Your Financial DNA Makes You Special

Your Financial DNA Makes You Special 

Parents often tell their children they're "special".  They're unique.  Like no other person on earth.  I know I told both of my boys that ...

It's a pretty heavy message for a child to hear, isn't it?  One based on love certainly, but also molecular and psychological facts too.  

Our fingerprints ... our DNA ... is certainly ours and ours alone.  And if you ask parents and grandparents, they'll tell you each child is delivered with their own distinct personality pre-programmed in them too.  

Recently I wrote an article regarding the personal "recipe" each individual borrower brings to their financing.  That post used the parental lesson spoken of above but reconfigured it a bit for use in explaining the modern mortgage process.  The message I provide in this article builds on that analogy.  

Each Borrower should know that each of us has our own "recipe" or financial fingerprint and DNA that is unique.  But it's also important that consumers understand:

How they build or construct their financial DNA foreshadows the financing they'll receive (or not receive) when they buy or refinance a home.  

This fact often presents a very real mental and emotional struggle for some hopeful Borrowers.  The lesson so easily and eagerly embraced on a personal level as a child somehow becomes one they find very hard to embrace as an adult mortgage Borrower.  

I find it's usually at this point in the mortgage process that the thought of being "unique" or "special" can lose its luster. Or it thoroughly brightens the Applicant's day.  

Applicants that find they have fewer options than they previously thought they would find it near impossible to believe this harsh truth:  Finances and credit history are so uniquely personal that they might not have the same financing options available to them as say ... their cousin.  Or their co-worker.  Or their friends.  

The options earned by others, in their mind, have become the gold standard for mortgage options (whether that's true or not).  It's also the measuring tape they use to determine the quality and validity of the information they're hearing from their Loan Officer.  

It can prove to be quite a challenge to a Lender to dispel these preconceived opinions ...  

But truth is, a Mortgage Applicant's loan options are dictated by their personal financial history.*  Expenditures, debts, length of credit history, types of credit applied for/utilized, the frequency of new credit inquiries and applications, how consistently and timely debts are/were paid, etc. ... are all unique to an individual. 


Your financial decisions and actions are measured via credit scoring models.  The timeline and facts regarding your financial history are displayed via your Credit Report.  The entirety of the information results in Credit Scores.


Think of the three of them as your "genetic financial DNA Test Kit" ...  

Your parents, grandparents, family.  All were right.  When you were a child, they didn't want you to compare or measure yourself to anyone else.  I'm here to tell you that you shouldn't do it as a potential Borrower either.

And yep, this is just another of the many reasons why it's so darn important to talk to a Lender as soon as you decide to buy (or refinance) ...  and to find the most knowledgeable, experienced loan officer you can find.  One that you can thoroughly rely on for factual information, sound advice, and reliable guidance.

Information, advice, and guidance that is yours and yours alone ... 

* Differing Lenders have differing loan programs available to consumers.  Those in need of financing to buy or refinance a home should perform research as to the lending programs each Lender can offer prior to making an actual application. 

* Hoping to Buy or Refinance a Home in New Lenox 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 #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, a Mortgage Originator with 40+ years of #mortgage experience, that 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, #Wilmington, #Peotone, etc.), #DuPage County, the City of #Chicago, #Cook County, and elsewhere within IL and Wisconsin.

Your Referrals & Testimonials are Always Greatly Appreciated! 

Busting Credit Scoring Myths

Busting Credit Scoring Myths

Over the years, Mortgage Credit Scoring has evolved. It continues to do so at a fairly constant and rapid rate ... 

As a result, a large supply and wide variety of updated articles and reports regarding the topic of Credit Scores (Fair Isaac Corporation (FICO) scores) can be found easily pretty much all the time.  The following link provides an example of one of the many articles that I found while doing a quick search today.  It focuses on a new change that may be coming to some consumers' Credit Scores:

"Credit scores may jump this month thanks to new scoring rules enacted after CFPB study"

While there are many reliable helpful sources of information to be found, there are also many unreliable misleading "myths" to be found too.  Myths that can prove harmful to consumers or potential borrowers, should they be believed or put into practice.

Those myths are what I hope to confront and "bust" ... 

To do that, I provide factual references for those looking to improve their Credit Scores or borrow money, either to:

• Facilitate a real estate transaction (buying)
• Sell in order to buy another home (step-up)
• Buy a second or investment home
• Refinance

It's very important that home buyers/borrowers know and understand:

1. Consumers are increasingly aware of the importance of credit scores.  As stated above, that is due to the amount of information and tools easily available to them via the internet, their Lender, and elsewhere.  This info, when correct and utilized properly, can prove to be of great benefit.

How is it beneficial?

If a consumer has credit issues or poor Credit Scores: Some landlords may not rent an apartment/home to you.  Or if they do rent, the security deposit required may be larger ... or made non-refundable.  It's even possible that a landlord because they feel increased financial risk, may charge you more monthly for your rental.

You may also have difficulty obtaining insurance.  Or if secured, the coverage may cost you more because of your lower Credit Scores.  Other services you need (such as utilities, cell service, etc.) may be more costly or even unattainable if you have poor credit.

It's a fact:  Poor credit can cost you in a myriad of ways. Awareness of your Credit Scores (resulting in the improvement of your credit and Credit Scores) can improve your life and save you money.

2. Home buyers/borrowers should remember:  While some credit card companies may provide a free Credit Score to their credit card holders, those scores differ from those used by Mortgage Lenders for their Pre-Approvals or formal Mortgage Approval purposes.  (Note: Credit Scores provided by Credit Card companies are typically higher than those used by Lenders.)         

As a consumer, it's best to not give too much weight to the scores received monthly via credit card companies.  For specifics on the Credit Scores that will be used for your mortgage financing, it's best to talk to a Mortgage Originator.


And here's why ...


Credit Reports compiled for Mortgage purposes use a different credit scoring model (FICO) than those used for car dealers, credit card companies, etc.  Even those businesses that provide credit repair and credit improvement advice/services use a different credit scoring model than that used by Mortgage Lenders.


Although 3 Credit Scores are provided to Mortgage Originators via the 3 Credit Bureaus, please be aware ...


3. For Single/One Borrowers:  The MIDDLE Credit Score is the determining score used by Mortgage Lenders for qualifying for Credit Approval.  It is also the MIDDLE Credit Score that is used for Interest Rate Determination.

   

4. For Two or More Borrowers on a Loan:  The LOWER Middle Credit Score is the determining score for qualifying for Credit Approval and Interest Rate.

     An example of this scenario is:  A husband and wife apply for a Mortgage.  The LOWER of their two Middle Scores is the determining Credit Score utilized by the Mortgage Lender. 

5. The 3 credit sources/Credit Bureaus used for Mortgage Application are:      

Experian, TransUnion, and Equifax.  The address and contact information for each Credit Bureau are as follows:


EXPERIAN:

P.O. Box 4500

Allen, TX 75013

Phone: 888.397.3742


Model Used:

Fair Isaac (Version 2)


Credit Score Range:

Low: 320 High: 844


TRANSUNION:

P.O. Box 2000

Chester, PA 19016

Phone: 800.916.8800


Model Used:

FICO Classic (04)


Credit Score Range:

Low: 309 High: 839


EQUIFAX:

P.O. Box 740241

Atlanta, GA 30374

Phone: 800.685.1111


Model Used:

FICO Classic V5 FACTA


Credit Score Range:

Low: 334 High: 818

6. A FREE Annual Credit Report is available at:

www.annualcreditreport.com

As you can see from the information provided above, Credit Scores ... and how they are compiled ... have many moving parts. They are detailed and intricate in nature.

And there are many "models" and methods in which Credit Scores are compiled.  That those models and methods evolve with regularity, only makes it harder for consumers to understand them.

Adding to some consumers' confusion is this:  Even if all 3 Credit Bureaus have the exact same consumer account information available to them for scoring, the Credit Scores each reaches will vary.  It's important to also point out that each different scoring model and range of scores carry a different "weight" as to their credit scoring. 

Clear as mud, right??

So, it's easy to see why the topic of Credit Scores is so misunderstood.  Why so many myths and fallacies surround it.

It's also easy to see why, when it comes time to start preparing for mortgage financing and home buying, it's so very important to work with an experienced knowledgeable loan officer. 

Your choice of mortgage originator matters greatly ...

Again: 

Please check your Credit Report for errors or credit fraud (at minimum) once each year at the site mentioned above ... www.annualcreditreport.com

Note:

Monitor your Credit Report more frequently, if you have concerns or if errors have appeared on a previous Report
Performing this annual check will NOT hurt your credit scores!

And Remember:  Loan Officers do more than loans.  A good deal of my time as a Mortgage Originator is spent on the dispensing of credit information.  You should never be afraid to reach out to me should you have questions.

Find and work with a Mortgage Originator that is well-versed in credit scoring.  But make sure you choose one that is also willing to devote the time to advise and assist you with credit improvement, should you need that assistance.

It's far easier to address issues early in their existence ... and to have ample time for credit improvements and repair. It's far less stressful too.

Myths Busted!

* Hoping to Buy or Refinance a Home in New Lenox, Will County, Chicagoland - IL & WI? In need of financing information and advice?

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, 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, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

Your Referrals & Testimonials are Always Greatly Appreciated!

The One Reliable Way to Learn How Much Home You Can Afford

The One Reliable Way to Learn 

How Much Home You Can Afford 

Want to know how much home you can afford?  

To do that you must consider ...

• Your Income
• Outstanding Debt
• Credit Scores
• Savings Accumulated for Down Payment/Closing Fees
• Interest Rate
• Loan Term
• Property Taxes
• Possible HOA Fees in play
• More

Each of the items listed above should be likened to  "ingredients" needed for a recipe.  Which ingredients ... and the amount of each ingredient used ... formulates YOUR personal recipe.  

So HOW do you find your personal home buying and financing recipe?

If you're a prospective borrower that's already performed some research online, you've probably run across a very elementary bit of assistance in this regard ... home affordability calculators.  A myriad of websites offer them and they can help prospective borrowers understand the basics.

However, I must offer this warning regarding their use:  These calculators are only as reliable as the "recipe and ingredient" information plugged into them.  

And therein lies my concern for hopeful buyers - borrowers using these calculators ... thinking the answers and findings when using them are infallible.

I suggest potential borrowers not rely too heavily on the results found when utilizing these calculators.  The possibility of error is just too high.  Plug in the wrong info or numbers, erroneous information comes back.  Information that won't do anyone good and in fact, can actually cause harm.

Don't get me wrong.  Home affordability calculators can be useful as a tool.  But for reliable definitive information regarding what you can afford and be approved for, you must talk to a loan officer.  

That is why I always urge prospective home buyers - borrowers to reach out to a loan officer as soon as they decide to buy (or refinance) a home ...    

The following is just one example of why I believe in the wisdom of taking this action:

I recently had a client that, prior to contacting me, had utilized a home affordability calculator they'd found online.  

The client was absolutely 110% sure they already knew what price home they could afford.  The only thing was, they had used incorrect information ... incorrect "ingredients" ... when using the calculator.  

Upon learning this fact, my client went through a string of emotions and reactions.  First, they were incredulous and mad.  Then frustration set in.  The "truth" was now their enemy.

Why?

The homes they had hoped to view and the areas in which they ultimately hoped to buy, were not really in their price range.  Their disappointment took a real toll on them.  They felt short-changed.  They were upset with me. 

It took them a good while to regain their emotional footing.  But eventually, their desire to buy returned.  They moved forward, received a Mortgage Approval, and closed their loan successfully. 

Now I know it seems like I beat this drum loudly and incessantly.  But I do so because I feel the message is important ...  


The earlier you talk to an experienced knowledgeable loan officer about your upcoming financing, the better.  The information gained ... the direction and guidance received ... can prove invaluable.

Prospective borrowers need to know:  There is typically NO cost involved for talking to a lender.  Consultations and resulting advice dispensed is freely provided with no strings attached.  This is a service I provide prospective clients in New Lenox - Will County - Chicago - all of Chicagoland - IL - WI.  

What you gain from speaking to a lender can help save you money.  It can save you time.  And it can eliminate needless frustrations and stress.

I'd say that's the perfect recipe ...

* Hoping to Buy or Refinance a Home in New Lenox, Will County, or elsewhere in the Chicagoland/ IL - WI 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 #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, 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, #Elwood,  #Romeoville, #Channahon, #Naperville, #Wilmington, #Peotone, etc.), 
#DuPage County, the City of #Chicago, #Cook County, 
and elsewhere within Illinois and Wisconsin.

Your Referrals & Testimonials are Greatly Appreciated!