The Budget Showdown: What is Known & the Possible Outcome

     
 The Budget Showdown:  
What is Currently Known & the Possible Outcome

     At a time when real estate markets could use more
certainty, we are now facing potential shutdowns on FHA-insured mortgage transactions courtesy of the current discussions being held in Washington, D.C.   

     At this writing, we can only hope that business can continue as normal (or as close to normal as possible) pending the results of the congressional budget negotiations.  It is now being reported that FHA can operate for a short period of time (even in the event that there is a government shutdown).  

     How this all effects real estate deals already in process will hopefully be known very quickly.  Until this knowledge is available however, I felt it important for my current clients and Referral Partners to understand that FHA AND VA loans can be affected if the budget is not passed.  

     Those of us that were in business in 1995, remember that FHA loans were simply unattainable during that government shutdown.  I'm certainly rooting for history to not repeat itself ... or for any shutdown for any period of time.  

     Given that the housing market is now seemingly on the mend across the majority of the U.S., it would be almost cruel and ironic if government gets in the way of Buyers and Sellers conducting real estate transactions now.  Mortgage Lenders will most certainly be handcuffed by this action/inaction of Congress.  

     The timing of this budget showdown couldn't be worse.  Providing Buyers or Sellers additional reasons to hesitate or lose confidence in our housing market is not a good thing.
     
      Stay tuned as news develops regarding this matter over the next 24 to 48 hours.  The results of the actions being taken in D.C. will impact all of us in the real estate and financing industries, plus our clients ... both current and potential.  Even a temporary disruption in business will have a drastic impact on people's lives, especially those in the middle of their transaction.  

     I recommend that you and I stay closely in touch regarding our mutual transactions in process.  As always, should you have questions or needs, please do not hesitate to contact me through any of the methods below. 

      
*  I can be easily reached at:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

318 Alana Drive, New Lenox, IL  60451
 
Click HERE for a FREE Mortgage Consultation!
If you have clients ready to apply:
 

Saying Yes to that New Store Credit Card: Can it Derail Your Dreams of Buying a Home?


Saying Yes to that New Store Credit Card:  
Can it Derail Your Dreams of Buying a Home?  


     My wife and mom went shopping together one day this last week.  Both have already started thinking about Christmas shopping.  Seems they're not alone.  

     If you've watched much TV over the past couple of weeks, you've probably caught a commercial or two already heralding the approaching holiday retail shopping season.  Holiday decorations to put you in a holiday shopping mood have popped up in stores too. 

     Yep ... the "push" for your holiday shopping dollars has officially begun.   And boy, do I mean ... push ...

     Both my mom and wife related that they received multiple invitations to open up new credit cards and "save" on their purchases at store registers.  One clerk in particular, had been relentless.  

     This clerk had gone as far as suggesting to my mom that she open up a second card at the store, in addition to the one she already has, to get her "savings".  My wife was a bit alarmed at how dogged this clerk's pursuit of my mom (a senior) was. 

     I've written on the topic of opening up new credit around the holidays before.  But the advice and message contained within that older post, as well as this one, is sound and valuable at any point in the year ... especially if you're presently in the process of buying a home or refinancing ... or hoping to buy a home or refinance at some point in the future

     When facing this scenario at a register, you must stop and examine it.  Simply ask yourself ...  

     Is the new account or credit card actually as big a savings to you as the clerk  says? 

     To answer, you must consider this:  

  • What other credit obligations or credit cards do you have?  
  • Do you know the total amount of your debt?  
  • How would opening the new account effect your Credit Scores? 
  • Will you pay off the new account's balance in full every month or carrying a balance?  
  • Do you know what the terms of your new account will be?  
  • More ...


     It's a bit more complicated than presented at that register, isn't it?  That seemingly minor credit card?  It might end-up costing you big time.  Not only in dollars.  But also in your Credit Score and your ability to obtain financing now or in the future.

     So stop and think prior to saying "yes" at that register.  What are your true priorities?  

     What ultimately means more to you?  Saving a minor amount on a retail purchase you're making today ... or being financially and credit capable of buying the home you want now or in the future? 

     Saying Yes to that New Store Credit Card: Can it Derail Your Dreams of Buying a Home?  While you're standing at that register, you must decide ...


     *  Hoping to Buy or Refinance a home in Will County, or elsewhere in Chicagoland?  Contact me!  I'll put my 40+ years of mortgage experience and expertise hard to work on your behalf.
     I'm easily found at:

Gene Mundt
Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI Licensed

American Portfolio Mortgage Corp.
NMLS #175656


Direct:  815.524.2280
Cell/Text:  708.921.6331
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.


Referrals are Appreciated and Welcomed!


       
    

    

       

Will Your Chicagoland Mortgage Co-Signor Deliver Magic?


Will Your Chicagoland Mortgage
Co-Signor Deliver Magic?

     More and more often, the topic of co-signing on a Mortgage is being brought up both during my initial inquiries and Pre-Qualification conversations.  I'm presented with questions regarding Mortgage co-signing from both hopeful recipients of the co-signing and those actually considering becoming a co-signor. 

     I find that there is often confusion surrounding this topic.  (Some simply have co-signing confused with co-borrowing.    Two different things.)  And many times, recipient and co-signor alike are unsure of the true benefits and responsibilities attached to the act of co-signing(For a prior post on the topic of parents considering co-signing, click HERE.)

     Co-signing is being considered in a growing number of scenarios.  The situations I see as a Mortgage Lender most often surround hopeful Home Buyers with low *Credit Scores. Credit Scores so very low that the hopeful Buyers are unable to be approved for financing on their own merit.  Or young Home Buyers that have not yet established enough credit history. (*Contact me for info on credit score guidelines/mortgage program availability.)  

     It's quite common to hear my Mortgage applicants talk of their co-signor as something of a magician.  When we speak during their initial mortgage consultation, they think the co-signor's good credit is going to deliver a Mortgage Approval for them something like a magician delivers a rabbit out of a hat.  "Wa-La!"  We're approved! 

      They believe that a willing co-signor with good credit will balance out their bad credit on their Mortgage Application.  

     Unfortunately, it doesn't work like that when applying for  Mortgage loans.  Regardless of job history, income, or down payment ability, anyone and everyone applying for the Mortgage must credit qualify to be on that Mortgage.  The rules are firm and clear on that.

     So what does this mean to you as a Mortgage Applicant when this problem scenario arises?  What options can you still consider should you hope to proceed with buying a home?

     Much depends on your credit and financial situation.  Options can exist though.  One possible solution can be that your co-signor becomes the sole buyer of the home considered for purchase.  Your co-signor seeks a mortgage on their own.

     When your co-signor makes application for their mortgage, the property is then considered an "investment" property (when they are a non-occupant).  As an investor seeking financing, they'll be required to place a larger down payment on the purchase.  In most cases, the down payment will be at least 15%.  They'll be required to qualify for a Mortgage on their own financial merits and credit scores. (Note:  Interest Rates on investment property financing are typically higher than those for buyer-occupied properties.)   

     Should your co-signor agree to move ahead with this purchase/investment, you (the initial Buyer) become the renter.  Most likely you'll then pay the co-signor's incurred mortgage payments via your rent payments to them each month.   

     What I've found is that many times written agreements are put into place between co-signor/investor and the initial Buyer during these types of scenarios.  And often, the co-signor's financing is viewed as only temporary while you, as the renter/initial Buyer, work on improving your credit scores. 

     When your credit is improved (or has grown) sufficiently to the point where you can successfully obtain your own mortgage, you then buy the home from the co-signing investor ... or the investor and you Refinance the Mortgage into both of your names.

     The bottomline is:  No two purchase scenarios, co-signing, or financing scenarios are the same.  Take the time to consult an experienced and knowledgeable Mortgage Lender regarding your buying and financing needs.  Take this action well prior to starting your home search.  That will allow you ample time to grow your credit history, correct, repair, or investigate all the financial options open to you for purchase. 

     Will Your Chicagoland Mortgage Co-Signor Deliver Magic?  Scrambling to find a willing and capable co-signor after you have found the home of your dreams is extremely stressful.  Don't do that to yourself.  Contact me now to discover all the buying and financing options available to you.


     * Hoping to Buy a Home or Refinance in one of the Lincoln-Way Communities, Will County, DuPage County, or elsewhere in Chicagoland?  Contact me!  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
eFax:  815.524.2281
Click HERE for a Free Mortgage Consultation!
Ready to Apply for your Chicagoland Mortgage?
  
*  I try to answer or communicate with each client and Referral Partner as quickly as possible upon receiving a call, email, or contact.  Should you not receive a timely response, please ... know that I am with another client or within a Closing at the time.  Please ... try again or through another manner.  Your business is very important to me.  Thank you!
 
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*  I try to answer or communicate with each client and Referral Partner as quickly as possible upon receiving a call, email, or contact.  Should you not receive a timely response, please ... know that I am with another client or within a Closing at the time.  Please ... try again or through another manner.  Your business is very important to me.  Thank you!
 
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What My Chicagoland Blog and Social Media Reveal


What My Chicagoland Blog and Social Media Reveal

     When you read blogs written by Real Estate or Mortgage industry professionals, you often run into a post that talks about how many of their leads were generated by their blogs and then ultimately turned into actual clients.  They're helping to spread the word to others about the effectiveness of blogging. 
    
      I've personally found with my Mortgage clients, that it's often not hard to draw a direct line between one specific post and their initial contact.  They're typically eager to relate how something they read on my post motivated them to action.

    But I've also found that an even larger number of my clients were motivated to find me after conducting a series of searches regarding my services.  They investigated me using a variety of methods.  Yes, that investigation often included included my blog.  And it often included talking to Referral Partners or former clients.  But their investigation included my online presence too.  In other words, my Social Media.  

     After talking with new leads (both client and Referral Partner), I find my mortgage blog was a valuable tool during their research, but my credibility soared as a result of my accumulative online efforts.  My blog ... each of my Social Media ... is a valuable piece of a larger puzzle.
  


    When you read or listen to media these days, you quickly find that the issue of a Mortgage Lender's business and personal credibility has become increasingly important.  So is their reliability and trustworthiness.  It's become that, just as within the Mortgage Process itself, documentation ... providing a reliable "trail" to follow regarding a Mortgage Lender's background, expertise, volume of experience, reputation, credentials, services, and more ... is vitally important.

     I can't begin to relate how many clients and Referral Partners have told me, "I see you everywhere!"  So when I hear from clients and Referral Partners that they are seeing me "everywhere" and that I'm easily found "everywhere" (physically or via multiple methods of communicating), I know that I'm establishing credibility, reliability, and trustworthiness regarding myself and my services.  It's providing them valuable info and giving reassurance regarding who I am and the quality of my services. 

     Simply, my Social Media and Blogging reveals ... me.  It pretty much reveals everything about ... me.  And that's exactly what I hope for.

     You are invited to follow me via:  Gene's Chicagoland Mortgage Blog and all the Social Media found below ...


     Are you hoping to Buy or Refinance a Home in the Lincoln-Way Communities, Will County, DuPage County, or elsewhere in the Chicagoland areaContact Me!  I'll be happy to hear from you and 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
eFax:  815.524.2281
Click HERE for a FREE Mortgage Consultation!
Ready to Apply for your Mortgage?


 
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Considering Buying a Home? You Need to Check-Out my Mortgage Wish List First

Considering Buying a Home? You Need to Check-Out my Mortgage Wish List First As a Grampa, I'm very aware of "Wish Lists&qu...