Tag Archives: mortgages

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!
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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.
Referrals are Greatly Appreciated and Welcomed!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As an added piece of information: 

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

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

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

I can be easily found at any of the following:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

 

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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. 

 

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

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

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

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

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

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

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

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

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

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

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

     Let me say that again …

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

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

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

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

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

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

      
     *  Hoping to Buy, Construct, or Refinance a Condominium, Townhome or Single-Family Home in Will County or elsewhere in the Chicago area?  Contact Me today!  I’ll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280
Cell or Text:  708.921.6331
eFax:  815.524.2281
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
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Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL


    

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

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

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

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


    And finally …
 

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


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

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

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

     What you find out may surprise you! 
    

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

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

     The truth is:

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

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

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

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


     *  Hoping to Buy, Construct, or Refinance a home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicago areaContact Me.  I’ll put my 36 years of mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

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


    

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

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

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

     Credit is no different! 

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

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

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

     It happens all the time … 

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

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

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

     But it’s not …

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

and request your FREE Credit Report.

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

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

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

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

Direct:  815.524.2280
Cell or Text:  708.921.6331
eFax:  815.524.2281
 
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
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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

     

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Direct:  815.524.2280815.524.2280
Cell/Text:  708.921.6331708.921.6331
eFax:  815.524.2281815.524.2281
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
 
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Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL
 

 

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

     
     *  Hoping to Buy, Construct, or Refinance a Home in the New Lenox area, another Lincoln-Way Community, Will County, or elsewhere in the Chicago areaContact Me Today!  I’ll put my 36 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280
Cell or Text:  708.921.6331
eFax:  815.524.2281
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 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


 

 

Good or Bad Mortgage Process? How Home Buyers Can Secure More Positive Results

Good or Bad Mortgage Process?
How Home Buyers Can Secure More Positive Results
     I read an article containing the recent TD Bank Mortgage Service Index.  It projected sort of a “good news – bad news” message …
    

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Some of the good news reported:

  • 82% of those taking part in the index study felt that 2014 is a “very good” or “good” time to buy a home
  • 21% (up from 18% last year) are “extremely/very likely” to “likely” to purchase a home this year
  • For those that had purchased recently, 62% thought their experience was “excellent” or “very good”
  • For those that had purchased within the last 2 years, 70% rated their Mortgage Lender as “excellent” or “very good” in responsiveness, honesty, transparency, and ability to explain Mortgage Interest Rates and Terms

    The less positive news was that those seeking financing reported that they’d still like to see improvements made regarding the simplicity of the process (only 56% thought the process simple enough).  And they’d like to have “easier-to-use” online tools at their disposal during the Mortgage Process. 

https://1609956119.secure-loancenter.com/FreeConsult.aspx     To me, it’s obvious that the perception of the process … and the process itself … still is stressful and daunting to too many potential home buyers.  That makes it likely that some hopeful buyers are not asking preliminary questions or they’re not entering the market because of this poor perception.  That’s not good.

     I know I must sound like the proverbial “broken record”, as I’ve broached this subject many times.  But I believe much of the answer to this dilemma remains within the control of the potential home buyer.  Buyers need to do a thorough job of seeking and choosing their Mortgage professional.  (The same process should be made when choosing a real estate agent, real estate attorney, insurance agent, etc.)  

     Take the steps … make the effort … and reap the benefits throughout the entire Mortgage Process.  Take any ol’ Mortgage Lender and you take a chance.

     A search for a Mortgage Lender should include:

  • Referrals – Talk to Real Estate Agents, Appraisers, Insurance Agents, etc.  
  • Referrals – Speak to friends and family that have successfully closed a Mortgage recently
  • Search online:  Social Media, Lender Websites, local Real Estate & Financing websites
  • Interview/speak to Mortgage Lenders themselves.   

      Question:

  1. Who explained the details and information in an easily understood manner?  
  2. Who responded to your contact/call in a timely way?  
  3. Who did you feel a rapport with? 
  4. Who answered your questions well and covered all your available options?
  5. Who made you feel confident that your process would be smooth and successful?
  6. Whose name did you receive multiple referrals for?

     The financing process itself should not be a deterrent to someone buying a home.  It shouldn’t be that scarey or perceived as that insurmountable.  

      Good or Bad Mortgage Process? How Home Buyers Can Secure More Positive Results …

Home buyers can contribute to their own success by doing some easy preliminary homework and asking for multiple referrals.  As their Mortgage Lender, the rest of the responsibility for a successful Mortgage transaction is mine.

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

     Are you hoping to Buy, Build, or Refinance 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 expertise and experience hard to work on your 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
 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