Sending Wishes Your Way for a Very Happy Easter

     Sending Wishes Your Way for a Very Happy Easter

     Life gets busy ... especially on the holidays ...

     So I wanted to make sure I wrote this blog wishing all a very Happy Easter and wonderful holiday weekend.

     Marilyn and I will have our family together.  A real, but rare treat these days.

     The little "cutie" you see to the right  is our little grandbaby, Marilyn.  She will be in attendance along with her daddy, our son John and mommy, Sandi.  

     Her little cousin Henry will be in tow, as well .. along with his daddy, our son Tom and mommy, Jenny.  We're lucky to have my Mom celebrating the day with us too.  We've been gathering and making Easter goodies for weeks now.

     No matter who you celebrate with or how you choose to celebrate this beautiful holiday.  May it make you happy and fill you with great joy ...




"Mortgage Anatomy 101" ... the Current Mortgage Process, Part 3"

"Mortgage Anatomy 101" ... 

the Current Mortgage Process, Part 3"

      In Part 1 of the post,  "Mortgage Anatomy 101" ... the Current Mortgage Process"  ... I detailed much of what happens in the initial portion of your mortgage process.  In Part 2, I dug a little deeper into the mortgage process and touched upon your mortgage file's submission into  Underwriting, the Underwriting itself, and then Loan Approval. 
      In this Part 3, the last article in the series, I will talk about the Closing of your home's financing.  Your Mortgage Closing is the culmination of all your hard work and effort over the last weeks.  It represents the successful completion of your Mortgage Process.   It represents the fulfillment of your dream.
       Once your Mortgage Lender has received the Underwriter's blessing to Close, your Loan Processor "directs" your mortgage file to your Lender's Closing Department.  All information contained within your file is re-confirmed .... the Loan Amount, Loan Payment, Loan Terms, as well as those  that will be participating in the Loan Closing.  Those are:  The  Title Company, Attorneys, you the Borrowers, your Mortgage Lender, Agents, and possibly  more.
       Next, the Mortgage Lender's "Closer" prepares the Mortgage Documents and sends the final monetary figures for your financing to the Title Company.  The Closer then arranges for the Mortgage Lender's funds (typically via wire) to be provided for the day of your Closing.  Note:  Until the Title Company Closer has all the figures from ALL parties, including the Seller's Attorney, the Final Numbers regarding your Closing are not compiled or known. 

       It's the Title Company's Closer that prepares the  Final Closing Statement,  known as the "HUD 1", or the "HUD".  Upon that being completed, I can inform you (the Borrower) of the Total Amount of Funds you need to bring to your Closing (if applicable).  In Illinois:  That amount MUST be wired to the Title Company's Bank (if over $50,000) or be presented in the form of a  Cashier's Check  (if less than $50,000).

       Note:  I will add ... that it IS possible to Close elsewhere other than a Title Company office, in some instances.  Ask me ... (your Mortgage Lender) ... if this is an option that can be exercised and accommodated within your financing scenario.  Purchase transactions can also close at the offices of the attorneys involved, and is typically the decision of the seller's attorney and the title company.
       Your big day has arrived!  The main focus of your Closing, is to sign the paperwork that will transfer ownership from the seller of the home to you  (the new property owner and Borrower)  ...  and to finalize your mortgage financing.   *  Please remember to bring your Driver's License (or other Identification) along with you to your Closing.
     The primary documents that you will be asked to sign are:
        *  The HUD-1 Settlement Statement:  Discussed above ... but this is an itemized listing of the charges and credits involved in the transaction, for both you, the Buyer, and the Seller.  They reflect the terms agreed upon in your Sales Contract and with the lender as per the  Good Faith Estimate.
     *  The Promissory Note:  As the name suggests, the Promissory Note is your signed promise/document to re-pay a specific amount of money lent to you by your Mortgage Lender upon the Subject Property, with specific re-payment terms.  
     *  Mortgage:   This legal document is recorded and protects the Lender by staking the First Claim to the Property in case of Default.  Upon full re-payment of the Mortgage Loan, the Lender "releases" its claim as the first Lien-Holder.
     *  Deed:  The Seller of the property will sign-over their ownership to you, the Borrower, at the time of Closing.  The title is held for you until the time of total re-payment. As the new Homeowner you should always retain a copy of the deed, as someday you will become the Seller.
     *  Statements & Declarations:   These documents verify that all information you say and represent is factual and true.  (That typically means you are attesting to the fact that this residence will be your primary residence.) 
     I ... (your Mortgage Lender) will provide you a packet with the necessary information needed to make your first and subsequent monthly mortgage payments.  Keep this valuable information handy, along with your other important documents, and in a safe place for future reference.  This will be helpful come tax time.
     The Title Company or attorneys will record the newly-signed Deed and Mortgage immediately after Closing.  The local taxing bodies will also informed of the exchange of property ownership at this time.
     After signing all the required documents is completed, the property keys, garage openers, etc. will be provided to you.  It's now official!  Congratulations!  You are new Home Owners!   Go out and celebrate a job well done.  You've earned it ...

     *  I hope that my breakdown of the anatomy of the current Mortgage Process has helped you better understand the steps needed to become a new Home Owner (or Refinance) today.  And that it removed some of the nervousness you might have felt about entering it.  
     Should you still have questions regarding home buying or Mortgage financing in New Lenox, Will or DuPage Counties, or elsewhere in the Chicagoland area  ... please do not hesitate to contact me.  I'll be happy to hear from you and answer your questions ...
     I can be conveniently found at any of the following: 
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281     Skype:  630.219.1316
You are Invited to Follow Me through
any of the Social Media found below: 


David, not Goliath, is Perfect for the Job

David, not Goliath, is Perfect for the Job

     I often hear the line, "I talked to .... (fill in the name of a BIG Bank) ... and they told me that they will give me a loan at
(fill in a ridiculously low interest rate)".  I wish I had a dollar for every time I've heard it.

     When I hear that said, I know that mentally a line has been drawn by that potential client.  I know that any conversation held and any information received will be compared to what the lender at the "BIG Bank" told them.  Their info will be the measuring stick by which I am judged.
     Why?  That "BIG Bank"is a known name ... a franchise, if you will.  And whether they are known for good or bad reasons, their name is familiar and easily recognizable. 

     Me?  I work for  American Portfolio Mortgage Corp.  And while my company is well-known and trusted in the areas in which it is located at this time ... and growing quickly into being well-known and trusted in many more ... it still does not have quite the same name recognition that the "BIG Bank" has.  (At least presently.)

     But is that how you should choose your Mortgage Lender?  And as a Mortgage Lender trying to earn your mortgage business, who am I competing with for your business?  A bank name ... or just the one individual lender that happens to work for that bank??  I say in reality, it's the latter.

      I believe, that as a potential mortgage client, you need to understand that it's the individual Mortgage Lender you choose that will make the difference in how easily and successfully you navigate your mortgage processing.  It's the individual Mortgage Lender's experience, knowledge, education, work ethic, relationships (both inside their company and with other professionals), availability, and skills that directly influence the outcome and quality of your transaction.  Not the name on the side of the building.

     Many times I feel I am like David competing against Goliath.  Small company against giant one.  Seemingly insignificant against big and powerful.   

     But assess that epic battle and those two historic warriors.  Appearances would have probably had you betting on Goliath to win the day.  Appearances would have made the choice seem obvious.  We all know how that turned out ...   

     Bottomline?  Listen well when you speak with those you are considering for your Mortgage Lender.  Ask lots of questions.  Become thoroughly acquainted with the background and expertise of the individual Mortgage Lenders you are considering.  Get referrals.  Consider all you hear and what you have come to know of them and their history of service through your conversations with them and others.  Then compare apples to apples.

     You never know ... you might find that David, not Goliath, is perfect for the job ...

     Looking to Buy a Home or Refinance soon?  Contact 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 any of the following:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281     Skype:  630.219.1316
You are Invited to Follow Me through
any of the following Social Media:







"Mortgage Anatomy 101" ... the Current Mortgage Process, Part 2"

"Mortgage Anatomy 101" ... 
the Current Mortgage Process, Part 2"

     In Part 1 of the post, "Mortgage Anatomy 101" ... the Current Mortgage Process" ... I detailed much of what happens in the initial portion of your mortgage process.

     In Part 2, I will continue to dig deeper into the mortgage
process and touch upon your mortgage file's submission into Underwriting, the Underwriting itself, and then Loan Approval.

     At this portion of the mortgage process, your  Loan Officer  and Loan Processor have reviewed your file and agreed that it is ready for submission into Underwriting.  All of the documentation requested of the Borrower is in and the Appraisal Report has also been received by the Loan Processor.  (Remember: Loan Officers and Appraisers must maintain a "separation" during the Appraisal process.)  

     Your Loan Officer and Loan Processor have reviewed the completed Appraisal for accuracy, reported value, repairs needed (if any), or any unusual scenarios regarding Zoning, Flood Zones, inspections, or etc.  

     Realistically, the time frame from  Mortgage Application  to Submission to Underwriting is a 2 to 3 week process, in most cases ... unless circumstances unforeseen arise.  Next comes Underwriting ...

     Ideally, the Loan File arrives in Underwriting 2 weeks ahead of the Closing Date.  One week at the latest.  Why??  It takes an inordinate amount of time to Underwrite a mortgage today.  Let me try to explain ... 

     Underwriters are the last stop gap in the mortgage process.  Because of this fact, they feel a huge responsibility to painstakingly review the details of each file they receive.  Underwriters are held accountable for the lending of thousands and thousands of dollars.  The large number of guidelines changes that have taken place within the mortgage industry in recent years/months/days, is directly reflected in the amount of time demanded to perform this important step of the mortgage process.

     The important and timely concern of Fraud Protection also falls directly on the shoulders of the Underwriter, as does the adherence to rigid requirements set by the Entity/End Lender regarding the sale of the loan in the  secondary market Add up all the responsibilities and concerns listed above and you begin to understand why an Underwriter goes through your mortgage file with a fine-tooth comb.   

     The amount of time it takes to complete all the required tasks regarding your file in Underwriting is greatly effected by the current volume of mortgages in the pipeline at that time.  The typical Underwriting process is about a week, but can be less or more depending on volume.

     There are 3 possible outcomes when the Underwriting review is complete:

     1.  The Mortgage is Denied.  -  (and this speaks for itself)
     2.  The file is Suspended.  -  Incomplete information or inaccurate data was submitted to the Underwriter and they are unable to render a decision.  The Loan Officer and Loan Processor must regroup, track down the needed info/data and re-position to resubmit the Loan for a second review.
     3.  The Mortgage is Approved.  -  Approval comes in differing statuses, as well.  They are: 

            A.  Approved with Conditions
           B.  Fully Approved - Clear to Close
           C.  Submit remaining needed items at Closing

     Let me try to explain the above more thoroughly ...

     *  Approved with Conditions  - This is most commonly received, as the current Underwriting Process itself virtually makes it impossible to obtain a Clear to Close in one submission.  Why?  

     Consider these actions that must be taken in very detailed timeframes: 

     *  A "soft pull" credit report (a no-inquiry report that does not impact credit scores) must be completed inside of  10 days  to Closing verifying no new debt or inquiries.
     *  A Verbal Verification of Employment must be completed within 48 hours of Closing to ensure the Borrower(s) are still employed.
     *  Additional "fraud-preventative" measures must be completed AFTER an Underwriter's review.  

     Other common conditions to Approval include (but are not limited to):

     *  Appraisal Review  -  Underwriter needs better Comparables or explanations of "less than ideal" data was provided by the Appraiser.
     Large Deposits or Earnest Money - Verifications or Explanations must be provided to Undewriting.  
     *  The "refreshed" Credit Report reveals new debt or inquiries into new credit by the Borrowers.  These conditions require Verification of the new debt ... the new info is  permanently added to the Credit Report.  Underwriting re-calculates new debt and subsequent debt-to-income (DTI) ratios and evaluates whether the Borrower(s) are still acceptable and Approvable.
     *  Miscellaneous items may be raised - Any items will need to be addressed, verified, and explained also.

     Congratulations!  Your file has now reached the Holy Grail of Mortgage Processing ... the Clear to Close!

     It's now that the  Commitment Letter  is issued by your Mortgage Lender.  This typically acts as the trigger for the Seller's Attorney to schedule the Mortgage Closing.  

     Note:  As a rule ... most Mortgage Lenders require 2 Business Days from the Clear to Close to the Closing Date. 

     In Part 3 of  "Mortgage Anatomy 101" ... the Current Mortgage Process", I will talk about what you can typically expect as you get closer to your Closing Date, what will be expected of you during this time, and what you will have to bring with you on that important day ...

     *  Hoping and dreaming of Buying a Home in the Lincoln-Way area, Will or DuPage County, or elsewhere in the Chicagoland region?  Contact me today!  I'll put my 36+ years of mortgage experience and expertise hard to work on your behalf.
     I can be conveniently found at any of the following:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281    Skype:  630.219.1316
You are Invited to Follow Me through
any of the Social Media found below:  


"Mortgage Anatomy 101" ... the Current Mortgage Process, Part 1

"Mortgage Anatomy 101" ... 
the Current Mortgage Process, Part 1

     There's no doubt about it ... the current mortgage transaction bares little resemblance to the transaction that took place even a few years ago.  The process has definitely evolved.

     I liken these changes, to say Fred Flintstone evolving into Iron Man.  Initially fairly simplistic, with few details ... eventually turning into very sophisticated and advanced.  

     For clients that have navigated a mortgage process even a few years ago or prior, the current process may seem almost unrecognizable.  They'll face a vast learning curve when Refinancing or buying a new home now.

     Much has been made of all the changes that have occurred.  And I think that some of the talk has taken a toll on the psyche of those contemplating entering it.  It might haven even scared a number of them off.  That's not good.

     So, I decided a "Mortgage Anatomy 101" class regarding the mortgage process might be in order.  Within my post, I'm going to try to break down and explain the process from start to finish with the hopes that by doing so, it will take some of the fear factor away.  That potential Home Buyers (and those contemplating Refinance) will see that the process does NOT have to be painful or scary.

     I preface the following "Mortgage Anatomy 101" by saying that not all mortgage processes at all Lenders are identical.  There is, however, a basic timeline for most new loans.  Since the majority of all loans are Conventional, conforming (conforms to Fannie Mae/Freddie Mac Guidelines), I will layout that process, and assume a Purchase transaction for the following.

     I will also add that I personally believe that anyone even remotely considering a home purchase or Refinance should get in touch with a Mortgage Lender well in advance of starting their home search, especially if that Buyer is a First-Time Home Buyer.  

     My recommended sequence of steps allows Buyers ample time for Pre-Qualification  ... or at minimum a credit check, guidance for credit repair/improvement, and preparation to enter the financing process at maximized buying/credit potential at some point in the future.  

     In most cases though, I find that the Realtor is still the first point of contact for those looking to Buy a Home ... and the info provided below will reflect that.

            "Mortgage Anatomy 101"

     You've found a home!  What next?
     *  Realtor(s) will guide you to a secure Contract.
     *  Your Loan Officer is notified.
     *  Should Pre-Qualification still be needed at this point, that is performed now.
     *  If Pre-Qualification has been done prior to this point, a Full Loan Application is now needed.  Loan Application can be completed in a number of ways, if you're my client ... either by Mail, Internet, over the phone, or in person.  
     Loan options, gathering of additional information, Contract Terms, Type and Structure of the Loan, and Loan Documentation will be gathered and/or discussed at this time.
     Mortgage Application:

     *  Mortgage Application should take place within 5 days after  Contract Acceptance.
      Documents to be covered during the Application appointment will be:  The Mortgage Application itself, the  Good Faith Estimate, the Truth-in-Lending, and supporting disclosures (about 40 documents).
     *  The Application Fee/Appraisal Fee is collected at this time.
     *  The Loan Officer will gather ALL Borrower documents supporting:
         A.  Income
         B.  Employment
         C.  Assets
         D.  Identification
         E.  Credit (if not already obtained)
         F.  Other relevant explanations (known as Letter of Explanation (LOX)
         G.  Bank Deposit History, etc.

     Note:  Other discussions between Loan Officer and Borrower will take place at this time.  

     Those discussions can surround:

         A.  Escrow/No Escrow  (Escrow required above 80% LTV)
         B.  Lock Rate  -or-  Float?
         C.  Term of Mortgage Loan  (30 year, 15 year, etc.)
         D.  Cash needed for Closing
         E.  Total Monthly Payment
         F.   Homeowners Insurance Policy Requirements/Proof of Insurance/payment

     Summary of Loan Application:

     Well-prepared Loan Officers and well-prepared Borrowers equate to a smoother Mortgage Process and a shorter time for Loan Approval.  

     It's typically at this point that Loan Officers or their Assistants submit your file for Automated Underwriting Approval through the appropriate agency's (Fannie Mae or Freddie Mac) Loan Approval System.

     Getting "Approval" or "Acceptance" means it's okay to move your transaction and file forward to the Loan Processor and eventually Underwriting, where a confirmation of the "accuracy" and "reality" of the data supplied at the time of your Application and entry into the system, is performed. 

     During the Processing:

     *  Verifications of Employment, Deposits, Rent, Social Security Numbers, Credit Supplement, Earnest Money, Flood Certifications, Homeowners Insurance, Title (if not ordered by Seller's Attorney), and Appraisal are all addressed now.

     A second layer of review for Accuracy of Loan Application data, Borrower-supplied Tax Returns, W-2's, Bank Statements, Pay Stubs, Identification, Divorce Decrees, Bankruptcy documents, Student Loan Payments, Mortgage verification (if applicable), is performed.

     The Loan Processor assembles all of the ordered and received documentation and then advises the Loan Officer of any missing items, or items of concern BEFORE submitting the Loan File to Underwriting.  

     Remember:  The ultimate goal for everyone involved in the transaction is to provide ALL the necessary documentation required by an Underwriter, so they can make a well-informed decision to Approve, Suspend, or Deny a Loan Application ... and do so in a logical and timely manner.

     In "Mortgage Anatomy 101" ... the Current Mortgage Process, Part Two, I will explain what awaits my clients (and referral partners) during the Underwriting portion of the mortgage process ... and beyond. 

     *  Hoping to Buy, Build, or Refinance a Chicago-area home?  Contact me today!  I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
     I can be conveniently found at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
 eFax:  815.524.2281


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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, 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

Your Referrals are Greatly Appreciated!





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