Ho! Ho! Ho!
Don't "SAVE" or "BARGAIN" Yourself
Right Out of Buying Your New Home
The Holiday season has rolled around once again ... and I think the topic of Credit and opening new Credit accounts while Holiday shopping is a very important one ...
Holiday Shopping time means "bargains" are everywhere and consumers are often buying gifts on credit. It's natural (and smart) to look for "bargains", no doubt about that.
But what about those supposed "bargain" credit offers you're seeing? The ones touting 0% rates? How smart is it to utilize them?
But what about those supposed "bargain" credit offers you're seeing? The ones touting 0% rates? How smart is it to utilize them?
Well, it depends ...
As pointed out in the above-mentioned article, the Credit Card Accountability, Responsibility and Disclosure Act passed by Congress in 2009, can give consumers a false sense of security while shopping. Ahhhh ... yes.
The "fine print". That minuscule jibberish behind the asterisk or underneath the beautiful bold print-offers in the store-front window. That "fine print" holds the answer to whether the offer is truly all that it seems on the surface.
The "fine print". That minuscule jibberish behind the asterisk or underneath the beautiful bold print-offers in the store-front window. That "fine print" holds the answer to whether the offer is truly all that it seems on the surface.
Shoppers need to take the time to clarify that "fine print". To ask questions about that credit offer PRIOR to making any purchase or signing on the dotted line. And that's especially true if you are presently in the process of buying a home ... or considering doing so.
Let me repeat that!
If you are thinking of buying a home ... or are in the mortgage process right now ... STOP!
Besides all the "fine print" and details of that credit that could come back to haunt you in sheer cost and money ... that "bargain" you think you're receiving could actually be the reason you are denied mortgage approval for a home.
And yes, that's even if you are already in the mortgage process and you have been "approved" for a home loan.
Besides all the "fine print" and details of that credit that could come back to haunt you in sheer cost and money ... that "bargain" you think you're receiving could actually be the reason you are denied mortgage approval for a home.
And yes, that's even if you are already in the mortgage process and you have been "approved" for a home loan.
Remember hearing from your Lender (in Chicagoland that is me) that you should NOT take out any new credit or run any credit reports without checking with me first??
That is important! And this is a perfect example of why I told you that ...
That is important! And this is a perfect example of why I told you that ...
Credit Reports are run again, just prior to Closing. Depending on your personal financial scenario, previous credit scores, recent expenditures, and new credit appearing on that fresh Credit Report ... your Mortgage Approval could be rescinded. Or at minimum, your Closing delayed until your credit is corrected back to acceptable terms/numbers.
I've seen it happen when clients did not heed my warning on this topic. And sadly, they lost the ability to buy the home they were under Contract for.
Lost solely because of a seemingly small amount of new credit extended them. That little purchase they made that they thought was saving them money, ended-up costing them dearly.
Lost solely because of a seemingly small amount of new credit extended them. That little purchase they made that they thought was saving them money, ended-up costing them dearly.
It's clear: Not all supposed "bargains" are really that. Home Buyers ... and future Home Buyers ... must be aware of this fact and prioritize.
They must assess what is truly important in reaching their ultimate goal of good FICO scores, approvable scores for mortgage financing (throughout their entire home buying and mortgage process) and ultimately ... a successfully purchased and financed home.
They must assess what is truly important in reaching their ultimate goal of good FICO scores, approvable scores for mortgage financing (throughout their entire home buying and mortgage process) and ultimately ... a successfully purchased and financed home.
In today's current mortgage financing, the definition of "Mortgage Process" must now include that time prior to actual mortgage application too. Home Buyers must be mindful of their credit and credit scores well in advance of that time when they actually apply for their loan.
Home Buyers must remain vigilant throughout their entire mortgage process ... and sometimes, even past Loan Closing (depending on the mortgage program utilized to purchase). Working with an experienced professional Mortgage Lender ... and listening to their advice is crucial to your success.
Ho! Ho! Ho! Resist the temptations for "bargains", FREE, and 0% ... low credit financing offered you during the Holidays. At minimum, delay buying or taking action until you have talked to your Loan Officer.
* Hoping to Buy or Refinance a home in New Lenox, or elsewhere in Will County - Chicagoland/Il-WI? Get the guidance and info you need to successfully accomplish your goals! Contact me today. I'll put my 40 years of mortgage expertise and experience to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #216987 - Lic. #031.0006220 - WI License #216987
American Portfolio Mortgage Corp.
Direct: 815.544.2280
eFax: 1.815.544.2281
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Your Business & Referrals are Greatly Appreciated!
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Your Business & Referrals are Greatly Appreciated!
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