What Closing Costs to Expect if You're a First-Time Home Buyer

     

What Closing Costs to Expect if 

You're a First-Time Home Buyer  

     There's a lot of things to learn and know when hoping to become a First-Time Home Buyer.  It can all seem a bit overwhelming ...


     Closing Costs:  Closing Costs are one of the most important things you must know as part of your upcoming transaction and financing.  

     And while everyone's transaction may have costs specific to it (or the locale of the property), there are some costs that are pretty much basic and universal to every transaction.  

     Below is a comprehensive list of those costs charged to most Home Buyers as part of obtaining a mortgage loan.  First-Time Home Buyers should count on these basic costs as part of their fee faced at the consummation of their transaction.

     Those Closing Costs are:

• Lender Application Fee .. OR .. Appraisal Fee
• Appraisal Fee (Paid @ Application) If not Application Fee
• Credit Report (Paid @ Application OR @ Closing)
• Tax Service Fee
• Flood Certification
• Home Inspection (Paid @ time of Inspection)
• Lender's Origination Fee (Paid@t Closing)
• Title Fees & Title Insurance (Paid @ Closing) 
• First Year's Homeowners Insurance Premium (Paid @ Closing or immediately prior to)
• Possible Cost:  Homeowner's Association Documents & Questionnaire (If Applicable)
• Recording Fees (Paid @ Closing)
• Transfer Taxes (These vary by City, County, State ... and by terms of Contract)  Often paid by Seller.
• Attorney Fee (Common in Illinois.  Paid @ or after Closing)

     The sum total of these items:  The total can be between $4,500 and $6,000, depending on the Vendors used to complete the Services ... and what the Lender charges.  

     Please Note:  These costs are in addition to any down payment a Buyer may have to produce to purchase their home.  In some states, portions of these costs are "offset, or credited by the seller", such as Title Fees and Real Estate Tax Prorations.

     

     It's important to point out:  If these costs are known in advance of negotiating a price and Contract, a Home Buyer can request a Closing Cost Credit from the Seller of the property.  

     Buyers may ask:  That part, or all, of these costs be paid as a credit at Closing to the Home Buyer, (Subject To Guidelines).

     The need for Seller-Paid Closing Costs should be determined with your loan officer at the time of Pre-Approval ... not after the offer is made to purchase a home.  

     Asking the Seller to contribute to these costs upfront is usually the best course of action.  In these cases, Home Buyers can cover their Closing Costs in part, or entirely, by the Seller, as per the negotiated contract.

     Once again:  The above info and methods are common to the Chicagoland/Illinois area.  Other areas/states may have varying costs/amounts due to local customs and practices.

     Bottom line:  It's wise to have a conversation regarding credit, finances, down payment needs, and possible Closing Costs with a Mortgage Lender well in advance of beginning your home search.  

     That way you are educated, prepared, and well-positioned financially for your home purchase and financing ...

     *  Hoping to Buy or Refinance a home in New Lenox, Will County, or elsewhere in the greater Chicagoland 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 Lender  -  NMLS #216987  -  IL Lic. #0006220  -  WI Licensed

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

You're Invited to Follow Me at:

             

        

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, Lockport, Channahon, 
Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, 
and elsewhere within IL & WI.  

Your Referrals are Greatly Appreciated!

     

     

     

     

Frankfort Fall Festival & Parade - September 5 - 7, 2015

Frankfort Fall Festival & Parade 

 September 5 - 7, 2015

     One of the Midwest's most enduring and long-running festivals is just around the corner ...

     The Frankfort Fall Festival is slated to be held over the Labor Day holiday weekend, September 5th thru 7th, 2015 in the historic Village of Frankfort, IL.  

     This Fest, a perennial favorite for over 300,000 visitors each year, offers fest-goers a:

• Juried show of 300 Artisans (List of Artisans: HERE) 
• Free Entertainment on Breidert Green (Schedule: HERE)
• Beer and Entertainment Tent (Schedule: HERE)
• Carnival (Info/Prices: HERE)
• Food Vendors and Food Court
• Parade - 1:00 pm Sunday (Info/Route:
  
  HERE)
• Free Shuttle Service for Visitors (Shuttle Info: HERE)
• Handicap Parking Lot  ($10 Donation)
• Car Club Show (Sunday)
• Bike Corral (Downtown Frankfort - Old Plank Trail near White Street. $2 - donation bikes. $1 - roller blades)
• 2 Rest Tents

     A map of the Festival site, activities, parking lots, Carnival, Artisan show, etc. is available for viewing and printing: HERE.

     For the safety of fest-goers and pets alike, NO animals are allowed at the Frankfort Fall Festival or Parade, unless they are on-duty as a service animal.

     The Frankfort Fall Festival and Parade is sponsored by the Frankfort Chamber of Commerce.  Should you have questions or be in need of more detailed info regarding the Festival or Parade, please contact the Chamber at:  815-469-3356.

     For directions to Frankfort, IL and the 2015 Frankfort Fall Festival, go to Google Maps HERE .

     Enjoy!

     *  Hoping to Buy or Refinance a home in Frankfort, Will County, or elsewhere in the greater 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:

Gene Mundt

Mortgage Lender  -  NMLS #216987  -  IL Lic. #0006220  -  WI Licensed

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 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. 

Referrals are Welcomed!

       

Veterans: Basic Info to Know About VA Loans

  Veterans:  

Basic Info to Know About VA Loans   

   

     The interest and use of VA Loans by veterans when purchasing a home is growing.  

     That's a great thing ...
     
     However, there are still many veterans that could be utilizing their VA Loan benefit but are not.  The VA estimates that 1 in 3 veterans are unaware of their VA Loan benefit.  

     In my own experience as a Mortgage Originator, I often find that to be true. Either the veteran does know of the benefit, or there's some misunderstanding about how they may use and benefit from it. 

     All sorts of myths and misconceptions abound regarding VA Loans.  Neither should keep a military veteran or their family from owning and enjoying their own home ... or realizing the savings due them via VA financing.

     To help veterans and their families better understand this valuable benefit, I've listed some basics regarding VA Loans below:

• Competitive Interest Rates
• NO Money Down options
• NO Mortgage Insurance Required  
• Closing Cost, Pre-Paid Escrow and Interest Credits from Sellers up to 4%
• An exemption from certain Closing Costs being charged to them
• A VA Appraisal is conducted on the property being purchased 

    
     These are some additional important things that Veterans should know and consider regarding VA Loans ... and the properties that can be financed via this financing:  

• Property being considered for VA financing MUST meet VA Minimum Property Requirements
• The property being purchased MUST be residential
• Homes in need of structural repair, found unsanitary, or unsafe will be deemed ineligible for VA financing
• Lead-based paint will be inspected for and evaluated. If problems exist, it MUST be corrected 
• A termite inspection MAY be required, depending on the property's location
• Water drainage and run-off requirements must be met. The grading of the property must allow for draining water away from the property   
• Gutters must be installed on the home (in MOST cases) and be in good shape
• All plumbing and electrical within the property must be in good repair and functional.  Each MUST have "life" remaining for functionality
• The heating system must be functional and adequate.  It must meet building codes
• Roofing must be in good shape.  Any roof found defective and having 3+ layers of shingles will be required to have all old shingles removed and new added
• Crawl spaces must offer clear and adequate access and be well-vented.  Basements must be reasonably dry 
• More ...

     I can't overstate the importance of this: Familiarity with and knowledge of the specific requirements and demands of this type of property purchase and financing is needed and fundamental to you finding success.

     If you are a veteran and hope to use your VA Loan benefit:  Please seek and use the guidance and expertise of a knowledgeable, experienced real estate professional and mortgage originator.  

     Not located and/or buying a home using your VA Loan benefits in IL or WI?   Contact me.  I'll be happy to provide you a referral to an experienced professional in your local area. 

     Remember:  Should you have remaining questions about buying a home using VA Loan benefits ... or regarding YOUR specific financial needs, don't hesitate to contact me or a local VA Mortgage Lender.  

     You deserve to know the facts ... and you've certainly earned the benefits ...

    *  Hoping to Buy, Refinance or invest in a home in the New Lenox, Will County, or greater Chicagoland area?  Looking for facts and info regarding VA Loans and financing?  Contact me today!  I'll put my 40+ years of mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Gene Mundt

Mortgage Lender  -  NMLS #216987  -  IL Lic. #0006220  -  WI #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 & WI. 

Referrals are Welcomed!

       

2 Successful Home Buying and Mortgage Transactions NEEDS

     

2 Successful Home Buying 

and Mortgage Transactions NEEDS

     Two themes I pound away on in my mortgage posts

concern:

• The need for good communication skills
• That clients conduct homework prior to choosing their real estate and lending professionals

      Both were certainly front-and-center this last weekend ...

     Right from the start of one new transaction, it was clear that the use of technology for communication purposes was going to be no issue for my new contacts or their real estate professional.  Each fired-off questions to me in calls, emails, and texts at lightning speed. 

     However, it also became obvious that the listening portion of communicating was going to be a bit more of a struggle.  Texts, emails, and calls all arrived on my cell at a furious pace.  The ring of one barely had time to quiet before another came through.

     The questions being asked left little doubt that client and professional each had their own agenda.  Info gained during my conversations with each was left unshared between them. I related all info at least twice.  And in some instances more, as one spouse didn't even share info with the other. 

     Now please keep in mind:  All parties were in the same car or viewing homes together during these exchanges.  It all would have been somewhat humorous, if it hadn't been so time-consuming and frustrating.  

     Bottomline, it was pure chaos.  And it certainly didn't bode well for the upcoming transaction.  

     But this predicament did serve to remind me of the 1st important theme mentioned above ... the need for good communication.

     The need for good communication between ALL parties involved in a real estate and financing transaction has never been more important ...  

     While it's true that there are more methods of communicating than ever before, the quality of communication ... and the desire to communicate ... is suffering greatly.  This last weekend's communications are just one example of that.  

     And they are not alone.  I can't begin to relate how many texts, emails, calls, and messages I send each day that garner absolutely no reply or no action.  

     This is even worse.  And the toll it takes on a transaction can be huge.
   

      And that brings me to the 2nd important theme:

     It's never been more important for homebuyers to conduct an in-depth search for the real estate and/or lending professionals they need during their transaction.  

     Yet the Consumer Financial Protection Bureau reports that most potential homebuyers spend more time researching and choosing shoes or other small purchases than they do choosing a Mortgage Lender.

     Now more than ever, homebuyers NEED reliable timely advice, expertise, and guidance.  

     Homebuyers NEED real estate and lending professionals that communicate well, provide clear direction, and keep them well-informed. 

     So how do homebuyers fulfill and surpass these important needs?

     First they must realize that these needs are only supplied by professionals that:

• Make good communication a priority 
• Are consistently and actively involved in the facilitation of current real estate transactions and/or mortgage process 

     It's a fact.  The purchase of your home will probably be the most costly purchase of your life:  It's no time to work with an inexperienced professional incapable or unwilling to communicate well.  

     If you're hoping to buy a home:  

     Commit time and energy to performing a thorough search for your real estate and lending professionals.  Pay attention to their communication skills.  How well they explain things.  How fluidly.  Ask for referrals.  Ask how many recent transactions they've successfully completed.  

     If you don't, you'll pay for it with your money, your time, frustration, and aggravation.

*  Hoping to Buy or Refinance a home in New Lenox, Will County, or the greater Chicagoland area?  Contact me today!  I'll put my 37 years of mortgage expertise and experience hard to work on your behalf.       
     I can be easily found at:

Gene Mundt, Mortgage Lender

NMLS #216987  -  IL Lic. #0006220  -  WI Licensed

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 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!