Prepare Your Credit & Finances for the Upcoming Holidays Now!

Prepare Your Credit & Finances 

for the Upcoming Holidays Now!

     I know.  I know ...  

    The Holidays are still a couple of months away.  And I've touched upon this topic before ... 

     But increasingly, people are planning for the Holidays and beginning to shop for the Holidays earlier and earlier in the year.  There's Christmas in July specials, Cyber Monday, Free Shipping Day, and many more. 

     So I'm thinking NOW ... is the perfect time to make plans regarding your budget, credit/credit cards, and finances for this year's Holiday celebrations and expenditures.

     Anticipating and planning for this year's Holiday activities and gift-giving demands is a great place to start.  Start by compiling a list that includes:

• A Budget:  What is the total dollar figure you have to work with?
• Names:  Who will you want/need to buy gifts for?
• A Breakdown:  How much of that allotted budget will you spend on each individual gift recipient?
• Gift Ideas:  What ideas fit the planned expenditure for each gift recipient?     

     Then plan how and where you can shop wisely and stick to your Holiday Budget ...  

     One deadly pitfall to any Holiday Budget, Credit, and  Credit Scores is the "Holiday Credit Card Promo".  We've all heard them pitched at the store register, right?  They can sink your budget and Credit Scores in no time.

     0% Interest Rates!  No Credit Report run!  Big Rewards ... Big $$$'s off your purchase ... 

     Enticements are everywhere.  Each offer, trying to lure you into spending more, forgetting your budget, and developing amnesia about your Credit limits. Each aimed at breaking your holiday resolve. 

     Just think though:  A bonus of planning in advance for your Holiday gift-giving and finances is that you have time to strengthen your resolve.  You can practice saying, "NO!" to all these upcoming enticing Holiday offers.

     I'm not kidding!  For many, this simple act ... saying "NO!" ... is actually very hard. 

     So if that describes you?  Go ahead.  Get in front of your mirror!  

     Sharpen your resolve.  Practice saying the word, "NO!"  Practice, practice, practice!  After the Holidays are over, you'll be very glad you did.  

     I'll add:  If you're hoping to buy a home now, soon, or in the future, you'll be doubly glad that you found your voice and strengthened that "NO!" muscle of yours during the Holidays.  

     Your overall budget will be intact and your Credit Report and Scores will reflect that fact.  Plus, you won't have damaged monies and you'll still have savings set-aside for your downpayment.

     Feel like you need a little extra info or some assistance in establishing your budget?  Or maybe "tidying-up" your Credit Report prior to buying a home?  (A credit and budget "Trainer" so to speak.) 

     If in the Chicagoland/IL area, contact me.  Together we'll optimize your home buying options and get you on the path to a successful home purchase.  

     Don't delay when planning ahead.  For the upcoming Holidays ... or preparing to become a homeowner ...

     

     *   Hoping to Buy or Refinance a home or property investment in New Lenox, Will County, or elsewhere in the Chicagoland - IL - WI area?  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 Lic. #216987

American Portfolio Mortgage Corp.

NMLS 175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.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 and WI. 

Your Referrals are Always Welcomed and Appreciated!

    

 

The ABC's of DTI's (Debt-to-Income Ratios):

The ABC's of DTI's  (Debt-to-Income Ratios):

     Definition of Debt-to-Income Ratio:   The figure that represents how much of your income is spent repaying your recurring monthly debts.  The HIGHER your Debt-to-Income Ratio is, the more of your monthly income is being devoted to paying back your debts. 

     Formula Used to Find Your Debt-to-Income Ratio:  Monthly debts owed divided by gross monthly income. This includes utilizing ALL Recurring Monthly Debt VS Gross Monthly Income, as determined ultimately by an Underwriter at Final Approval. 

     Those clients I speak to regarding Mortgage Pre-Qualifications and Mortgage Applications typically are hyper-focused on 2 factors involved in their Mortgage financing:  The Downpayment they need to make ... and their Credit Scores and Credit Report. 

     While those factors are definitely important, there are two additional factors that I often see overlooked.  

Those are:

• Debt-to-Income Ratio 
• Property Taxes      

     My findings are backed-up by those in a new survey provided by FICO.   

     This survey reveals that Debt-to-Income Ratios are the #1 factor contributing to denial for loan.  60% of credit-risk managers surveyed by FICO considered Debt-to-Income Ratios as their #1 concern.

    Debt-to-Income Ratios represent an excellent example of WHY I encourage all hopeful Chicago-area homebuyers to contact me (a Loan Officer) well in advance of the time they hope to purchase.  If given time to do so, I can help my borrowers successfully improve (Lower) their DTI ratios.  

     It's important to know that even small improvements can mean the difference between loan denial and successful Approval.

      So, what IS an acceptable Debt-to-Income Ratio?   

     Here are the ABC's of DTIs:

     Defining "acceptable" can be somewhat hard these days, but typically, with the implementation of the "Ability to Repay and Qualified Mortgage Rule", acceptable ratios are defined:  

As high as *43%  

     *  Now that said, currently there are exceptions to this Rule.   Exceptions that allow for up to 45% DTIs, as well as up to 50% +/- on FHA Loans.  Final determinations of "acceptability" are made on a case-by-case basis, land can be impacted by the other layers of risk (down payment, credit scores, job history, reserves).

     All this talk of "acceptability" and "exceptions-to-the-rule"  leads me to advise:  

     Anyone hoping to buy a Chicago area/IL/WI home contact me, sooner than later. That way, if improvements are needed to your Debt-to-Income Ratio or credit, etc., we can address those issues together and make improvements as quickly as possible.

     The other factor I see contributing to loan denials surrounds Property Taxes.  In fact personally, for my borrowers, it's the reason I see come into play most often.  

     As a result, even in preliminary conversations with my clients, the following questions are always included:

• Do you already have a specific property in mind for purchase?
• What are Property Taxes for that home?
• Are there Assessments involved?
• Does the property have HOA fees?       

     In short, if your DTIs are close to being maxed out, the Property Taxes on the home you're considering for purchase can cause you to exceed Debt-to-Income Ratios.  That's why talking to a market-knowledgeable Loan Officer is a wise thing to do.

    When this step is taken, my borrowers typically choose to resolve the issue by starting another property search.  This time they consider only those homes with lower property taxes, lower assessments, or no/lower HOA fees.  In other words, the homes they can qualify for.

     For those hoping to buy, the process can seem a bit daunting.  It shouldn't ... and it doesn't have to be.  Debt-to-Income Ratios can be addressed properly UPFRONT, with the right guidance and time.  

    Find me, your Chicagoland/IL/WI Loan Officer, as soon as you make the decision to buy a home.  We'll have an in-depth conversation regarding your ability to finance and how you can accomplish your goals.  

     Follow my advice and you'll successfully purchase the home you love much sooner ...

   

  Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else in Illinois or Wisconsin?

Looking for mortgage financing answers, options, solutions, and experienced assistance?  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 License #216987

American Portfolio Mortgage Corp

NMLS #175656

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, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, Cook County, and elsewhere within IL & WI.

#homeselling #PreApproval #mortgageconsultation #positioning #housingmarket #mortgageapplication #InterestRates #homebuying #refinancing #homeloans #talkwithalender #PreApproval #stoprenting #newconstruction #securerate #househunting #mortgage #ratelock

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #howmuchhomecanIbuy #whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts #homebuilding #float #lockarate #askquestions 

#housegoals #VAloans #home #homeloanpro #JolietMortgageLender #WillCountyMortgageLender #DuPageCountyMortgageLender #GrundyCountyMortgageLender #ChicagoHomeLoans #NewLenoxRealEstate #mortgageinfo #newconstructionloans #endloans #credit #creditreport #40YearsOfExperience #WisconsinMortgageLender #ChicagoMortgageLender #FHAloans #condoloans #investmentproperty #mortgageconsultation #LincolnWayAreaMortgageLender #personalfinance #mortgageprocess #homebuyingprocess #housingmarket #changes 

Real Estate, Mortgage, & Credit News ... July 19, 2014

July 19, 2014

Here's this week's news, info, and timely articles I thought you'd find of interest and use. 

Should you have specific topics or questions ... and like them covered and addressed in one of my future blasts, please let me know.  Your suggestions and input are always welcomed!

How to Create Outdoor Living Rooms ...

With 4 distinct seasons here in the Midwest, we face a different set of needs when it comes to designing and decorating outdoor living spaces.  

Here's some ideas and inspiration for an outdoor living space from 2 Midwestern homeowners .. one located in Columbus, OH, the other in Chicago.  (MORE ...)

10 Uses for Coffee Grounds ...

Stash the leftovers from your morning pot of joe for these clever household uses ... (MORE ...)

This next article should be of equal interest to those looking to improve the feel and decor of their home ... and those hoping to improve the "sale-ability" of their home prior to placing it on the market ...  

Paint Colours that Homeowners Favour and the Psychology Behind It! 

Home owners aren’t shying away from using more color in their homes.

Nearly two-in-three home owners say they would like to add color in their home, particularly in the living and family room, followed by bedroom and bathroom, according to the National Home Design and Color Survey by Sherwin-Williams, a survey of 1,450 home owners.  (MORE ...)

As a Mortgage Lender, Father, and Grandfather, I believe the topic broached below is of great importance.

In order to improve and protect the futures of our children, classes regarding the basics of money, finances, savings and credit should be mandatory in our schools.  If you agree, please urge your local schools to add classes of this nature to school curriculum.

A better understanding of financial basics will help our children immensely, guide them, and assist them successfully throughout their lives.  (My help is available to any area schools interested in hosting these types of classes.)

Money Know-How? American Teens Are, Well, Just Average ...

A major study shows that American 15-year-olds are barely average when it comes to knowledge of personal finance—and way behind the kids in Shanghai.

For a country whose grandest export might be capitalism, we don’t do very well with our own kids.  (MORE ...)

Can you believe it?  July is already half over! 

Here's a few ideas for some fun in the City of Chicago this upcoming weekend.  Don't let summer slip by without getting out and having some fun!  Click on the link below to "Chicago" Like a Local!

Weekend Alert: July 18-20

Thanks for reading this weeks blast.  Remember, I'm always available to answer your Mortgage and credit questions ... and those of your friends and family.   Contact me to talk soon ...

Gene 

Gene Mundt

Mortgage Lender  -  NMLS #216987

 

Direct:  815.524.2280

Cell or Text:  708.921.6331

eFax:  815.514.2281 

www.genemundt.com

gmundt@goapmc.com

Click HERE for your 

FREE Mortgage Consultation!

             

                

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. 

New Chicago-Area/IL Small Apartment Loan Program Available

New Chicago-Area/IL

Small Apartment Loan Program Available

New options exist for those hoping to finance small residential apartment buildings (5 to 20-unit properties) in the Chicagoland/IL area.  (NO mixed-use properties allowed)

This new Small Apartment Loan Program is a great opportunity for EXPERIENCED investors to finance properties for purchase ... and Refinance their existing 5 to 20-unit properties also.  The guidelines are generous.

If interested in learning more about this "Small Apartment Loan Program" and how it can benefit you or your clients, please contact me, Gene Mundt, Mortgage Lender immediately.

I look forward to hearing from you and assisting you soon!

Gene Mundt, Mortgage Lender

NMLS #216987

My Best Influences ...

My Best Influences ...

 

When seeing Dennis Burgess' AR Contest announcement about the "Under The Influence(s)- an ActiveRain Contest", I knew it was one I needed to take part in.  Can you ever say "thank you" enough to those that shaped your life?

I'm going to begin exactly where I should ...  with my Mom and Dad.  

Although a unit in every way, I'm going to list them as individual influences.  Each taught me many special and unique things.

#1:  I'm lucky enough to still have my Mom, Ruth, with me and living close by in Manhattan.  I'm still learning from her.  She's the epitome of kindness, grace, generosity, and gentility.  

She seeks the positive in everyone and every situation.  Mom never says an unkind word about anyone.  Not an easy thing to carry off in today's world and I admire her greatly for it.

#2:  My Dad, Ken, passed a while ago, but he's my "bar" test for every action I take.  I can't tell you the number of people that have told me Dad was their vision of a true gentleman ... just a great guy.  I try to act similarly so people will say the same about me to my kids when the time comes.  I'm a work in progress.

#3:  Collectively, I must acknowledge my brothers ... Gordy, Gregg, and Gerry for being a good influence on me.  I was #3 out of the four of us and I gained tremendously from watching my brothers.  

Each made me tougher.  They made me stronger.  They made me more resilient.  They pushed me.  They set expectations.  They demanded better.  They truly made me better.  Mentally, academically, and physically.  They set high standards for me as a kid.  They still do as adults.

My #4 influence would be my first boss in the Mortgage industry, Don Nepote.  His offering me my first job at the Savings and Loan in New Lenox truly changed my world.  At the time, I had no real grasp of what I wanted as a career.  I was moving towards journalism at the time, but then ... along came Mr. Nepote's offer. 

I took a gamble and accepted his offer thinking I'd just earn some money to pay off school expenses, gain some work experience, quit and move on.  Well, that was in 1977 and I'm still in the Mortgage business.  I guess you could say the Mortgage and Real Estate "bug bit" me. 

Because of Mr. Nepote's offer and my subsequent decision to work in the S&L, I found a career.  I found a passion.  2 actually.  I also found my wife.  She was Mr. Nepote's secretary at the time.  I'd say my gamble paid-off extremely well for me.  

My 5th and final good influence was a mentor of mine.  I believe one of my strengths as a Mortgage Lender comes from my wide and diverse background learned within the industry.  I've written about my background prior, but one of the things I studied and performed was Real Estate Appraising.  

Years ago, it was pretty normal for LO's to also do appraising.  For awhile, my focus was more in that vein. But when "drive-by" appraisals were first introduced and rumors were that they would grow in use, I decided it was time to re-focus on my Mortgage Lending services.  That's when I was lucky enough to be taken under Mortgage Lender Tim Klotz' wing.

Tim Klotz was one-of-a-kind.  Smart, successful, hard-working, energetic, a people-person, outgoing, upbeat, eager to help and share what he knew, athletic, always smiling and laughing.  Just a great attitude and the kind of mentor and friend you pray for.  

Tim was always ready for everything and anything, whether that be work or play.  There were signs of that in his car.  Certainly the normal "tools" of a Mortgage Lender were visible, but pop his trunk and his golf clubs, tennis racket, and play clothes were always available too.  And maybe a cigar or two.

The term athletic should come to mind when you envision Tim Klotz.  As I said, he was a prolific golfer and tennis player, but he ran too.  He appeared the picture of health.

But a few days after his 50th birthday, Tim passed away from a massive heart attack.  He'd been feeling a little "off", but had chalked it up to the stresses of his job and how busy he was at the time.  

To say that his family, co-workers, and friends were stunned would be an understatement.  His death was a total shock.  You could see the grief, fear, and shock in everyone's face,  including mine.  It was a huge loss.

Soon after Tim's death, his friends and family decided his spirit had to live on.  We gathered and formed the first "Tim Klotz Memorial Golf Outing" ... an outing where proceeds and monies collected would be donated to local Joliet charities.  

This year, we are hosting the 15th Annual Tim Klotz Memorial Golf Outing.  Thousands and thousands of dollars have been raised/donated over the years through this effort.  Many in need have benefited from the donations received from this charity.

That is certainly testimony to the man Tim was ... and the influence he had on those around him.  I know I personally benefited in all sorts of ways from Tim, his friendship, and his time mentoring me.  I think of Tim and smile.

As far as talking of negative influences, I'd rather end this post on a positive note.  Although it's true you can learn from the negatives, I think there's more than enough negative that's said and shared.  I'll take a pass on adding to that ...

 

     

     *  Hoping to Buy, Construct, or Refinance a home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicagoland area? Contact Me!  I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.

     I can be easily found at all the following:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

Click HERE for a FREE Mortgage Consultation!

             

               

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.