Category Archives: Down Payment

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!
 

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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!

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?
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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?
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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

 

 

 

Preparing to Buy a Chicagoland Home: Seller-Paid Closing Costs

Preparing to Buy a Chicagoland Home:

Seller-Paid Closing Costs

– See more at: http://activerain.com/blogsview/4308152/preparing-to-buy-a-chicagoland-home-seller-paid-closing-costs#sthash.spFanGOx.dpuf

Preparing to Buy a Chicagoland Home: 
Seller-Paid Closing Costs
https://1609956119.secure-loancenter.com/FreeConsult.aspx     Looking out my office window right now, you’d never know that Spring … and Spring’s busier Chicagoland housing market isn’t that far off.  Yet, it’s true …

     Chicagoland First-time Home Buyers (those typically purchasing homes from the low $100K’s to the low-$200K’s) and anyone else hoping to buy during this upcoming Spring’s warmer-weather market, should be making their plans NOW, while winter snow is still on the ground and temperatures are frigid. 

     So, if you’re a hopeful Chicagoland First-Time Home Buyer (or anyone seeking Mortgage financing) what should you be considering or educating yourself about right now … at the beginning point in your process?

     First of all, find yourself a knowledgeable, experienced Mortgage Lender to work with.  Not sure how to do that?   

     Here’s a few suggestions:  

     Inquire with Real Estate Agents that transact in Chicago or the Chicagoland area in which you hope to live.  Check with Real Estate Attorneys, your friends or family members that have Closed on a Mortgage loan recently. Talk to Insurance Agents or others that work in the local real estate industry.  Gather names and note those mentioned multiple times. 

     Don’t skimp on the attention you give this matter.  Do your homework.  Find the right person for you.  (For more help and guidance, click HERE.)

     Once you’ve found your Mortgage Lender, have a long talk with them about your finances and your Credit.  Get Pre-Qualified to discover:

  •   What Home Buying options exist for you
  •   Your Credit Scores 
  •   Your Credit capabilities
  •   If elements of your Credit need polishing 
  •   The Price Range of home you can buy
  •   Establish a timeframe for your upcoming purchase

     
     One of the most important topics you’ll talk about with your Mortgage Lender will be regarding a Down Payment on your home purchase.  At this time in the year, I often hear from Borrowers that Income Tax Refunds will be a contributing source to their Down Payment funds.  

     For Buyers hoping to utilize Income Tax Refunds during their home purchase (or Agents working with those Buyers), it’s critical to make sure that Income Tax Returns are filed as early as all supporting documentation (W-2’s, etc.) is received.  Tax Returns should be filed electronically, as this  expedites the depositing of Tax Refunds into Checking or Savings Accounts.

     It’s important for Home Buyers to know:  Income Tax Refunds ARE acceptable to Lending Underwriters when saving/accumulating assets to buy a home.  Since most loan programs require Down Payment funds to come from the Buyer, it’s important to demonstrate Down Payment funds as verifiable money in accounts.  (Accounts can be Savings, Checking, Money Market, Mutual Funds, Bonds, Stocks, and Retirement.)

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

      

Keep in mind that the:
  • Minimum Down Payment on FHA Loans is 3.5% 
  • FHA requires a 3.5% Down Payment, but ALL or PART of that Down Payment can be a Gift
  • Minimum Down Payment on most Conventional Loans is 5% 
  • At this time, it remains totally acceptable for Sellers to pay Closing Costs.  

     In the case of Sales Prices under $100,000, it’s almost necessary to get Seller-paid Closing Costs due to new regulations in place as of January 10, 2014, per the Consumer Financial Protection Bureau (CFPB).  Certain Closing Costs ARE allowable when Seller-paid.  That simply allows your Mortgage Lender, to cover the cost of traditional fees incurred in a Real Estate purchase at Closing time. 

     I’ve included a breakdown of the guidelines (as of this writing) on the maximum allowable Closing Costs that a Seller can pay.  These Costs are expressed as a percentage (%) of the Sales Price …

     For Conventional Loans:

  • Fannie Mae –  3% if Owner-Occupied  *
  • Freddie Mac – 3% (2.5%in some cases) if Owner-Occupied
  • Investment Property – 2%

    *  Can be greater, if Loan-To-Value is less than 90%
     
     For FHA:

  • Up to 6%

     For VA:

  • Up to 4% 

    
Preparing to Buy a Chicagoland Home: Seller-Paid Closing Costs …  As you can see, there’s quite a list of things to talk over with your Mortgage Lender when you hope to buy a Chicagoland home.  It’s normal to have lots of questions.  So, let’s get started and get those questions answered.  Contact me now so together we can best prepare you to buy a home …

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


     *  Hoping to Buy, Refinance, or Build a Home in Chicago or the greater Chicagoland area?  Contact 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 a FREE Mortgage Consultation!
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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.

Real Estate Round Table #1: Making Chicagoland First-Time Home Buying Easier

Real Estate Round Table #1:     Making Chicagoland First-Time Home Buying Easier

     They say stepping out of your “comfort zone” and showing a willingness to do new things is good.  That lesson is valid whether you’re talking about buying a first home … or doing your first webinar.  I did the latter just  this morning …

     With the assistance of small business and real estate consultant, facilitator, and wonderful friend Carra Riley, I tackled my first online webinar today.  A webinar that addresses the other “first” I speak of above … Buying a First Home.  

     There were a few minor hiccups with sound (at first), but all in all this first video webinar went well.  Many of the fears I had previously have now disappeared.  Truth is, the unknown was far more scarey than the actuality.

     Much the same can be said about Buying your First Home in Chicagoland.  Education and preparation are key, as is who you choose to work with during your transaction. I learned during the making of my first video that sometimes it’s best to learn as much as you can, make your preparations, and then dive into the waters. 

     I had great professionals at my side … and that made all the difference to my mindset and to the outcome.  Do the same during your First-Time Home Buying transaction … and you’ll end-up successful too.

     My new webinar featured two of my Chicagoland referral partners … 

Anne McMillin of Starting Point Realty …

Anne McMillin 
Real Estate Broker
Starting Point Realty
anne@StartingPointRealty.comCell:   708.601.1530 

   

Richard Stringham of Stringham Insurance Agency in Mokena … 

Richard Stringham – Owner/Agent
Stringham Insurance Agency
19646 South Wolf Road
Mokena, IL  60448
dick@stringhaminsurance.com 

Office:   708.479.2526  

     We hoped that the info and assistance provided within the video would aid Chicagoland First-Time Home Buyers.  Each of us was hoping to take the “fear factor” out of first-time home buying transactions for our viewers.  I hoped we accomplished that and more.

     Here’s my video/link:

Image

     I know I learned a lot today.  And again, I must say thank you to Carra Riley for that.  Making this video certainly reinforced a lesson about the “comfort zone” thing too.  Because of Carra’s generosity and efforts I know I’ll definitely be much more relaxed and educated about the ins-and-outs of video, webinars, and Google+ Hang-Outs in the future.  

     I’m looking forward to adding even more informational Mortgage financing videos and webinars in the future.  Be watching for them as I hope to share more on the topics of Mortgage financing, Credit/Credit Scores, Mortgage Pre-Qualification, preparing to Buy a Home, Mortgage Application, Chicagoland Construction financing, and more soon. 

     *  Have questions about what you heard in the video above?  Contact Me!  I’ll be happy to hear from you, answer your questions regarding Mortgage financing, refer you to  great professionals within the Chicagoland area, and more.
     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

New Home Construction Financing in the Chicagoland Area

New Home Construction Financing in the Chicagoland Area

     My wife and I were out running errands yesterday.  It was an absolutely gorgeous Fall day in Chicagoland.  We weren’t alone in our effort to get out and enjoy the beautiful weather either.  The roads were busy and filled with cars. 
      
     As we drove along, we both noted the healthy spattering of new construction popping up all over.  Once a very familiar sight, new home construction in our area had come to a screeching halt during the housing crisis.

     The area in which we live, Will County, IL … as well as the entire Chicagoland area … had exploded with new construction during the housing boom.  According to the 2010 Census, Will County, IL saw a growth in population of almost 35% over that reported in the 2000 Census.  (That 2000 Census had reported an increase of almost 41% over the previous census.)  So it’s no wonder that Will County was named the 2nd fastest growing county in the State of Illinois during that time.

     The sight of newly-framed homes, new developments, and a rising number of contractor’s trucks on the highways in Chicagoland is very welcomed, as it’s a sign of improving economic and housing market health.  This new construction activity brings other good things along with it too, as its brought a flurry of calls and questions regarding new construction financing.  Love it …

     As with many things in the quickly-changing real estate industry though, the new and current construction financing doesn’t completely resemble the old.  Here’s some of the changes to be found …

     Years ago, vacant lots were often times owned or purchased by the homeowner.  In this scenario, when the Individual (not a Builder or Contractor) owns a lot and chooses to build a new home on it, the typical financing route is a “6-month construction loan”, secured by the Individual Lot Owner (Borrower) at a Bank or Mortgage Company. 

     During the construction process, the Individual/Lot Owner requests that 4 or 5 “payouts” be made.  These “payouts”  are funds from the loan that pay the Sub-Contractors for their completed work (supported by signed and notarized Contractor’s Waivers).   Payouts are usually preceded by inspections (performed by the Bank or Mortgage Company’s Appraiser) verifying the payout of funds requested appropriately reflects the actual work completed.

     The stages at which these “payouts” are considered, usually include completion of:

  • Excavating and Foundation
  • Rough Framing/Construction of the Residence/Garage
  • Rough Mechanicals – Plumbing, Electrical, Heating and Air Conditioning are “Stubbed” in
  • Insulating, Drywall, Millwork (Trim, Doors, Windows)
  • Final Inspection – (100% Complete – Final Occupancy Permit)

     After completion of construction, the Homeowner seeks a permanent, or “end loan” to pay off the Construction Loan.  (Construction Loans are typically a short term, interest only type of loan … not intended to be for a Fixed Term, such as 15, 20, or 30 years.)  The Individual/Borrower’s permanent Mortgage is then based upon a “completed” value, as determined by the Mortgage Lender’s Appraisal. 

     This value estimate is typically in line with the Cost or Value of the lot, PLUS the Construction Costs (Labor and Materials).  The new loan is then considered a Refinance … and Loan-To-Value considerations are based upon the new Appraised Value.


     However … in today’s environment, MOST of the building sites in Will County, and elsewhere in the Chicagoland area, are created and owned by Developers/Builders, who market/sell their products from Model Homes.  Prospective Home Buyers contract for varying features and amenities offered in addition to the basic model chosen and semi-customize their new home according to their tastes and preferences.

     In this scenario, the Builder funds his own construction process (usually with their own banking relationships, or cash), and when the home is completed … sells the home outright to the new Homeowner.  The Homeowner/Buyer secures traditional Mortgage financing, according to the agreed-upon Sales Price, and closes after the Final Occupancy Permit is issued and the home is complete.

     So what are your current financing options if you own your own lot in Will County or Chicagoland and wish to hire your own Contractor to construct a new home on that lot? 

     I have good news!  Another loan option exists and is  available to you in this building/financing scenario.  This loan option performs as a combination of the two forms of financing related above.  It’s known as a  “Construction to Perm”  loan.  

     A “Construction to Perm” loan provides the money needed during the construction period and then converts to a permanent (End Loan) after construction is completed.  I’ll be offering more information regarding this loan option (“Construction to Perm”) in greater detail in an upcoming blog.  Should you have questions or have a more immediate need for information or assistance, contact me at your convenience at any of the options found below …

    
  
     *  Hoping to Buy or Build a Home in Will County or elsewhere in the Chicagoland region?  Contact Me!  I’ll put my 36 years of mortgage experience, knowledge, 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
Click HERE for a FREE Mortgage Consultation!
Ready to Apply for your Mortgage?

When Should a Will County – Chicagoland Home Buyer First Seek Financing Guidance?

When Should a Will County – Chicagoland Home Buyer First Seek Financing Guidance?  
     As a Mortgage Lender, I recommend that potential Home Buyers contact me up to one year in advance of their purchase.  That is especially true when that Home Buyer is a First-Time Home Buyer.  And here’s why …
     I recently had a young newly-engaged couple contact me for Mortgage financing.  They were hopeful First-Time Home Buyers wanting to learn how well they were currently positioned to buy a home.  They also wanted to know more about their Mortgage financing options and what was ahead of them during the Mortgage Process itself.
     This young couple was well-organized.  I’d recommended that they visit my website prior to our meeting and they had done so.  They had a good portion of their needed financial documentation in-hand and were prepared and ready to talk.
     But when this young couple sat down, I just knew they were scared to death.  It isn’t unusual to see this reaction.  Most First-time Home Buyers have little idea of what they’ll face, so it’s only natural that they’re a bit apprehensive.
     Many clients have probably heard that there will be an onslaught of questions to answer.  But they rarely know what those questions will be … or how answering those questions will end-up fulfilling a need within a transaction.
     After working with this young couple, I thought seeing some of the questions they were asked during their first Mortgage Consultation might prove helpful to others in their preparation to buy/finance a home.  Keep in mind, every Buyer’s needs and financing scenarios are different and can vary greatly.  But many of the questions you hear may be similar or close to those found below. 
     You will most likely be asked:
  •  How soon are you hoping to buy?
  •  Do you know your Credit Scores?
  •  Have YOU pulled your Credit Report from www.freeannualcreditreport.com(Depending on your personal situation, I may/may not request to run your Credit Report at this time).
  •  Have you saved any monies for a Down Payment?
  •  If so, how much have you saved for your Down Payment?
  •  Do you want to “keep back” or retain any of your savings after Closing?

     Other questions will include:

  •  Have you started an actual home search?
  •  Do you know the location and price range of home you wish to buy?
  •  Do you know what price a home with those features … and in that location … will demand?
  •  What debt do you currently have?  
  •  Do you have installment Loans, such as Auto Loans, Student Loans, Credit Cards?
  •  How many accounts (called trade lines) have you established?
  •  What about your Employment(s)?
  •  How are you paid?
  •  What are you paid?
  •  How long have you been on the job?
  •  Does that include overtime?  Will that overtime continue?
  •  Does your pay include bonuses? Will those bonuses continue to come … or are they unscheduled?
  •  Are their children involved?  Child Support? Alimony?

     Knowing this couple was an engaged couple, with a wedding day set, I also asked the following questions:

  •  Will your wedding and wedding expenses impact your credit/debt?
  •  If so, how much?
  •  Upon marrying, will monetary wedding gifts impact your Down Payment?
  •  How do you intend to use the gift monies?
  •  Have you set-up a separate banking/checking account for wedding/reception funds?  One that separates those monies from the Down Payment funds/account?

     
     As you can see, there is much to consider as you enter into Home Buying.  This is especially true if you are a First-Time Home Buyer or someone getting married during the Process.  The questions above also prove just how personalized today’s Mortgage Process has become … and just why I recommend starting the Mortgage Process so far in advance.  

     In my next post, I will address:

  • HOW and WHY having an early Mortgage Consultation can benefit you
  • WHY providing required documentation in a timely manner is important
  •  WHAT guidance and assistance you can expect as we move forward in the Mortgage Process together

     

     As always, you are invited to contact me with any questions or needs at your convenience.  You can easily find me at the following:
                                                                                                Gene Mundt
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?

“What is the Number 1 thing I can do to help myself when considering my first home purchase?”

     I’m often asked by First-Time Homebuyers 
    

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

     “What is the Number 1 thing I  can do to help myself when considering my first home purchase?”   

     My answer?  Educate yourself about every step of the Mortgage and home buying process … thoroughly.

     As a Mortgage Lender, over the years I’ve come to see my role as educator or “teacher” vastly grow in importance.  When I first started in the Mortgage business, I instructed clients.  Actual teaching opportunities were few and minimal.  That’s definitely not true anymore.  

     Education is now vitally important throughout the entire Home Buying transaction.  From the time you first discover your interest and desire to buy your home … through your Mortgage processing and successful Home Closing … and even beyond … education remains key.  

     So how do you get “educated”?  Just where do you search for helpful reading materials, information, and informative videos to best educate yourself? 

     Information is everywhere.  Search in newspapers, magazines, blogs.  Scour social media sites for links to helpful and timely articles, videos, news bites, reports, statistics, infographics, websites, and more.  The amount of free information available courtesy of our government, mortgage and real estate professionals and experts, both online and off, is almost staggering.   

     I recommend you read everything you can.  And don’t hesitate to contact/call a local experienced Mortgage Lender or real estate professional either.  Get referrals to find them.

     Do this well in advance of starting your actual home search.  This will allow your Mortgage Lender ample time to run your Credit, help improve or repair your Credit Scores if necessary, and better position you to buy your home at the best possible Interest Rates and Mortgage Options available.

     Now … did you also note above that I suggested that you continue to educate yourself “even beyond” your Loan Closing?  

     Valuable information continues to be available to you throughout all the outlets named above.  But none will prove more valuable then an on-going relationship and dialogue with your Mortgage Lender.  The education, services, guidance, and help they can provide you after your Closing remains important to your future financial and credit health.  

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

     Make sure to stay in touch with this valuable resource.  Keep the lines of communication between yourself and your Lender available and open.  I send weekly newsletters via email to my Closed clients, so updated and timely email addresses remain important.  Remember, we can’t help you if we can’t reach you in some way.

     “What is the Number 1 thing I can do to help myself when considering my first home purchase?” You’ve probably heard this many times in the past, but it’s true.  Get educated (and stay educated) about your Credit, Credit Scores, and financing options.  Your financial health will be better for it …

     *  Hoping to Buy your First Home in a Lincoln-Way Community, Will County, or elsewhere in the Chicagoland area?  Contact Me!  I’ll put my 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 
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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