5 Reasons to Check Tax PINs Prior to the Signing of a Real Estate Contract


5 Reasons to Check Tax PINs Prior 
to the Signing of a Real Estate Contract


     Seems like certain problems crop-up in bunches within my mortgage transactions.  Right now the issue that runs across my desk frustratingly often is incorrect PIN (tax) numbers on my Borrowers' real estate contracts.  There's just been a rash of them.

     Now I know that a PIN number sounds like a little "boo-boo" easily corrected ... no big deal.  But these days? Nothing pertaining to a real estate contract or within the framework of the mortgage process is easily or quickly changed or corrected.  Documentation is KING and rules within today's transactions and processes.

     To more easily understand why this seemingly small blooper can cause such a big fuss, you must consider all the documentation that contains tax information and PINs upon it.  And then think about the huge rippling effect of this one minor mistake.  

     Unfortunately, in today's environment, just saying an error was made on a legal or financial document isn't good enough anymore.  Initialing the corrections isn't enough.  Documentation must first prove the error made ... then also prove the corrected PIN.  
    
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      Yes, corrections can be made.  But there are 5 reasons to check tax PINs prior to the signing of real estate contracts:

  1. Corrections are a multi-step process
  2. Corrections eat-up valuable time 
  3. Corrections cause frustration for your clients and the other professionals within your transaction
  4. Corrections cause extra paperwork 
  5. Corrections can cause delays of Closing dates  


    All the above should and can be easily avoided ...


     Verifying the validity and correctness of a PIN (tax) number for the property being transacted is important PRIOR to its addition to the real estate contract is increasingly important in a myriad of ways.  I provide this helpful and timely advice:  

     Whether Listing or Buying Agent ... prior to your clients signing the contract ... check the PIN number associated with your real estate transaction.  Make sure it's 100% correct as shown on that contract.  

     The easiest way to ensure that is to get a copy of the actual TAX BILL or Local Assessment Notice with the PIN number clearly identified on either of those documents. It will make for one less issue that can arise to slow your transaction down ...




     *  Hoping to Buy, Construct, or Refinance a home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicago areaContact Me today for your FREE Mortgage Quote and consultation.  I'll put my 37 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

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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

    

     

    

"To Condo or Not to Condo". That Should Be the Question ...


"To Condo or Not to Condo".  
That Should Be the Question ...


http://www.genemundt.com     As a Chicago-area Mortgage Originator, I never try to influence a Buyer as to the type of property they should or should not buy.  That's their personal choice ...

     But as their Mortgage Originator and advisor, I do try to educate them regarding different property types and the pros and cons associated with each as it pertains to their upcoming mortgage process.  

     Why?  

     Because there are some fundamental differences in how differing property types flow through that process.  There can also be some differences in costs incurred while moving forward, as well. 

     When I talk of "differing property types", what exactly do I mean?  

     Here's my simple explanations:
  • Single-Family Residence Detached:  No common walls ... a free-standing House
  • Single-Family Residence Attached:  Examples of this classification are Duplexes and Townhomes with no Associations
  • PUD:  Planned Unit Development.  Can be either of the above classifications (Single-Family Detached or Attached) IF there is a formal recorded Homeowners Association which charges and collects Dues
  • Condominium:  An Association is in place, the LAND is commonly-owned, the Unit Owner does NOT own the land (only the Unit itself)

     Please Note:  I did not include "Townhome or Townhouse" in the above.  Townhomes/Townhouses are NOT a property classification, rather only a "design or style" of residence. 

     Perhaps it's the former Residential Appraiser in me, but the buying public and their representatives need to know the impacts of the type of property (legal ownership) being considered for purchase.  The fact of the matter is, the classification of property (remember the definitions above) has a "preferred pecking order" in the eyes of mortgage lenders.

     What is the implied pecking order?  The "ideal" collateral for a Lender is the Single-Family Residence, Detached, with NO Association involved.   

     Why?   

     With this type of property:  There are the least amount of rules and restrictions to address during processing.  Typically, there are also fewer (and fewer ways) for issues to arise during mortgage processing.  

https://1609956119.secure-loancenter.com/FreeConsult.aspx 
     The Automated Underwriting Models utilized by Mortgage Lenders assesses the layer of risk involved with the specific property type being purchased by a Borrower.  Automated Underwriting also assesses the likelihood or potential for default on a loan.  
     
     In other words, Buyers with identical credit, identical income, the same employment, the same down payment, and assets ... but buying differing property types ... MAY reap different results when it comes to an Approval/Acceptance via Automated Underwriting.

     Let me provide you an example of the extremes that can be found:


Detached Single-Family Residence 
(most preferred
VS 
Condominium 
(on the least preferred risk-based collateral)

     Depending on the down payment percentage:  The CONDO buyer will/may be charged a higher interest rate for their mortgage financing ... OR they may choose to pay higher Closing Costs, as a result of risk-based pricing assessed on a Conventional Loan, per Fannie Mae or Freddie Mac.

     To support the existence of this phenomenon, I provide details from two of my most recent Pre-Qualifications.  They shed light into my explanations regarding property types.

     Scenario #1:  A First-Time Home Buyer had entered into a Contract to Buy.  She thought (and had been told prior to our consultation together) that she was viewing/purchasing a Townhome.  In fact, what she was buying was a Townhome only in style and design.

     What she was really viewing and had contracted for was legally a Condominium.  The land was commonly owned by the Association, and she as the Unit Owner would not own the land upon purchase as she had thought.

     End Result?  My Buyer canceled her Contract after learning the facts and figures regarding her Mortgage process and the costs she would pay as a result of buying a Condominium.  Her Interest Rate would have been higher due to the Condominium rating.  

     After discovering the Rules, Regulations, Restrictions associated with the property ... and discovering that there were unpaid Assessments associated with this Unit and Complex ... she changed her mind about moving forward with her purchase.  She's presently in the search for another property.

     Scenario #2:  A past client that purchased a Townhome in a "PUD - Planned Unit Development" years ago, contacted me.  He is now looking to sell his Townhome and buy again.

     He's looking to purchase a Single-Family Residence (Detached with no Association) for his next home.  He's finding that selling his present property has some challenges.  By-laws and Declarations associated with his Townhome are impacting the sale and has eliminated some potential and hopeful Buyers from making offers.

     As a Result?  As he can qualify for a new Mortgage while retaining ownership (and the Mortgage) on his present Townhome, my client has decided to buy his new Single-Family Residence before selling.  He's in an enviable position, as many Buyers cannot do this.

     The two scenarios above point to a current and vivid reality:  The marketplace recognizes differences in property types.  Knowing this makes it somewhat easier to understand why Fannie Mae and Freddie Mac do likewise and why they rate property types differently.

     My next post will continue with this topic and showcase the impact of Condominium Property type on the pricing of a loan from an Interest Rate and Closing Cost perspective.  The info contained within these two posts will help you decide ...

"To Condo or Not to Condo"


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*  Hoping to Buy or Refinance a home in New Lenox, Will County, or elsewhere in the Chicagoland-area?  Contact me!  I'll put my 40 years of Mortgage experience 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 or Text:  708.921.6331

eFax:  815.524.2281



 

 Contact Me Now!



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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!
 

    

      

         

Manhattan School Dist. 114 Students School Year 2014-2015



    Manhattan School Dist. 114 Students - School Year 2014-2015



 https://1609956119.secure-loancenter.com/FreeConsult.aspx     School is back in session at Manhattan School District 114 schools (Manhattan, IL).  (For a full school year/downloadable calendar, click HERE.)

     There are multiple schools within Manhattan School District 114.  They are:

  • Wilson Creek School
    Contact:  25440 S. Gougar Rd, Manhattan, IL                           Phone:  815.478.4527
                          Website:  Click HERE 

  • Anna McDonald School  
    *  Contact:  200 Second Street, Manhattan, IL
                          Phone:  815.478.3310
                          Website:  Click HERE

  • Manhattan Junior High
    *  Contact:  15606 W. Smith Road, Manhattan, IL
                          Phone:  815.478.6090
                          Website:  Click HERE      
 
     If you have children/are considering a move into Manhattan School District 114, the school boundary map can be viewed HERE.  A Handbook for Manhattan School District 114, school year 2014-2015, can be downloaded  HERE.

     Should you be moving into the Manhattan School District 114, a School Supply lists for 2013-2014 can be found at:  Manhattan School District 114 School Supply List, Kindergarten through 8th Grade.  Registration Info, Fee Info, Payment methods available, may be seen HERE.


      Please be aware that the district utilizes "School Logic/Home Logic" in their effort to better communicate with parents, the community, and businesses.  Messages, communications, and info within "School Logic/Home Logic" can be found HERE.

     Lunches are available through the cafeterias in Manhattan School District 114 schools.  Information regarding lunches, menus, nutritional facts, and more can be found HERE.  

          To participate in Manhattan School District 114
sports, children are required to have an  IESA/IHSA Preparticipation Form  (physical) submitted.  That form can be found HERE.  Sports available within the District include:  Basketball, Volleyball, Cross Country, and Track & Field.  Addresses for sports away games are HERE.  Manhattan School District 114 issues a Sports Handbook to athletes and their families each year.  

     The District has an active Athletic Boosters Club for parents and fans of the student athletes.  The Athletic Boosters Club promotes and supports the athletes, athletic teams, and sport department in their endeavors throughout the year.    


     Music education is important at Manhattan School District
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114.  The District offers the following music programs to its students: Beginners Band, Concert Band, Marching Band, Summer Band, Symphonic Band, Choir, and Orchestra.  Both Band Boosters and Orchestra Boosters promote, boost, and support the activities and music education of the student musicians with the District.


     The Manhattan School District 114 also has an active PTO that support the teachers in promoting the act of learning and and helps make that learning fun for the students.  2014 - 2015 PTO Market Day info can be found HERE.


     For further info/assistance regarding your child's attendance at a Manhattan School District 114, call the District Office at:  815.478.6093, visit their website at:  www.manhattan114.org, or visit the main office located at:  25440 S. Gougar Road, Manhattan, IL in the Wilson Creek School.
     Manhattan School Dist. 114 Students School Year 2014-2015.   Hope you and your children have a successful, educational, and fun school year participating in Manhattan School District 114 schools ...

 
     Hoping to Buy, Construct, or Refinance in the Village of Manhattan, another Lincoln-Way area community, Will County, or elsewhere in the Chicagoland region?  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:
Direct:  815.524.2280
Cell/Text:  708.921.6331
 eFax:  815.524.2281
Click HERE for a FREE Mortgage Quote 
or Consultation!



 
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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. 
 

The Many Ways Poor Credit Scores Cost You


     The Many Ways Poor 
   Credit Scores Cost You


     A large percentage of the potential home-buyers I speak to have a basic knowledge of how credit scores influence the interest rate received when they finance their home purchase ...  

     Most understand the basic principal:  The higher their credit scores, the lower their interest rate.

https://1609956119.secure-loancenter.com/FreeConsult.aspx     I read a CNBC article entitled, "How poor credit costs you on homeowners insurance".  It delivered a strong message.  Poor credit scores cost you.

     In that article it was reported that:   "Homeowners with median credit pay 29 percent (29%) more than those with excellent credit."  29%!  

     Ouch!  

     But the "hits" you take for lower credit scores go beyond higher insurance costs.  And even small dips or variations in  scores can cost you ... and cost you in a variety of ways.  Not all of them monetary.

     Examples:

     Rent:  Not ready or interested in becoming a homeowner?  Low credit scores can loom large even when you rent.  Lower credit scores can indicate to a Landlord that you're a larger security risk.  

     As a result, Landlords may demand a larger deposit be placed on the property you hope to rent.  If you want to protect yourself with Renters Insurance, your lower credit scores will make it more costly to carry.

     Utilities:  Electricity, gas, water, and garbage pick-up. The deposits required for establishing those services may be higher as a result of your lower credit scores.  Extremely low credit scores may result in services being denied completely.  You'll find much the same when applying for cell/internet services. 

     Jobs:  Your livelihood can be jeopardized.  Some professions regulated by the government require licensing.  Credit reports are run as part of the professional's licensing requirements.  As a Mortgage Lender, I'm subject to this practice.  If you're a professional within such a field and have low credit scores, it could prove very problematic for you.    

     Entrepeneurs:  Hoping to start a new business?  Access to the funds/credit needed for start-up could be limited or non-existent.  The interest rate charged on a business credit card will be higher.

     Car:  Need a car to get you to your job?  If financing is involved in your car purchase, your car loan will cost you more than it would have if you'd had good credit.  So's the credit card you carry to buy gas for that car.
    
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Love-life:  And did you know that lower/poor credit scores can also hurt your chances of forming personal relationships?  

     A survey conducted by FreeCreditScore.com revealed some staggering statistics: "While 57% of men say that credit scores play into their dating decisions, a staggering 75% of women said they consider the numerical rating".  

     Again I say "ouch" ...

     The facts are very clear:  Poor or low credit scores hurt you in a myriad of ways.  They cost or hurt you in almost every facet of your life.  But if you presently have low/lower credit scores, what do you do?

     Seek help.  Get expert advice.  Take action to correct any errors that might exist on your Credit Report.  

     Do the follow-up needed to fully-address those errors.  Stick to the plan devised to raise your credit scores.  Don't become discouraged.  Improvements take time.

     If in the Chicago-area, contact me for more info and Mortgage assistance and guidance ...




     Hoping to Buy, Build, or Refinance a home in New Lenox, Will County, or elsewhere in the Chicago area?  Contact me today!  I'll put my 40 years of mortgage experience and expertise hard to work on your behalf.
     I'm easily found at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281


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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. 
 
    

     
     

      

2017 Will County Fall Festivals, Pumpkin Farms, Corn Mazes, Hayrides

2017 Will County Fall Festivals,  Pumpkin  Farms,  Corn Mazes, Hayrides       The look of Fall has begun to arrive in Will County and...