Sellers Demand to Know You’re Serious Get Pre-Qualified!

Sellers Demand to Know You’re Serious

Get Pre-Qualified!

Get Pre-Qualified .. Contact Me!

 

Be Pre-Qualified for your Mortgage before you go and view homes!

There, I’ve said it.  First thing.  Right out of the box.  So it can’t be missed.

I place my advice right at the top of this post in bright colors so it’s not overlooked.  And because it’s such a very important message, especially for buyers hoping to purchase a home in a highly competitive housing market.

Right now, homes for Sale are receiving lots of attention.  The shortage of homes currently for sale in most housing markets dictates that.

This means that Buyers must be decisive and ready to act when they find “the home” they want.  They must have already talked to their Mortgage Lender and been Pre-Qualified for their financing PRIOR to the viewing of that home.

Why?

Ever hear the sayings, “Time is of the essence“?  Or “You snooze, you lose“?  Both are truer now than ever before when referring to home buying.

Sellers want to know, “Is this potential buyer qualified to buy my home”?  They want “proof” of such in hand and a Pre-Qualification Letter presented with any offer made.  (My personal practice is to Pre-Approve my buyers, providing even more “peace of mind” to my borrowers and the sellers involved.)

The Pre-Qualification process is not a sales tactic being enacted by your Agent or Mortgage Lender.  It’s reality.

Your real estate professionals are asking that you be Pre-Qualified prior to viewing homes because:

  • It strengthens your offer
  • It will help you better compete in a multiple bid scenario
  • The majority of Sellers won’t even consider your offer if you’re not Pre-Qualified for your financing (and able to produce a Pre-Qualification Letter proving it).

Yes, it’s that clear cut and it’s that simple …  

In the majority of housing markets across the U.S. today, you need to be Pre-Qualified.  That’s definitely been my experience in the housing markets of New Lenox – across Will County – and the Greater Chicagoland area.

So what should hopeful home buyers do?   Contact Me Now!

I refer you back to Paragraph #1.  Be Pre-Qualified!  The sooner the better.

So much of today’s mortgage financing …and the receiving of the best financing option available … relies on borrower’s credit scores and credit history.  They affect the interest rate received, the number and choice of mortgage programs … in short the options they have available to them.

But borrowers all too often focus solely on interest rates.  I’ve found that typically it’s the first thing they want to know when we talk.

There is no doubt that interest rates are important.  However, with some lead-in time to their home buying and a bit of preparation, many borrowers could reap better results (including better interest rates) when applying for their mortgage.

Acting proactively regarding your financing and following the advice of your Mortgage Lender can result in monetary savings.  It can also open up more/better mortgage options at the time of purchase and help your financing process go more swiftly and smoothly.

Most people wouldn’t think of buying a car, TV, or even clothes or shoes without conducting some comparisons or preparation first.  All too often this is not the case when it comes time to buy and finance a home, yet the possibilities for savings are far greater and the savings themselves are larger and carry more impact.

It’s a fact:  In the over-riding majority of cases, you will be required to have been Pre-Qualified by a Mortgage Lender if you wish to view, put a bid on, or buy a home.

Enter into your home buying as prepared as possible.  As ready for competition as possible.  Give yourself an edge.

Contact me now to be Pre-Qualified to buy a home in the New Lenox – Will County – Chicagoland area …

 Get Answers Now!

 

 

Looking to be Pre-Qualified for your Mortgage?  In need of financing and credit answers?  Contact me!  I’ll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I’m easily found at:

Gene Mundt
Mortgage Originator – nmls #216987 – IL Lic. 031.0006220 – WI Licensed
American Portfolio Mortgage Corp.
nmls #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
 Get a Quote - Be Pre-Approved!
 

  Twitter - Gene Mundt, Mortgage Originator   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   
      Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 
Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:
Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the
greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, 
Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, 
Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County,
and elsewhere within IL & WI.
Your Referrals are Always Appreciated and Welcomed!

 

Hoping to Buy a Home? Have Student Loans? Consider “HomeReady” Financing from Fannie Mae …

Hoping to Buy a Home?  Have Student Loans?

 

Consider “HomeReady” Financing from Fannie Mae …

 Loosening Guidelines Can Help You Qualify! Contact Me!

 

After years of warranted tightening of guidelines in the Mortgage Industry, there are some new changes taking place that help to “relax” some guidelines, as they pertain to Fannie Mae (Conventional Loans) …
Come mid-July, 2017, Fannie Mae’s Automated Underwriting Systems will be “tweaked” to allow up to a 50% Total Debt-to-Income Ratios (DTI) … in some cases, not all.
I think there will be a sort of “learning curve” that takes place during the early days of this “tweak” … but, you can probably safely assume that the following will NOT fall within those scenarios considered for the new higher 50% DTI:
  • Low Credit Scores
  • Low Down Payments/ Limited Assets
  • Unstable Employment Histories
In addition to its upcoming increased Debt-to-Income Ratios, Fannie Mae just recently took a more flexible (generous to Borrowers) stance on calculating of Student Loan Debt. (Should you have Student Loans, please contact me to discover if this change benefits you.)
A third change by Fannie Mae was put into place last year with its implementation of a 3% (minimum) down payment program known as HomeReady * …
Below you’ll find the major highlights of Fannie Mae’s “HomeReady” program:
  • Forgiving Credit Scores
  • Reduced Private Mortgage Insurance(PMI) rates
  • PMI is cancellable, per Servicing Guide policy
  • Interest Rates as favorable, if not lower, than traditional Conventional Loans
  • Flexible Income Guidelines allowing:

A.  Non-Borrowing Spouse

       B.  Non-Borrowing Boarder/Rental Income Investigate Options Available to You!
  • Flexible Funds for Down Payment and Closing Costs, allowing Gift Money and Seller-Paid Credits for Closing Costs, etc.
  • There is no minimum contribution required from the Borrower’s own funds
  • Allows Buyers that have been homeowners previously (Do NOT have to be First-Time Home Buyers)
  • Expanded Debt-to-Income Ratios to 50% (in certain cases)
  • ALL property types are allowed, i.e. Condominiums, Townhomes, Single-Family, 2-4 Units (Properties must be Owner-Occupied)

It’s my opinion that “HomeReady” is a financing option that’s presently being under-utilized.  HomeReady’s cousin at Freddie Mac (“Home Possible”) is included in my assessment, as both Programs can be smartly and responsibly implemented to enhance financing options for a segment of Borrowers that might not qualify for other traditional financing programs.  “Home Possible”  and “HomeReady” may also allow some Buyers to qualify for a purchase/ownership of a higher-priced home … something that had eluded them previously.

For those that might fear a return to the more free-wheeling lendingguidelines in play prior to the housing downturn:  Neither of these programs is a reckless, no documentation, “look the other way” financing option.  The financing offered via these programs requires Home Ownership Counseling … an educational session that the overwhelming majority of participants have reported as a great benefit to them.
“HomeReady” can prove to be a very viable option for those Borrowers challenged financially by Student Loan Debt.  It also addresses challenges for those that rely on more non-traditional income sources.  For both scenarios, it certainly is worth consideration.
For those that find themselves in these circumstances and are hoping to buy a home in the New Lenox – Will County – Chicagoland area, reach out.  I’ll investigate all your options and get you on the path to buy and finance a home successfully …
Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me! I’ll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I’m easily found at:

Gene Mundt
Mortgage Originator – NMLS #216987 – IL Lic. #031.0006220 – WI License 216987
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
Get Answers .. Contact Me NOW!
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender
        Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Referrals are Greatly Appreciated and Welcomed!

If YOU are a Renter, but Don’t Want to Be …

If YOU are a Renter, but Don’t Want to Be … 
     Day after day, messages via social media and news media constantly show-up regarding the Rent VS Buy debate …

An article I ran across in Forbes today is a prime example.  It offered some rather startling facts regarding the current cost of renting (6/2015).

The headline read … “A Record Number of Americans are Spending More than 30% of Their Income on Rent”.

     Here are 2 statistics from that article that caught my eye: 

     1.  One in five renting households making $45,000-$75,000 a year are spending more than 30% of their income on rent. 

and … 
 
     2.  Meanwhile, it’s good to be a homeowner. The number of households paying more than 30% of their income on housing has declined for three straight years to 39.6 million, or just a quarter of homeowners.
 
     Add the following info and stat from the “How America Views Homeownership” survey into the debate:  
 
  • People who currently rent show a desire to buy homes, with only one in 10 saying they prefer renting over owning    
     So why are so many of today’s Renters not asking questions, seeking guidance, inquiring about home buying, or taking action to buy?
     That’s a question that haunts me as a Chicagoland Mortgage Lender …
     But maybe the survey offers insight:
  • Attitudes about homeownership are positive, but consumers’ misperceptions about credit score, down payment and income requirements persist    
     I can’t address or clear-up every misperception out there with just one post.  So my objective today is simpler:
 
     I want to convince those presently renting … but hoping to buy a home … to contact me or pick-up their phones and call me (or their own local Mortgage Lender).  To get FACTS …
 
     If you’re a Renter and fit any of the following categories:
  • You hope to buy a home, now or at some point in the future
  • You were a homeowner in the past and hope to become a homeowner again
  • You have not had your Credit Scores run by a Mortgage Lender  (Scores/Reports offered by others, such as Car Dealers, Credit Card Companies, online sources can be vastly different from those utilized by Mortgage Lenders)
  • You know your Credit Scores and need help/guidance in improving them
  • You’re tired of renting
  • You have questions regarding what homebuying possibilities and options exist for you
  • A cost comparison/financial analysis would benefit you
  • More …
     
     Make that call or contact:  You may be one of those currently renting that thinks or assumes (incorrectly) they can’t buy a home … but actually can.  I see it often.
     Please note:  I’m not saying there’s anything wrong with renting or not wanting to be a homeowner.  That’s not the intent of my message.
     But there IS something amiss, if:  You WANT and HOPE to buy a home … yet pass on your dream of homeownership because of misperceptions, preconceptions, or inaccurate info.
    If that describes you:  I urge you to have a conversation with me soon.
     That conversation holds the key to gaining the facts and answers you need to make sound decisions about buying and renting.
 
     The info/answers gained from your conversation will:
  • Be based on YOUR finances
  • Be based on YOUR Credit Scores
  • Be based on YOUR needs
  • Provide valuable info that can serve as YOUR personal roadmap moving forward
     The info provided will be based on FACTS.  Facts as they pertain to YOU.  Not myths or stories.
     If you’re a Renter, but don’t want to be:  Get facts now … 
     If in need of mortgage answers … or if you’re hoping to Buy or Refinance in Chicagoland, Illinois, or Wisconsin … contact me today!  I’ll put my 37 years of mortgage experience and expertise hard to work on your behalf.
     I can easily be found at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
Twitter Account of Gene Mundt, Mortgage LenderLinkedIn Account of Gene Mundt, Mortgage LenderFacebook Acct. of Gene Mundt, Mortgage LenderPinterest Acct. of Gene Mundt, Mortgage Lender
Trulia Acct. of Gene Mundt, Mortgage LenderZillow Acct. of Gene Mundt, Mortgage LenderGene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 
 
Your Referrals are Greatly Appreciated!

Disputing Disputed Accounts

Disputing Disputed Accounts

     Have you reviewed your Credit Report and Credit Scores recently?  If not, I urge you to do so.  For a number of reasons.

But if you have:  I applaud you. Did you find a debt, account, or error there though? After finding it, did you contact a Creditor, a major Credit Bureau, or take action to “dispute” the account?

If you’re planning on borrowing money SOON …  I’d advise against disputing an account or error that’s appearing on your Credit Report …

     Mortgage Underwriting platforms have changed their stance on “disputed accounts”.  Disputes used to be seemingly harmless actions.  Not so anymore.  Underwriting changes have made it possible for disputes to hold up … or even prevent … Mortgage Approvals. 

A recent Borrower of mine can sadly attest to that fact …

In my Borrower’s case:  It took hours and hours of phone calls to explain, detail, document, and sort out a dispute.  A dispute originally lodged by the Creditor.

To make this situation even more frustrating, we came to find that the Creditor’s action had been taken in error.  Nonetheless, it cost my Borrower time, stress, and money to straighten it out.  Requests to rush a revised Credit Report come at a cost.

Many times:  The best option for a Mortgage Applicant may be to leave the account “as is” … in error and undisputed.  At least temporarily, while trying to gain Mortgage Approval or while in the Mortgage Process.

     But what if you’ve already taken steps to “dispute” an account prior to applying for your financing? 

First:  Have an in-depth conversation regarding the situation with me or your own Mortgage Lender.

There is no set answer for this predicament.  That’s important to know and remember. A discussion with your Lender will help you find a solution and take action based on yourpersonal scenario.

Secondly:  I may ask that you write the 3 Major Credit Bureaus (Experian, Trans Union, Equifax) AND the Creditor itself, to request they remove the dispute.

Be prepared to take action and follow-up on it.  As your Lender I may provide guidance throughout, but I cannot make requests on your behalf.  That remains the responsibility of the Account Holder.

Understand:  Removal of a dispute may be the best and fastest way to address this issue.  It will also address the changes in Underwriting that I mentioned earlier.

In the case of my client, the Creditor later stated that “they guess they needed to review their policies” regarding the placement of disputes on accounts.  Hearing that was of little satisfaction to my Borrower.  And it didn’t reimburse them for their expenditure of time and money.

I will point out, that this issue could have been avoided had my client checked their Credit Report earlier or on a continual basis, as the dispute had lingered there for years.

 So Bottomline:  Reviewing your Credit Report on a regular (I suggest annually, at minimum) basis is a smart financial move.  And it will eliminate issues from arising in the future during your Mortgage Pre-Approval and Processing.

If you’re thinking of buying or refinancing a home soon, take action now.  Talk to me soon … and check your Credit Report.  Both will make your home purchase or financing go more quickly, easily, and successfully …


*  Are you hoping to Buy or Refinance a home in the Chicagoland area?  Contact Me today!  I’ll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
I can be easily found at:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
 
 
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender  Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, & Portfolio Loans in Chicago and the greater Chicagoland region, including:  
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 
 
Your Referrals are Greatly Appreciated!
 
     

Evanston IL Gets DIVVY Bike Share

The Evanstonian

Evanston IL Gets DIVVY Bike Share

Have you ever heard about DIVVY Bike share? It is a system where once you join you get access to nice bikes for a little riding around town by the hour. There are stations where the bicycles are set up and it is completely automated so you can get and return a bike whenever you want. So far this system is only available in New York City, Washington DC , Minneapolis, Miami, Columbus, San Francisco, Boulder, Boston, Houston, and Chicago Land.

Here is a photo I took today of a DIVVY bike station

IMG_20141117_153741

There are different types of memberships available including one I think is really cool and that is the ability to share with a non-member and get to go for a ride with a friend for 30 to 60 minutes or so when ever you want. There is no need for a…

View original post 46 more words

A Naperville Food Tour Makes a Great Christmas present!

napervillefoodtours

Food tours are great as a present. It is a unique gift especially for those who love food and love to discover some history of the city . A Food Tour Gift Certificate is just the thing!

For those of you who have family and friends in Naperville Illinois, check out Naperville Bites and Sites for their food tours.  Naperville Bites and Sites has been voted the Number #1 Thing to Do in Naperville on TripAdvisor.Go to http://www.napervillefoodtours.com and click on the gift certificate tab to order. Naperville Bites and Sites is a culinary and cultural walking experience through Naperville’s historic neighborhood…One delicious taste at a time!

http://www.napervillefoodtours.com

NBSpicscollage

Discover and taste where Chocolate comes from Discover and taste where Chocolate comes from

View original post

Tips to Help You Celebrate a Safe, Fun-Filled Halloween and Trick-or-Treating

Tips to Help You Celebrate a Safe, Fun-Filled Halloween
and Trick-or-Treating

This year, Halloween occurs on Friday … October 31, 2014.  (To help families within the communities of Will County, I posted,2014 Halloween Trick-or-Treat Hours in Will County, IL Communities)

http://www.genemundt.com     To ensure your child’s 2014 Halloween is a safe, fun one, please make sure that your child’s costumes and their actions while trick-or-treating follow common-sense precautions like the ones below:

For Costume Safety:

  •  Make sure all costumes and accessories are fire resistant
  •  Make sure Halloween make-up is non-toxic to prevent skin and eye irritations.  Test a small area ahead of time to be safe
  •  Make sure masks do not block eyesight.  Make eye holes extra large
  •  Make sure costumes are well-fitted and will not cause tripping or falling
  •  Make sure all accessories such as swords, wands, knives, etc. are made from flexible materials that will not puncture
  •  Do not allow your child to wear decorative/costume contact lenses (risk of eye injuries)
  •  Do not allow your child to wear Halloween make-up to bed.  Remove all make-up carefully.  Follow manufacturer’s directions for removal
  •  Fasten reflective tape or fluorescent/luminescent materials to your child’s costume and treat bag
  •  Carry a flashlight
https://1609956119.secure-loancenter.com/FreeConsult.aspx

For Home Safety:

  •  Keep sidewalks, steps, and doorways free of lawn decorations, wet leaves, bikes, snow, etc.
  •  Keep family pets in a safe environment, away from Trick-or-Treaters and treats
  •  Keep the outside of your home and walkways well-lit.  Replace any burned-out lightbulbs

For a Safe Trick-or-Treat Trail: 

  •  Travel and Trick-or-Treat only on well-lit streets
  •  Use only the sidewalks for a pathway
  •  Don’t allow children to cut across lawns, dart across streets, or use alley-ways
  •  Walk, do not run between homes
  •  Have children stay with an adult or travel in groups
  •  Only visit well-lit homes with a porch light on
  •  Children should never enter a home or car for treats
  •  Review the routes older children will be taking
  •  Motorists may experience problems seeing Trick-or-Treaters at night.  Always have children look both ways prior to crossing a street .. and never assume that walkers have the right-of-way
  •  If sidewalks are not available, walk on a far edge of the road facing traffic
  •  Carry a Flashlight (fresh batteries) and a Cellphone
  •  Examine all your child’s candy prior to letting them eat it
  •  If in doubt about some candy, throw it out
  •  Adhere to your municipality’s set Trick-or-Treat Hours
  •  Know where registered sex offenders reside.  Check the U.S. Dept. of Justice’s Dru Sjodin National Sex Offender Public Website so as not to place your child in risky situations during their Trick-or-Treating
  •  Dial 911 in case of Emergencies

Follow these Safety Tips and Suggestions above to make your child’s Halloween Trick-or-Treat adventure a fun-filled, safe one  …

Happy Halloween!  
http://www.genemundt.com/ContactUs.aspx
     
     *  Hoping to Buy, Build, or Refinance a home within Will County or the greater Chicagoland area?  Contact Me today!  I’ll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
I can be easily found at:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
  
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

Selling a Condo or Home Within a HOA? Make This Info and Documentation Available Now

Selling a Condo or Home Within a HOA?  
Make This Info and Documentation Available Now

http://www.genemundt.com/Default.aspx     If you’re a prospective Home Buyer and considering the purchase of a Condominium … or a home located in and governed by a Homeowner’s Association (HOA), there is important information you need to know regarding prior to signing a contract.

(For further info, read 2 of my previous posts on Condo/HOA buying: “To Condo or Not to Condo”. That Should Be the Question …”  and … How to Determine if You’re Viewing a Condominium or Townhome”.)

Some of the details a new Home Buyer should know regarding Homeowner’s Associations are:

  • Rules governing the Homeowner’s Association (HOA)
  • Restrictions attached to the ownership and use of the property
  • Assessments, Fees, Dues *

* Are any of these Assessments past due?  And if so, what percentage?

  • Budget of the HOA
  • “Health” of the HOA
  • Status of Reserve Funds
  • Percentage of Owners versus Renters

If you’re on the flip side of the transaction and the SELLER of a property impacted by a Homeowner’s Association, what information and documentation should you disclose and make available to prospective Buyers?  https://1609956119.secure-loancenter.com/FreeConsult.aspx

As most Buyers will also be utilizing a Mortgage to purchase the property, the following info and documentation will most likely be required from a Seller, the HOA, or the Signee (property holder) involved in the transaction.

Note:  Be aware that the Mortgage Lender representing the Home Buyer will need or request some of the following info/documentation also.

    • A copy of the HOA Budget/Accounting
    • Declaration and By-Laws
  • HOA Questionnaire and/or Survey  

In Illinois and the Chicagoland area, a HOA Questionnaire/Survey will be requested by the Mortgage Lender or Buyer’s Attorney.  There is typically a charge for the Homeowner’s Association to fill-out and prepare this document.  The person responsible for this payment is often designated as part of the Real Estate Contract.

Sellers that make these documents and information available to potential Home Buyers (and their representatives) and take measures to act proactively provide a great service.  They help facilitate their sale, the transaction, and the Buyer’s mortgage application more quickly and smoothly.

Should you be thinking of selling a home or condominium located within a Homeowner’s Association, start gathering this information and documentation sooner than later in the sale process.  That way there will be opportunity for fewer delays caused by a Buyer’s questions or requests.

As an added piece of information: 

Please be aware that in the cases where the Seller is a Bank, or an Entity such as Fannie Mae, Freddie Mac, FHA, or VA, often times there will be little or NO information made available to the Buyers from the Sellers.  In other words, the Buyer MUST track these down themselves through whatever means.

Bottom line, there may be some “inherent” risks and extra “work” involved when buying a property that has been Foreclosed upon.  The “price” may be discounted, but so may the “offerings from the Seller”.  This can be especially true when the property is a condominium.  That’s why working with a Mortgage Lender, Realtor, and Attorney experienced in these types of transactions is so very important.

If hoping to buy a Chicagoland Condo, or home located within a Homeowner’s Association … contact me today.  I’ll put my 37 years of Mortgage experience and knowledge hard to work on your behalf.

I can be easily found at any of the following:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

 

  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

 

“To Condo or Not to Condo”. That Should Be the Question …

“To Condo or Not to Condo”.  That Should Be the Question …

http://www.genemundt.com
As a Chicago-area Mortgage Lender, I never try to influence a Buyer as to the type of property they should or should not buy.  That’s their personal choice …

But as their Mortgage Lender and Advisor, I DO try to educate them regarding different property types and the pros and cons associated with each as it pertains to their upcoming mortgage process.  Why?

Because there are some fundamental differences in how differing property types flow through that process.  There can also be some differences in costs incurred while moving forward, as well.

When I talk of “differing property types”, what exactly do I mean?  Here’s my simple explanations:

  • Single-Family Residence Detached:  No common walls … a free-standing House
  • Single-Family Residence Attached:   Examples of this classification are Duplexes and Townhomes with no Associations
  • PUD:  Planned Unit Development.  Can be either of the above classifications (Single-Family Detached or Attached) IF there is a formal recorded Homeowners Association which charges and collects Dues
  • Condominium:  An Association is in place, the LAND is commonly-owned, the Unit Owner does NOT own the land (only the Unit itself)

Please Note:  I didn’t include “Townhome or Townhouse” in the above.  Townhomes/Townhouses are NOT a property classification, rather only a “design or style” of residence. 

Perhaps it’s the former Residential Appraiser in me, but the buying public and their representatives need to know the impacts of the type of property (legal ownership) being considered for purchase.  The fact of the matter is, the classification of property (remember the definitions above) have a “preferred pecking order” in the eyes of mortgage lenders.

What is the implied pecking order?  The “ideal” collateral for a Lender is the Single-Family Residence, Detached, with NO Association involved.   

     Why?   With this type of property, there are the least amount of rules and restrictions to address during processing.  Typically, there’s also fewer (and fewer ways) for issues to arise during mortgage processing.

https://1609956119.secure-loancenter.com/FreeConsult.aspx
The Automated Underwriting Models utilized by Lenders assesses the layer of risk involved with the specific property type being purchased by a Borrower.  Automated Underwriting also assesses the likelihood or potential for default on a loan.

In other words, Buyers with identical credit, identical income, the same employment, the same down payment and assets … but buying differing property types … MAY reap different results when it comes to an Approval/Acceptance via Automated Underwriting.

Let me provide you an example of the extremes that can be found:

Detached Single-Family Residence 

(most preferred)

VS
Condominium 
(on the least preferred risk-based collateral)
     Depending on the down payment percentage:  The CONDO buyer will/may be charged a higher interest rate for their mortgage financing … OR they may choose to pay higher Closing Costs, as a result of risk-based pricing assessed on a Conventional Loan, per Fannie Mae or Freddie Mac.
     To support the existence of this phenomenon, I provide details from two of my most recent Pre-Qualifications.  They shed light into my explanations regarding property types.
     Scenario #1:  A First-Time Home Buyer had entered into a Contract to Buy.  She thought (and had been told prior to our consultation together) that she was viewing/purchasing a Townhome.  In fact, what she was buying was a Townhome only in style and design.
     What she was really viewing and had contracted for was legally a Condominium.  The land was commonly owned by the Association, and she as the Unit Owner would not own the land upon purchase as she had thought.
     End Result?  My Buyer cancelled her Contract after learning the facts and figures regarding her Mortgage process and the costs she would pay as a result of buying a Condominium.  Her Interest Rate would have been higher due to the Condominium rating.
     After discovering the Rules, Regulations, Restrictions associated with the property … and discovering that there were unpaid Assessments associated with this Unit and Complex … she changed her mind about moving forward with her purchase.  She’s presently in the search for another property.
     Scenario #2:  A past client that purchased a Townhome in a “PUD – Planned Unit Development” years ago, contacted me.  He is now looking to sell his Townhome and buy again.
     He’s looking to purchase a Single-Family Residence (Detached with no Association) for his next home.  He’s finding that selling his present property has some challenges.  By-laws and Declarations associated with his Townhome are impacting the sale and has eliminated some potential and hopeful Buyers from making offers.
     As a Result?  As he can qualify for a new Mortgage while retaining ownership (and the Mortgage) on his present Townhome, my client has decided to buy his new Single-Family Residence before selling.  He’s in an enviable position, as many Buyers cannot do this.
     The two scenarios above point to a current and vivid reality:  The marketplace recognizes differences in property types.  Knowing this makes it somewhat easier to understand why Fannie Mae and Freddie Mac do likewise and why they rate property types differently.
     My next post will continue with this topic and showcase the impact of Condominium Property type on the pricing of a loan from an Interest Rate and Closing Cost perspective.  The info contained within these two posts will help you decide …
“To Condo or Not to Condo”

http://www.genemundt.com/ContactUs.aspx

*  Hoping to Buy, Refinance, or Construct a home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicago-areaContact me!  I’ll put my 37 years of Mortgage experience hard to work on your behalf.
I can be easily found at:

Direct:  815.524.2280

Cell or Text:  708.921.6331
eFax:  815.524.2281
Click HERE for a FREE Mortgage Quote!
 
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.