Category Archives: Documentation Needed for Mortgage Financing

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
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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. 

 

Dreaming of Owning a Home? Potential Move-Up Homebuyer? Don’t Be Afraid!

     Two articles I read just this morning addressed the issue of potential home buyers’ fears of rejection as they pertain to mortgage financing.  Each article, also spoke about the many misconceptions the public has that contribute to their fears.

https://1609956119.secure-loancenter.com/FreeConsult.aspx     The statistics quoted in these articles (per a national consumer survey by loanDepot LLC) were somewhat distressing for me as a Mortgage Lender.  The most alarming were:

  •  Nearly half (46%) of prospective homebuyers have not pursued the financing they would need in order to buy a home due to fear they wouldn’t qualify for a mortgage
  • More than half (56%) of all buyers who don’t currently own a home, but want to, indicated they’re not pursuing homeownership because they fear they won’t qualify for a loan
  • Of those who want to buy a home but haven’t tried to because they think they won’t qualify, 53% think today’s qualification environment is tougher than last year.


    And finally …
 

  • Fewer than three-quarters of Americans who fear they won’t qualify admitted they haven’t actually taken any steps to find out for sure


     That last statistic is a particularly frustrating one, as it seems that collectively Mortgage Lenders, the real estate industry, and news media have done a good job of delivering the message (a needed educational one, admittedly) regarding the numbers of steps and larger amount of documentation required of today’s mortgage applicants.  

     But we may have done too good a job.  As the statistics show, potential homebuyers are now intimidated and fearful of the homebuying and mortgage process.  That’s not good … nor is it the reaction we seek. 

     If you are hoping and wanting to buy, you shouldn’t be scared of the process you need to follow to accomplish it.  And you certainly should never be scared of approaching or contacting me or your real estate professional.  You should not be afraid to ask questions or perform some fact-finding.  

     What you find out may surprise you! 
    

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

     Recently I wrote a post, What are the Requirements to Qualify for a Home Loan Today?”  It offered many of the basics for mortgages and mortgage applicants as they exist currently (post written 4/28/2014).

     The truth is:

  • Mortgage programs are available that accept Credit Scores (in some cases) as low as 580.
  • You do NOT have to put 20% Down on your home purchase
  • Mortgage Programs exist for 0% Down (VA and USDA-RD loans) or as little as 3.5% Down (FHA financing)
  • According to Ellie Mae:  Credit standards have loosened in comparisons to one year ago.  Approval rates for  applications are almost 3% higher than they were (58% in March of 2014
  • Exceptions DO exist for those that suffered “Extenuating Circumstances” (Foreclosures, Short Sales, Bankruptcy, etc.)
  • Sellers CAN assist with Closing Costs
  • A NO received on your Mortgage Applications doesn’t have to remain a NO indefinitely
  • Mortgage consultations are typically FREE.  Mine, for Chicago area clients, definitely are.

  
     Please, if you’re considering buying a home now or in the future … don’t assume you know an outcome or the answers to questions left un-asked.  Find out for sure if you can buy for the first time or if you can become a “move-up” buyer.   

     Dreaming of Owning a Home?  Potential Move-Up Homebuyer?  Don’t Be Afraid!  Contact me today.  Together we’ll discover what facts and reality exist for you … and then move forward accordingly.

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


     *  Hoping to Buy, Construct, or Refinance a home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicago areaContact Me.  I’ll put my 36 years of mortgage experience and expertise 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 your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
 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
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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


    

What are the Requirements to Qualify for a Home Loan Today?

What are the Requirements to Qualify 
for a Home Loan Today?    
https://1609956119.secure-loancenter.com/FreeConsult.aspx     Frequently I hear the question …       “What are the requirements to qualify for a home loan today”?     To answer that, I’m first going to list what are considered as foundation requirements for current mortgage loans.  When I say “foundation”, I mean that they are the basic requirements that must typically be met by those seeking financing.  

     The most basic and frequently seen requirements (the foundation of most mortgage approvals) are as follows:

  • Credit:  Middle FICO Scores are used to determine eligibility.  

       MOST standards are:

       Conventional:  620 FICO Score or higher
       FHA:  640 FICO Score or higher.  In some cases, the scores utilized can be as low as 580 to 640 
       VA:  620 FICO Score or higher.  Again, in some cases I have options from 580 to 620 FICO Score available for Veterans
       USDA:  620 FICO Score or higher

  • Employment/Income: *  

       Stable, sustainable employment needed.  Usually a minimum of a 2-Year job history required, unless applicant took their (first) job out of college.  Then education can count towards job history.

      Other types of income can also qualify, such as proven Child Support, Social Security, Pensions, Disability, Income from investments, Self-Employment, and etc.

http://www.genemundt.com/ContactUs.aspx
  • Down Payment:  

       *  Your Down Payment does NOT have to be 20%.  Let me stress this important point again …  

      You do NOT have to put 20% down on your home purchase.  Financing options exist for those making lower down payments!
 
       No Money Down options (0% Down) still DO exist.  VA and USDA-RD loans are examples of this fact
       3.5% Down Payment – FHA Loans feature this Downpayment requirement
       *  5% or More – Conventional Loans are available for these levels of Down Payment
      *  Mortgage Insurance Programs – These loan programs allow for transactions with 5% to 19.99% Down Payment 

  • Debt-to-Income Ratios: 

      New “Ability to Repay” Guidelines, effective 1/10/2014, require all recurring debt (Mortgage, Car Loans, Student Loans, Credit Cards) to be at or under 43% of Gross Monthly Income.    
       
       Note:  Exceptions can be made regarding this requirement.  The Debt-To-Income Ratios can be greater than 43% for those qualifying Borrowers with: 

  • Good credit 
  • Additional assets (reserves) 
  • Good job histories
  • and for those that RECEIVE APPROVAL IN AUTOMATED UNDERWRITING SYSTEMS FOR THAT SCENARIO

     Knowing and working with the requirements shown above should take much of the guesswork out of the question … “What are the requirements to qualify for a home loan today”?

     But as always, to discover and clearly define what requirements are specific to your personal financial scenario, you need to contact me and talk in depth.  Only through a thorough examination of all the facts, can we answer the questions you have and ultimately reach a conclusion regarding your financing and abilities to buy.

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

     
     *  To start investigating your current options, contact me.   I’ll be happy to answer your questions and assist you with your Chicago area financing needs.

Direct: 
Cell or Text: 
eFax: 
 
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
 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
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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

     

Homeowners Insurance Importance to Mortgage Pre-Approval, Application & Closing

 

Homeowners Insurance Importance to
Mortgage Pre-Approval, Application & Closing
 

     After you’ve signed your Real Estate Contract and you’ve

agreed to purchase a home, there’s still work for you to do as a Buyer and Borrower …  

     Typically a Real Estate Contract reads that Home Buyers must make Mortgage Application within 5 business days after signing the Contract.  During the Mortgage Application (and even before) I, as your Mortgage Lender, will advise you to begin shopping for your Homeowner’s Insurance.  

     For the Pre-Approval, and even at the time of Mortgage Application, I’m using an ESTIMATED dollar amount for the cost of your Annual Insurance Premium.  Why?  Because I (and Underwriting) must know and use the actual annual premium to calculate your EXACT total housing monthly Mortgage Payment.  

     Note:  No Underwriter will clear a file for Closing without knowing the exact cost for all components of the monthly Mortgage Payment.  So not having this portion of the Process completed in a timely fashion can cause Mortgage Approval and Closing delays.

http://www.genemundt.com     Recently, I had Home Buyers that dragged their feet a bit regarding the pursuit of their Homeowners Insurance Policy.  When they finally received a quote for their Homeowners from their Insurance Agent, it was more than double the amount I’d used as the estimate for their yearly insurance premium at the time of their Mortgage Application.  

     After hearing the higher premium amount, I advised my clients to revisit the quote with their Insurance Agent.  If that conversation proved unsatisfactory, I recommended they seek a second comparison quote.  

     Eventually, my Borrowers did receive their Homeowners Insurance Policy, one containing appropriate coverage at a more reasonable cost.  I then proceeded to re-submit their loan file to Underwriting for their all-important “Clear to Close”. 

     In Chicagoland, Mortgage Applicants are asked to pay the Homeowners Insurance Annual Premium directly to the Insurance Agency and IN ADVANCE of their Closing.  Upon full payment, a receipt is then provided to us (the Mortgage Lender).  That way no premium payment is still due on the actual day of Closing.  (Paying at Closing can be an option, in some cases.)

     Not seeing to the Homeowners Insurance Policy properly is just one way the scales for Mortgage Approval can be tipped from “Approved” to “Not Approved” for Borrowers.  Carefully following the instructions provided to you by your Mortgage Lender throughout your Mortgage Process … and then taking care of them in a timely fashion … saves you from stressful situations arising later in your Mortgage Process.

     Should you need a referral for an experienced, qualified Chicago area Insurance Agent, please contact me.  I’ll be happy to provide you the name and contact info for someone to assist you with your insurance needs. 

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

     
     *  Hoping to Buy, Construct, or Refinance a Home in the New Lenox area, another Lincoln-Way Community, Will County, or elsewhere in the Chicago areaContact Me Today!  I’ll put my 36 years of Mortgage experience and expertise 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 your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
 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
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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


 

 

Looking to Buy a Condominium? What You Need to Know

Image

Looking to Buy a Condominium?  
What You Need to Know
     If you’re presently in a house hunt, or even just dabbling with the idea of buying a home, you’ve probably done some research and run across multiple articles regarding the current Mortgage Process … and its challenges … 

     You’ve probably also heard that you’ll be asked to submit plenty of documentation regarding your finances (savings, credit/debt), employment, down payment ability, and more to meet lending requirements.  And that the home your hoping to buy will need to pass muster (via an Appraisal) with your Lender as well.       All that is true.  And if the property you’re hoping to buy is a Condominium, the level of scrutiny and amount of documentation required grows even more.   

     Why is that?   

     There are many outside influences that are woven into a Condominium transaction and its financing. Because of that, there are a few extra steps that must be taken by Buyer(s), Seller(s), and professionals involved with these transactions.  

     It’s important to establish if the property being transacted is legally determined a Condominium.  That determination is arrived at in a number of ways.  

     The first entails examination of the property’s PIN or Permanent Index Number A PIN is a numerical “code” for the legal description of a piece of land as it has been defined for the purposes of real estate taxation. The code points to the parcel’s location on tax maps.  PINs for Condominium units OFTEN, but not always, appear differently from other properties, as they are identified by an additional suffix, or set of numbers; other than 0000 at the end.  

     The second method  involves the Legal Description for the property.  If the word “Unit” is used within the Legal Description, the property is most likely a Condominium.  If the Legal Description mentions “PUD” (Planned Unit Development) within it, the property is typically a Townhome.  

     The Association aligned with the Condominium Project will need to supply information and documentation for the Mortgage Lender.  A complete copy of the recorded Condominium Declarations and Bylawsalong with any amendments  … must be suhttps://1609956119.secure-loancenter.com/FreeConsult.aspxbmitted to the Lender for their viewing.  The Association’s most recent budget must be submitted too.
    
  A fully-completed Condominium Questionnaire will be required.  What information does your Mortgage Lender look for on this Condominium Questionnaire? 

  • The number of 30-Day delinquencies within the Association (Ratio to total number of Units)
  • The number of Owner-occupied VS Investor-owned Units
  • Pending Special Assessments
  • Possible litigation, mediation, arbitration, or disputes involving the HOA (Present & Pending)
  • What, if any, Reserve Funds exist
  • If common elements and/or facilities are complete 
  • If the Project plans additional phases or add-ons
  • If the Condominium Project maintains adequate Insurance Coverage

      Selling/Listing Agents can assist in the smooth transacting of  Condominium properties by providing the following:

  • Tax Bill for the Property
  • Declarations/ByLaws for the Condo Association
  • Survey (if it exists – There will be one for Townhomes)
  • The Name and Contact for the Association
  • A copy of the Title Policy/other document with a full Legal Description within it

     It’s important for Mortgage Lenders to perform this close scrutiny of properties, as not all Condominiums (or the Projects they lie within) are eligible for all types of financing.  Borrowers must remember it’s ultimately for their protection that these questions are asked and documentation is requested.

     Looking to Buy a Condominium?  What You Need to Know  …  There are some extra steps that must be considered and taken when purchasing a Condominium property.  Your interests will be best served by working with experienced Mortgage and Real Estate professionals from start to finish.

     In the Chicago area, contact me with your Condo questions and for assistance with your Condominium financing.  I’ll be happy to put my 36 years of extensive Mortgage expertise and 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 your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
 
 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   Lender411 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