Gene's Bit of Blogging
Working with a Mortgage Professional
|
Gene Mundt, Mortgage Lender: Posted on Wednesday, May 16, 2012 8:03 AM
Multiple Offers and Appraisals. Learning to Co-Exist Successfully We are presently in the time of year when Appraisers, Realtors, and Mortgage Originators ... as well as Home Buyers and Sellers are often "anxious". Both good anxious and bad anxious. This Spring, many of us find ourselves anxious, but hopeful, that our housing market is reviving itself after a long winter. This is especially true in the Midwest region where I live. Weather makes home sales somewhat more seasonal here. This year's anxieties are accompanied by the good-to-have-problem of rising house prices. In many areas, we are presently seeing multiple offers placed on strategically-priced properties. RISING home prices shouldn't be a problem, right??? Welllllll ... they can be ...  As an example, let's consider what the prior 6 months of property sales were in the Chicagoland region. Again, those months are typically the slower sales season in this region, but most certainly they have been even slower because of the health of the housing market this last year. This particular 6-month period showcased a housing market trying desperately to gain traction and stability. Now as someone that's a former Appraiser, it's my opinion that there are going to be some real challenges ahead for current-market Appraisers ... and those challenges will trickle-down to Agents, Brokers, and Mortgage Originators. And I most likely need to include Mortgage Underwriters in this mix too. Where are these challenges coming from? Many potential Home Buyers are now having to actually compete for homes in this spring's market. They've been caught a little off-guard at the return of a bewildering phenomenon ... multiple-offer bidding wars. If they are a Home Buyer that has been disappointed one or more times because of bidding wars, what happens the next time they begin a new home search?
My local referral partners are telling me that the fear of getting outbid again is motivating these potential Home Buyers to aggressively pursue and price their next offer to purchase. Contracts are being signed AT or ABOVE the asking price of a home.
Let's see ... new Home Buyers are securing a historically low interest rate. The Sellers have sold their home (more quickly and for perhaps higher than they had envisioned). Agents have helped facilitate and secure a successful contract. Mortgage Lenders have been called into action. The wheels are turning ... all cause for celebration. Right?
Again, yes and no. Things couldn't be that simple!! What's the issue?? Remember I mentioned the previous 6 month time-frame above? Well, during that period, sales were slower or stagnant. Most times, housing prices were lower. And now?? A home has been sold. And an appraisal must be ordered and completed to facilitate the mortgage financing. But finding Comparables to support the sales price of the home might prove tricky. The question becomes ...
 At what point do Appraisers recognize market changes that seem to be taking place in many housing markets? When do they choose to support and make adjustments reflecting these new trends for home sales prices? JMO, but not only do Appraisers need to recognize this trend, but so do Underwriters who eventually REVIEW, approve the Appraiser's work, and ultimately "bless" the final Opinion of Value. But therein lies the possible problem ...
Consider this current scenario: As an Agent, you've priced a new listing via your MLS, supported data, and info. You've worked hard. Potential Home Buyers are now actively pursuing your listing. You've generated offers. One Buyer, a veteran of bidding wars, has made a solid, aggressive offer. They want this home! But the Sales Price on the home is at the high end of the previous 6-months' supported data, or higher. Question ...
Are the Closed sales from that previous 6-month sales period, (November, December, January, February, etc.), going to support that newly-arrived-at-much-anticipated Sales Price you just received? How are Appraisers going to approach it? If not, what can be done to facilitate and safe-guard the sale? First ... let me qualify what I think is an important bit of information. EVERY HOUSING MARKET IS DIFFERENT. Those differences must be taken into consideration.
That said, Listing Agents experiencing a healing, "correcting" housing market must be well-prepared to go to battle. They must be willing and capable to provide Appraisers current listings, pending sales, and March-April-May Closed Sales information that is relevant and comparable to their Subject Property. And very importantly ... Appraisers must be willing to accept and utilize valid, "fresh" sales and info from that period, as well. Add mortgage lending Underwriters into that mix. Securing successfully closed transactions for our clients must be ALL of our goals. If we don't get on the same page during this transitional period, if we don't work hand-in-hand, we will disappoint often.
An unwillingness to broaden the scope of properties considered via Appraising and Underwriting ... and the data accepted and utilized within transactions ... will sink transactions completely. That will hurt our clients and further delay the healing of our housing market and real estate industry.
This is going to call for a bit-of-a-shift in mentality. My guess, but there is probably going to be a bumpy adjustment period ahead regarding appraisals. Challenges to be sure.
This particular situation once again provides strong proof that ... the choice of real estate and mortgage professionals working on any transaction is vitally important. Experience, knowledge, and past successes should and must count greatly for clients when making those choices. Being anxious to buy. Being anxious to sell. Being anxious to celebrate ... to move ... to decorate ... to landscape. Those are all positive. But being anxious over whether you can seal a deal with a property appraisal certainly isn't ...
* Contact me today to work with a mortgage lender that has 35+ years of education and experience to assist you throughout your entire home buying and mortgage financing transaction. I can be found at any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Convenience @ Skype: 630.219.1316
|
Buying a Home, Mortgages, Working with a Mortgage Professional, Appraisals, Chicagoland, Agents and Brokers, Selling Your Home, Working with a Real Estate Professional, Real Estate Professionals, home buying, Appraisal changes, Realtors, Pricing a home for Sale
|
|
|
|
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:
|
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
|
|
|
|
Gene Mundt, Mortgage Lender: Posted on Monday, May 07, 2012 11:15 AM
You're OFFICIALLY Invited ...
Seems like I've read a real "rash" of posts lately regarding "visiting". In person. Via the internet.
These posts have followed closely on the heels of the ActiveRain social media site's "meet-ups" that were held just a short while ago in many locations across the US and Canada.
Guess we bloggers (especially AR members) are just a friendly, out-going, social bunch! Guess it also explains why we're in a people-business like real estate.
But these recent posts, and their subsequent comments, really had me thinking. How "welcoming" are my posts when someone reads them? How 'bout my other social media? Do clients, referral partners, everybody reading them ... understand that they include an "invitation"? There really shouldn't be any doubt, should there??
And although I need to always be aware of this while I'm blogging, writing, speaking on an ongoing basis ... I also decided that maybe it's time I just post an official invitation to all my clients, blog followers, and AR members, potential clients. An invitation that says ... "Come Visit Me! You're invited. My door is always open". Figuratively-speaking and literally.
But "meeting" here, getting to know you through your comments, emails, texts, skyping, phone calls, technology ... is great too!
So I guess my official "invitation" is rather broad and open-ended. I'll be thrilled to meet in person ... or online. To write back and forth. To read. To comment. To email, text. To pick-up the phone and talk. Through your subscriptions to my blogs. To ask questions back and forth .. and to have you seek my services too, should you need that.
ActiveRain posts written after the "meet-ups", told of members ... "friends" ... getting together ... and the many great things that came as a result of their doing so. Ongoing results. Those that had attended the "meet-ups" were so glad that they had taken the time to meet and visit. Accepted the "invitation" to do so. You and I, we can do that too!
So ... You're invited to stop. Stop soon. And stop often to meet ... visit ... share! Real-time or cyber ...
An official Invitation ... from Me to You!
* It's easy to find me ... stop and talk. Ask questions. Sit a spell. You can "visit" me at any of the following:
Direct: 815.277.4036 Cell/Text: 708.921.6331 1823 Centre Point Circle, Naperville, IL Conveniently at Skype: 630.219.1316 |
|
|
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
|
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
|
|
|
|
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
|
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
|
|
|
|
