Did You Put Your Search For a Home on Hold?

Did You Put Your Search For a Home on Hold?

The year 2021 certainly proved to be a challenging one for those seeking homeownership ...  

Last year's housing market was fiercely competitive across much of the nation.  So much so, that many buyers ultimately decided to "wait out" the limited inventory of homes available hoping for better things to come in the new year.  

As a loan officer, I tell you, I can't blame them.  The process of viewing homes, getting preapproved, bidding on, then ultimately losing out on a home (sometimes multiple times) can be thoroughly frustrating and exhausting, both physically and mentally.

So ... if all that's true and you're a buyer that found yourself in this scenario:  

• How do you move forward? 
• What do you do next?  
• And how do you turn this housebuying "downtime" into a positive for you in the future?

You improve your buying power ...

To accomplish that goal, there are some distinct and important steps that you can take:

• Keep an eye on your credit and credit scores (A free credit report can be obtained at www.annualcreditreport.com)
• Pay down your credit cards.  Never let the balance owed on your cards exceed your credit card limit
• If trying to pay down your credit card debt, pay the balance down to under 50% (minimum), 30%, or 10% of the high limit allowed.  This will indicate to mortgage underwriters that you're able to restrain from using your available credit
• Focus on saving for a downpayment (or a larger downpayment). 

Remember that mortgage options exist for the following down payments:

1. 3% (Conventional) with Private Mortgage Insurance
2. 3.5% (FHA)
3. 5%, 10%, 15% with Private Mortgage Insurance (PMI) - Conventional Loans
4. 20% or more (No Private Mortgage Insurance (PMI) required)
5. If a Veteran, VA Loans are available with NO money down
6. USDA Loans may be available with NO money down

Also, remember the following options exist: 

• If short on funds for Down Payment: Consider a loan against your Retirement Account(s).  (Talk to your financial advisor)
• Gift monies are acceptable from family members if down payment funds are lacking   
• Avoid filing Bankruptcy, taking on more debt, or entering Mortgage Payment Forbearance if hoping to buy in the near future.  (Waiting periods apply after filing Bankruptcy and after a period of Forbearance)
• If making purchase offers containing a home selling contingency, talk to your mortgage lender regarding your ability to qualify for a new mortgage without having to sell your current home  
• If unable (or unwilling) to qualify for 2 mortgages, consider selling your current home, finding temporary housing, or renting for an interim time period.  It will improve your ability to be competitive when bidding on homes in the future.

If in this interim time you are offered:

• A new job position 
• Considering a change of employment type 
• Considering a change in the number of hours you're working 
• Thinking of starting a new business and becoming self-employed, etc. 

... it's very important that you talk to a lender PRIOR to making any of these employment changes.  It could affect WHEN or IF you can buy in the short-term.

By better "positioning" yourself and enhancing your credit and buying power during this downtime, you expand your mortgage options and possibly lower the interest rate you receive.  Each can translate to a sizeable savings of money over the life of your mortgage.

Simply, following these suggestions just makes "cents" ...

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in  Chicagoland or elsewhere in Illinois or Wisconsin?  Looking for mortgage financing answers, options, solutions, and experienced assistance?

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 License #216987

American Portfolio Mortgage Corp

NMLS #175656


Direct: 815.524.2280
Cell/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, Frankfort Square, Joliet, Shorewood, Elwood, Lockport, Wilmington, Crest Hill, Symerton, Braidwood, Channahon, University Park, Beecher, Plainfield, Bolingbrook, Romeoville, Tinley Park, Homer Glen, Crete, Peotone, Naperville, etc.), DuPage County, Kane County, Grundy County, the City of Chicago, 
Cook County, and elsewhere within IL & WI.


Referrals are Appreciated & Welcomed!