GO! GO! GO! "Get Organized" and Ready to Buy a Home

GO! GO! GO!

"Get Organized" and Ready to Buy a Home 

Did you know that January is "Get Organized" (GO) month?

Every January, since the inception of "Get Organized" Month in 2005, the National Association of Professional Organizers has highlighted and promoted the many benefits that can be realized through the advancement of organization and efficiency.  Seeing to the elimination of chaos, clutter, and disorganization improves lives and mental health too.

Suggestions and even printables for organization and de-cluttering are everywhere.  Pinterest is a great place to find multitudes of choices and guidance on each.  (I provide a link to just one of many available on that site). 

Most when considering organization only think of it as it relates to their home or their office.  Decluttering and organization occur during spring cleaning or prior to the sale of a home.  Both are a commendable goal, but neither touches upon an area of our lives that should be of huge concern to us.  And that's ... 

Our finances.

I can't tell you how many times I've had prospective borrowers step into my office (or contact me) with their finances in complete disorder and disarray.  The important info needed during pre-approval or mortgage application misplaced, unavailable, missing.

This information and documentation should be easily available to us at all times, but organization becomes near mandatory during the period of time leading up to an Application for Mortgage and continues throughout the financing process.  If that's not the case, the experience of obtaining a mortgage is certain to be a painful one. 

So, if you're thinking of buying a home (let's say anywhere from 6 months to a year or more in the future) what info and documentation should you begin to gather and organize prior to your first conversation with a loan officer? 

I suggest you focus on the following during that important prep time:

• Immediately Check and then continue to monitor your Credit Report:  Go to  annualcreditreport.com - (Authorized by Federal Law)  This website is a source of FREE Credit Reports. 

• Seek referrals, search for, and then talk to a Lender/Mortgage Originator.  

• Educate yourself regarding your Employment History:  (Current and last 2 to 3 years minimally is most important)

1. Income Level:  Hourly Rate? Salary Level? Commissions? Bonus? Etc.
2. Frequency of Pay:  Weekly? Twice Monthly? Every 2 weeks?

• Know - Familiarize yourself with the items on my Mortgage Checklist.  Start gathering this documentation as you move closer to Mortgage Pre-Approval/Mortgage Application. 

• Credit/Debt:  

1. Have major financial/debt issues occurred during the last 2 years? 

       A.  Short Sale? Foreclosure? Bankruptcy?  Judgement?   
       B.  Know the exact dates of the event   

   2. Know the amount of Re-occurring Monthly Debt from:

        A.  Mortgage(s)
        B.  Credit Card(s)
        C.  Installment Loan(s)
        D.  Personal Loan(s)
        E.  Alimony
        F.  Child Support
        G.  Student Loan(s)
   (Limit new debt prior to and during your Mortgage Process)

• Down Payment/Savings:

    1.  Understand the AMOUNT of funds that can be liquid come the date of Closing.  
    2.  If you have funds in a Retirement Account, identify the terms of a loan against or a withdrawal from a 401-K or IRA.
    3.  Avoid transferring/moving funds from accounts during the 60-days prior to Application.
    4.  Do NOT close any of your Accounts
    5.  Consider opening a bank account solely for Down Payment Fund purposes (unless you are already in the loan process)

• Gift Funds:

    1.  Gift Funds (in most cases) are perfectly acceptable for Down Payment or Closing Costs, or both.
    2.  Know the details (how much, from whom, and when) the Gift Funds can be available.
    3.  Understand that any transfer of Gift Funds will need to be fully-documented if performed during the Contract Period or after Mortgage Application. 

No doubt about it, there's a lot to know and do during the time you're seeking your mortgage financing.  And you can be just as sure that the more organized and educated you are, the more quickly and smoothly the process will flow.

So celebrate during the month of January and "Get Organized".  De-clutter, re-arrange, organize, pitch, throw-away, contribute away.  But don't overlook your finances, receipts, documentation, and papers too.

* Hoping to Buy or Refinance a home in New Lenox or elsewhere in Chicagoland? 

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/Text: 708.921.6331

gmundt@goapmc.com

eFax: 815.524.2281

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.

Your Referrals are Greatly Appreciated and Welcomed!