What's YOUR Great American Novel read like? The clues revealed within your Credit Report

What's YOUR Great American Novel read like?  

The clues revealed within your Credit Report

     We've all heard books referred to as a "great American novel " ...
  
     Books often mentioned in that vein are "The Great Gatsby", "Adventures of Huckleberry Finn", or "To Kill a Mockingbird" ... each most likely introduced to you in a high school English class.  The authors of these great books offer us riveting stories regarding the mindset and lives of their characters.

     Much like the great novels referenced above, Credit Reports delivers much the same thing.  It reads much like a book ... a book that relates the daily habits of its main character, their actions, their decision-making abilities and philosophies, and the highs and lows of their lives.

     Think about it.  Your life is pretty much revealed on your Credit Report ...  

     When were you born?  Where have you lived?  Are you employed?  Are you a committed money saver or spender?  And much much more ...
    

      School loans will lead any reader of your Credit Report to assume you pursued higher education.  Did you have times when you were unemployed?  Yep, that information will be there too.
        
     Have a favorite store?  I see you do!  Your account information is right there to see (with safeguards).  The jewelry company you like, the medical facility you utilize, your cell phone provider, the furniture store you bought that new sofa from ... clues of all that activity and more can be revealed on a Credit Report.

     Your account(s) history, Collections, a Foreclosure or Bankruptcy ... they're revealed as they've happened.  Even Inquiries made into new debt or extension of credit show in a special category.  (Timeframes for reporting new debt to Credit Bureaus can vary from one Creditor to another.)

     Your car ... it couldn't be fixed one more time, could it?  How might I know that?  You went looking for a new car to replace it a month ago.  

     There are inquiries for auto financing that prove that right on your Credit Report.  All the ups and downs, the dramas and joys, how you think, how you live, the minutiae of your life ... clues to it all are left to be discovered on your Credit Report.   

     Does your Credit Report reveal you are in control of your finances?  That your financial philosophy is one based on savings and wise expenditures?  Or does it reveal your spending and debts control you and your life?

     I say the true "great American novel" is being written each and every day.  YOU are the author and have great say as to how the storyline twists, turns and ends ...

     *  Have you read and discovered in the last year what is being revealed on your Credit Report?  Are you thinking Buying or Refinancing a home soon ... or in the future?  Contact me today!  We'll run your Credit Report, so together we can work towards your successful home purchase or Refinance.
     I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI #216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell/Test:  708.921.6331

www.genemundt.com

gmundt@goapmc.com

eFax:  815.524.2281

 

              

  

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 Referrals are Always Welcomed & Appreciated!

    


     

         
     

      

    

     

What an Underwriter does NOT want to see when viewing Chicagoland Real Estate Contracts

     What an Underwriter does NOT want to see 
 when viewing Chicagoland Real Estate Contracts

     Recently, I've seen some repetitive scenarios popping-up on my mortgage clients' Sales Contracts, as they pertain to "concessions" and property repairs.  Several of the transactions I've seen have had Home Inspection issues arise.  Each time this has set-off the back-and-forth of timely negotiations.

     I think it's important for clients to understand that ... from

an Underwriter's viewpoint ... the ONLY allowable Seller-paid concession on a Sales Contract is for Closing Costs and certain pre-paids, such as Interest, Homeowners Insurance, and Escrow Deposits.  

     In other words, credits or escrows established and intended for "future" repairs to be made by new Buyers are not allowed WITHOUT effecting the Sales Price, Appraisal, and Loan Transaction.  

     Lending Guidelines state:  Contract clauses or Riders or Addendums that reference a "Repair Credit" must be treated as "Price Concessions" and are to be DEDUCTED from the Sales Price dollar for dollar.

     To better illustrate this Lending Guideline, consider the following scenario:

     A house sells for:  $305,000  

     But the Home Inspection, made after the Sales Contract has been signed, revealed that a home repair costing $5,000 needed to be made.

     If written into the Sales Contract ... or the Contract is amended this way, the loan amount consideration (% of Down Payment) now has to be based upon $300,000, not the original Sales Price shown above.

     This changes the Borrowers' cash position in the following way:

$305,000 Sales Price

20% Down = $61,000

Loan Amount  = $244,000

BUT ...

     Guidelines state that the Loan Amount has to be capped at $240,000  (to avoid Mortgage Insurance),  and that amount representing 80% of $300,000, the Contract amended price.  So in effect, it's as though the Buyers and Sellers agreed to a Sales Price of $300,000 and no Credit was being shown from the Seller.

     However, if the Sales Contract had been written to contain the following: "$5,000 Closing Costs Credit from Seller to Buyer at Closing" ... the original Sales Price of $305,000 WOULD be allowed and unaffected.  The Buyer would just receive the $5,000 Credit at Closing time, which would reduce their overall total cash needed to Close.   

     The math equation for this is:  

     Down Payment plus Closing Costs minus any Allowable Credits. 

     My advice when these situations occur is this:  

     Write these Sales Contracts with Seller-paid Closing Costs factored in, if at all possible.  Especially if you are concerned that there may be property condition concerns that arise.  

     Issues that might raise a red flag?  The sale is an older home.  The property has a worn roof.  There's suspicions of mold or more obvious disrepair or defect, etc.

     I understand that Chicagoland Brokerages have their own method of writing these Sales Contracts.  And in those instances, I recommend that you follow your Brokerage Policies after you have spoken to Legal Representation that may be involved within the transaction.  

     What an Underwriter does NOT want to see when viewing Chicagoland Real Estate Contracts ...  While all the above may seem to be a simple matter of semantics, rules are rules and Guidelines must be followed. Not structuring the Real Estate Contract in the right manner can cause a deal to be unsalvageable ... or at minimum, cause delays in the process.   And none of us want that ...

 

    
 *  Looking to Buy or Refinance a home in Joliet, Will or DuPage County, or elsewhere in the Chicagoland area?  Contact me today!  I'll put my 37 years of mortgage experience and expertise hard to work on your behalf immediately.

     I can be easily found at the following:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

www.genemundt.com
gmundt@goapmc.com

 

              

             

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. 

Referrals are Welcomed!

 

   

How Public Transportation Effects the Value of your Chicagoland Home

How Public Transportation Effects the Value of your Chicagoland Home

     In Chicagoland, areas once considered "rural" when my wife and I were growing up, are now thought of as suburbs of the city of Chicago.  Roads that used to see limited traffic are now considered main arteries.

     Because of that fact, and the accompanying population
growth that comes with this type of expansion, many new home buyers looking for homes in our area have changed the criteria in which they evaluate their future home choice. 

    Proximity to work ... travel time ... ease of travel ... gas prices ... all have contributed to the growing importance and focus on public transit in our region. The old mantra of "location, location, location" has never been truer than it currently is.

     What does this mean to those selling their homes in the Chicagoland area?  

     A recent study released by the National Association of Realtors (NAR) in tandem with the American Public Transportation Association (APTA) indicates it means very good things for Sellers.  It is stated that:  "Data in the study reveals that during the last recession, residential property values performed 42% better on average if they were located near public transportation with high-frequency service".

     The study, which evaluated 5 regions (Phoenix, Minneapolis-St. Paul, San Francisco, Boston, Chicago) where high-frequency services were predominant ... high-frequency being defined as light rail, bus rapid transit, and subway modes of transportation.  

     In the Chicago and Chicagoland region, the public transit areas performed 30% better than homes in other areas in the area.  Homes near CTA stations (Chicago Transit Authority) did especially well, with homes in proximity to stations seeing sales prices an average of 47.3% higher.  The study also indicated that approximately $300 was saved in transportation costs each month, when utilizing a public transit system. 

     Add all these statistics up and you quickly realize that

many potential Home Buyers in the Chicagoland area are hoping to buy near public transit ... and will be willing to pay more for those homes to accomplish that.  Again, good news for those hoping to sell a home in a locale offering this beneficial feature both now and in the future.

     It should be pointed out, that although a close proximity to public transit was not a complete panacea for the recession's sliding housing values, it did offer some respite ... something current Home Buyers should consider when considering location, whether they utilize public transit themselves or not.

     For those considering a new home purchase in the Chicagoland area, below are some helpful and handy links to some of the public transit in our area.  Check them out to see if the areas you are considering for purchase are nearby:

Metra Website

For:  Chicago - Southland Travelers

Rock Island District

SouthWest Service Line Map 

Regional Transportation Authority 

Chicago Transit Authority 

CTA Bus System Maps 

Call 312-836-7000 for current route, schedule & fare info.   

Customers with hearing loss: 312-836-4949 TTY

Pace

Pace Maps & Schedules

Google Maps:  Chicago Transit Directions/Info

Amtrak - Union Station

Chicago Disability Transit

CDT Service Area Map

     How Public Transportation Effects the Value  of your Chicagoland Home ... It must also be noted that this study showed that properties located in transit-oriented areas outperformed other properties, no matter the property type.  Click HERE to view a Public Transit Chicago Infographic.  So whether you are considering the purchase of a single-family residence, condominium, townhome, or something else ... the benefit is still to be found.

      
*  Hoping to Buy a Home or Refinance in Will or DuPage County, or elsewhere 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 the following: 

Direct:  815.524.2280

Cell/Text:  708.921.6331

 www.genemundt.com

gmundt@goapmc.com

eFax:  815.524.2281   

 

              

             

       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 Welcomed!

 

 

         

    

An ALERT regarding current volatile Interest Rates and HOW they can effect your transactions

An ALERT regarding current volatile Interest Rates  and HOW they can effect your transactions       Last Friday, after an especially volatile couple of days in the market, I sent out an email to my referral agents, brokers, and others regarding what was taking place as it pertained to Interest Rates ... and how a rise in Interest Rates might effect their clients and transactions.      Here is my email, as it read last Friday (6/21/2013) ...  Interest Rates are RISING!      The markets have been especially volatile over the last few days.  Interest Rates, already heading up, appear to be rising even more at this time.      (See a KCM infographic regarding climbing rates HERE)      As you head into the weekend and the coming weeks, your new clients and those that have already written Contracts, may be asking you for info regarding what they are hearing and seeing.  They'll be anxious and wondering if/how they will be effected as they move forward.    For their protection ... and yours ... it will be best to always check with me regarding Interest Rates on an ongoing and individual basis.  By doing this, you will be sure to have up-to-the-minute info, projections, and facts on your client's behalf.        Remember:  The Internet and media rates your clients are seeing are NOT reliable and are NOT personalized to their personal financial scenarios.      I will continue to keep you alerted to the changes I am seeing as they unfold.  As always, should you have any questions or needs, please .. do not hesitate to contact me.  Gene      It is important to remember, that for some clients, even a very small change in interest rates can be critical.  Some may need to be re-approved or their files re-examined regarding their ability to continue with their transaction and financing.  I am reaching-out to my clients ... plus their agents, to keep everyone informed regarding this situation.     During this time, the active support of my referral partners will be critical to the success of our clients' transactions ... and vitally needed.  While always true, during these periods of volatility in the markets, such as we are currently experiencing, that fact rises dramatically in importance.      It is predicted by many that Interest Rates are on the rise and will continue to do so through the end of this year.  At minimum, rates will be sensitive to the market's swings and somewhat erratic.              An ALERT regarding current volatile Interest Rates and HOW they can effect  your transactions. Good communication will remain key to reaching  successful Closings for clients.  I hope passing on the email written to my own referral partners and clients helped inform you further as to current trends ... but also acted as an "alert" to you regarding your mortgage financing (or that of your clients).      *   In need of Mortgage Lending services in the Chicagoland area?  Contact me.  I'll put my 36+ years of extensive mortgage experience and expertise hard to work on your clients' behalf.      I can be easily found at: Direct:  815.524.2280 Cell/Text:  708.921.6331 www.genemundt.com FREE Consultation eFax:  815.524.2281    Skype:  630.219.1316 You are Invited to Follow Me through any of the major Social Media Ready to Apply for your Mortgage?