The Changing Status of "Non-Traditional Credit References".

The Changing Status of 

"Non-Traditional Credit References"

     When talking with potential clients seeking mortgage financing, one of the very first things I do is provide the address to my website.  I've loaded my mortgage website with helpful info and tools to benefit all those that visit there.

      One of the bits of info that I use and stress the importance of, is my "Mortgage Checklist".  This list includes the info and documentation that is typically needed for mortgage application and processing.   Having this list available ahead of time helps applicants tremendously and makes their mortgage application and processing go much more quickly and smoothly. 

     When viewing my list, you will see that those mortgage applicants presently renting are asked for info regarding their current rental status.  The info I need includes:  The Name, Address, and Telephone Number(s) of their Landlord.  I also need a letter from the Landlord stating how much is paid in rent monthly ... plus a signed Statement that states that the Renter "Paid Said Amount as Agreed for the Past 12 Months".

     Why is this info needed?  A record of 12 consecutive rental payments made on time is extremely important to Lenders and Underwriters.  It establishes a payment history and also proves a pattern of consistent timely payment.

     Many Renters believe that rental payments are not reflected, and cannot be made part of, their Credit Report or credit scoring. And in the past, that has been true. But things are changing regarding this issue. 

     Changes were already made by one credit bureau ... Experian  ... as of May, 2012.  Since that date Experian RentBureau  has been in place.  Through their  RentBureau, Experian offers a service to landlords that helps them collect rental payments electronically.  It updates all reported rental histories every 24 hours.  Note:  Landlords and Renters must opt into this reporting program to reap its benefits.


     Other types of "non-traditional credit references" are now being reported to other reporting bureaus, as well.  FHA has gone on record  as a strong advocate of this reporting and has pressed for Lenders in larger numbers to take these types of credit references into consideration when underwriting mortgages.  

     What are considered "non-traditional credit references"?  Utilities, gas and electrical payments, cell, phone, and cable are examples of this type of credit.  And in many cases, they are now being reported.  Also being considered are daycare, insurance payments, medical bill payments (those not attributed to insurance coverage), internet, and retails store credit.

     This is especially good news following the recent housing crisis.  These "non-traditional credit references" and their payments have definitely become much more pertinent.  In my opinion, there couldn't be a better time for these timely indications ... these common sense reflections of a mortgage applicant's mindset ...  to be allowed into play.  

     Those hoping to become homeowners for the first time and those wishing to return to home ownership, must be allowed a path to do so.  They must be given a better way to establish good credit for the first time, but also a method to heal from past foreclosures, bankruptcies, and short sales.  When credit agencies and Lenders take these more "non-traditional credit references" into consideration within their credit scoring, that is better accomplished.

     As a Mortgage Lender, I believe the good news is that these changes are already being made or are in the works within some credit reporting agencies.  Hopefully others will follow suit.

     Should you be a Renter and wish to take part in and benefit from the  Experian RentBureau  program ... talk with your Landlord.  Provide them the info below: 

Experian RentBureau Property

  Management Companies Info 

or

Individual Landlord Info 

     Renters can find info regarding the Experian RentBureau program ... and how to opt into the program at:

 Renter Information

     The Changing Status of "Non-Traditional Credit References".  As more of these changes are put into place, we can find ourselves in better credit standing and with more credit and financing options ...

     *  Need some guidance and information to get yourself started towards home ownership in Joliet, New Lenox, Will or DuPage County, or elsewhere in Chicagoland?  Want to find out what options exist for purchasing a home or refinancing? 
     Contact me today!  I'll put my 36+ years of mortgage experience and expertise hard to work on your behalf.
     I can be conveniently found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

FREE Consultation

eFax:  815.524.2281    Skype:  630.219.1316

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I'm Looking For a Few Good ... Questions?

I'm Looking For a Few Good ...

Questions??

     
     Business has gotten ... busier.  That's a good thing.  I mean, who doesn't want to be busy?  Or even busi-er in the future?

     But there are a few small negatives to being busier too.  Like, I'm finding that I just don't have the same amount of time to scour the internet for interesting and informative real estate industry-relevant news as I used to.  

    Time has been much more limited for this research.  And when I've looked, I just haven't found much info or news that served the purpose.  There seemed to be a lot of same ol' same ol' being talked about.  Zzzzzzzzzzz ...

     So, I decided to ask YOU the question ...   

     What topics ... what question(s) ... would you like to ask me, a Mortgage Lender?  

     I know that's a pretty general question, but I think that's also the beauty of it.  It leaves the door wide open as to topic and perspective from which the question might be asked.   

     Your questions can be regarding:

     *  Financial Preparation for buying a home
     *  The mortgage industry 
     *  Credit - Credit Repair - Credit Scores - Building Credit
     *  Mortgage financing 
     *  A question from the client perspective 
     *  The mortgage process 
     *  Anything in between

     By asking you for questions or topics, the topics will be what you need info on and what you find important.   So here's your opportunity:  I'm Looking For a Few Good ... Questions??  


     Here's your chance to easily get a question you have tackled and out there for some real discussion.  I'm looking forward to each and every one.  Reach out here ... or contact me directly!

      
*  Hoping to Buy, Build, or Refinance a home in Will, DuPage counties or elsewhere in the Chicagoland area?  Contact me!  I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

eFax:  815.524.2281    

 

 

              

             

Gene Mundt, Mortgage Lender, a Lender with 36 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. 

Referrals are Welcomed!

       
     

Don't Assume. Pick-up the Phone. Email or text. Get Mortgage Facts ..

Don't assume.  
Pick Up the Phone, Email, Text.  

Get the FACTS as they Pertain to 

YOU and YOUR personal finances.  

You may just end up a Home OWNER ...

     There are many people presently renting and dreaming of Buying a Home at some point "in the future".  

     After hearing or reading info regarding mortgage financing, they've come to the conclusion that they just can't buy a home now.  Or anytime soon.

     For some, that's true.  Their conclusion is based on fact.  Fact surrounding their finances or credit.  They know for a fact that there's repair needed and it will take a predetermined amount of time to make the improvements and corrections needed in order to buy or buy once again.  

     Examples of this?  Foreclosures, bankruptcy, extremely poor credit (FICO) scores ... they provide factual basis to arrive at their conclusion.  At least for a period of time.

     But there are many that are assuming they can't buy.  And that assumption has kept them from making any inquiries or doing any research.  

     They assume they don't have enough money for a down payment on a home.  That houses all cost too much.  Or that monthly mortgage payments will be too high for them to make.  

     They assume that renting is always cheaper.  Income is a concern for them.  They've assumed that the hardships or credit difficulties they've faced have eliminated all chances of their buying.  Again, they've assumed that the mortgage process is too hard, too complex, or too time-consuming.       

     And they would be dead wrong!

     Truth is:

     *  Down payment requirements for a home purchase can be as low as 3.5% through FHA.
     *  Down payment requirements as little as 3% via Fannie Mae's HomeReady program.

     *  A gift of money can be utilized for down payment.

     *  Credit Scores as low as 580 can qualify 
     *  Options exist to assist Veterans/Military 
     *  No Money Down Options for Veterans
     *  Local programs may exist to assist with down payment and purchase 
     *  Housing prices are still favorable in many housing markets
     *  An experienced mortgage lending professional can guide you and help you navigate your mortgage processing smoothly

     Many myths surround home buying and mortgage financing.  Sadly, because of this, many dreaming of buying believe themselves ineligible to purchase.  And it's not true.  At least not in the long term.

     Even if someone has less-than-perfect credit, it doesn't mean it's the end of someone's dream of buying their own home.  Many Mortgage Lenders work with those in this situation. (I know I do.)  

     I assist in clearing up errors, raising scores, and establishing good credit habits.  Help and sound advice is typically available to those that need it and for those that ask.

     With so many great opportunities presently available ... why not, at minimum ... inquire.  Inquire as to the options, services, mortgage programs, or down payment opportunities that may exist for you.  Inquire as to the FREE assistance and help that may be available to you should you need credit repair.

     The message I want to get across is this:

     Don't assume.  Pick-up the phone, email, text today.  Get the facts as they pertain to you and your personal finances.  You may just end up a home OWNER ... 

     *  Dreaming of Buying or Refinancing a Home in  Will County, elsewhere in Chicagoland, Illinois, or Wisconsin?  Have questions as to what options exist for you?  Need guidance?  Contact me!  I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
     I can be found at:

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 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 Greatly Appreciated!

    

     

      

Helpful Info & Hints for First-Time Homeowners Filing 2012 Taxes

Helpful Info & Hints for 

First-Time Homeowners Filing 2012 Taxes

     By now, you should have received the end-of-year information you need to file your 2012 taxes.  If you were a new First-Time Home Buyer during 2012, this year will be your first opportunity to claim any tax savings available to you through your homeownership.

First-Time Home Buyers

     
     Homeowners can deduct expenses they sustain throughout the year for owning their home.  But which ones?  

     
     Below is a list of some of those deductions your can itemize when you file  Form 1040,  Schedule A  for taxes:

     *  Real Estate Taxes:  The homeowner must have paid the taxes at the time of Settlement/Closing (the share you, the homeowner paid as opposed to the Seller) ... or to the taxing body during the year.  This includes any payment made from an escrow account.

     *  Home Mortgage Interest Payments  (Main or 2nd Home, 1st or Second Mortgage)

     *  Points paid on your home loan.  Note:  Points, as a general rule, cannot be deducted in their full amount within the year paid.  Your must deduct them over the term of your mortgage.   (Points are defined as:  Charges paid, or treated as paid, by a Borrower to obtain a home mortgage.  Points may also be described as Loan Origination Fees, maximum loan charges, loan discount, or discount points.)  There is a particularly tricky definition attached to the payment of Points ... so please, contact your tax professional for guidance referring to this topic.


     *  Mortgage Insurance Premiums.  Deductible in certain cases, as of 2012.  (Qualified mortgage insurance is mortgage insurance provided by the VA, FHA, Rural Housing Administration, or private mortgage insurance (as defined in Section 2 of the Homeowners Protection Act of 1998 as in effect on Dec. 20, 2006)

Chicagoland Mortgage Lender

     *  Home Energy Efficiency Improvements:  The tax break (typically 10%) for this deduction is up to $500 for making certain improvements that increase a home's energy efficiency.  The dollar amount of this credit is subtracted from the amount due to the IRS.  Some of the tax breaks (varying rates depending on product) are available on a taxpayer's main home only.  Others are available on second homes, as well.  Properties must be located within the United States.

     Energy efficient product costs eligible for this tax break (at varying rates) include:    

     *  Energy-efficient windows and doors 
     *  Water heaters (non-solar) 
     *  HVAC (AC, ventilation, and furnaces)  
     *  Residential small wind turbines  
     *  Fuel cells  
     *  Geo-thermal heat pumps  
     *  Insulation itself 
     *   Biomass Stoves  
     *  Both metal and asphalt roofs   
     *  Solar energy systems 

    
     Helpful Info & Hints for First-Time Homeowners Filing 2012 Taxes.  The above represent some methods and products that will help new homeowners discover cost savings through their home ownership at the time they pay their taxes.  

     Because itemization is involved ... and because many of the above carry detailed rules and stipulations for being able to claim them, I recommend that you speak with a qualified tax professional,  contact me  for a referral, or seek out FREE help in filing your tax return through IRS-certified volunteers.  This FREE IRS service can be found through its website, IRS.gov ... or by calling 1.800.906.9887  - or - 1.800.829.1040.  

Mortgage Info

     *  Hoping to join the rank of  Home owner ... or discover the benefits of owning your own home?  Contact me today!  We'll work together to get you on the best and most speedy path to home ownership possible.
     I can be conveniently found at the following:

Direct:  815.524.2280

Cell/Text:  708.921.6331

gmundt@goapmc.com

www.genemundt.com

FREE Consultation

eFax:  815.524.2281    Skype:  630.219.1316

You are Invited to Follow Me through

any of the Social Media found below: