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Showing posts from January, 2014

The Effect Real Estate Taxes and Insurance have on Mortgage Loan Approvals and Monthly Mortgage Payments

The Effect Real Estate Taxes and Insurance  have on  Mortgage Loan Approvals  and Monthly Mortgage Payments

     There is an acronym in the Mortgage Loan Industry known as PITI.  This stands for: PrincipalInterestTaxesInsurance(s)   (Insurance for Homeowners Premium and Monthly Mortgage Insurance must be calculated and included in an Estimated Housing Payment.  Mortgage Insurance is required if a Down Payment is less than 20%).
     If buying a property within a Homeowners Association, you can add an "A" to the end of that list/word, so it becomes PITIA.

PITI/PITIA is the actual total housing payment that is arrived at when a Loan Officer is "pre-approving" a Home Buyer.  

     As Mortgage Lenders, we tend to focus mostly on the Sales Price or Loan Amount for Home Buyers' Pre-Approvals.  But I'm ultimately trying to pin down the Maximum Payment of PITI/PITIA.  This payment is then compared to the Home Buyer's gross monthly income for what's called the Hous…

This Week's Mortgage and Real Estate Moments Newsblast ...

Here's this week's helpful and timely Mortgage and Real Estate-related info and news I thought you'd find of interest ...
Spring is a great time to make plans for home updates, repairs, and remodeling.  Kitchens are often a primary focus.  If that's true for you, you'll find these BH&G slides of real interest ...
Top 10 Countertop Materials ...
With exposure to water, heat, sharp knives, and more, countertops carry a heavy burden in the kitchen. Discover the pros and cons of each countertop material to help you make the right choice for your kitchen.
(MORE ... )
Tax Hacks 2014: 8 Tips to Avoid an Audit ...
Wouldn’t it be nice if the IRS released its secret formula for how it selects individual tax returns for audit? That way, we’d do everything we could to stay under the radar and not be selected for further review.

Fewer than 1 percent of tax returns are audited, which is good news for all. But there’s no way to guarantee you’ll be exempt from the IRS’ p…

The Importance of Homeowners Insurance in the Mortgage Process

The Importance of Homeowners Insurance in the Mortgage Process

Once they've signed a Contract for the purchase of their new Will County or Chicagoland home, I urge all my Borrowers to actively begin their search for Homeowners Insurance
     Getting comparison quotes is a great idea when shopping for Homeowners Insurance.  Making a decision to secure a policy , no later than a week to 10 days prior to Mortgage Closing, is especially important.  Waiting too long can cause issues and hold-ups with Underwriting and Closings.
     Once a decision regarding Homeowners Insurance has been made, it's common practice in the Chicagoland area to pre-pay for the first FULL year of Homeowners Insurance coverage prior to or at Closing.  The initial Annual Premium payment is paid directly to the selected Insurance Company.  Proof of the Annual Premium having been paid is then provided to the Mortgage Lender.  
    The Homeowners Insurance Policy must contain a "Mortgagee Clause" that …

Be a Good Student when Buying your First Will County or Chicagoland Home

Be a Good Student when Buying your  First Will County - Chicagoland Home

     If you're hoping to buy your first home in Will County or elsewhere in the Chicagoland area, you've probably been given many tidbits of advice (asked for and unsolicited) ...  

Advice on this topic is not hard to find.  It's all over the internet.  And there are many eager to share their expertise and experiences.  I've writtenpostson this subject. 

The process can be challenging.  I won't paint you unrealistic expectations.  Issues can arise within any transaction.  

     But many of these issues and challenges can be minimized or totally avoided.  YOU, the first-time homebuyer, do hold power within your home buying and financing process.  

What do I mean?

 Much of the drama, the stress, time delays, and challenges you might have heard about can be avoided if you approach your transaction in the following manner:  

Approach your Home Buying and Mortgage financing process just as you did when you…

Preparing to Buy a Chicagoland Home: Seller-Paid Closing Costs

Preparing to Buy a Chicagoland Home: Seller-Paid Closing Costs

     Looking out my office window right now, you'd never know that Spring ... and Spring's busier Chicagoland housing market isn't that far off.  Yet, it's true ...

     Chicagoland First-time Home Buyers (those typically purchasing homes from the low $100K's to the low-$200K's) and anyone else hoping to buy during this upcoming Spring's warmer-weather market, should be making their plans NOW, while winter snow is still on the ground and temperatures are frigid. 

     So, if you're a hopeful Chicagoland First-Time Home Buyer (or anyone seeking Mortgage financing) what should you be considering or educating yourself about right now ... at the beginning point in your process?

     First of all, find yourself a knowledgeable, experienced Mortgage Lender to work with.  Not sure how to do that? 

     Here's a few suggestions:  

     Inquire with Real Estate Agents that transact in Chicago or the C…