Account Activities Matter When Applying for Your Chicagoland Mortgage

     
Account Activities Matter When 
Applying for your Chicagoland Mortgage

     
     Almost all Mortgage Lenders require that Loan Applicants submit each and every page of their Bank Statement, Investment Account, and Retirement Fund (showing source of Down Payment), not just a first page.  

     And note:  That's even if a page in the statement's sequence is only numbered and blank (something that trips-up many Applicants).  

     Why?  

     There are several reasons ... but the following are the issues that most commonly trigger Lenders' requests for full statement/documentation:  

  • "Large" deposits from Income/Payroll Transfers, as well as deposits made frequently from other accounts, cash, etc.  (Tip: Avoid making cash deposits into accounts at all costs!)
  • Having to identify sources of deposits. (Deposits direct from Payroll, Social Security, transfers from other accounts, "non-descript" deposits, check deposits, or wire transfers)  
  • Automatic monthly payments for recurring debt
  • Proof of Earnest Money Checks clearing the account.  (This is almost always verified on PURCHASE transactions)
  • Proof of Gift Money received (If applicable)
  • Proof of Consistency/Timeliness of payments for Rent or Housing 
  • Type of expenditures (ability to manage funds or budgets)


     It's not-uncommon for me to be questioned by my Chicagoland Borrowers regarding these requests, as Borrowers want to know ... 
   
 "Why do Underwriters need to know WHERE my Down Payment and Closing Funds come from?  Isn't the fact that I have the money enough?"

     But look at all the scenarios and concerns Mortgage Underwriters must consider regarding these funds and their place of origin:

  • A Borrower takes out a Personal Loan, Signature Loan, or a Credit Card Advance to fund their Down Payment or to be able to Close their loan.  (More debt is incurred in these instances and that can affect a Borrower's ability to repay their Mortgage)
  • A "gift" of funds is received from a relative, etc., but is in reality a loan where funds will need to be repaid.
  • The funds come from a new or "unreported" loan secured by other Real Estate Owned by the Borrower (such as a Home Equity Line of Credit)
  • A Borrower will be increasing their Housing Payment by a significant amount ... or will be depleting all of their liquid assets for Down Payment and Closing Costs.
  • The funds for Down Payment entered a Borrower's Account in the last 60 days.  (A huge red flag for Underwriters, as they need to know WHERE those funds came from.)


     Potential Chicagoland Borrowers and current Mortgage Applicants must be aware:  Statements from their Bank, Investment Account, and Retirement Fund will be requested of them, then reviewed very carefully (in their entirety)  by Mortgage Underwriters.

     Because of this fact, it's wise for Borrowers to:  Make it a habit to fully-document, save, and organize financial records as they head towards the time for Mortgage Pre-Qualification and then subsequent Mortgage Application.  It's also wise to limit the number of transfers of funds they make between accounts.

     By practicing the above suggestions, Borrowers insure that they can fulfill any requests received by Underwriters quickly and easily ...  




     *  Hoping to Buy or Refinance a home in New LenoxWill County, the greater Chicagoland area, or Wisconsin?  Contact Me today!  I'll be happy to 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

You're Invited to Follow Me at:

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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!
     
     

My #1 Fail Proof Borrower Tip: Educate Yourself Early and Stay That Way

   My #1 Fail Proof Borrower Tip:  
Educate Yourself Early and Stay That Way
  

     Yesterday I was contacted by a couple that are hoping to sell their present home and finance the purchase of a new one ...

     As I do with all my new clients, I asked them to tell me what their hopes and goals are regarding their upcoming home purchase and its financing.

     The answers I receive to these questions are always of tremendous assistance to me as a Mortgage Lender. They really help to clarify which financing options and programs might be of the greatest assistance in meeting their goals.

     But this preliminary part of our conversation helps reveal other things too ...

     Such as:  Just how well-versed and educated my new clients are about the purchase and mortgage processes they'll be entering. Simply ... have they taken any steps to prepare?

     With my newest clients, it quickly became obvious that they had done little in the way of education or preparation prior to contacting me. During our conversation, the most basic elements of mortgage financing (credit, debt, credit scores, interest rates, mortgage programs, etc. ... even basic mortgage/financing terminology itself) needed explaining.

     Let me make it clear:  As a Lender, I feel that educating and informing my clients is one of my most important responsibilities. The recent implementation of new mortgage financing rules and regulations (TRID) points out the importance of this need also.

     TRID addresses the vital needs of Borrowers by:

  • Elevating awareness and demanding the provision of information regarding loan options 
  • Making it easier for consumers to compare options/rates 
  • Demands full-disclosure of mortgage-related costs and terms 
     Sound decisions and actions are only possible when these key elements are in place.

     But as much as I feel that Lenders should be educators throughout the entire mortgage process, I feel that clients must share in that responsibility too. They must work on their own behalf.

     So how do you flex TRID's muscles and put them to work on your behalf when entering the home buying and mortgage financing processes?

     
My #1 Tip?  Educate yourself. 

     Early in the process and then stay that way ...

  • Read ... Watch everything you can about home buying and mortgage lending 
  • Use the internet as a learning tool 
  • Familiarize yourself to real estate and financing terminology
  • Take advantage of seminars. Local seminars, if possible. (If none are available locally, find some online. Many seminars are offered FREE of charge.
  • Talk to real estate and lending professionals in the area in which you hope to buy 
  • Ask lots of questions 
  • Familiarize yourself and start to gather the info and financial documents you'll need for your Pre-Approval and Mortgage Application 

     Don't wait until you're actually wanting to view homes! Take action well in advance of that time. As much as 6 months to 1 year is not too much time to allow for this important action.

     Education is your best protection and "insurance" policy throughout your transaction (and afterwards too). And your home buying and financing will proceed much more quickly and easily ... and you will enjoy it far more, if you follow my the important tip above.


     If in the Chicagoland area, elsewhere in IL, or in WI 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





You're Invited to Follow Me at:

Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   
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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!












      

     

     

         

     

     

       

        

     

     

     
  

What's the Perfect Down Payment When Buying a Home?


What's the Perfect Down Payment
When Buying a Home?



     A 20% down payment is often heralded as the perfect goal for those contemplating the purchase of a home ...  

     And it's hard to argue that there's anything wrong with having that goal in mind when saving for an upcoming home purchase.  The financial discipline it takes to save that amount of money is considerable.

     Yet I have found as a Mortgage Originator, that this goal often seems totally unattainable to many dreaming of buying a home.  And as a result, it looms over them mentally and keeps them from inquiring about what options they might have at their disposal to buy.  

     That's sad ...

     Because fact is:  There are many NO or LOW down payment mortgage options now available to both First-Time Home Buyers and Move-Up Buyers.  Mortgage Originators, such as myself, currently have a menu of mortgage programs to consider from when trying to assist potential Borrowers.

     But let's dive into the topic of down payments a bit more deeply ...  

     Borrowers need to know and understand:  Even when they've saved a down payment, it's not always the wisest financial move for them to use it as a down payment ... or use it in its entirety when it comes time to buy.

     Yes, you heard me right ...

     Even if a Borrower has saved money for a down payment ... it's not always their wisest financial move to use it in that manner. 

     In my post, "The Modern Mortgage and Mortgage Process are Much Like a Fingerprint or Snowflake ... No 2 are Alike", I explained how "tailor made" modern mortgages have become.  And how the financial scenario and needs of each individual Borrower must be taken into consideration when choosing a mortgage program and structuring loan payments.
     
     Because a menu of mortgage programs is available, Borrowers may have options from which to choose.  This can be a huge benefit to Borrowers.

     This is precisely where your LO's experience, knowledge, and expertise really comes into play.  A good LO will have educated themselves not only to your present or short-term needs ... but to your long-term goals as well.  

     What factors might enter into a decision at this point?

  • The total amount of funds saved by or available to the Borrower
  • What expenses the Borrower may still have upon moving into their new home
  • How long they plan on staying in their home
  • If Seller-funds are offered for Closing Costs
  • If gift-monies are available for assistance in buying
  • More

     As you can see, there are many options available to home buyers unable  ... or not wanting ... to offer a 20% down payment.  

     My goal with this post is two-fold ... 

     First, and most importantly:  If you hope to buy now or in the future, talk to a Mortgage Originator immediately

     Have a thorough conversation with them about your credit standing, finances, hopes, and dreams.  The sooner you hold the conversation, the faster you can get started on your dreams. 

     This simple act will help you immensely in a myriad of ways.  You'll find out where you stand currently.  What options, if any, are available to you to buy now and in the future.  And you'll gain sound advice for moving forward.

     Second:  Don't be discouraged by what you read or hear. 

     Don't be discouraged should you not have a full 20% down payment available to you.  And don't assume you know the answers to mortgage and financial questions you've never asked.  

     Get facts.  You'll be glad you did ...




     In Illinois, the Chicagoland area, and Wisconsin, please contact me.  I'll be happy to hear from you and put my 37 years of mortgage experience hard to work on your behalf.
     I can be easily found at:


Gene Mundt

NMLS #21697  -  IL Lic. 031.0006220  -  WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  1.815.524.2281


You're Invited to Follow Me at:

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 

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!
     


     

     
          

         

      
     

        

Overwhelmed or In Charge During Your Mortgage Process? YOU Decide

 Overwhelmed or In Charge During 
Your Mortgage Process?  
YOU Decide    


     Today's mortgage process can seem a bit 
overwhelming to some Borrowers ...  


     And that's true whether those Borrowers are First-Time Home Buyers or those that have bought a home a dozen times.


     In comparison with financing conducted during the mid-2000's, today's mortgage process has become a more demanding process for Borrowers with regards to:  

  • Documentation needed
  • Verifications requested 
  • Time and Attention demanded 
     So there are some reasons for this to occur ...  

     With that in mind then, is there anything Borrowers can do to protect themselves from becoming overwhelmed during the processing of their mortgage?


     I've found that the two following issues seem to be the issues that trip-up my Borrowers most often:


     1.  Refusing to just "give in" to the process for the duration of their transaction.  
       

          Truth is, there's no way to get around the process ... or an Underwriters' request(s).  Don't battle it.  You either produce the information, comply, or you don't close.   

     2.  Inconsistent attention is given to the processing of their loan, communications, and requests for information.


     Borrowers simply can't ignore communications or pay attention sporadically.  They must remain consistently involved throughout the entire process.  

   
      Borrowers that choose to address and conquer these two hurdles fare far better throughout their mortgage processing.  They don't become overwhelmed by the process.

     They flow through their processing more easily and quickly.  Enjoy their transaction far more.  And have a much better chance of closing on their home on time


     The stress and success levels of a mortgage process can be greatly dictated by the personal choices YOU, the Borrower makes.  


     Choosing to communicate in a timely fashion ... and being thoroughly involved from beginning planning stages to completion of Closing ... are both wise decisions that will help ensure your transaction's outcome. 


     It remains your decision ...



     
     *
Hoping to buy a home in Illinois/Chicagoland or WI? 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 Originator - 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




You're Invited to Follow Me at:

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 

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 & WI. 

Your Referrals are Greatly Appreciated!
     
     

      

      

     

     

     

    

     

Considering Buying a Home? You Need to Check-Out my Mortgage Wish List First

Considering Buying a Home? You Need to Check-Out my Mortgage Wish List First As a Grampa, I'm very aware of "Wish Lists&qu...