification/Pre-Approval
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Gene Mundt, Mortgage Lender: Posted on Friday, May 04, 2012 10:50 AM
When Is a Deal NOT a Deal??
 Relax! This is NOT a trick question! The answer to this question? It's actually pretty simple to figure out.
A Deal is NOT a Deal when you will come to regret having made the purchase in the first place, at some later date.
What brought this topic to mind was a thoughtful, well-written blog post by real estate agent and ActiveRain member, Barb Van Stensel. In her post, Barb talks about the realities of viewing, obtaining, then successfully transacting, a condominium property.
Barb Van Stensel is absolutely 100% correct with her summation of condominium purchases too. Buyers should ask questions, demand thorough inspections of the property itself, the property management company involved, AND the condominium association under whose direction the property finds itself, all PRIOR to signing a contract for purchase and seeking financing.
I cannot stress the following advice strongly enough...
When considering the purchase of a condominium property, it absolutely vital that you do your homework regarding the professionals you seek and then work with during your purchase and mortgage financing.
 Choose a real estate professional and mortgage lender that meets and surpasses specific criteria.
And what should that criteria be? Choose only real estate and mortgage professionals that are educated and experienced regarding condominium transactions and have successfully completed and closed them RECENTLY. And I repeat ... RECENTLY!
The condominium market is a quickly-changing housing market. The need for current experience and thorough knowledge and understanding of these transactions ... and their regulations ... cannot be overstated. Simply said ... it is NOT the time to work with a rookie or someone that typically does not work within this specialized market.
The Chicago and Chicagoland area in which Barb Van Stensel and I live, provides a perfect example of the urgent need for meeting the criteria I outline above. Chicago and Chicagoland currently has a large array/choice of condominium properties from which to choose during your condo property search. Choose unwisely regarding your selection of real estate and mortgage professional ... and you run the real risk of personally finding out just when a Deal Is NOT a Deal. Most likely, you'll be living proof of it.
I have a complete and thorough education and understanding of just what constitutes a "condominium" VS a "townhome". I also understand the workings of condominium associations and management companies because I dealt with so many of them while appraising ... and mortgage lending.
I know who to approach and what to ask them ... and just why. What legal paperwork will be demanded. What lending underwriters will seek from seller, management, associations, buyers, etc. I know what information is absolutely mandatory to my transaction ... and how to interpret that information. My clients and referral partners have come to know this regarding my services and depend on the benefits and protections that knowledge and experience affords them.
When is a Deal NOT a Deal?? That's simple, especially when speaking of condominium transactions.
A Deal is NOT a Deal when ... you come to wish you'd never seen or bought your condominium in the first place ... or you wish you had chosen another professional to work with during your purchase or mortgage transaction.
Don't let that be you! Protect yourself when buying a condominium by seeking-out and then working with an experienced, knowledgeable, successful real estate agent and mortgage lending professional. You'll be glad you did ...
* Thinking about buying a Chicago or Chicagoland condominium now or in the future? Contact me! I'll put my years of experience, education, and expertise to work on your behalf.  I can be contacted at any of the following:Direct: 815.277.4036
Cell/Text: 708.921.6331 Conveniently via Skype: 630.219.1316
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Buying a Home, Mortgage Lender, Mortgages, Working with a Mortgage Professional, Refereral Partners, Localism Posts, Condos and Townhomes, First-Time HomeBuyers, Chicagoland Markets & Special Events, Choosing a Mortgage Lender, Condominium Associations, Seeking Advice, Real Estate Professionals, home buying, FHA Financing for Condominiums, Pre-Qualification/Pre-Approval, Choosing Your Real Estate Professionals
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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 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, 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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