Gene's Chicagoland Mortgage Blog: February 2017

If "Plan A" Doesn't Work When You Apply for Mortgage ...

If "Plan A" Doesn't Work

When You Apply for Mortgage ...

One of the social media sites I find most helpful (and enjoyable) is Pinterest. And I don't mean just business-wise either ...

Need ideas for your home? Want to know how to repair something? Ideas for your landscaping, gardening? Love history? Travel? Fashion? Looking for a new recipe?

You can search almost any topic on Pinterest and find a large array of "pins", info, tips, advice, pictures and more to look at and consider. I can't tell you the number of helpful and informative things my wife and I've found there. (Or how many great new meals and desserts I've enjoyed.)

So it wasn't unusual that a pin caught my attention when I visited Pinterest today. The pin/meme read:

When I read it, I immediately thought of a young couple I'm presently working with. When in need of a Will County - Chicagoland Mortgage Originator, they'd googled and found me.

That was back in March of 2016. When we first spoke, I learned this couple was engaged and getting married in Spring of 2017. But they wanted to buy a home before that time. They wanted to know, "Can we get approved for a mortgage?"

After talking further and gathering the needed information, it was determined that "no", they couldn't buy. At least not immediately.

There were several things that were standing in the way of their buying the type of home they wanted ... at least, where they hoped to buy. A few of the challenges faced included:

Neither individual had been in their job the required length of time
They lacked sufficient savings or funds
Debt

This couple remained determined, though. They were eager to listen, learn, and address the issues they faced so they could buy. So we began our work together.

What were some of the challenges this couple needed to overcome?

They needed to improve their credit scores. (Each did so successfully ... over 30 points)
They needed to pay-off debt. (Following my suggestions, they paid off those debts, now lowered or eliminated, that better positioned them to buy)
They had no downpayment saved. (They do now)
They had no money saved for closing costs. (They now do)

Each positive action taken allowed them to successfully qualify for a higher mortgage payment, loan amount, sales price. Each, in turn, contributed to them ultimately finding the type of home they wanted ... in the location they desired.

This couple and their actions speak to the truth and wisdom of the meme above: "25 More Letters in the Alphabet". They didn't allow the initial "no" discourage them. They didn't get defeated when their "Plan A" failed.

They listened well to my advice. They consistently and methodically addressed each of their financial challenges. They kept their eye on their desired goal and attained it.

I continually preach and provide the following advice ... "even one year ahead is not too much" ... regarding the amount of time buyers/borrowers need to devote to their mortgage search and pre-approval process. My clients' experience speaks to why this is true.

As athletes will tell you, you must be in peak shape to accomplish your goals. It's the same with home buying. In order to qualify for the home you dream of ... in the neighborhood you desire ... you need to be in peak financial shape. That requires "training". Your training is enhanced when you work with the right coach ... and when you devote time and dedication.

If "Plan A" doesn't work when you apply for a mortgage ...

Be calm. Stay cool. Don't give up. Contact me ...

* 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 and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed

American Portfolio Mortgage Corp.

nmls #175656

Direct: 815.524.2280

Cell or 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, 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!

Gene Mundt, Mortgage Originator - NMLS #216987, IL Lic. #0006220, WI Licensed. American Portfolio Mortgage Corp. - NMLS #175656 - IL Lic. #031.0006220

I am a 40+ year veteran of the mortgage/banking industry with extensive expertise and education in mortgages, appraising, management, and financial planning. My assistance is ongoing, as I provide info, advice, and service leading up to, during, and following my clients' mortgage financing process. I aim to develop trust-based relationships that encourages asking questions freely.

2017 "Manhattan Irish Fest" - March 3rd & 4th

2017 "Manhattan Irish Fest" - March 3rd & 4th

Manhattan, IL is my hometown. It's located smack in the heart of Will County, IL. It's a town proud of its history, its present and future ... and deep Irish roots ...

Residents will proudly tell you that Manhattan is the home of the "Manhattan Irish Fest", an acclaimed festival that's been running since 1995.

This annual Fest is being held this year on March 3rd and 4th, 2017.

Like the previous year, this year's Fest is once again being held in the parking lot located just north of Manhattan Fire Station 81.

The list of activities available are long and varied. There's something planned for young and old alike on each day of the Fest.

Some of this year's activities are:

Manhattan Historical Society Museum Display

Friday, March 3rd: 5 pm - 9 pm

Saturday, March 4th: 10 am - 5 pm

255 S State Street

Displays contributed by prominent Manhattan area families

Music:

Friday, March 3rd, 5 pm to 11 pm:

Entertainment Tent - Park Road

5:15 - 6:30 pm - Patrick Otto & Katie Byrne

6:45 - 8 pm - Three Men in Kilts

8:30 - 10:30 pm - Whiskey of the Damned

Manhattan Library:

Saturday, March 4th: 11:30 am - 2 pm

240 Whitson Street

Mini Golf - Fun for the entire family

Games - Crafts - Prizes

Irish Breakfast:

Served at St. Joseph's Church Hall

Saturday - March 4th, 8 - 10:30 am

Tickets in advance, at the door

Call the rectory @: 815.478.3341

Irish Mass:

Held at St. Joseph's Catholic Church

275 W. North Street

Saturday, March 4th - 8:30 am

Craft Fair:

Tax Time: What it Means if You're a Homeowner

It's tax time ...

And that means it's time for you to gather all of those envelopes recently mailed to your home marked "Tax Documents Enclosed" and file your taxes for the year.

If you became a new homeowner during the previous year ...

Your real estate professional and lender probably told you at the time of purchase that homeownership comes with tax benefits. Well, now's the time to flex those tax benefit muscles.

If you closed your loan via my mortgage services during the previous year, you should have received a copy/CD of your Mortgage Closing Disclosure at the end of January. Much of the information you'll need to prepare your taxes and maximize your tax benefits is available on that Disclosure.

Whether preparing and filing your own tax returns ... or paying to have them prepared for you by a professional tax preparer, it's wise to fully-educate yourself to the tax deductions available to you before you start. That's especially true when you're a homeowner.

Please Note here: I am a Mortgage Originator, not an accountant or professional tax preparer. The information I provide below is to be used only as an alert and source of reference for mortgage-holding homeowners ... not construed as professional advice.

Should you have questions or be in need of tax and filing advice, please seek the services of a licensed/registered tax preparer. (If in need of a referral for a tax professional in the Will County - Chicago Southland area, please contact me. I'll be happy to provide a referral to a qualified tax professional.)

That said, if you're a new or mortgage-holding homeowner ...

What are some of the tax deductions you may be entitled to?

Property Taxes: City or State property taxes should be deductible.

If a new homeowner: Consult with a Tax Adviser as to the ability to deduct any Prorated Real Estate taxes from the date of your Closing on. (Understanding that a Homeowners pays Real Estate Taxes in arrears for the previous Calendar year in the Chicagoland Area and Collar Counties.) If taxes were paid at that time, the dollar amount should be noted on your Disclosure Statement.

Mortgage Interest paid during the year: You should have received a form (Form 1098) or something similar from your mortgage holder. The Form will typically break down the monies paid during the year, any deductible points paid (including those seller-paid), and if/when paid, mortgage insurance premiums.

If the home is a Second Home or Investment Property:
Mortgage Interest can still be deducted, within guideline limits.

If the Mortgage closed was a Refinance: You can still claim the interest as a deduction, but you will have to meet certain criteria to do it. That criteria may include spreading the deduction out over a defined number of years or over the life of the loan.

The Points paid during your Refinance may also come into play, but prorations will be figured and utilized for tax deductions.

Points paid at the time of Closing: These points could take the form of Discount Points or Origination Points. They also can include those Points paid for you by your Seller at the time of your Closing.

Mortgage Insurance Premiums: (For those policies issued after 2006)

Mortgage Insurance Premiums that qualify include those provided by the:
* Dept. of Veteran Affairs (a/k/a Funding Fee)
* FHA - Federal Housing Administration
* Rural Housing Service - USDA (a/k/a Guarantee Fee)
* Private mortgage insurance

The Internal Revenue Service (IRS) allows First-Time Home Buyers (if married, both spouses) to make penalty-free withdrawals from their traditional IRA (or Roth IRA) up to $10,000/each.

The IRS also allows their parent, a child, or grandchild to contribute ... with the total contribution allowed being $20,000.

Moving Fees: Deductions may be allowed for some moving fees ... if the move was facilitated by a change of employment or new job position. Specific IRS requirements must be met in order to use this deduction. (Please inquire with your tax preparer as to these requirements or see IRS Publication 521 regarding Moving Expenses)

Transfer Taxes: Transfer Taxes, if paid, can be written off.

Again: The information above is meant to be used only as a tool and to alert you to deductions and possible monetary savings you may be allowed. Hopefully, it also assists you in your own tax research or serves as a roadmap when asking questions of your tax professional.

Bottomline, the good news is this: If you're thinking of buying a home soon or in the future, there are savings (tax and otherwise) to be found when you buy, finance, and own a home.

The first step to discovering the possibilities that exist for you when buying or refinancing in the Will County, Chicagoland, IL (and WI) area? Contact me ... or your own local Lender. I'll be happy to answer all your questions and assist you with your financing needs.

And please don't forget: The deadline for filing 2019 Federal Income Tax Returns is April 15th, 2020 (as of this update) ... however, there is talk that the deadline may be pushed back as a result of the ongoing Coronavirus response. Stay informed and alert moving forward regarding this important date ...

Read: How Your Tax Refund can Help You Become a Chicagoland Home Buyer

* Hoping to Buy or Refinance a Home or Investment Property in New Lenox, Will County, or elsewhere in Chicagoland - IL & WI?

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 Licensed #216987

American Portfolio Mortgage Corp.

nmls #175656

Direct: 815.524.2280

Cell or 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, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Channahon,

Romeoville, Naperville, etc.), DuPage County, the City of Chicago,

Cook County, and elsewhere within IL & WI.

Referrals are Appreciated and Welcomed!

Gene Mundt, Mortgage Originator - NMLS #216987, IL Lic. #0006220, WI Licensed. American Portfolio Mortgage Corp. - NMLS #175656 - IL Lic. #031.0006220

Gene's Chicagoland Mortgage Blog

If "Plan A" Doesn't Work When You Apply for Mortgage ...

2017 "Manhattan Irish Fest" - March 3rd & 4th

Tax Time: What it Means if You're a Homeowner

Procrastination Does Not Pay When You Hope to Finance a Home

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