Gene's Bit of Blogging
Working with a Real Estate Professional
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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
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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
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Gene Mundt, Mortgage Lender: Posted on Friday, April 13, 2012 1:15 PM
Do You Offer Real Estate Services in Popular Retirement and Investment Regions???
This morning I was reading the post of one of my favorite ActiveRain members. It dawned on me while reading this post, that while I had read this blog faithfully for a long time ... I still wasn't quite sure where the agent's service area was located within their state. I had never taken the time to check it out and do a search.
Not proud of that fact, but there it was!
I wondered how many people like me, had not done their own research while reading this or similar posts??
Some of the service areas represented on AR are pretty obvious. Larger cities and their geographical locations are typically known. Chicago. New York. Los Angeles. Denver ... and similarly-sized cities, people typically know. But smaller towns, counties, rural areas?? Not so much. Maybe a bit of assistance is needed in finding them?
It was also clear to me that while I
hadn't taken the time to educate myself while reading this favored
member ... I probably was not that different from others reading the
post. They probably wouldn't know where the location was ... and they'd
probably had been just as lazy as I had been. They wouldn't have taken the time to
do a simple search either.
 Being an ActiveRain member from a northern climate, it occurred to me too that maybe those AR real estate agents that serve areas where northern/cold-climate boomers or investors might be looking for retirement homes, 2nd homes, or investment properties ... might be especially well-served by adding some helpful links or maps for their location/region.
Links and maps that would make it easy for their readers to educate themselves as to exactly where that agent is located within their state. Something that even somewhat lazy readers (like me) would find and click on.
Maybe it's the most obvious information and actions that elude us? Information that is so basic to us personally, that we overlook and forget that it might not be so to others??
I know I'm now going to go to my own website, my own blogs ... and take a good long look at them. Do an assessment. See if I'm making it as easy as possible for my readers to find me, understand what areas I service, and what services I offer.
Moving forward, I'm going to try to make it as easy, as convenient as possible for my readers to be completely informed and to utilize all my services ...
 * Looking for an experienced mortgage lender with multiple office locations in the Chicago and Chicagoland region? A mortgage lender that assist you with local or nationwide mortgage services? Contact me today! With over 35 years of experience and expertise earned while assisting and serving home buyers and home owners of all types in Chicago, Chicagoland, and the entire U.S. ... I can help you successfully prior, throughout, and beyond your mortgage closing. I can be contacted through any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Conveniently through Skype: 630.219.1316 |
Buying a Home, Mortgages, Chicagoland, Will County, Technology, Social Media, Chicago, Education, Working with a Real Estate Professional, Helpful Hints, Doing Business, ActiveRain.com, Links
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Gene Mundt, Mortgage Lender: Posted on Monday, March 26, 2012 12:46 PM
You Wouldn't Call a Part-Time Doctor to Do Your
Heart Surgery, Would You??
As we often do, my wife and I were having a discussion about work the other day. I had just gotten home and it had been a very trying afternoon.
A Closing that day had taken much longer than it should have. Also, one of the deals I'm presently working on had developed "hiccups". Nothing that can't be solved, just frustrating.
 The deals of two of my underling lenders had needs and issues to see to as well. Glitches, and not all that uncommon anymore in the scheme of things. But still, there had been a number of them ... and the time dealing with them had mounted up.
Upon reflection of all these issues, both my wife and I were struck by a commonality that ran through each of the transactions like a thread. Each of the current transactions suffering issues had at least one real estate person working within it that was not full-time. One transaction had several "part-timers" working on it. And unfortunately, in each instance that had made a difference ... a negative one.
Earlier that day, I had in fact taken issue with one of my own lenders about missing an important meeting. The meeting ... one held the same time, same place each and every week, are considered mandatory. Yet, they were a no-show. (No valid reason as to why they were not in attendance). And a topic had been covered that would have been of assistance to them on their troubled file.
One transaction I refer to had an attorney involved within it that rarely handles real estate any longer. Another deal had agents that were at best ... part-time.
Still another transaction had had a title company involved, that seems to be only dabbling at doing business. They literally had left clients sitting in their offices after a Closing waiting for follow-up documentation, no one from the title company represented within the building. All had left. Most lights out. Still scratching my head about that one.
And it all made me wonder how ...
* In this day and age of quickly-changing regulations, rules, information, needs, underwriting, etc. ...
* In this day and age of short-sales, REO's, foreclosures, this litigious society, etc. ...
* In this day and age when transactions are so detailed, nuanced, and possibly even time-restricted ...
How can anyone presume to conduct business on a client's behalf devoting less than full-time to their profession or business?
And WHY would any client ... especially in this day and age ... take the risk of relying on someone that did not devote full-attention and energy to them, the tasks at hand, or their profession? Because that IS what they are doing. Taking a huge risk.
 If this was a medical situation, you certainly wouldn't work with a part-time doctor, would you??
Real estate transactions typically involve the largest debt any client will ever incur. Certainly home buyers should demand that high standards of professionalism and knowledge be met within their home buying transactions too.
Here is my opinion regarding this issue ...
Today's transactions demand great attention to detail and follow-up. Constant communication and vigilance. If you utilize the services of real estate professionals devoting only part-time effort and attention to your transaction, you expose yourself to risk, error, and extra costs. At minimum, you will most likely experience last-minute drama in your transaction ... unneeded, frustrating, and typically avoidable.
I can't stress the importance of this matter enough ...
Do yourself a huge favor. Protect yourself and your interests ... by doing your preliminary homework well.
Seek referrals, check websites. Ask for testimonies, speak to prior clients, verify a professional's successes ... prior to making a final decision regarding who you will work with.
Don't be afraid to ask the question ... "are you full-time"?? It's important that you know just how much time they are committing to you. It is well-worth it to you to ask these questions and do this preliminary homework. It will save you time, energy, frustration, and possibly even money down the road.
* Work with a full-time experienced, knowledgeable mortgage lender with 35 years of expertise to put to work on your behalf. Contact me today. I'll be happy to hear from you and have the opportunity to earn your trust and your mortgage business. I can be found at any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316
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Buying a Home, Mortgage Banker, Mortgage Lender, Working with a Mortgage Professional, Agents and Brokers, Conducting Business, First-Time HomeBuyers, Choosing a Mortgage Lender, Working with a Real Estate Professional, Home Buyers, home buying, Servicing Clients and Referral Partners, Los Angeles Home Buying, Choosing Your Real Estate Professionals
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Wednesday, December 28, 2011 10:41 AM
So You Think SIZE Matters??
Okay ... Okay ...
get your mind outta the gutter! I'm talking about
the SIZE of your mortgage!
Yesterday, I had
to explain this important detail to yet another person involved within a
mortgage transaction I am working on. This time, a seller.
Mistakenly,
they thought because the amount of dollars being borrowed was a smaller amount,
it meant mortgage processing would be simpler, faster. That not
as many "hoops" would have to be jumped through.
Bzzzzzzzzzz! Wrong! SIZE ... in this case, does NOT
matter.
Whether borrowing for
a small amount mortgage or jumbo mortgage amount, the over-riding majority of the mortgage
process will remain much the same. Perhaps a few details will change, but overall the
same verifications, the same credit requirements, the same credit check, the
same legal work, the same title work, the same procedures within mortgage
process, the underwriting requirements needs ... ALL will be pretty-much remain the
same, no matter the SIZE of the loan.
Nope. I'm sorry to say ... the same t's will
have to be crossed. The same i's
dotted. Mind boggling and a bit
frustrating, I know ... but true. None
of these procedures or processing actions are tied into the SIZE of your loan!
And
how do you accomplish that?
THOSE are the
measurements that should be important to you ...
* My mortgage lending measurements are: 35 years of mortgage industry experience and expertise. Over 20+ years of IL Licensed Real Estate Appraising to guide you and your agent through to a successful mortgage closing. Over 10 years of IL Certified Financial Planning with which to assist you during mortgage processing AND AFTER your mortgage transaction is closed. Contact me now through any of the following means if hoping to buy in Chicagoland, Will, DuPage, or Kane County, Illinois, or across our nation. I'll be happy to hear from you ... and work with you to fulfill your dreams. Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316
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Buying a Home, Financing, Mortgage Lender, Mortgages, Chicagoland, Mortgage & Transaction Processing, Financial Planning, Obtaining Mortgage Quotes, Pre-Approvals, & Info, Choosing a Mortgage Lender, Mortgage Closing Costs, Seeking Advice, Working with a Real Estate Professional, Education Opportunities, home buying
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Monday, December 12, 2011 9:25 PM
Loan Modifications ... Refinance Present Options That Can Exist It seems lately, that I've had more and more questions from homeowners about "Loan Modification", as they continue to struggle within today's challenging market and economy.  Agents and many of my other referral partners also want to know about them, and other financing options that might exist, too. THEY are getting quizzed by homeowners (and potential buyers) regarding Loan Modifications too ... especially now after the governments release of information regarding the upcoming HARP 2.0. It seems, you can't be doing business within the current market and not get drawn into these conversations.
The reasons for "why" someone might need or want to modify their existing mortgage range from unemployment issues, to being "upside-down" and/or "underwater" with their current home loan. Simply being in need of some financial relief ranks up there in concerns I often hear too. Naturally, when I get questioned as a mortgage lender, I first look to see if a "traditional" Refinance is possible for the homeowner. And if so, will it provide the much-needed relief that homeowner needs and desires? Most often as of late, I'm finding that the traditional Refinancing route is not one that can taken. Today's tighter mortgage underwriting standards simply make it more difficult and in a few cases, impossible for the time being. Where does that leave the homeowner in need when that is the case? That means a loan modification of the existing mortgage with the homeowner's CURRENT loan servicer, is the remaining option. If the homeowner has NOT missed any payments on their mortgage, the unfortunate and disheartening news is ... they will have a very difficult, if not impossible, time in attaining any loan modification. I know ... VERY frustrating, right? If the homeowner is current with their mortgage payments, I now have a fighting chance with HARP 2.0 to assist them in their search for financial relief. That assistance relies upon the homeowner's credit and income qualifications, as usual. And if current property value is no longer a hurdle, HARP 2.0 should open-up some real opportunities to them. But there are two issues that surround the possible benefits that may be seen within HARP 2.0, as they stand right now.
First, we mortgage lenders still do not have the specifics we need from the government in order to take action on our clients' behalf regarding HARP 2.0. Again, frustrating ... as the government has done a fairly good job in making the public aware as to the existence and updating of the HARP program. The public is aware and contacting us mortgage lenders hoping for good news ... and of this writing ... we still do not have the details as to how we can move forward, apply, and utilize HARP 2.0. We've heard rumblings. We've seen projections. We've read "guesses" ... but still nothing tangible to hang our hats on, as of yet. My personal belief is that we will need to hang on to our hats a while longer too, because we will not receive these much-needed program specifics until after the New Year, some say March, 2012. To me, the second issue surrounding HARP 2.0 is this ... WHY should this concern Realtors or the local real estate markets?  In my opinion, helping homeowners Refinance, who might have otherwise lost their homes to foreclosure, or put another short-sale property on the market, is critical to regaining a sustainable housing market. Let's state the obvious: Foreclosures and short sales are options for the struggling homeowner. Neither is good; neither helps property values; neither helps reduce inventory. And again, in my opinion, reducing housing inventory is what we sorely need right now. I see the bottom line being this: Until we reduce housing inventory and eliminate the short sales and foreclosures, we will be mired in static property values. Buyers will remain reluctant to enter the marketplace under these conditions. In addition to keeping "bad" inventory from hitting the market, the lower payments after Refinancing will put more dollars in the homeowners' pockets, which will in turn trickle-down to more spending by consumers. Since we are definitely a consumer-driven economy, this is one way to help our country out of its' real estate malaise and help get us turned around and on the path to better financial health. Homeowners (and referral partners) need to keep seeking-out educated, professional mortgage lenders that will provide sound and unbiased fact-based opinions ... especially when the homeowners seeking those opinions are emotionally and financially distraught or down-and-out. Changes happen constantly and steadily in our industry. New options may become available for homeowners at any time. It is best to remain vigilant. Homeowners and mortgage lenders need to stay in contact, communicate, get it right. New options, new programs, new underwriting demands, HARP 2.0 ... all remain in our future ... we HAVE to get it right, in an otherwise imperfect marketplace. * Should you have mortgage, refinance, HARP 2.0 questions, credit concerns, or general lending and finance questions ... please contact me. I'll be happy to answer your questions and assist you moving forward. I can be reached through any of the following convenient methods: Direct: 815.277.4036 Cell/Text: 708.921.6331 Skype: 630.219.1316 |
Financing, Mortgage Lender, Mortgages, Real Estate Advice, Credit and Financial Counseling, Chicagoland, Announcements and News, Chicago, Communication, Seeking Advice, Working with a Real Estate Professional, Referrals, Home Buyers, home buying, Home Ownership, Homeowner Affordability and Stability Plan Update, 2011, HARP 2.0
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