Keep Those Mortgage Questions Coming!

Keep Those Mortgage 
Questions Coming!

     Maybe because of the timing of the release of a new Fannie Mae mortgage program ... the fanfare and media hoopla that typically surrounds the release of a new mortgage option.  Many people's attention, both public and professional, was simply directed elsewhere to a large degree.

      So given that, I was particularly happy to receive the large number of questions and the feedback I did to my recent post regarding the "HomeReady" program entitled, "Lending Guidelines More Favorable for Borrowers".  

     Seeing those questions roll in told me that there's still a need for ... and excitement surrounding ... this program.

     The questions gave me an opportunity to provide even more details about the   "HomeReady" program within the responses I provided.  Details that will inevitably help further educate First-Time Home Buyers and their agents.  Not only about the existence of the program ... but also the possibilities and options to be found within it.  It also helps me flesh-out just WHO might be well-served by using the program.

     Questions were exactly the response I'd hoped for when I wrote the post ...  

     

     Those questions told me that I'd triggered something within the reader.  Got them thinking.  Playing out scenarios in their head.  

     That they were measuring the pros and cons of what they had read.  Deciding if the program might be a good fit.  How the info might be utilized.  What options it might open up.

     From the questions I received about Fannie Mae's "HomeReady", I can report that there are many First-Time Home Buyers excited about it.  That there are agents out there already putting it to the test on the behalf of their clients.

     Like I said, exactly the response I hoped for.

     So ... keep those mortgage questions coming in response to what you read on my future posts and others.  Ask as many questions as you need.  

     Because only through your questions will you find the info you need to make sound decisions about home buying, selling, or refinancing and more.

     (See some of the questions received/replies provided regarding the new  "HomeReady"  mortgage program by clicking HERE).

      

    

     *  Have a question about financing a home purchase or refinance in the greater Chicagoland area, Illinois, or Wisconsin?  Contact me!  I'll be glad to hear from you and provide you the info, guidance, and assistance you need.

     I'm easily found at:

     

Gene Mundt


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

American Portfolio Mortgage Corp.
NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  1.815.524.2281

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, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL and Wisconsin.  

Referrals are Greatly Appreciated!

      

Lending Guidelines More Favorable for Borrowers

Lending Guidelines More 

Favorable for Borrowers

     On December 21, 2015, Fannie Mae rolled out a new "more forgiving" loan program.  One that will make it easier for Borrowers to qualify for a mortgage.  That program's name is "HomeReady".

     "HomeReady" is a lending program requiring only a 3% down payment be made on the purchase of a home.  

     Via this benefit found in its "HomeReady" program (less money down), Fannie Mae offers an option to Borrowers/Home Buyers that competes favorably with a current option offered by FHA requiring a 3.5% down payment.

     In fact, not only does this new "HomeReady" loan program give Buyers/Borrowers an option for Loan Approval that might not have existed prior to its implementation, it opens a door to a broader range of property types for consideration for financing and/or purchase by those Buyers/Borrowers.

     Why?   Because certain Condominium Projects and certain homes with mechanical faults and/or condition issues are now more likely to be found "approvable" or acceptable under this new loan program than they are when using an FHA loan.

     Also Important:  There are looser lending guidelines within this mortgage program regarding:

• Flexible Funds for down payment
• Allowance for Non-occupying Co-Borrowers
• Reduced Mortgage Insurance costs
• The ability to completely remove the need for Mortgage Insurance in time
• Ability to use "non-traditional" Income Sources to qualify

  

     These are all favorable factors offered within Fannie Mae's new conventional loan option, "HomeReady". 

     As a result of this new "HomeReady" mortgage program, those First-Time Home Buyers previously concerned with down payment ... or their Agents representing them ... may now have opportunities and options for buying and financing open that previously did not exist.  

   

      They may also find that this new mortgage option (compared with other loan programs currently available) is a better option ... especially for lower credit score Borrowers falling in the 620 - 679 middle credit score range. 

     

     The bottomline is:  If you didn't think you could buy before, it's worth taking the time to talk to me to check your options now.  You could have options that you didn't know existed.

     If in the Chicagoland area, elsewhere in IL or WI contact me at 708.921.6331, or gmundt@goapmc.com,  or visit my website at: www.genemundt.com today.

     

*  Hoping to buy a home in the greater Chicagoland area?  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:

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 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!

     

Check That Holiday Gift List Again ...

Check That Holiday Gift List Again ...

     Are YOU on it anywhere??

     What I mean is ... often we can get so busy doing all the right things for others during the Holidays, that we overlook ourselves.

     Just think what you've had to do and accomplish this Holiday Season:  You've definitely proven that you have the 

• Skills to plan
• Skills to budget 
• You're tops at coordinating
• Amazing at organization
• And you can deliver the goods.  

     Your list of accomplishments is really quite amazing!

     But ... 

     Check through all the important people and "to do's" on your Holidays list.  Did you find yourself and your needs anywhere?  

     Hmmmmm ...

     If you're renting your place to live:  Have you been tossing around the idea of buying in the coming year?  The feasibility of it?  Wondering what options you might have? 

     If you presently own a home:  Have you been dreaming of moving into a larger, newer home?  One located in another area, another school district, or closer to work?  

     There are hundreds of reasons why you may be hoping home buying is in your future.  Still, you've hesitated and put yourself and your dreams on the backburner ...

     If you're doubting your abilities, you need to keep those many talents and accomplishments I've listed above in mind.   

    They can help you buy and finance a home successfully too.

The many skills you've called into play when preparing for the Holidays will serve your needs and purposes well before and during your home and mortgage search and process ...

• Planning
• Budgeting
• Coordinating
• Organizing
• Delivery

     If you put them to work for your home buying and financing behalf ... those very same skills will help tremendously during your home search and financing process.  

     As with Holiday shopping, the hardest part about home buying is starting.  But you CAN do it.  You've already proven you've got the right skills to get it done successfully.

     If you're a hopeful first-time home buyer ... repeat buyer ... or someone hoping to refinance, put yourself back on your Holiday List, then contact me.  Turn your Holiday Wishes into reality ...

*  Hoping to buy, refinance, or invest in a home in New Lenox or elsewhere in the greater Chicagoland 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:

Gene Mundt

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

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

Your Referrals are Greatly Appreciated!

     

      

     

     

     

     

The Unicorn of Real Estate Transactions: The "Perfect" Appraisal

The Unicorn of Real Estate Transactions: 

The "Perfect" Appraisal  

     Did you know that ...

     According to a survey performed by the National Association of Realtors (NAR), 1 out of 5 Real Estate Contracts (20%) are delayed prior to Closing as a result of disagreements and problems within the Appraisal Report.

     Even with all the info and data available to Appraisers ... as well as Underwriters, Lenders, and Regulatory Organizations ... this fact remains:  

     Performing the perfect Appraisal remains an unattainable goal.  The perfect Appraisal simply doesn't exist.

     It's like the mythical unicorn ...

     Why?

     Despite all the automation and software programs available and in use, Appraisals are still conducted and written by humans.  Humans working within an industry that doesn't and can't possibly provide a manual for a "one-size-fits-all" Appraisal Report.

     Just like no 2 properties are alike, no 2 Appraisers view a property the same either. Even when presented the exact same data.  It's much like a Realtor giving an opinion in a CMA (Comparative Market Analysis), or a Broker's Opinion ... human factors must be considered and figured in.

     While the Mortgage Industry has continued to monitor Appraisals very closely, entities like Fannie Mae have developed programs like CU (Collateral Underwriter), as tools for Underwriters and Lenders to use as a "guide".  Remember, Underwriters, and LOs/Lenders are not Appraisers.

     Since the inception of Fannie Mae's and others' "Valuation Models", the goal has always been to reduce risk by avoiding what is the "over-valued" property Appraisal, whenever possible. 

     The process of reviewing the quality of Appraisals breaks down for Underwriters when conflicting data ... or unusual Adjustments ... are found within an Appraisal Report.  Either can result in the need for additional conditions or comments from the acting Appraiser that will help defend their position and thought process taken within their Appraisal Report.  

     In cases where the Appraisal Conclusion (Final Estimate of Value) is found questionable, Underwriters may lean towards taking caution. 

     Underwriters will ask that one of the following be pursued regarding the Appraisal Report:

• Better/more narrative from the Appraiser explaining discrepancies or inconsistent adjustments made, or why certain Comparables were used (or omitted).
• Additional Comparable Sales or Listings be presented to better represent the Value Estimate provided.
• Require a Desk Review or Field Review (2nd Appraiser involved) to assess the quality and accuracy of the first Appraisal performed.  (This is a worst-case scenario)

     In each of the cases above, delays in obtaining what is the ultimate goal ... a final Loan Approval ... will occur, as the Appraisal Review remains a critical part of today's Underwriting Process.

     As unicorns are said to be elusive, so is the "perfect Appraisal".  And as a result of 20% of Appraisals causing issues/delays within current Real Estate transactions, we must remain prepared to address questions raised by Underwriters regarding them ... 

*  Hoping to buy a home in the greater Chicagoland area?  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:

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 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!