Category Archives: Monthly Mortgage Payment

How to Avoid Unwelcome Surprises When Buying a Chicago-Area Condominium or Townhome

     One issue that has cropped-up often throughout the time I’ve been a Mortgage Lender (and continues to do so routinely) surrounds the question …

     Is the property I’m purchasing really a Condominium … or is it a Townhome?
  

https://1609956119.secure-loancenter.com/FreeConsult.aspx

      Just last night, the question came up one more time.  My client, who had been told they were purchasing a Townhome, is in fact buying a Condominium.

     The Legal Description of the property proves it is a Condominium.  The tax Permanent Index Number (PIN) shows the property is a Condominium.  Note:  They signed their Sales Contract before they talked to me.

     As you can guess, my Borrower is not very happy … 

     Calls and emails flew back and forth all night between my Borrower and myself regarding this issue.  Question after question was raised.  

     But no amount of talk, frustration, or wishing things were different will change fact.  The Borrower has contracted to buy a Condominium … even if they thought differently.  Facts and legal documentation don’t lie.  (For additional info, please read my post:  How to Determine if You’re Viewing a Condominium or a Townhome)

      When the Developer platted the property they have contracted for, they legally platted the development as a Condominium Project.  Within a Condominium Project the land is “common land”.  The land on which the Condominium is built is NOT OWNED by the individual Condo owner.

     What distinguishes a Condominium from a Townhome is not building design.  

     Let me say that again …

     What distinguishes a Condominium from a Townhome is NOT the design of the building.  Rather, it is the ownership rights of the land found underneath the building.

     In a true Townhome, the land underneath the building is separately divided and owned by each individual Townhome Unit owner.  Pretty much the opposite of Condominium ownership.

     I strongly suggest:  Everyone considering the purchase of a Chicago-area Condominium or Townhome should personally take the time to:

  • Obtain and Read the Legal Description of the property they are thinking of buying 
  • Thoroughly investigate the type of ownership that will  be received via the purchase of the property they are considering 
  • Do so PRIOR to signing a Contract 

 http://www.genemundt.com     Why does it matter?  Condominium Associations can be, and usually are, more restrictive on rules and regulations as they pertain to use of the property.  Restrictive to the point that a property’s marketability and “lendability” can be affected.
     So it’s very important that you take the time to perform this research.  Get the facts you need to make an educated and informed choice regarding your property purchase.  You don’t want unwelcome surprises when you go to finance your Chicago-area purchase …

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

      
     *  Hoping to Buy, Construct, or Refinance a Condominium, Townhome or Single-Family Home in Will County or elsewhere in the Chicago 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 or Text:  708.921.6331
eFax:  815.524.2281
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
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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


    

Just Like Your Underwear: Credit Needs to be Freshened-Up, Scrubbed, Updated, Fluffed & Changed

Just Like Your Underwear: 
Credit Needs to be Freshened-Up, Scrubbed, 
Updated, Fluffed & Changed 
https://1609956119.secure-loancenter.com/FreeConsult.aspx

     Everything needs to be “freshened up” once in a while.  It need to be given a trim.  Updated.  Fluffed.  Scrubbed-up.  Changed or re-arranged.

     Credit is no different! 

 
     But stop and think about it.  When was the last time you took a good hard look at your credit situation, your credit cards, or Credit Report?  Over a year?  Two?  More?

     Truth is, what worked for you credit-wise in the past, may not be serving your overall financial good now …  

  •  Interest Rates on your credit cards may have risen 
  •  Promotional rates may have fallen off 
  •  Rewards that initially drew you to a specific card, may   have lapsed. 
  •  The credit card company may have updated or dropped the benefits you liked from your card 

     It happens all the time … 

     And your mortgage rate?  The one you might have thought you were doomed to forever because of housing values?  It may actually deserve a second-look.  

     Mortgage Interest Rates have remained low … lower for much longer than most experts thought they would.  And as of this writing, have actually fallen some recently.  Enough that Refinances have come back on the radar for a large number of Americans in many housing markets.

     The airwaves, social media, and news are full of stories that tell of new security breaches. Passwords to banking accounts and websites need to be changed one more time.  We hear of it so frequently, that it’s begun to take on the air of “common occurence”.  

     But it’s not …

https://1609956119.secure-loancenter.com/FreeConsult.aspx
     Your credit and Credit Report are always a “work in progress”.  If you haven’t checked your credit and Report out in the past 12 months, it’s time to now.  You can easily accomplish this on your own.  Just head to: 
 

and request your FREE Credit Report.

     If you want to find out what options exist for you to become a step-up home buyer, or to discover if Refinancing your present mortgage is an option … in the Chicago area, contact me.  Together we’ll run the numbers to find the opportunities that currently exist for you.  

     And if we find your credit and credit scores need improvement, we’ll “freshened them up”, give ’em a trim, fluff, scrub, change or re-arrange them so they’re the best they can be as you head into your financing and the future …

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

      
     *  Hoping to Buy, Build, or Refinance a Home in the Chicago area?  Contact Me Today!  I’ll get you the facts, info, and figures you need to make the best home buying and mortgage financing decisions for you and your future.
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

Love Your New Construction … But Educate Yourself About Future Tax Bills

 Love Your New Construction … But Educate Yourself About Future Tax Bills

     *  I want to preface this article by saying it’s geography specific to the Chicago Area and its collar-counties …

     So you’ve opted for building or buying a newly constructed home.  You’ve decided you’re okay with investing most, or all, of your savings to cover the Down Payment and Closing Costs.  After all, it’s a new home, you hopefully won’t need money for repairs or improvements for quite a while. 
    

https://1609956119.secure-loancenter.com/FreeConsult.aspx

     Plus, the property taxes for your new home will initially be lower, as they’ll be based upon the vacant lot on which your new home is built.  (The new home wasn’t completed yet for the previous tax year’s bill.) 

     But how does this effect your future tax bill and the tax portion of your monthly mortgage escrow?

     When obtaining financing, during your first year of a new construction occupancy, the real estate tax portion of your escrow account is based upon the last available tax bill for that property.  Again, that tax bill, (referred to above), is based on the vacant lot, so your Mortgage Escrow Account, set-up at the time of your Closing, has been funded by low monthly payments … maybe as low as $50 to $100.  

     It must be pointed out:  I, as your Mortgage Lender, am required to base your tax escrow figures upon the MOST RECENT AVAILABLE tax bill.  I, like all Lenders, am prohibited from collecting anything beyond that.  

     The pros for homeowners that result from this are:  Their initial monthly mortgage payments are quite low.  But unfortunately, there are cons that come with this too.  

     What are those?  In the second year of occupancy, the County Tax Assessor having jurisdiction over the property, notes that the property (vacant lot) has been improved upon with a newly-constructed residence.  

     In Chicago and its Collar Counties, the following is an example of what the typical ramifications of this vacant lot/new construction tax escrow scenario are … and the timeframe in which they occur:

   1.  Closing occurs on:  August, 2012.  The Occupancy Permit is issued on that date.

   2.  Taxes for the previous year of 2011 (based on Vacant Land), now payable in 2012, were $100.00.
https://1609956119.secure-loancenter.com/FreeConsult.aspx 
   3.  The Builder paid the 2011 tax bill for $100 at the time of the Closing in August, 2012.

   4.  The Buyer/Borrower’s Mortgage Escrow (based on the 2011 tax bill) is figured and set-up at Closing.  The Mortgage Lender require they pay $50 per month into their escrow for Real Estate taxes, beginning with their first payment due in October, 2012.  

   5.  New tax bills are issued in May 2013, for the previous 2012 tax year.  They still don’t reflect the newly- constructed improved property, as the Assessor’s Records aren’t updated in time to reflect that improved property’s existence.

   6.  AFTER these tax bills are issued, the Tax Assessor updates the property record card noting the Occupancy Permit issuance and the date of Occupancy, August 2012.  The Tax Assessor then submits the new improved evaluation and assessment accordingly.
      
     Fast forward to May 2014 …  

   7.  New tax bills are once again issued, but now they reflect 16 months of improved property (the last 4 months of 2012 and the entire 12 months of 2013).  This new tax bill is issued at the current tax rate levied for the property’s Township.

   8.  As a result, the Homeowner’s/Borrower’s Escrow Account is short.  It doesn’t have enough money in it to pay the new tax bill reflecting the improved (newly constructed) property.  * Remember, the Escrow only has collected the low $50 per month amount allowed at the time of Closing.  But the new bill is “catching up” on the missed months of taxes based upon the improved property.  

   9.  The Mortgage Lender, based upon the new tax bill they have received, sends the Homeowner/Borrower a notice of an increase to their escrow payment … or they provide the Homeowner an option to cover their shortage in escrow with a lump sum payment.

     The result of this new construction tax scenario can be scary and burdensome for a homeowner.  If they haven’t prepared by setting aside an estimated amount for their new higher taxes, panic can set in.  All too often, I’ve seen the homeowner have to opt for the larger monthly escrow payments because of their ill-preparedness. 

     If you are considering the buying or building of new construction in Chicago or a Collar County:  Don’t be caught off guard regarding your new construction property taxes.  They will rise at some point.  Be fully prepared for that. 

     While you’re in your initial Mortgage Process and your Closing, listen to me, your Mortgage Lender.  Heed my advice regarding your escrow and future tax bills.  This issue is too important to not fully understand it, prepare for it, and act upon it …

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

    
     *  For thorough, detailed new construction financing advice and assistance in the Chicago area, contact me today!  I’ll put my 36 years of mortgage experience hard to work on your behalf.  I can be easily found at:

Direct:  815.524.2280815.524.2280
Cell/Text:  708.921.6331708.921.6331
eFax:  815.524.2281815.524.2281
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
 

 

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


 

 

Is it the Right Time for You to Sell Your Present Home & Buy the Next?

 

Is it the Right Time for You to Sell Your
Present Home and Buy the Next?

 
https://1609956119.secure-loancenter.com/FreeConsult.aspx     The final decision to Refinance your existing Mortgage (or  not), should be based on one simple thing.  It must make good financial sense …  

     That decision is often times determined by the length of time you, as a Homeowner, “guesstimates” you’ll own your loan (i.e., stay in your present home).  A good rule-of-thumb is that the monthly payment savings received through the Refinancing (at minimum), should “pay back” your Closing Costs for your Refinance.  

     Similar (and additional) considerations need to be made by those Homeowners hoping to upgrade or “step-up” to a bigger and better home and becoming Home BUYERS again.  For those in this situation, it’s important to remember: 

     ALL transactions are not created equal.  In most transactions, Home Buyers pay a “fixed” amount of Closing Costs.  “Variables” that affect that amount could be (but not limited to):

     Sometimes, these costs can be paid for by the Sellers, if negotiated into the Sales Contract.  Otherwise, Home Buyers can easily pay up to $5,000 for costs associated with buying.  In simple math this equates to:  A Homeowner’s 5-year stay in their purchased home costs $1,000 a year.  ($5,000 of totals costs, divided by the number of years in the home (5), equals $1,000 of costs per year.)

     This fact also needs to be considered: During the time you’ve lived in your home you’ve paid down your Mortgage balance … year by year, payment by payment.  Maybe you’ve even paid some extra to the Principal too.  

     On the Sales side of their transaction, Sellers must remember:  Their home’s Appreciation or Depreciation in value must also be considered.  In a good housing market, the home will have appreciated in value during that duration of time.  That Appreciation helps to cover the costs they as Sellers face when they move on.

http://www.genemundt.com/ContactUs.aspx     As a Seller, it’s a good rule-of-thumb to assume that costs will equal 8% to 10% of the Sales Price of your home.  That varies of course, depending on the state, city, county, and the percentage of Real Estate Commission being paid.

     While your decision to move can be ruled by emotional reasons or the need for a lifestyle change, the decision should definitely include financial considerations, as well.  No matter your reasons, if you’re ready to move, it’s important to “do the math” regarding a move and sale.  Obtaining a Realtor’s opinion of what it will take to sell your home is wise.  

     Down Payment funds are critical to any purchase, but especially for those Selling one home and buying another.  BEFORE you agree to list your home and sell it, get Pre-Approved by a Mortgage Lender to discover your options or limitations for purchasing your next home. 

     Most U.S. Homeowners consider a move within the third and fifth year after their first purchase.  National averages have shown that most 30-year Fixed Rate Mortgages last an average of  7 years (approximately).  When Sellers retain control of the timing of their moves from one home to another, they are more likely to come out ahead.  

     Is it the Right Time for You to Sell Your Present Home and Buy the Next?  Possessing the facts and information needed to make sound financial decisions greatly reduces the stress that accompanies the Buying and Selling of a home.  

     In Chicagoland, contact me so we can discuss your plans and do the math for your personal scenario.  We’ll discover what options exist for you.  That way you’ll be better prepared to make sound Sellingor Buying decisions …        

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

     

*   I can be easily found at:

Direct:  815.524.2280
eFax:  815.524.2281
Cell or Text:  708.921.6331

 

Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx

 

 

 

 

 

 

 

 

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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

 

 

 

5 Indicators Point to the Wisdom of Home Buying “Sooner than Later”

5 Indicators Point to the Wisdom of Home Buying
“Sooner than Later”
     Today’s news looks something like this …

https://1609956119.secure-loancenter.com/FreeConsult.aspx

 

Mortgage Rates Convincingly Higher,  Momentum Shifts

     Those headlines come fast on the heels of Interest Rates recently having taken a slight downward track over the last week or so.  Moving forward, the consensus of experts seems to be (along with these articles) that Rates will move generally upward during the year (2014). 
      Often it’s hard to predict with real accuracy where Interest Rates are headed, especially in these quickly changing times.  Interest Rates, much like gas and oil prices, are like yo yos and rise and fall in tandem with the Financial Markets.  The Financial Markets rise and fall upon the events occurring around the world.  Who can predict those?  

     Here’s a good everyday example of what I’m saying:  Ever go to the store and see the gas price at one level only to come back from the store just minutes later to see it higher?  Things can change in a blink of an eye.

https://1609956119.secure-loancenter.com/FreeConsult.aspx 
     So if you’re a hopeful Home Buyer, how are you possibly to know when it’s the best time for you to hop on the “Home Buying Train”?
     A few indicators would point to the wisdom of buying a home “sooner than later”:  
  • 1st Indicator:  The majority of predictions typically point to Interest Rates rising as the year progresses.   Higher Interest Rates = Higher Monthly Mortgage Payments
  • 2nd Indicator:  The prices of homes in many housing markets is on an upward swing.  Higher House Prices = a need for a larger Down Payment and Higher Monthly Mortgage Payments
  • 3rd Indicator:  Recent changes have taken place in the Mortgage Industry, most notably the Qualified Mortgage Rules.  Those entering Home Buying can do so more certain that they will be able to make their payments in the future.
  • 4th Indicator:  Landlords all across the nation are raising rents.  Higher Rental Costs = Less Money Saved.  The old question remains … why pay someone else’s Mortgage or help them build equity?
  •  5th Indicator:  A slightly improved Economy, rising home prices, and fewer delinquencies have eased the stress on Lenders. The result may be more Mortgage Lenders willing to make Mortgages, ultimately making it a bit easier for Home Buyers to finance. 
     At minimum, these indicators should serve as your motivation to inquire as to the options and possibilities that exist for you in financing a home purchase.  It costs you ZIPPOnothing … to obtain the information and answers you need to make your decision.  
     Should you want to buy a home, there is never a better time than NOW to ask those questions.  For FREE, you’ll find out one of two things …
  • You CAN buy … and you get started towards fulfilling your Home Buying dream
  • You cannot buy … and you get started towards building your Credit, repairing and polishing your Credit, or saving for a Down Payment … by following the advice of your Mortgage Lender.  

     Again, it’s FREE to find out, so why not ask?  Either answer gains you valuable info and knowledge.  And either answer moves you in a positive direction and closer to what you ultimately want and hope for.

    5 Indicators Point to the Wisdom of Home Buying “Sooner than Later”.  In the Chicagoland area, contact me today …      

      
http://www.genemundt.com/ContactUs.aspx
    
  *  Wondering if Home Buying, Refinancing, or Constructing a home for yourself is possible in New Lenox, another Lincoln-Way CommunityWill County, or elsewhere in ChicagolandContact Me now!  I’ll put my 36 years of Mortgage experience and expertise hard to work on your best behalf.
     I can be easily found at:
Direct:  815.524.2280815.524.2280
Cell or Text:  708.921.6331708.921.6331
eFax:  815.524.2281815.524.2281
 
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
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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

The Effect Real Estate Taxes and Insurance have on Mortgage Loan Approvals and Monthly Mortgage Payments

The Effect Real Estate Taxes and Insurance have on  Mortgage Loan Approvals 
and Monthly Mortgage Payments
     There is an acronym in the Mortgage Loan Industry known as PITI.  This stands for:
  • Principal
  • Interest
  • Taxes
  • Insurance(s)   (Insurance for Homeowners Premium and Monthly Mortgage Insurance must be calculated and included in an Estimated Housing Payment.  Mortgage Insurance is required if a Down Payment is less than 20%).

     If buying a property within a Homeowners Association, you can add an “A” to the end of that list/word, so it becomes PITIA.
https://1609956119.secure-loancenter.com/FreeConsult.aspx 
     PITI/PITIA is the actual total housing payment that is arrived at when a Loan Officer is “pre-approving” a Home Buyer.  

     As Mortgage Lenders, we tend to focus mostly on the Sales Price or Loan Amount for Home Buyers’ Pre-Approvals.  But I’m ultimately trying to pin down the Maximum Payment of PITI/PITIA.  This payment is then compared to the Home Buyer’s gross monthly income for what’s called the Housing Ratioor Front-End Ratio.  

     To arrive at the Total Debt Ratio, or Back-End Ratio (ideally 43% in this day and age), I add the Mortgage Payment (PITI/PITIA) to the other monthly debt my Borrowers have … that debt coming from Auto Loans, Student Loans, Installment Payments, Credit Card Payments, Child Support (if applicable) that my Borrower may have.

     So what is the significance of this seemingly straight-forward lending exercise??

     I want to illustrate how important it is to know if the piece of property my Borrower is considering for purchase lies within a Homeowners Association … and if it does, what the corresponding Association Dues are.

http://www.genemundt.com/ContactUs.aspx     Knowing the last available Real Estate Tax Bill is also important for a Mortgage Lender and Borrower.  That bill is needed in order to calculate a Monthly PaymentIf Mortgage Insurance is needed, there are various factors that impact and figure into the cost of that Insurance (i.e., Credit Scores, Down Payment Percentage, Owner-occupied VS Investor, etc.).  

     And lastly, the Principal and Interest (P&I) Payment is calculated based on the appropriate combination of Loan Amount and Interest Rate.  Add the Estimate for monthly Homeowners Insurance … and I get a reliable PITI/PITIA.

     Without a “reliable” and accurate PITI/PITIA, I’d be gambling with your Approval in Underwriting, especially when you’re approaching the Maximum Allowable Debt-to-Income Ratio (DTI).  Debt-to-Income Ratios are best kept at 43% to 45% (or less), for your optimum chance of receiving Loan Approval. 

     The Effect Real Estate Taxes and Insurance have on  Mortgage Loan Approvals and Monthly Mortgage Payments.  Home Buyers need an accurate calculation of their total Monthly Mortgage Payment in order to make sound decisions surrounding their Mortgage financing and home purchase.  It may seem like I’m asking a lot of questions when we’re in the Pre-Qualifying stage of your Mortgage Process.  But as you can see from above, the success of your Approval depends on me asking them. 
     *  Hoping to Buy, Refinance, or Construct a Home within a Lincoln-Way Community (Manhattan, New Lenox, Mokena, Frankfort), Will County, or elsewhere in ChicagolandContact 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 a 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