Do You Possess the Recipe to Become a Home Buyer?

Do You Possess the Recipe 
to Become a Home Buyer?

     As a Mortgage Lender, one of the most important messages I impress on area Home Buyers/Owners is one regarding timing ... the timing of when they should contact me when Buying a Home or Refinancing. 

     If you've read a few of my past posts, you'll know the topic of timing is a drum I beat loudly and often.  My rule of thumb regarding proper timing is ... 

     Once you've  contemplated home ownership or refinancing, you need to get to a Mortgage Lender!  

     Below is a good example of why I believe this message is so important ...

     I have a client that I'm working with right now.  He's young, hard working, a saver not a spender.  He paid off his Student Loans early.  Saved up and bought a moderately-priced used car to avoid car payments.  

     Thinking he was doing the right thing, he'd paid off almost all debt he'd acquired prior to seeking my mortgage services.  And he'd saved up a sizeable Down Payment for his new home.  His MIDDLE credit score is 795.  Yep ... 795!  

     Sounds like the perfect dream Borrower, doesn't he?  Sounds like he's done everything right, doesn't it?  And yes, he has.   

     Except for ...

     In the current lending environment, having 3 open credit lines is the "gold standard" by which a Borrower is held and examined by Underwriters, especially if the client will need Private Mortgage Insurance or want a second mortgage.  You have to be in debt and show you can handle that debt wisely to be considered worthy of more new debt. 

     So at this point if you're thinking "here comes the kicker" regarding my young client ... you're right.  He doesn't have 3 credit lines open.  He has only 1 credit card right now.  It has a very very tiny balance.  And he uses it extremely in-often.

     Now as a grandfather, I'm hoping this young guy is still available when my grand-daughters are ready to marry.  His heads on straight regarding financial matters.  But as his Mortgage Lender?? 

    Let me make this clear:  This isn't an insurmountable problem.  We've found a solution and are working around the insufficient number of credit lines.  

     A little bit of time ... a little bit of extra effort and all will be well.  But it will cost him some extra time .. a it will take a little bit of extra effort to put a solution in place.

     Hearing this message was somewhat confusing to my young Buyer.  It certainly wasn't a message that he or his Agent were prepared for or wanting to hear.  Especially given they've already started viewing homes. 

     So I go back to the message I repeatedly drum regarding WHEN a potential Home Buyer should seek out their Mortgage Lender.  That is ... 

     "Sooner than Later!  Sooner than Later!  Sooner than Later!"

     Why?  

     Had this young, seemingly well-positioned perfect Home Buyer come to me earlier in his home buying process, we would have discovered and tackled his credit issue ... his credit "blip" ... immediately.  And that would have eliminated any stress factor he faces now and erased any delay placed in his home search.       
         

     To navigate through Underwriting cleanly and quickly, today's Home Buyers must be "positioned".  

     Buyers must come to think of that "positioning" as their personal recipe for success.  A recipe where the proper ingredients ... the proper seasoning ... must be measured and added in the exact right amounts ... then baked for the right amount of time.

      Ahhh ... a reference to timing again!

     As I said above, this young and deserving client will buy and finance his new home successfully. But the glitches and blips he encounteres along the way could have been avoided if we had talked earlier.

     So, if you're thinking of buying a Will County or Chicagoland home now ... or in the future ... contact me immediately.  Remember ... "Sooner than Later" is preferred, pro-active, and wise.  

     Be informed and educated sooner than later.  Get your credit checked sooner than later.  Polish and spruce it up sooner than later.  And give yourself enough time to act upon your Lender's recommendations. 

     Do You Possess the Recipe to Become a Home Buyer?  Potential Chicagoland Home Buyers need to prepare their financing "recipe" perfectly and well in advance of starting to view homes.  

     Doing so increases and strengthens bargaining positions with Sellers.  When this important step is done, Buyers can respond and act quickly when they find their perfect home ...
  

   

     *  Hoping to become a Home Owner or Refinance in Will County or elsewhere in Chicagoland?  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

eFax:  815.524.2281

www.genemundt.com
gmundt@goapmc.com

             

         

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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Email me today!

  

     

2013 Music Boosters "SIAM Discount Book" on Sale in Lincoln-Way High School Communities

2013 Music Boosters "SIAM Discount Book" 

on Sale in 

Lincoln-Way High School Communities

     My wife and her siblings are all proud alumni of Lincoln-Way High Schools' renowned music department.  All were members of the award-winning LWHS-Central "Knights" band while attending high school at Lincoln-Way years ago.  

     Anyone familiar with our area's high school district will tell you that the current LWHS-Central "Knights", as well as the other bands within the district's music departments (the East Griffins, the West Warriors, the North Phoenix) can brag of a long and glorious history of service and entertainment to all the Lincoln-Way School District communities.

     The bands' thousands of music performances over the years in parades, concerts, football games, musicals,  competitions (and more) have been the stuff of legend and the source of much pride of current members, alumni, and LWHS communities.  But outfitting, equipping, and covering travel costs for hundreds of band musicians (plus choral and orchestra students) each year comes at a cost.

     So for 28 years during each Fall, the Lincoln-Way High School Music Boosters have held a fundraiser selling the "SIAM Discount Book" in an effort to help cover the costs faced each year by the bands.  The 2013 version of the "SIAM Discount Book", features over 170+ franchises and local businesses, offering repeatable discounts, good for a full year (from October 1, 2013 to September 30, 2014). 

     This year, students and adult volunteers will be in all the Lincoln-Way High School Communities/neighborhoods selling this year's "SIAM Discount Book" at a cost of $15.00/each on the following dates and hours:

•   Sunday, Aug. 18th  -  Hours:  Noon to 5 pm
•   Sunday, Aug. 25th  -  Hours:  Noon to 5 pm

     Info regarding the ability to purchase 2013 "SIAM

Discount Books" will be left on the doors of those residents not at home during the neighborhood sales.  (Many local LWHS community merchants also offer the book for sale within their establishments.)

     Anyone wishing to purchase a 2013 "SIAM Discount Book" can also call the front offices of any Lincoln-Way Community High School ... or contact this year's Discount Chairman, Tom Delegatto at:  815.207.1347. 
    

     2013 Music Boosters "SIAM Discount Book" on Sale in Lincoln-Way High School Communities ... Support the great music tradition found in all the Lincoln-Way High School locations.  Get your 2013 "SIAM Discount Book" during the upcoming sale ...

      *  Hoping to enjoy or reap the benefits of the great music departments, schools, and residences to be found within the Lincoln-Way High Dist. 210 borders, Will County, or elsewhere in Chicagoland?  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:

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

eFax:  815.524.2281

Click HERE to get a FREE Mortgage Consultation!

Ready to Apply for your Mortgage?

     

FHA Criteria and Challenges for Will County and Chicagoland Condominiums

FHA Criteria and Challenges 

for Will County and Chicagoland Condominiums

     Many young First-Time Home Buyers are currently facing challenges as they enter the housing market.  No doubt about it, the recent economic downturn hit the young generation hard.  

     Young Buyers have Student Loans staring them in the face.  Others are struggling as they search for careers, employment, and decent wages.  Their credit and ability to save for a down payment can take a backseat as they focus on other elements of their life.

     Because of these things, many Will County and Chicagoland-area hopeful young Buyers are turning to  Condominiums  and  Townhomes  as prospects for their first home purchase.  They consider these properties an easier entry point into the housing market.  Rightfully so, as often the prices are more favorable ... and the money needed for down payment and Loan Closing is less too. 

    Over the past few years, FHA's lower down payment requirement (now only 3.5%) has been very attractive, especially to young First-Time Home Buyers.  FHA (Federal Housing Administration)  mortgages have enabled many young Buyers with limited down payments to dip their toes in the housing market waters.

     Recent changes to FHA  have now erased some of those advantages and currently made Conventional Mortgages a competitive financing option once again.  Still, FHA financing can be a great choice for the right Home Buyer.  (How do you know which type of financing is the right financing for you?  Your  Mortgage Lender  will conduct a thorough mortgage analysis.  Only through that analysis will you find your best financing options.)

    For those Buyers that hope to buy a Condominium and have reached the conclusion that an FHA Mortgage will best fulfill their financing needs ... the next step is to find a Condo in a Project or complex that is FHA-Approved.  Townhome-style units that are not legally classified as Condominium ownership, do NOT have to be FHA approved, as they are treated like a Single-Family home.

     What criteria is placed on complexes in order to become FHA-Approved?  FHA states ...     

         

     "The FHA only insures loans on Townhomes and Condos if the complex contains 2 or more units.  The Townhome Association must provide hazard and liability insurance, and buildings containing financed units cannot exceed 4 stories.   Commercial enterprises cannot occupy more than 25% of the overall complex, and no individual can own more than 10% of the Units in 1 complex.   The FHA also requires that at least 50% of the units are owner-occupied and that no more than 15% of the property owners are delinquent on Townhome Association fees."


     The above criteria often makes it challenging for Condo  complexes to qualify for FHA-Approval.  It's also makes it challenging for Condo complexes to stay FHA-Approved, as complexes are required to requalify for FHA approval when FHA changes its guidelines.

     The recent economic downturn reflected in the majority of housing markets across the U.S. contributed greatly to those challenges a complex currently faces regarding qualification.  Properties bought in higher numbers as investments fell into foreclosure.  Condominium Associations and their finances were hard hit.  Association Dues  were often left unpaid or in arrears.  Needed property repairs, upkeep, and maintenance was often neglected or ignored.  All greatly impede FHA qualification for a complex.

     I did a little search on the HUD.gov  - U.S. Department of Housing and Urban Development website to see how many complexes within Will County, IL were once FHA-Approved and still remain so.  Unfortunately for those currently hoping to buy a Condo in a Will County FHA-Approved complex, the pickings are very slim.  For those surrounding areas checked, the number of choices looked sadly similar.  (Contact me for the latest updates.)

     For Home Buyers considering this mix of purchase and financing, I strongly urge and recommend that you seek out the services of an experienced and knowledgeable Mortgage Lender well-versed in Condominium FHA Lending.  The same suggestion goes for choosing an Agent to work with.  These transactions can be more difficult and intricate in nature.  

     FHA Criteria and Challenges for Will County and Chicagoland Condominiums ... working with professionals that have background and experience in these types of transactions is a huge advantage.  Your purchase and financing will go much more smoothly and quickly if you take this important step and follow my advice ...  

*   Hoping to Buy a Condo, Townhome, or other property in Will County, DuPage County, or elsewhere in Chicagoland?  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:

Direct:  815.524.2280

Cell/Text:  708.921.6331

www.genemundt.com

eFax:  815.524.2281

For a FREE Mortgage Consultation, click HERE!

Ready to Apply for your Mortgage?

   

          

Clearing Up Misconceptions About VA Loans: Let's Get Veterans and Their Families in Homes

Clearing-Up Misconceptions About VA Loans:  

Let's Get Veterans and Their Families in Homes

    

     VA Loans, and the benefit that they provide U.S. veterans and their families, are often an under-used and misunderstood type of financing.  

     While VA loans are made possible through the U.S. Dept. of Veterans Affairs, the loan approval process itself is rarely handled by that government entity.  LO, such as myself, handle the processing of the loans.

     VA loans provide a well-deserved opportunity and beneficial options through which Veterans can become home owners by offering the following key advantages:

•  No Down Payment is needed from Qualified Veterans
•  No Down Payment is needed, if the Sales Price doesn't exceed the Appraised Value
•  There's a "financeable" Funding Fee.  (Truly making VA loans a no Down Payment loan!)
•  There are minimal requirements demanded of Sellers in terms of home repairs.  (Those property requirements are:  Safe, sanitary, and sound.) 
•  Closing Costs (up to 4% of the Sales Price) may be paid by the Seller
•  Private Mortgage Insurance is not required
•  The VA may provide assistance, should you be unable to make payments on your loan

        But I've found that many Veterans do not know or understand that the following additional benefits exist to them through a VA loan: 

•  Veterans can use their benefit more than once  
•  VA Loans can be Assumed 
•  VA Loans can be used to build a home 
•  VA Loans allow you to simultaneously purchase and improve a home 
•  VA Loans can be used by Veterans that are not First-Time Home Buyers
•  That spouses of Veterans can also be eligible for VA loans, if they meet certain requirements  
•  and more ...  

       
     That's not to say that VA Loans can't have some specific guidelines.  They can.  

     They are:

•  Only the Veteran and their Spouse can be on the loan.  (Non-married parties are not eligible unless they are a veteran themselves.)
•  Maximum loan amount calculations are based upon Veteran's Eligibility and Entitlement
•  Income/Job Histories AFTER service ... or while ON Active Duty require screening by an experienced LO.
•  Appraisals are done by Approved List of VA Appraisers list, assigned to a local Appraiser by the Veterans Administration. Legal Descriptions are required BEFORE an appraisal can even be ordered (unique to a VA Loan).
•  The Appraisal is released to the Mortgage Lender after Receipt and Review by the VA.  It remains "Of Record" for a fixed period of time, currently 120 days.
•  Buyers/Veterans must have a Certificate of Eligibility, obtained through the VA

    
     The last drawback mentioned above is fairly easily accomplished by Veterans.  To obtain a Certificate of Eligibility (or COE), a Veteran must have been discharged under conditions other than dishonorable.  They must also meet the service requirements found HERE.

     Different categories of eligibility exist, so the nature of your current or past service as a Veteran, they require varying needs to supply proof/evidence during COE application.  Info regarding the evidence required of Veterans can be found HERE.  Veterans can make actual application for a COE through me (their Mortgage Originator), by mail, or online.  

     Should a Veteran be in need of further assistance,  have questions regarding their eligibility, or COE application, they can call the eBenefits Help Desk at:  1.800.983.0937, Monday through Friday.  House are: 8 am to 8pm EST.

     Clearing up commonly held inaccuracies and notions regarding the use of VA Loan benefits is important.  Assisting our Veterans and their families in becoming homeowners is one way we can pay them back for all they've provided us.  Education is a vital tool in providing that assistance.

   
 *   Are you, someone you know, or someone you are representing a U.S. Military Veteran?  Contact me.  Together we can explore what opportunities and options exist for home financing.  
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331
eFax:  815.524.2281

www.genemundt.com
gmundt@goapmc.com 
 

 

              

                  

       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 Welcomed & Appreciated!

             

How Do we Fix the Problem of Reality?

How Do we Fix the Problem of Reality?

     This morning I was on Facebook.  I'm connected with many other professionals there.  Many of them are from ActiveRain.  

     One of those AR professionals is  Charita Cadenhead, Keller Williams Realty, in metro Birmingham, AL.  Charita's a jewel and has become a favorite of mine.  I just love her spirit and outlook.  Today Charita wrote on her FB timeline,  "There doesn't always have to be someone to blame when things go wrong. Sometimes stuff just happens."  

     Whew ... did she hit a chord.  That darn reality!

     Just the other day, I had a loan applicant see their opportunity to buy and borrow disappear ... at least for the short term.   Even after hearing the advice to "not buy, not charge, not move funds while in the Process" multiple times, they did just that.  To the tune of $400.

     Now I know that $400 seems like an insignificant amount.  That many will say that rules and regulations surrounding lending are way too strict if $400 eliminates or causes a hiccup in someone's lending powers.  And I can sympathize with that to some extent. 
 
     But ...

     The reality of today's financing did stop this potential Buyer's home buying dreams dead in their tracks.  Again I will point out, that will probably only be for the short term.  Time (and smarter credit handling moving forward) will most likely heal this issue.   

     But ... and there's that darn word again ... in the meantime I was placed in the role of "bad guy".  I had to tell the clients and all the other professionals involved in the deal that this transaction and financing were a "no go", at least for the time being. 

     I point out that I used the word fragile above.  Currently, so many of the clients I see, and their chances of Mortgage Approval, are ... fragile.  And it's not just one segment of the homebuying population either.  It's across the board.  Low income ... high income ... and incomes inbetween. 

     This fragility is why so many other things within their transactions can be so severely effected throughout the processing of their Mortgage.  It's why issues (or one newly discovered hiccup during Underwriting) cause such major disruptions and such severe outcomes. 

     All involved in these clients' transactions need to understand this fragility.  Clients certainly, but professionals too.  

     Some of the time there is no "bad guy".  As Charita pointed out ... "Sometimes stuff just happens."  Certainly in the case I speak of, no one was trying to cause a problem.  No one did evil.  The clients just didn't listen or think and that caused a problem for many.

     Often this is what we find ourselves faced with in transactions.  We can rant or complain about it.  We can say it shouldn't have happened.  But it's reality.  Now how do we fix the problem?

    *  Hoping to Buy a Home or Refinance in Joliet, Will County, DuPage County, or elsewhere in the Chicagoland area?  Contact Me today!  I'll put my 36+ years of mortgage experience and expertise to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

 www.genemundt.com

Click HERE for a FREE Consultation!

Ready to Apply for your Mortgage?