Category Archives: Finances

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


    

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
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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

 

 

 

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
  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

Heading to College? Protect Your Finances Now … and for the Future

Heading to College?  Protect Your Finances Now … and for the Future

     It happens fairly frequently …

https://1609956119.secure-loancenter.com/FreeConsult.aspx     While reading through a potential Mortgage Applicant’s Credit Report, I’ll discover that many of their reported debts and Credit Cards were first established while they were in college.  And now years later, they’re still trying to pay off those debts.

     Yes, it’s true.  The Credit Card Act (signed into law May 22nd of ’09) is supposed to be addressing some of these issues by removing Credit Card companies … and the temptations they offer to college students for applying for cards … from campuses.  

     For those under 21, the Credit Card Act has also made it harder to be approved for a Credit Card.  A parent, guardian, or spouse must be willing to co-sign on a Card … or the applicant must prove that they have sufficient income to pay for their credit obligation.

     These limitations and restraints are helping.  But I can tell you from experience, they’re not eliminating the problem.  Not by a long shot.  

     Ask many of my clients.  When they were in college or under the age of 21, they probably thought Home Buying was a long way off.  Or they might have even thought they weren’t interested in becoming a homeowner.  

     Whether you’re planning on becoming a future homeowner or not, it’s important to remain financially sound while in college.  Having poor credit or large amounts of debt hurts you financially … in the short term and long.  Access to services and the cost of those services (think cell phones/service), rent, car insurance, auto loans, and more are impacted by your debt and Credit Scores.  (Click HERE for a previous post on this subject).   

     So what are the biggest credit and financial issues I see taking root during the college years of Mortgage Applicants? 

  • Student Loans:  Face it, often they can’t be avoided if someone hopes to go to college.  But the amount(s) borrowed can be addressed, as can prophttp://genemundtchicagolandmortgage.blogspot.com/2013/08/tackling-millennial-student-loan-debt.htmler usage of the monies received from these loans.  

     Students must remember that Student Loans must be paid back and cannot be deferred forever.  Think long and hard before your borrow money … for any reason.

  • Lack of Budgeting:  Learning how to budget and then sticking to a budget is important.  Go crazy with your money and Credit Cards now and you’ll be paying for it for a long time after your graduate.
  • Making Minimum Monthly Payments:  Only making minimum monthly payments on Credit Card(s) raises the cost of the money borrowed because of all the interest charged.  Unfortunately, students often do not get the best terms for their Credit Cards.  Interest Rates are typically high.  

      A.  Credit Cards are vital to establishing a good credit history, so I’m not advocating that you don’t apply for a card prior to attending college or while there.  Just use the card(s) judiciously … and wisely.  

     B.  Pay as much as possible off the balance you owe each month.  You’ll save on the interest you’re charged, you’ll pay the balance off sooner, your Credit Scores will build higher, and you’ll be better positioned to buy and borrow for the things you need while still in school … and after you graduate too.

  • Applying for too many Credit Cards: Those offers and bargains offered at the store registers can come back to bite you later.  Stick to 1 or 2 low-limit Cards and pass on opening more.
  • Using the “cash advance” feature on Credit Cards:  Do this only when it’s an absolute emergency.

     So many of the Credit Reports I see are “haunted” … sometimes for years … by my Borrowers’ past expenditures and the poor credit decisions they made while in college.     Don’t let this happen to you (or your child).   

     Protect your financial future.  Establish a budget as part of the college plans you’re making.  Apply sparingly for Student Loans and Credit Cards.  Stick to your budget.  Your financial future will be much better if you do.  And should you decide to Buy a Home, you’ll be much better prepared to do so at the best possible terms …


     *  Thinking about Buying, Refinancing, or Constructing a  home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in ChicagolandContact Me Now!  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
 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

Are you Self-Employed and Hoping to Apply for a Mortgage in Will County and Chicagoland?

Are you Self-Employed & Hoping  to Apply for a Mortgage in Will County and Chicagoland?

    
http://www.genemundt.com

     From a Mortgage Lender’s perspective, the most complicated Will County and Chicagoland Mortgage Applicant is often the Applicant that is Self-Employed.

     Why?
     Full Document ation Loan Files are demanded in today’s Will County and Chicagoland Mortgage lending.  IRS transcripts are requested (and received) on the vast majority of Mortgage Loan Applications.  With Self-Employed Borrowers, the only way to verify income (and expenses) is through an Individual U.S. Tax Return and the Tax Returns filed by the business they own.  And that is true whether that business is a Partnership, Corporation, (S, C, or LLC), or otherwise.
     In most cases, no paystubs exist, as the potential Borrower’s business is not paying the Self-Employed owner as a consistent wage like they do an employee.  The same is generally the case for W-2‘s. Often, no regular monthly deposits of a consistent amount are available for review either.  So, the end analysis rests solely on the business and personal tax returns filed.  Those, in turn, are supported by Tax Schedules and Bank Statement Activity.    
     So you say … what’s the problem?
     As a rule, the majority of Self-Employeds incur expenses in the course of conducting their business.  There are tax advantages to them for reporting those expenses … and again, the great majority of Self-Employeds take full advantage of their expense “write-offs”.  Typically, tax advantage expenses are shown on tax returns as a means to reduce income … which in turn, reduces the amount of taxes paid by the Self-Employeds.  That is the whole idea of filing in this manner and the advantage found in doing so.
     Unfortunately, when those Self-Employeds try to secure a Mortgage loan, this advantage … reflected on their tax returns as “reduced” income (Net Income), serves as that Self-Employed person’s “Qualifying Income” that is reviewed by the Underwriter.  
     There is really no guesswork in this equation.  Net Income after expenses (with some exceptions and “add-backs”) is what a https://1609956119.secure-loancenter.com/FreeConsult.aspxWill County and Chicagoland Mortgage Banker and Underwriter use to determine a Self-Employed Borrower’s income level.  I arrive at the Net Income by reviewing the Self-Employed’s last two (2) years of filed Income Tax Returns.
     Often times, an Underwriter requires that a Year-to-Date Profit and Loss Statement from the Self-Employed Borrower be submitted.  This is especially true if the loan is being made in the 3rd or 4th Quarter of the yearIn some case files, only the most recent tax year documents are required, but often times two (2) years are needed.
     For that reason, it’s a rule-of-thumb lending requirement that a Will County and Chicagoland Borrower be Self-Employed for a minimum of two (2) years in order to qualify for a Mortgage Loan.  This two (2) year history of reported income can also apply to those that are Commission Employees, or 1099 wage earners that serve as Independent Contractors (IC).
     While all of these rules and guidelines are often viewed as overly rigid and inflexible, quite honestly, they make sense. There are cases where less than two (2) years of these types of income are allowed and “approvable”.  But in the context of this post, we’ll refer to those as rare exceptions.
     The bottomline is:  What the IRS knows and has on record for these kind of Borrowers is what a Will County and Chicagoland Mortgage Lender’s Underwriter will see … and even more importantly, must use for determining income.  
     Self-Employeds hoping to make application for a Will County or Chicagoland Mortgage must understand that fact and know that HOW they file their Tax Returns for the two (2) years previous to their Mortgage Application will impact their ability to borrow money.  Like every other taxpayer, a Self-Employed’s tax returns must be a fair and accurate depiction of their true income.  
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  Are you a Self-Employed person hoping to Buy, Refinance, or Construct a home in a Lincoln-Way Community, 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 so you can become a successful new homeowner.
     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?
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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.  
Gene Mundt, Mortgage Lender can be contacted at:
815.524.2280, 708.921.6331 … or via his email:  gmundt@goapmc.com.

I Promise to Love, Cherish … and Pay My Bills??

I Promise to Love, Cherish … and Pay My Bills??

    *  Food for thought: 
        According to the 2010 Current Population Survey (conducted annually by the U.S. Census Bureau), there were about 7.5 million unmarried opposite-sex couples cohabiting in the United States, as well as another 620,000 same-sex couples. The same source reported that married couples account for only 48 percent of all households.

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      More and more often, especially with young, first-time home buyers, I am assisting unmarried partners with their mortgage financing … and I’m seeing huge differences in many of their money-handling styles and skills.   

     While I see it in older couples too, the differences often are far more dramatic in the young.  It’s typically very clear … one partner is the saver, the other is the spender.  The conversations I have with them certainly reflect that too, as do their credit report(s).
    Right now, I am working with a young, unmarried couple hoping to buy their first home and obtain a mortgage Well, I should say … SHE is hoping to buy a home.  I’m not sure about him.  SHE has been the catalyst of each and every call.  Every piece of information or documentation I receive to advance their mortgage comes from HER.  He has been forthcoming with little.  He’s also been very non-committal and evasive with answers.  I’m a bit unsettled about him, to be truthful.
     Now this young couple, may or may not end-up completing their sales transaction.  I say their chances are 50-50 at best right now.  The outcomes depends on how persuasive SHE can be.  And if he quits dragging his feet and finally commits to the process.

 

    It’s just my opinion too, but I think this couple has bigger issues that should concern them.  Their credit reports read like a life story.  While both partners are young, they are old enough to have already established financial outlooks, habits, and distinguishable spending personalities.  Theirs are vastly different on all counts.  Extremes.  And because of that, I see all sorts of problems before them long term.  Red flags screaming out “Warning!” and  “Caution!” 

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    Should this couple hope to have a long, happy, and successful future together, I’d suggest they have a sit-down and talk about their finances … soon.  Possibly even counseling.  I think they need to be honest with each other about their financial histories (something I think she is possibly unaware of … or doesn’t understand the ramifications of) … and their financial goals and dreams for the future. There should be no surprises … no secrets kept between them.

     They, as well as any couple (married or unmarried), should both know, understand, and then commit to what financial responsibilities lay before them. They should also know just how and what they hope to contribute as they move forward together … and how and what they hope the other will contribute as well.  An indepth, lengthy, honest conversation is warranted.

 

      And as unromantic as it sounds, especially for this couple and other unmarried couples, this conversation needs to cover  any future “what-ifs” … and how those “what-ifs” affect them legally, should they part or die.
   Unmarried partners must not assume that the legal options and protections provided them are the same as for married persons.  It is my opinion that protections … legal protections … need to be arranged and put into place for each in this couple.  That is especially so prior to a large financial purchase/commitment, such as this home … or a car.

 

      Unfortunately, I do not see much financial harmony within MY young home buying couple right now … or the likelihood of any real indepth communications between them or any attorney occurring in the near future.  Time will tell if they can make a “go” of this, or not.  I’m hoping they prove me wrong … and all ends-up well.

 

      But I urge anyone hoping to buy a home with someone else, especially as a non-married partner … discuss your plans and goals with one another.  Then talk to a knowledgeable, experienced real estate attorney prior to making the financial commitment of buying a home or other large financial purchase.  Understand and know your options and possible outcomes.  Love and protect yourself enough to take these precautions …  

 

     *  In need of mortgage and credit advice?  Hoping to buy or refinance a home soon or sometime in the future?  Contact me.  I’ll put my 36 years of experience and expertise as a mortgage lender to work for you.  Together we’ll work towards a successful home purchase and find the financial solutions that suit your present financial needs and your future goals.
   Contact me at any of the following:

 

   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?
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.  

 

Gene Mundt, Mortgage Lender can be contacted at:
815.524.2280, 708.921.6331 … or via his email:  gmundt@goapmc.com.

Education + Preparation = the Confidence a Chicagoland Single Female Home Buyer Needs to Start & Successfully Complete their Home Buying Transaction

Education + Preparation = the Confidence a Chicagoland Single Female Home Buyer Needs to Start & Successfully Complete their Home Buying Transaction
   
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      A little over a year ago, I wrote a post entitled, “Have a Daughter?  Educate her Early about Finance, Credit, and Buying a Home”.  It’s proven to be one of my most popular posts and is typically one that people mention having read.  It obviously speaks on a topic of great interest.

     After being approached once again about this post, I thought I’d revisit it and update the info found there.  Admittedly my motivation and personal interest for this topic has only grown.  I now have two grand-daughters.

  • Trade investments less often  
  • Be more risk-averse
  • Keep more of their savings for themselves VS investing
  • “Settle” for more modest returns on investments/annuities/retirement funds

     And strangely enough, should they remain single instead of marrying, many of the differences between them and their single males counterparts will be even more stark.

     So what does this all mean?  How do these tendencies reveal themselves when females Buy a Home?  And what should parents, guardians, and teachers, (and I’d add Mortgage Lenders) do to best assist females to act in their own best interests?

     First, we obviously can’t and shouldn’t give in to old stereotypes.  Women have the capacity to learn and handle their own finances just like men do.  We cannot tolerate or assume because a woman makes a different decision than a man, that their capacity to understand finances is somehow diminished or less than a man’s.  It’s not.

     Secondly, we need to instill a deep confidence in our

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females.  The confidence to invest, save, and follow their own instincts.  Instincts formed and honed on the counsel, education, and application of investment and savings gained and practiced throughout their lives.

     As a Mortgage Lender, I can relate that I’m working with single female Borrowers far more frequently than I used to.  (And I see single females that are buying alone more often than I see single males doing so.)  My personal findings are backed by statistics and the accounts of many agents I work with.  

     That in turn is backed by the National Association of Realtors profile of home buyers: 

  • Single Female Buyers accounted for nearly twice as large a share as Single Male Buyers for both First-time Buyers (23 and 15 percent) and repeat Buyers (17 and 9 percent)
  • Twenty percent of recent Home Buyers were Single Females, and 10 percent were Single Males 
010: Women-owned households are expected to be 31 million, which makes up more than one-quarter of all home buyers in the U.S. – See more at: http://singlemindedwomen.com/money-tips/the-female-face-of-real-estate/#sthash.x2vs5pcZ.dpuf
National Association of Realtors® profile of home buyers – See more at: http://singlemindedwomen.com/money-tips/the-female-face-of-real-estate/#sthash.x2vs5pcZ.dpuf

  
     Every child, no matter their sex, needs to be thoroughly educated as to credit, financing, debt, savings, investing, and even … Buying a Home.  The better they grasp each topic, the brighter and less stressful their financial future will be.

     But given the statistics proving that females are marrying later (if at all) … and outlive men (42% of women 65 years of age and older are widows) … there is a special importance that must be placed on equipping females to make sound financial decisions.  This protects them definitely, but it also helps them to best benefit from their financial decisions too.

     When Buying a Home, a Chicagoland Single Female Home Buyer/Borrower can best claim the confidence and empowerment they need for their transaction through education.  A helpful article to get these female Buyers started is provided by Realtor.com entitled, “Tips for Single Female Homebuyers”.  Other great info for Single Female Homebuyers is available on that site as well.

     But, I stress the following point:  

     The magnitude of the importance of searching/finding a knowledgeable, experienced Mortgage Lender willing to explain and discuss your financial scenario and all financing options thoroughly simply cannot be overstated.  The same goes for the Agent you choose to work with.

     Education + Preparation = the Confidence a Chicagoland Single Female Home Buyer needs to start and successfully complete their Home Buying transaction.  To get started on your Chicagoland Home Buying & Mortgage Financing process, contact me today … 

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

    
     *  Are you a Single Female hoping to Buy a Home in one of the Lincoln-Way Area communities, Will or DuPage County, or elsewhere in ChicagolandContact 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!
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.  
Gene Mundt, Mortgage Lender can be contacted at:  

815.524.2280, 708.921.6331 … or via his email:  gmundt@goapmc.com.

Contact Gene Mundt, Mortgage Lender soon!

         

Let it Snow! Let it Snow! Let it Snow! And .. Get Started on Becoming a Chicagoland Home Owner!

Let it Snow! Let it Snow! Let it Snow!

And .. Get Started on Becoming a

Chicagoland Home Owner!

     I’m sure you recognize the following winter song lyrics

Oh, the weather outside is frightful
But the fire is so delightful
And since we’ve no place to go
Let it snow, let it snow, let it snow

It doesn’t show signs of stopping
And I brought some corn for popping
The lights are turned way down low
Let it snow, let it snow, let it snow

     Here in Chicagoland, and many other locations across the U.S., these lyrics are very appropriate as of late.  It’s been snowing, blowing, and yes … maybe even a bit “frightening” out on the streets.  So a safe, warm fireplace and home sounds pretty darn nice to us all.

      Maybe you can’t do anything about all the snow.  But if you’re finding that you have a little bit of extra time because of it … and you’re thinking about buying a home at some point during 2014 ... you CAN take a bit of the “frightening” out of your home buying process.

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     How?  By putting this time that Mother Nature has created for you to good use.  Taking the time to educate yourself and getting the info needed to move ahead with your home buying plans.

     Let it Snow!  Let it Snow!  Let it Snow!  Use your down time wisely and to your advantage!

     Start your research.  Do a little digging.  Make a call.  Visiting real estate sites such as ActiveRain, Trulia, Realtor.com and others will be immensely helpful throughout each stage of your home buying and mortgage process.  Learn!

     Seek out sites  such as:  Pinterest, Twitter, HUD,  AnnualCreditReport.com, etc., that offer huge amounts of FREE and valuable info on all facets of home buying, mortgage financing, home maintenance, new home construction, local home listings, and much much more.   These websites (and others) are great places to gain familiarity withreal estate and mortgage terminology and local real estate professionals.

    My point is:  Don’t let time slip by.  Put this time to work on your behalf.  Take action now!  Allow yourself plenty of time to become fully educated, polish or repair your credit, be Pre-Qualified, and prepare your paperwork.  The more advance time and time cushion you allow yourself, the better.

     Even if it’s snowing like crazy, you can accomplish very  important things …

     Let it Snow! Let it Snow! Let it Snow!  And Get Started on Becoming a Chicagoland Home Owner!  In Chicagoland, you can get started to best position yourself to successfully buy in 2014.  Contact me now with your questions and to take that first important step towards becoming a home owner.  I’ll be glad to hear from you …

     *  Hoping to Buy, Refinance, or Build a new home in a Lincoln-Way Community, Will or DuPage 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

gmundt@goapmc.com

www.genemundt.com

  Click HERE … for a 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.  

Gene Mundt, Mortgage Lender can be contacted at:
 815.524.2280   or  708.921.6331  
or via his email:  gmundt@goapmc.com.
Contact Gene Mundt, Mortgage Lender soon!