Procrastination and Mortgage Financing Do Not Mix

Procrastination and Mortgage Financing

Do Not Mix 

If you read about real estate and financing much at all, you've probably run across numerous articles that spoke to the challenges and frustrations that can be found in modern-day transactions and their financing ...

And as a mortgage lender, I won't deny that it can be true.  Challenges and frustrations exist.  For clients and professionals alike.

But ... and there's always a "but" , right? 

In most cases, those challenges and frustrations don't need to be overly stressful, insurmountable or deal-killing.  Answers and solutions typically do exist.

It's been my experience, that what causes or contributes to many of the issues and challenges heard and read about ... and yes, the high levels of stress experienced in many clients' transactions ... is procrastination.  Tasks, phone calls, communications, inquiries, documenting delays ... forgotten, side-stepped, pushed to the back-burner too long.

And simply put, procrastination and mortgage financing don't mix well.  Here's just one example of this being true ...

Just yesterday I received a call from past clients of mine.  They related that they'd received my latest postcard mailing (and previous ones) and it motivated them to contact me.  Welcome news for any lender to hear.

These clients had been thinking of selling their present home and buying a new one for quite a while, but they had gotten side-tracked and forgotten to call each time they had received something from me.  

But now they want to take action ... immediately.  They want to put their home on the market and go looking for a new one.  Their agent says they just need a Pre-qualification Letter.

Again, this should be great news, right?  

Well yes, it should be.  But unfortunately the clients have placed themselves in a poor position credit-wise since we last worked together.  

Their credit is not currently where they need it to be in order to move forward.  Their goal is not achievable right now.  They need to take some corrective actions if they wish to accomplish their goal in the future.  

They could have found a different, more positive outcome if they had taken action and contacted me when they first decided to buy a new home.  We could have addressed their issues and taken measures to improve their credit.  

Their financial circumstances could have improved to a point where they could haven taken action now, as they hoped for.  Instead, they have to wait.

Here's another example of procrastination.  This one takes a different type of toll ...

A client of mine is a real estate investor, always looking for a new property to add to his growing real estate portfolio.  

He'd been monitoring the progression of a sale of a specific condo property for quite a while and he's now successfully contracted to buy this property.  

I've been working with him on securing his financing for the purchase.  But it's always hard to reach him and get him to respond in a timely and efficient manner.  I get it.  We all have lives.

But during the same fore-mentioned time period, he's also arranged some travel for his wife.  Why is this detail important?

The wife's signature is required on documentation for purchase and financing of this condo property (and has always been in previous transactions).  But she is going to be out of town on the day of Closing and the Closing Date is upon us.  He's just telling me this now.

Can we solve this issue?  Certainly ...

But there is a mad last-minute scramble to get the necessary paperwork done and the clients are stressed-out about it (as well as their agent and attorney).  It all could have been avoided.  It's an issue that could easily have been addressed or completed during less stressful times.  

But ... 

It is said that ...

Procrastination is, hands down, our 

favorite form of self-sabotage ...  (Alyce P. Cornyn-Selby)   

And in financing and real estate, I believe this to be especially true.  Just see the above two examples.

It's far better to take pro-active action ... precipitant steps ... and talk to your lender early in your decision-making process.  To discover possible hurdles, tackle issues, and make plans head on and preemptively.  

Regarding these matters, there is simply no such thing as "too early" ...  

Avoiding the issues that result from procrastination is such an easy thing to do.   The benefits of taking action can be enormous.

So if you've been thinking of buying ... even if it's in the future or down the road ... reach out NOW.  Ask your questions.  Get the info you need.  Kickstart a plan.  Ask for assistance.  Just do it ...  

*  Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell:  708.921.6331
eFax:  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, Lockport, Crest Hill, Plainfield, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and 

elsewhere within IL & WI.  

Your Referrals & Testimonials are Greatly Appreciated!

In Will County, January Should Make You Think "Taxes" ... both Income & Real Estate

In Will County, January Should 

Make You Think "Taxes" ... 

both Income & Real Estate

For those that are property owners in Will County, January 15th, 2020 was a day of great importance ...

That day marked the release and publication of the Will County Board of Review decisions regarding property assessment changes for the County.  

It also marked the beginning of the 30-day window for filing an appeal for those property owners that might be dissatisfied with their property's value assessment. (Note:  Appeal Deadline is February 14, 2020)

This information is timely and important to anyone that is a property owner within Will County.  Why?

With the posting of this information, Will County property owners can get a very good idea of what their upcoming tax bills will be.  (Installments for tax payments are typically due on June 1st and September 1st in Will County, in two equal installments.)

A wealth of information is available via the Will County Supervisor of Assessment website at www.willcountysoa.com.
Property owners (lenders and other real estate professionals) can find property information by plugging-in a street number and street name in the appropriate fields made available there.  (Hint: Sometimes the less information used, the better).  

Additional links provide access to other valuable County and property information via this website ... property tax bills being just one such example of info available.  

To find tax bill information, click on "Treasury Tax Info".  The past 5 years of real estate tax history will be available by clicking on the "Five Year Tax Inquiry" link.

A far-right column (2019) will reveal the newest assessment figures for your property.  That information will include info submitted by assessment officials located:

• Locally (Township)
• County (Will)
• State (IL)

Below the total assessment shown (identified as "EQ-TOTAL"), will be any entitled exemptions that a property owner may be eligible for.  The net result of those is the "NET EAV" (EAV = Equalized Assessed Value).  

Ultimately, it's the Equalized Assessed Value ... times the 2019 Tax Rate (to be determined) ... that establishes the annual Tax Bill.   

In many cases, Will County property owners with a mortgage on their property have a Tax Escrow Account set-up within their monthly payment.  Their escrow account allows their mortgage servicer to collect monies each month ... and then pay tax bill installments from the escrow account when due.  

It's important to note:  During this time (in January of any tax year) there is what I call an "unknown factor" involved in the estimation of upcoming tax bills, as the final tax rate has not been announced as of yet.  

Ultimately, Tax Rates are determined by the Will County Clerk's office AFTER receiving the levies from various entities.  

What are those entities?  

They are:

• Schools 
• Park Districts
• Fire Department Districts
• Forest Preserve Districts
• Townships
• Library Districts
• Possibly more ...

Each of these entities has an impact on the eventual tax rate.

The above is valuable information for Will County property owners to possess.  And here's why ...

Possible changes in upcoming tax bills are available and duly noted ahead of taxes actually coming due.  That advanced knowledge is beneficial, as it allows property owners time to plan, then act regarding those upcoming changes.

For property owners experiencing a larger uptick in assessment, there may be a need to adjust the amount of tax escrow paid within their monthly mortgage payment.  If this is not performed, a shortage of monies may be found in the escrow account when taxes are due.  

Mortgage holders then must make up the difference due.  Coming up with a lump sum of money at the time the taxes are actually due may prove a hardship for many property owners.

Knowing WHERE and WHEN to look for this valuable information is very advantageous for Will County property owners.  Should you have questions regarding your property's assessment, please contact:

 Will County Supervisor of Assessment office

@ 815.740.4648 

or your local township assessor

Should you have questions regarding the Property Tax Appeal Process, click HERE.  And remember, the deadline for filing an appeal regarding your assessment is February 14, 2020 ... so do not delay.

For my current mortgage clients, if you have tax escrow questions, or are in need of your 2019 mortgage closing statement for tax filing purposes, please contact me at:  

www.genemundt.com 

or 815.524.2280

If hoping to buy or refinance a home or investment property in Will County or elsewhere in the Chicagoland - IL/WI area, please feel free to reach out with your mortgage and escrow questions. 

I'm always happy to answers your questions and assist in whatever way I can.  I'll quickly put my 40+ years of mortgage experience hard to work on your behalf.

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

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

Your Referrals are Welcomed & Greatly Appreciated!

HUD/FHA Makes More Condo Transactions Possible

HUD/FHA Makes More Condo 

Transactions Possible 

Today's homebuyers are increasingly reflective of the reality of modern life and its challenges ...

As shared in my recent post, "Mortgage Advice & Options for Un-Married Couples", non-traditional methods of home buying are becoming (often out of necessity) more common and popular, especially among younger homebuyers. 

Concerns regarding:

• Home Affordability
• Family Structure
• Marriage
• Finances
• Student Loans
• Employment
• More

... are motivating buyers to seek home buying solutions beyond those utilized most frequently in the past.

One such solution historically popular with young buyers and those downsizing has been the purchase of a Condominium.  Condos are often seen as the perfect fit for their finances, needs, and lifestyle.

Oftentimes these very same buyers, if borrowing, find the Federal Housing Administration (FHA) financing an advantageous route to purchasing their condominium.   And here's why:

• Down Payment:  The minimum down payment for FHA loans is 3.5% 
• Type of Down Payment:  FHA Allows Borrowers to receive gift funds from Family Members (and in some cases, other ways as well) 
• Credit Scores:  FHA allows Credit Scores well below Conventional Loan Requirements
• Credit Histories:  FHA allows minimal, fair, and sometimes no-credit Borrowers to qualify, pending other factors
• Co-Signing Borrowers:  With an FHA loan, Non-occupying Borrowers (typically relatives) can be introduced as Borrowers to assist in income or credit support for the Primary Borrower
• Employment History:  FHA is the most forgiving Loan Product regarding job tenure, job stability, length of employment, how income is received, etc.  
• Interest Rates:  FHA loans typically run lower than Conventional Loans, when all else is equal

Until recently, restrictions placed by the Dept. of Housing and Urban Development (HUD) on condominiums have proven to be a deterrent to many condominium purchases.  I've written multiple articles addressing this specific financing challenge in the past.

But relief from some of these restrictions arrived on October 15, 2019, as HUD Form-9991 was developed.  

Why is this so important to buyers and sellers? 

HUD Mortgagee Letter 2019-13 and Form-9991, speaks to an SUA ... a Single Unit Approval.  Form-9991 provides Mortgage Lenders the ability to request HUD approval on an individual Condo Unit ... as stated above, something disallowed in the recent past.  

For buyers:  The revisions made possible via HUD Form-9991 and approval via the Single Unit Approval Process will enable FHA insurance of individual Condo units, even if the condominium project as a whole does not have a current FHA approval.  (The property must, however, fall within the requirements stated by FHA/HUD.) 

For Sellers:  Sellers may find the incentive they need to attract new condo buyers, that otherwise may have been shut out of buying with FHA Financing.

Another positive feature of HUD Form-9991 is:

• Revisions will also provide additional flexibility in ratios, specifically the ratio of Investors to Owner-Occupants.  
• This will allow for the possibility of FHA financing in more Condo buildings.    

HUD/FHA has now realized that just because a Condominium Association had not completed the tasks required to get an Approval for the entire complex, did not mean that making a loan (or insuring a loan) on select/qualifying units, was a risky proposition.  

With the completion and submission to FHA of a fact-finding form (FHA Condominium Loan Level/ U.S. Department of Housing Single-Unit Approval and Urban Development Questionnaire), a Lender will then acknowledge that FHA has approved the single-unit approval process with issuance of an FHA Case Number.  

This procedure (completed by the Mortgage Lender) is known as the Case Number Assignment Process.  Upon its completion and issuance, an Appraisal can then be ordered and the mortgage loan processed for Loan Approval.

Having recently closed multiple loans utilizing this process, we have learned that this new process and system can work and prove very beneficial to my home buyers.  

It's been a great way for my entry-level buyers to become Condo owners.  This has been accomplished without Mortgage Lenders ... or FHA/HUD ... taking additional or unnecessary risks.  Ultimately that positively influences future actions by both. 

It's easy to start this condo-buying financing process.  As your Chicagoland - IL/WI Mortgage Originator, I can help.  

Via a brief fact-finding conversation, I will gain the important information needed to understand the Condo Association's make-up and financial standing.  This will help start the process to successfully put a transaction and its financing together ... a transaction that prior to the passing of Hud Form-9991 might have been impossible.  It may also enhance and broaden the housing that can be considered during your home search.  

If you, or your real estate professional, have questions ... reach out to me at www.genemundt.com, gmundt@goapmc.com,  or 815.524.2280.

*  Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell:  708.921.6331
eFax:  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, Lockport, Crest Hill, Plainfield, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and 

elsewhere within IL & WI.  

Your Referrals & Testimonials are Greatly Appreciated!