Self-Employed and Hoping to Finance a Home? What You Need to Know ...

Self-Employed and Hoping to Finance a Home?  

What You Need to Know ...

As of June 11, 2020, changes in the processing of SELF-EMPLOYED borrowers were implemented by Fannie Mae and Freddie Mac ...

Why?

The financial impact meted out by the COVID-19 pandemic.  Uncertainty had befallen many businesses and resulted in a disruption of normal underwriting and lending procedures. 

Many business owners had been affected by "fallout" from the COVID-19 virus.  Social distancing, self-isolation(s), and stay-at-home orders had been put into place as a result of the dangers of the pandemic.  

The Mortgage Industry is one of those that was affected by the pandemic.  Changes have now gone into effect as a result of those events.  

Some of those changes that took place in mortgage underwriting involve or include:

• Income Verifications:  Self-Employed borrowers' incomes are typically verified using the most recent two years of income tax filings.  In many instances, as a result of the pandemic, those incomes do not show a current or year-to-date accounting
• Underwriting:  Mortgage Underwriters need to understand the "true picture" of a Self-Employed borrower's income and expenses BEFORE the next Tax Filing.  That information will need to be generated and documented in what is known as a Profit and Loss Statement (P&L)
• Previously just recommended:  Now Profit and Loss Statements will be required for Mortgage Underwriting to review and approve loans for all Self-Employed(s) from the Application Dates of June  11, 2020, and after, until further notice  
• Audited or self-generated Profit and Loss Statements: Borrowers will be required to provide self-generated/and signed Profit and Loss Statements to the current period in 2020.  (P&L must not be older than 60 days old, as of the note date)  

       

     These Statements now must include info/reports regarding:

• Expenses
• Net Income (Including the most recent month preceding the date of Loan Application) 
• 2 business depository account(s) statements (no older than the latest 2 months represented on the year-to-date Profit and Loss Statement)
• Business Revenue

*  Until further notice, the above will be required on all Conventional Loan applications.

Mortgage Lenders now require that borrowers provide their 2 most recent bank account statements for review.  

These statements must support and/or not conflict with the info provided by the borrower in their current year-to-date Profit and Loss Statement.

Should supporting information be found lacking in some manner:  The Mortgage Lender is required to obtain additional statements or other documentation that will support the information provided from the current year-to-date Profit and Loss Statement.

The above can seem a bit complicated and confusing.  But the message (and my advice) to all Self-Employed considering a mortgage is actually straightforward and clear.

Self-Employed Borrowers are well-advised to seek out an experienced and knowledgeable Lender to discuss financing options well in advance of taking any action regarding:

• The purchase of a home or investment property
• The refinancing of their present home 
• The seeking of a business or personal Line of Credit  

While this sound advice has always been provided, it is especially relevant in today's uncertain business environment.  By following this advice a borrower provides themself ample time to document their business revenues/activities thoroughly and to the best advantage as they pertain to application for financing.  

Think of it as "staging" or positioning yourself for loan application ...

The more in advance that guidance from a Lender is sought and the resulting actions begin, the better ... and the more easily and quickly you will successfully navigate your mortgage process ...

* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicagoland ... IL or 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 #LincolnWayArea, #WillCounty, (#NewLenox, #Frankfort, #Mokena, 

#Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, 

#Channahon, #Romeoville, #Elwood, #Lockport, #Naperville, 

#Wilmington, #Peotone, etc.),  #DuPage County, the City of #Chicago, 

#CookCounty, and elsewhere within #IL & #Wisconsin. 

Your Referrals & Testimonials are Greatly Appreciated! 

Want the Best Mortgage Available? "Stage" Yourself and Your Finances

Want the Best Mortgage Available?

"Stage" Yourself and Your Finances 

Analogies are a tool I often use with my mortgage clients, as the comparisons and similarities showcased within my analogies deliver a bite-sized, more easily understood and digested method for my explanations ...  

When utilized, analogies can produce an "ah hah" moment.  

Sometimes the understanding and reaction is so immediate and startling that I virtually see it take place on my client's face.  It's as though a switch "clicks" and clarity and understanding begin to flow.

There are some strong similarities between the benefits and services produced by home staging and those realized by borrowers when they seek mortgage consultation and advice prior to entering into their mortgage process.  I'm hoping that this analogy makes sense and produces that "ah hah" moment for those hoping to seek a mortgage in the future.

Let me explain ...

Do you watch "home" or real estate-related channels on TV?  Follow them online or read home and lifestyle magazines?

Then I bet you've seen and heard about home staging. Staging tips, information, data, and advice are everywhere these days. Rightfully so ... and here's why I say that.  

What follows below are just a few of the home staging stats I unearthed during an online search:

• A staged home makes a good first impression on potential Buyers
• Staging helps you "stand out" amongst area competitors. (Especially beneficial when paired with good pricing) 
• 62% of Listing Agents say professional staging decreases the amount of time a home spends on the market
• 18% of real estate agents said that staging increases offers by 6 to 10%  
• 6% of real estate agents saw offer increases of 11 to 15%
• With an average investment of 1% of the sale price into staging, about 75% of sellers saw an ROI of 5% to 15% over asking price, according to data from the Real Estate Staging Association (RESA)
• According to HomeAdvisor, staged homes spend between 33 and 50% less time on the market
• 82% of buyers' agents said staging helped their clients visualize the property as their home and how they'd use the room(s) in the home 
• Potential buyers linger longer in staged properties 
• Staging accentuates the positive features of your home and visually minimizes its weaknesses
• More ...

Even in those homes where professional staging is not performed, staging actions are still greatly encouraged by a majority of Listing Agents.  At minimum, the staging benefits of cleaning, decluttering, freshening, minor repairs, and organizing are strongly advised.

Whether Buyer, Seller, or Agent:  The concept of Staging ... and the data supporting the benefits it delivers ... has come to be almost universally embraced.  

Who among us wouldn't like an action or service that touts the delivery of those kinds of benefits?  It just makes sense, right?

So, go back to my list above.  Go bullet point to bullet point ...  

I believe a strong analogy can be made between each and what I call "Mortgage Staging" ... and the vital importance of new hopeful Borrowers pursuing it. 

I've long been a proponent of Buyers/Borrowers pursuing pre-planning and early consultations with a Loan Officer.  I've advocated and written on its importance a good number of times as a result.  

But I ask you to once again, refer to the bullet points shown above:

• Don't Borrowers need to make a "good first impression" on Sellers?  On Underwriters?
• Wouldn't proactive actions, pre-planning, and early consultations with your LO decrease the stress, effort, and time needed during all stages of your mortgage process ... from Pre-Approval through Closing? 
• Wouldn't the benefits reaped from these early actions increase your "value" as a Borrower in the eyes of Underwriters and Lenders?  
• Wouldn't Sellers value Buyers that have already cleaned, organized, "decluttered", and "repaired" their credit and finances more highly than those that have not?
• Wouldn't Sellers "linger" and negotiate longer with Buyers that can prove they are capable of buying their home?
• Wouldn't "Mortgage Staging" involving preparation and improvement of a Buyer's finances "accentuate the positive" features of that Buyer? 

Ah-HAH!  "Click"!  

See my point?  The similarities (and need) are real and strong ... and the results can be just as good ...

Experienced loan officers, when given time to accomplish it, can "stage" (historically called "positioning") their Borrowers.  They improve upon and maximize the abilities and options available to their Borrowers via their finances and credit.   

And many loan officers (certainly myself) offer "Mortgage Staging" (advice, pre-planning, Pre-Qualification) services free of charge prior to actual Mortgage Application.  

As with home staging, the "Mortgage Staging" concept and process makes complete sense in terms of saving time, saving on long-term expenditures, removing obstacles, eliminating stress, and expanding options.  

There's so much to be gained through "Mortgage Planning". Why not take advantage of it?  Contact me today to get started on your "Mortgage Staging" today ...

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 #staging #mortgagestaging #timetotalktoalender

   

What are the Odds of Your Blog and Social Media being Shared?

What are the Odds of Your Blog

and Social Media being Shared?

     To be truthful, I can't answer that question for you.   

     YOU hold the answer.YOU have the power to control those odds to a very large extent ...

      But what I DO know is: The answer is probably "slim to none" if you don't include pictures or visual enhancements of some kind within your postings and articles. 

     Consider this scenario: You see a great title for an article on a social media format or on a blog.  The topic is of real interest to you or you think it would be beneficial for your readers, followers, and audience, if shared. You click, then land on the the article only to find it's a solid block of words.  

     What's you're reaction when this happens?  If you're like me, it's probably not good. 

     Ask yourself this:

     

• Don't your eyes gravitate to photos, drawings, and infographics more quickly than to a plain block of words?  
• Don't photos, etc. capture your interest and also make it easier to read and digest the words within a post?
• Do you end up dismissing posts or social media that don't contain visual elements?

    Why would you think someone else might react differently?  

     Because fact is, they don't.  Don't believe me?  Here's a link to just one of the many articles I found containing facts and statistics proving the immense value of pics or visuals placed within your articles, posts, and social media.

     For many reasons, I love sharing great info and offerings from other professionals and businesses via my social media.  There just a lot of pluses to it for my readers, my referral partners ... and certainly me too.  

     But when I'm searching for content to share, I run into the following fairly often:  

     I find great content and great info within a blog post/article.  I go to share it, but because there's no picture or visual contained within the post or article, social media formats reject it or I get a message pop-up.   

     When this happens, I'm left to make a decision:  Abandon the sharing of the article?  Or add pictures/visuals in order to share it? 

     To be honest, there are plenty of good articles out there that DO contain the pics I need in order to share them easily.  So why (in most cases) would I take time to add my pics to your post or social media?  

     I'm constantly surprised (and find it a bit ironic) that so many real estate industry-related professionals, companies, and organizations do this.  

     Real estate-related posts are tailor-made to showcase photos and visuals.  People LOVE looking at homes, land, construction, landscaping, decor and staging ideas, and more.  Why not use that to your benefit? 

     Consider this:  If you're the author of the post containing no pics or visuals, you've condemned your post to fewer "shares".  

     You've left your readers to make the same decision regarding the fate of your post as I was.  Share or not share? Take the time and add a pic or not?     

     If you don't add pics or visuals to your post and social media, it will likely result in fewer shares and fewer people finding and reading about you and your services.  That's not what you hoped for when you wrote the post or article, right?     

     Increase your "odds":  Give yourself every chance of being read and shared! Take the time to add some visual "eye candy" to your posts.  

     Add a pic or two ... or some other form of visual.  It will make a big difference. It will be appreciated.  And you should note a difference in the impact your posts make ...

Gene Mundt

NMLS #216987  -  IL Lic. #0006220  -  WI Licensed

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

You're Invited to Follow Me at:

             

        

Gene Mundt, Mortgage Lender, a Lender with 37 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.  

Your Referrals are Greatly Appreciated!

Dreaming of Becoming a Successful Home Buyer or Seller This Spring?

Dreaming of Becoming a Successful
  Home Buyer or Seller This Spring? 

   

     In the Chicago-area, April typically means Spring ... and its warmer weather has arrived. Or at least being enjoyed many days of the month ...

     If presently a Chicago-area home owner

dreaming of selling your home ... and buying a new one, spring's warmer weather is good news. The Chicagoland housing market has finally begun to warm-up too.

     New housing data shows that move-up Sellers, as well as Boomerang Buyers and Millenials, are entering the market to take advantage of (still) low interest rates and a bettering economy. New construction starts have started to rise. 

     But new data also shows that Chicagoland badly needs more Sellers to return to the market. Present inventory is low. Buyers presently have a small inventory of homes to select from.

     Increased competition for a home's sale is obviously good news for Sellers. But selling can still have its challenges. 

     Sellers must ask themselves:

• How do they choose a real estate professional to represent them? 
• Will their home stand-up to the increased competition presently found within the market?
• Will Buyers view their home in a positive light?
• How can they increase the chances of a sale with improvements that will add appeal, both inside and out?
• How do they price their home competitively?
• Can they buy again after they sell their present home?
• How do they choose a Mortgage Originator to advise them ... and service their upcoming buying/borrowing needs?
• More ... 

     There are steps that a hopeful Home Seller can take to increase their chances of their home selling quickly and smoothly. Steps that will help them increase the "sale-ability" of their home. 

     Below you'll find some easy, fun, pro-active, and positive steps you can take to improve your chances of selling ... and then buying again:

     Plan! 

     Grab your computer or some home decorating magazines. Investigate and educate yourself about decluttering and preparing your home for its sale. 

     Check-out the latest trends in lighting, fixtures, organization, decor, staging, and more. Good maintenance, little changes, and updates can reap big results! 

     Don't Overlook Resources available to you! A professional real estate agent, stager, and LO, are a wealth of knowledge, great ideas, information, and assistance.

     Take notes as you see ideas that will benefit you! Clip and Paste favorites into a folder, either online or on paper. That way you can refer back to them or regain inspiration as needed.

     Magazines and Websites suggestions to check-out: 

• HGTV 
• Better Homes & Gardens 
• Houzz.com 
• Home Staging Guide 
• Pinterest - There are many home-related/real estate topic boards there and it's a fantastic resource to be mined 
• Find home staging websites for current trends and inspiration. 

     Two of my very favorite Home Stagers are: 

• Maureen Bray - "Room Solutions Staging"       
• "Cecilia Cannon Staging and Interiors".  Cecilia is located right here in Chicagoland.

     The before and after photos contained in their staging blogs made me a firm believer in the magic that home staging can deliver. 

     My last suggestion? Whether a hopeful Chicago-area Buyer ... or a Seller dreaming of moving on or moving up ... contact me early in your decision-making process so we can have a conversation about your future financing needs. 

     That way we have plenty of time to prepare you for the success you seek ... and you know what options are available to you as you move forward.

      

     *  Hoping to Buy, Sell, or Refinance a home in the Chicagoland area, Illinois, or Wisconsin?  Contact me now.  I'll put my 37 years of experience and expertise hard to work on your behalf.  

     You can find me at:  

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

       eFax:  1.815.524.2281   

              

       

Gene Mundt, Mortgage Originator, an Originator with 37 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 Always Appreciated!