Half of All Homebuyers Don't Do This. Will You?

 Half of All Homebuyers Don't Do This. 

Will You?      

     
     "Americans may be spending more time shopping for shoes than for a mortgage, a report from the Consumer Financial Protection Bureau suggests. Almost half of consumers seeking a loan to purchase a home do not shop lenders, the agency said Tuesday."     
                         (" Nearly half of home buyers don't shop for a mortgage") Diana Olick | Kelley Holland 

"Publishing the results of a new survey, it was discovered that prospective buyers spent about as much time researching a new television or vehicle purchase than they did shopping around for a mortgage lender. Overall, the survey found 72% of prospective buyers only plan to get one quote for a mortgage." 

                        ( "Report: Homebuyers Fail to Put Due Diligence into Researching Lenders")

 

 

From experience, I can't say that the statistic and info above surprises me.  I've addressed and written on this topic before as it's an ongoing issue.  It's one that I've found often goes hand-in-hand with or foretells just how involved and responsive a borrower will be throughout their mortgage processing and our transaction together.

While trying to address and meet this challenge in those previous posts, I provided a roadmap and concrete examples of important questions that prospective borrowers should ask when searching for their mortgage lender/mortgage services. 

When answered, each of the questions will serve the borrower well during their lender search.  I include that sampling of questions below:

     1.  How long will my Mortgage Process take?
          (If there are no problems or issues that arise, most mortgages are processed within a 30 to 45-day time period)  
     2.  What Mortgage program is best for me?
     3.  What costs will be involved in my financing?
           (Your Mortgage Originator should provide you with an estimate of your Closings Costs, called a Loan Estimate.)  
     4.  What Interest Rates are available to me?
     5.  Is "paying down" (utilizing Discount Points)                    the Interest Rate an option ... and is it wise for me to do it?
     6.  When will you "Lock In" my Interest Rate?
     7.  What is the  Annual Percentage Rate (APR) of my loan?
     8.  Is it possible for me to improve my credit quickly so I can receive a better Interest Rate?
     9.  What Mortgage term suits my financial situation best?
   10.  What is the minimum/maximum Down Payment  I will be asked to make?
   11.  Will my loan be "sold" after my Closing?  And what does that mean regarding the payments I make and where I make them?

   12.   What are the Down Payment requirements for:   
           A.  FHA?
           B.  Conventional Loans?
           C.  VA Loans?
   13.  Is Mortgage Insurance necessary on all loans with less than 20% down?     
   14.  Does the cost of Mortgage Insurance vary with the percentage of Down Payment?
   15.  Can I finance Closing Costs?
   16.  Can someone help me finance with a monetary gift?
   17.  When and How am I able to pay my taxes?
   18.  Is an Escrow Account mandatory? 

     Note:  There may be questions you will want to ask that are specific to your financial situation or transaction.
     
   

The CNBC article mentioned above went on to say ...

     "It's also best to know what kind of designations or qualifications the lender has in the industry. Ideally, the lender should be taking a holistic approach and seeing how the mortgage fits into the borrower's total financial picture. They should not just be quoting a rate, but helping with financial planning".

Simply put, that means that experience counts ...  

An experienced knowledgeable loan officer provides their clients far more than just a "quote" or interest rate.  Insights and assistance on a wide range of financial topics and issues, i.e. financial planning, is just one of the many ways that an experienced LO can better serve and benefit their borrowers. 

The LO's level of experience directly contributes to a more fluid mortgage process.  Experience saves time and money and can also lower the stress level of the transaction participants, buyers, sellers, and professionals. 

All that is mentioned above, speaks to the importance of conducting a thorough LO search.  I can't stress the importance of performing this important step strongly enough!

Make sure you are not in the wrong 50% (the losing 50%) of homebuyers! Be in the smart 50%.  

Conduct a thorough LO search ...  

     Just like shoes, your loan officer needs to fit you right!  
    

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else 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 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, 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.

#WillCountyCommunities #PreApproval #mortgageconsultation #positioning #housingmarket #mortgageapplication #InterestRates #homebuying #refinancing #homeloans #talkwithalender #stoprenting #newconstruction #securerate #househunting #mortgage #ratelock

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #NewLenoxRealEstate #MokenaRealEstate #mortgageexpert

#FrankfortRealEstate #LincolnWayHighSchoolDistrict #LincolnWayHighSchoolCommunities #howmuchhomecanIbuy 

#whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts 

#homebuilding  #askquestions #housegoals #VAloans #home #homeloanpro #JolietMortgageLender #WillCountyMortgageLender #DuPageCountyMortgageLender #GrundyCountyMortgageLender #ChicagoHomeLoans #mortgageinfo #newconstructionloans #endloans #credit #creditreport #40YearsOfExperience #WisconsinMortgageLender #ChicagoMortgageLender #FHAloans #condoloans #investmentproperty #mortgageconsultation #LincolnWayAreaMortgageLender #personalfinance #mortgageprocess #homebuyingprocess #housingmarket 

#FHA #condominiums #FHACondoFinancing #investmentproperty #WillCounty 

       

     

     

Holiday Spending: Beware of the Dangers

Holiday Spending: Beware of the Dangers 

A recently released financial report provides stark insights into current financial realities as we head into the holidays this year ...

The report, a collaboration between PYMNTS and LendingClub, states that:

1. 79% of their survey respondents said they will be shopping during the 2022 holiday season.  That's nearly a 9% drop from the 88% that shopped last year
2. Roughly 40% of those holiday shoppers will use financing tools of some sort (credit cards, personal loans or buy now, pay later (BNPL) options) to put gifts under the tree  

The statics concerning the use of financing tools ... credit ... is cause for real concern.  I've addressed this specific concern in prior posts, but my message bears repeating given the rising numbers of those considering credit as a means of paying for their holiday expenditures.  

Credit and financial "dangers" lurk 

everywhere while Holiday Shopping!  

And as a loan officer, I've seen these dangers manifest themselves negatively way too often (even once is one too many).  I know for a fact after viewing many mortgage applicants' credit reports and banking account(s) that:  

Holiday-related expenditures can (and have) contributed directly to applicants' ongoing financial and credit challenges.  Both their credit reports and bank accounts provided spoke to that being so.  The accounting reads like a timeline of their spending activities and credit actions.  

Whether it was overspending, spending dollars they really didn't have, opening new credit to take advantage of discount offers, or more, they did damage to some degree to their finances, credit, and options for mortgage financing and home buying.  As holiday shoppers, they didn't guard their credit or protect their finances.  

So how do you avoid the same fate when you shop?

Just say "NO" to overspending and new holiday credit offers unless one of the following applies: 

• Your Credit/Credit Score can withstand a new credit inquiry
• 
  You can handle the new debt caused by the new card
  
• You can make monthly payments on time, consistently, and faithfully
• You will NOT be making application for a mortgage
• You are NOT already in the mortgage process
• You are NOT hoping to buy a home in the near future
• You are NOT maxed out on present credit cards
• You have NOT already applied for other stores/credit cards
• You know ALL the terms of the new credit account associated with the offer
• You know what other credit obligations you have and the total of ALL your debt
• The "enticement" offer is so valuable it offsets the negatives of taking on more debt
• You have NO credit history and are trying to establish one for a future home purchase

Times are challenging right now.  There's no denying that.  And while planning, preparing, and establishing spending rules for holiday shopping expeditions and spending is always wise, this year it's become even more so. 

Planning how and where you're going to shop will help.  Compile a shopping gift list that includes:

• A budget:  What is the total dollar figure you have to work with?
• Names:  Who will you want/need to buy gifts for?
• A Breakdown:  How much of that allotted budget will you spend on each individual gift recipient?
• Gift Ideas:  What ideas fit the planned expenditure for each gift recipient?  

No matter your future plans and goals, but especially if hoping to buy a home soon or at some point down the road, you'll be so glad that you established and stuck by the holiday shopping rules you set.  Your overall budget will remain intact and your credit report and scores will prove advantageous to meeting all your financial needs and goals.

Shop smart and enjoy your Holiday Season!

Are you hoping to Construct, Buy, Refinance or Purchase a home or investment property in Chicagoland or somewhere else 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.

#WillCountyCommunities #PreApproval #mortgageconsultation #positioning #housingmarket #mortgageapplication #InterestRates #homebuying #refinancing #homeloans #talkwithalender #stoprenting #newconstruction #securerate #househunting #mortgage #ratelock

#GeneMundt #NewLenoxMortgageLender #ChicagolandMortgageLender #NewLenoxRealEstate #MokenaRealEstate #mortgageexpert

#FrankfortRealEstate #LincolnWayHighSchoolDistrict #LincolnWayHighSchoolCommunities #howmuchhomecanIbuy 

#whatinterestratecanIget #timing #mortgageexpert #moneytalk #homeloansmadesimple #experiencecounts 

#homebuilding  #askquestions #housegoals #VAloans #home #homeloanpro #JolietMortgageLender #WillCountyMortgageLender #DuPageCountyMortgageLender #GrundyCountyMortgageLender #ChicagoHomeLoans #mortgageinfo #newconstructionloans #endloans #credit #creditreport #40YearsOfExperience #WisconsinMortgageLender #ChicagoMortgageLender #FHAloans #condoloans #investmentproperty #mortgageconsultation #LincolnWayAreaMortgageLender #personalfinance #mortgageprocess #homebuyingprocess #housingmarket 

#FHA #condominiums #FHACondoFinancing #investmentproperty #WillCounty #HolidayFinances #HolidayShopping #HolidayCreditOffers 

 #JustSayNoToNewCredit #holidays #stayingsafe #ChristmasShopping #credit #debt #ShoppingList #budget