Tag Archives: Underwriting

Disputing Disputed Accounts

Disputing Disputed Accounts

     Have you reviewed your Credit Report and Credit Scores recently?  If not, I urge you to do so.  For a number of reasons.

But if you have:  I applaud you. Did you find a debt, account, or error there though? After finding it, did you contact a Creditor, a major Credit Bureau, or take action to “dispute” the account?

If you’re planning on borrowing money SOON …  I’d advise against disputing an account or error that’s appearing on your Credit Report …

     Mortgage Underwriting platforms have changed their stance on “disputed accounts”.  Disputes used to be seemingly harmless actions.  Not so anymore.  Underwriting changes have made it possible for disputes to hold up … or even prevent … Mortgage Approvals. 

A recent Borrower of mine can sadly attest to that fact …

In my Borrower’s case:  It took hours and hours of phone calls to explain, detail, document, and sort out a dispute.  A dispute originally lodged by the Creditor.

To make this situation even more frustrating, we came to find that the Creditor’s action had been taken in error.  Nonetheless, it cost my Borrower time, stress, and money to straighten it out.  Requests to rush a revised Credit Report come at a cost.

Many times:  The best option for a Mortgage Applicant may be to leave the account “as is” … in error and undisputed.  At least temporarily, while trying to gain Mortgage Approval or while in the Mortgage Process.

     But what if you’ve already taken steps to “dispute” an account prior to applying for your financing? 

First:  Have an in-depth conversation regarding the situation with me or your own Mortgage Lender.

There is no set answer for this predicament.  That’s important to know and remember. A discussion with your Lender will help you find a solution and take action based on yourpersonal scenario.

Secondly:  I may ask that you write the 3 Major Credit Bureaus (Experian, Trans Union, Equifax) AND the Creditor itself, to request they remove the dispute.

Be prepared to take action and follow-up on it.  As your Lender I may provide guidance throughout, but I cannot make requests on your behalf.  That remains the responsibility of the Account Holder.

Understand:  Removal of a dispute may be the best and fastest way to address this issue.  It will also address the changes in Underwriting that I mentioned earlier.

In the case of my client, the Creditor later stated that “they guess they needed to review their policies” regarding the placement of disputes on accounts.  Hearing that was of little satisfaction to my Borrower.  And it didn’t reimburse them for their expenditure of time and money.

I will point out, that this issue could have been avoided had my client checked their Credit Report earlier or on a continual basis, as the dispute had lingered there for years.

 So Bottomline:  Reviewing your Credit Report on a regular (I suggest annually, at minimum) basis is a smart financial move.  And it will eliminate issues from arising in the future during your Mortgage Pre-Approval and Processing.

If you’re thinking of buying or refinancing a home soon, take action now.  Talk to me soon … and check your Credit Report.  Both will make your home purchase or financing go more quickly, easily, and successfully …


*  Are you hoping to Buy or Refinance a home in the Chicagoland 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/Text:  708.921.6331
eFax:  815.524.2281
 
 
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender  Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, & 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. 
 
Your Referrals are Greatly Appreciated!
 
     

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?
 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


    

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


 

 

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

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

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

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

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

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

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

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

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

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

     The Effect Real Estate Taxes and Insurance have on  Mortgage Loan Approvals and Monthly Mortgage Payments.  Home Buyers need an accurate calculation of their total Monthly Mortgage Payment in order to make sound decisions surrounding their Mortgage financing and home purchase.  It may seem like I’m asking a lot of questions when we’re in the Pre-Qualifying stage of your Mortgage Process.  But as you can see from above, the success of your Approval depends on me asking them. 
     *  Hoping to Buy, Refinance, or Construct a Home within a Lincoln-Way Community (Manhattan, New Lenox, Mokena, Frankfort), Will County, or elsewhere in ChicagolandContact me today!  I’ll put my 36 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:
Direct:  815.524.2280
Cell or Text:  708.921.6331
eFax:  815.524.2281
Click HERE for a FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender   Lender411 Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL
 

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.  
http://www.genemundt.com/ContactUs.aspx
  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?
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.  
Gene Mundt, Mortgage Lender can be contacted at:
815.524.2280, 708.921.6331 … or via his email:  gmundt@goapmc.com.

The “Science” of Pre-Qualifying Home Buyers During the 1st Quarter of 2014

The “Science” of Pre-Qualifying Home Buyers During the 1st Quarter of 2014
     
https://1609956119.secure-loancenter.com/FreeConsult.aspx

Some would say that Pre-Qualifying a Home Buyer these days is a Science.  That meaning there is an exactness to the process as it now stands during the 1st Quarter of 2014.  

 
     I’d say that’s definitely wrong.  The many changes that have taken place in the Lending Industry (including those that kicked in on January 10th, 2014), have erased much of the exactness from any current lending equation.
 
     As Mortgage Lenders make adjustments because of the new guidelines regarding “Ability-to-Repay” (ATR) and the reduction in Debt-to-Income-Ratios (DTI,) there will be an adjustment period … one with a bit of a learning curve attached to it.  In addition, the technology associated with Underwriting and Mortgages will also be tested and most likely run into some challenges. 
 
     Sure, some things remain much the same, such as the documentation needed from Borrowers for Pre-Qualification and Approval.  But throw in the long list of variables that must be also considered while seeking an Approval:
  • Credit Scores
  • Depth of Credit
  • Employment History
  • Length of Employment
  • Income Amount 
  • How Income is Earned
  • Amount (percentage) of Down Payment
  • Source of Down Payment
  • Reserves (Money retained by the Buyer after Closing)
  • Residual Income (Money left over after Mortgage Payment and other Debts are paid monthly)
  • and More

     plus … the cumulative effect of all these factors … and you see how and why there just might be some adjustment period for clients and professionals alike during this first Quarter.  

     As with most changes that occur in the Mortgage industry, some Mortgage Lenders will be educated and well-versed about these new changes while others are not.  In my opinion, these changes make one thing abundantly clear:  

     Now and moving forward, there is a growing importance for new Home Buyers to seek-out Mortgage Lenders that continually educate themselves and also have hands-on experience with the new rules, regulations, and industry guidelines.  As a Home Buyer, that experience will mean the difference between failure and success to you …

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


     *  Hoping to Buy, Refinance, or Construct a Home within 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.
     I can be easily found at:

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

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender   Lender411 Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.  


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

 

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?

Hoping to Buy a Home? Juggling some credit? Don’t drop the ball.

Hoping to Buy a Home? 
Juggling some credit? 
Don’t drop the ball.
    Juggling some credit?  Credit … credit scores … credit cards … debt? 
 
      Knowing how to handle or utilize your credit and debt to your advantage can  seem much like a juggling act.  Lose control of even a portion of it or for a second … and you can drop all the balls.  Both figuratively speaking and literally.
      The topic of credit is obviously one touched-upon often as I speak to my mortgage clients.  Questions arise as to the best plan of action regarding the credit and accounts they have … or need to open  in order to have good credit scores  and healthy credit.  And yes, you read that correctly.  Ironic at it may seem, having NO credit or debt (paying Cash for everything) actually works against you when applying for a mortgage.  I know, go figure.
    Many of the questions I receive revolve around the myths and misperceptions regarding the paying off of debt and CLOSING of credit accounts. Credit can be a tricky topic to fully grasp … and it doesn’t make it easy for my clients to understand, when there are no concrete, full-proof rules or recipe to follow regarding this topic.
 
     Credit, the optimization of credit scores, and the closing of accounts, remains a very personal, very individualized equation specific to the person seeking the advice.  What is the right plan of action for one person may actually be the worst plan of action for another.
 
    I try to help my clients understand the delicacy and fragile balance of their credit and credit scores by telling them to think of their credit and debt like “ratios” in a math equation … or like a scale.  What effects those “ratios” or how well the scale balances can be:
 
  •  The number of credit accounts you have
  •  How much is owed on each account
  •  The accumulative amount of the debt you owe
  •  The “age” of each account
  •  The type of credit/account it is
  •  And More …
 
    See how and why it can get so confusing?
 
     Credit scores can be damaged or lowered if the wrong credit account is closed.  But you don’t want to just neglect old accounts with zero balances either.
 
     There is also a right way and wrong way to close out an account.  And you want to make sure you receive actual verification or proof of record from the creditor after taking this action.  (Just to play it safe and protect yourself, should questions concerning the account arise in the future.)
     Juggling balances from one card to another can get your “ratios” out of whack too.  Robbing Peter to pay Paul can drive your credit scores down.  Exactly the opposite reaction you’re hoping for.
     Considering all of the above, you can begin to see why it’s so important to seek guidance from your Mortgage Lender  when hoping to improve your credit scores to their maximum potential.  Why it’s so important to take action and seek help, especially if you’re a first-time home buyer.
 
     If YOU are hoping to buy a home in the future … and you have multiple credit cards, rent, car payments, or other debt in the mix … NOW is the time to talk to a Mortgage Lender.  They will know what YOUR personal credit and debt ratios should and need to be to secure mortgage approval when you buy a home.  Plus, they will know how to best optimize your credit to your advantage, allowing for the best mortgage program options and interest rates to choose from at the time of your home purchase.
 
    Please remember this too …
 
     Polishing your credit and optimizing your credit scores can take time.  Months.  A year.  Maybe even longer.
     Interest rates are presently at historic lows. But home prices are on the rise.  If you should hope to take advantage of the perfect blend of low interest rates and lower home prices, now is the time for action.  And the further ahead that you start the process, the better positioned you will be when you buy your home.
    Hoping to Buy a Home?  Juggling some credit?  Don’t drop the ball. Act now so we can talk together soon!
    *  Hoping to buy a home or refinance in Will County, Chicagoland, or elsewhere across the country? Contact me today!  I’ll be happy to hear from you and put my 35+ years of mortgage experience and expertise to work for you on your behalf.
    I can be found at the following:
Cell/Text:    708.921.6331 
Email: genemundt
Skype:    630.219.1316 

Ahoy There! Cast Your Fears Overboard! I Am Your Trusted Captain!

    Today I was reading a blog posted on ActiveRain.  The blog topic and resulting discussion that caught my eye was regarding the fear that many buyers are currently feeling when addressing  closing costs  and the mortgage application document  “Good Faith Estimate”  for their home purchase.    

     Seems buyers have heard the recent mortgage industry weather reports and they’re skittish.  They see there are potential storms ahead in the lending seas.  They have little faith in the weather changing.  The construction of the ships they’re utilizing seems somewhat faulty to them.  They have Gene Mundt CBC Mortgage Blog Re: Fearsheard that ship captains might choose a path for their sailing that takes them smack into the eye of the storm.  These buyers are just not sure they’ll ever reach their destination successfully.       

    There is no denying that the mortgage process has become much more intricate and hard to understand. This is a reaction to the problems and issues that surround the present mortgage crisis.  Costs, details, and mortgage options must now be spelled-out in mandated, explicit detail.  All of those things are good and serve to guide and protect those entering into mortgage lending.  

     But … while trying to offer positive guidance and protection, the industry went “overboard” with demands for more documentation and expectations of the average home buyer.  Admittedly, it’s become overkill for everyone involved!        

    It’s easy to understand why buyers fear and dislike the whole process.  From beginning to end, truthfully, it’s much harder to navigate everything about lending and the process of getting to the Closing table. The reaction to addressing the problem is the antithesis of what was hoped for.  While trying to whittle away a problem which was initially the size of a pontoon boat  … a monstrous battleship was created.  And yes, boarding that boat can be pretty scarey!       

    

    And this brings me to the real point of my post …       

      No lender can currently change the present demands being made for documentation.  Rules are rules.  Regulations are regulations.  Federal guidelines are Federal guidelines.  Underwriters will demand what Underwriters want and need.        

Gene Mundt CBC Mortgage Blog Re: Fears     

     There is no changing that, so my advice is to quit trying to row your boat upstream and against the tide!           

     This is YOUR Captain speaking!        

     What WILL make your mortgage processing less stressful, more manageable, and ultimately successful?  

    Your choice of mortgage lender!  Experience.  Knowledge.  Expertise.  Reputation.  Closing-Success Rate.   THOSE are the important attributes to weigh and check-out when choosing your lender.  But NO lender can provide a smooth and successful closing if you, the buyer/client, does not also contribute to a successful mortgage processing.       

     At this point, you hopefully have chosen me  as your lender  because of my many positive attributes.  My EXPERIENCE … my KNOWLEDGE… my EXPERTISE … my CLOSING-SUCCESS RATE.  If that is true, you must trust and rely on my ability and desire to …  

  • Share and discuss your financing options with you.  (Please, hone your listening skills.) 
  • Construct the best path for a beneficial and successful closing together. 
  • Once that path is chosen … Listen and Follow Suggestions/Instructions for moving forward toward that successful Mortgage Closing based on   my professional attributes  you chose and are listed above.  YOUR best interests are MY best interests also. 
  • Be Organized with your communications, note-taking, documentation, and financial records.  That will speed-up response and processing time on both ends.   

      It is  my professional attributes  … teamed with your listening skills, credit abilities, organizational skills, and willingness to produce requested documentation in a timely manner … that willGene Mundt CBC Mortgage Blog Re: Fears determine whether you reach your ultimate goal of a successful Mortgage Closing.             

     Much of the fear surrounding the mortgage process can be addressed and conquered by choosing and working with the right lender … and through adaptation of the skills mentioned above.             

     Putting the time, energy, and muscle into finding the right professional mortgage lender for you … and then placing your trust in your choice will calm fears.  Trust … that the attributes that guided you in choosing to work with me are the very same attributes you should trust moving forward through processing.  I will provide you with honest assessments, strong guidance, and helpful answers. Trust … that my experience, expertise, knowledge, and past closing successes will serve you well during your mortgage processing journey.       

     Ahoy!  Fears are cast overboard!  I will be your trusted Captain…                              

A ROYAL Announcement … CREDIT is KING!

A ROYAL Announcement … CREDIT is King!

Gene Mundt Chicago Bancorp king cartoon

      Here’s an important message that definitely bears repeating …

      If you ever hope to enter the home buying market … there is no better time than NOW to start the buying process!

      And whether you’re hoping to buy within 6 months or 6 years down the road, the following statement is true.  The first steps you take towards purchasing your home will be the same.  Those steps will begin with credit.  It’s also true, that your processing and preparation for Closing Day will end with credit also. 

      What does that mean?

      It means that … Your Mortgage Professional will begin your journey to a home purchase by pulling your credit report.  It is now common practice that they will do so once again just prior to your actual Closing date when within the actual buying process. 

      Why? 

      Royal trumpeters please …

      CREDIT IS KING …

      This being the case, all future buyers (remember, whether buying now or later) need to seek an up-to-date accounting of their current credit scores and financial standing as soon as possible.  The further out from your buying experience, the better. 

      Simply put, this action affords you more time to rectify or improve your credit scores before you navigate the home buying course, should those actions be needed.  The best and most financial options are available to those that have good credit scores … and nowdays, the kingdom is awarded to those with good credit only.

       Through Chicago Bancorp’s services, I can help you accomplish becoming King of your Castle (or Queen, of course).  Again, that’s whether you’re hoping to buy right now … or somewhere down the line. 

      CREDIT IS KING!  

 Gene Mundt Chicago Bancorp Success Button

BUT IT’S ALSO KEY TO ROYAL CREDIT STATUS!

  • Minimum scores dictate whether qualification is even remotely possible
  • Credit is key to many of the underwriting conditions for Approval for a home loan   
  • Credit is key to the number of financing program options available to you during a purchase
  • Credit is key to the insurance rates you receive for homeowners insurance 
  • Credit is key to the interest rate options available to you during your home buying
  • Credit is key to whether you have purchasing power for needed items within your home once closed
  • Credit is key to etc. etc. etc. … and etc. …

     

      With so many of life’s important possibilities, financing options, and cost-savings hinging on your credit score … can you really afford to bypass the opportunity to work with me on your credit/FICO scores?  

      SUCCESS IS ATTAINABLE  …Gene Mundt Chicago Bancorp Finish Line pic

      If you’re EVER hoping to buy a home …  If you’re hoping to SAVE yourself money …  If you desire more CONTROL over your finances and financial future …

  • NOW is the time to act. 
  • NOW is the time to write, text, email, stop by my office, or call me for assistance. 
  • NOW is better than later. 
  • Take action NOW.

      CONTACT ME, Gene Mundt, at Chicago Bancorp: 815.277.4036.  Text/call me on my Cell at: 708.921.6331.  Email me at: gene@chicagobancorp.com.  Reach me through my website: http://genemundt.com.  Stop by my office at: 1555 Naperville/Wheaton Road, Naperville, IL … or 129 Capista Drive, Shorewood, IL … or downtown Chicago location, available for the convenience of those residing within the City.

      Become KING (or Queen) of your credit and castle … not the Court Jester.  Your royal credit status awaits …

        No matter your location … no matter when you intend to buy … GET  STARTED  NOW!  

        

                            

www.genemundt.com

gene@chicagobancorp.com