Gene Mundt's Mortgage News You Can Use - February 20, 2014

Here's this week's news, information, and helpful articles I thought would be of interest and benefit to you ... If you're like me, you've about had enough of winter and Mother Nature's dumping snow, snow, and more snow on us here in Chicagoland.  To help you mentally escape our recent round of weather and get in the groove for the coming Spring, I'm including a link to the FREE "Arrange a Deck" deck planning tool from Better Homes & Gardens. It will inspire you with some great ideas for sprucing-up your yard with creative use of space, plants, and landscaping.  Click HERE to use this handy tool! Considering Helping Your Child Buy a Home in Will County or Chicagoland?  What Parents and/or Co-Signors Need to Know ... Within the current housing market, there is great opportunity to be found, especially for First-Time Home Buyers.  The cost of borrowing, in regards to Interest Rates, has remained fairly steady.  This even after the Fed's announcement regarding "Tapering".  With all the positive opportunities that now exist, many Home Buyers, along with their families, are looking to take advantage of the current positives by buying properties with the assistance of Co-Buyers/Co-Signors.  Most considering this path to home ownership are parents and/or relatives.  (MORE ...)

The following article goes well with the previous one. Please pay special attention to the first issue raised.  It's of special importance. For First-Time Home Buyers: How to Dodge 5 Costly Rookie Mistakes ... Buying a home can be both exciting and overwhelming for the first-time home buyer.  If you've decided to take the plunge into home ownership and have already started the search process, make sure you're not making some common first-time home buyer mistakes. Your upcoming investment could end up being a bad decision if you overlook some important facts about home ownership and sign that contract before you're really ready. (MORE ...) Designed for both the iPad and iPhone, the 2 following apps can prove to be very helpful and possibly even lifesaving when used in emergency situations.  The links provided here bring you to the App Store on iTunes.  Both apps are FREE!   For the Flashlight App, click HERE.    For the Magnifying Glass Lite, click HERE. Hope they both prove useful.   As always, feel free to contact me with any questions you (or your clients) may have.  I'm always happy to hear from you and have the opportunity to be of service.

Contact:

Gene Mundt

Regional Manager - Mortgage Lender - NMLS 216987

American Portfolio Mortgage

Direct:  815.524.2280

Cell or Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

Click HERE for a FREE Mortgage Consultation!

Ready to Apply for your Mortgage?

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.

10 Tips for Constructing a New Home in Chicagoland

10 Tips for Constructing 
a New Home in Chicagoland

      No doubt about it. The Chicagoland area is seeing a re-emergence of new home construction. We're seeing new homes popping up everywhere in the Chicagoland area ...

     
     If you're hoping to be a new construction Buyer ... or dreaming of building your own custom home somewhere in the Chicagoland area ... what are the first steps to take to make your dream a reality?

     As with any Chicagoland home buying experience, the first thing you should do is talk to me, your Mortgage Originator. Get Pre-Approved for Mortgage financing. This very important first step helps you discover exactly how much home you can afford to buy or build.

     After your Mortgage financing is in place, you should follow these 10 new construction tips below:

     1.  Contact and work with an Agent from the area in which you hope to build and live.  
 
     Yes, you read that right ...  


     An experienced local agent will provide you a myriad of important info ranging from school systems, to a list of area builders.  They'll help you compare Builders' completion statistics and reputation.  They'll also have info for you on differing area subdivisions, price, taxes, and much more.    

     2. Thoroughly research the reputation of the Builders provided by your Agent. Get references and testimonies from previous customers. Check with the municipalities in which the Builders have previously built for any financial or construction issues that might have occurred.

     3. Consider the potential Re-Sale value of the home you are building. You never know what the future holds in store. Plan ahead for possible life changes.

     4. Once you've narrowed your choice of location to a neighborhood/subdivision, talk to the governing municipalities in which it is located. See what those municipalities have planned for that area in the future.

     Zoning, parks, schools, taxes, roads, additional future construction in the area, and much more can play a distinct part in the future resale of your home/property. Educate yourself about the building process. Do your homework.

     5. Keep a timeline for construction in mind. Expect and plan for some delays. Weather and a host of other issues can cause construction to fall behind. Allowing for delays will lower your overall new construction costs and stress level.

     6. Prior to signing a Contract to construct: Work out ALL details. Making changes or additions to work after a contract is signed can be extremely costly. It also slows down construction and can push your completion date back.

     7. Be consistently involved in the progress of your new construction. Talk to your Builder. Ask questions. Do "drive-bys" to see how things are moving along.    

     8. Include a Home Inspection in your Contract. New construction does not ensure perfection. Have an independent inspection performed by a licensed Home Inspector.

     9. Scrutinize and keep to your construction budget. Remember you've been approved for your financing (and a monthly payment). Don't get emotionally carried away and overspend on extras.

     10. Consider options for temporary housing, should it be needed.

     The Chicagoland area offers many great opportunities to buy or build new construction. A menu of financing opportunities is available to those considering buying or constructing a new home today.

     10 Tips for Constructing a New Home in Chicagoland.  Contact Me.  I'll get to work immediately and help you discover what financing options exist for you.
      

     

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI License #217987

American Portfolio Mortgage Corp.

NMLS #175656

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  1.815.524.2281

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, 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!

           

     

    

    

     

      

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I've Applied for a Mortgage: What is Automated Underwriting?

I've Applied for a Mortgage: 

What is Automated Underwriting? 

     If you've read much about Mortgage financing ... or talked to a Mortgage Originator lately, you've probably heard the term "Automated Underwriting" ... 

     This form of Underwriting performed electronically by a computer has become the method by which the majority of banks and lending institutions make a decision regarding the "lendability" of a potential Borrower.  It's the analysis of all relevant financial data collected from an Applicant.

     First implemented in the late 1990's, Automated Underwriting has now become the preferred method of analyzing Mortgage Applications.  

     The 2 most obvious positives found in Automated Underwriting are:

• The results are deemed more objective and void of human prejudices or bias 
• Results are typically received much more quickly than those obtained from humans

     As a Mortgage Originator assisting my Applicants, I want to be able to supply our Automated Underwriting with the best and most complete information available.  That means prior to submission, I must be thoroughly knowledgeable as to what will be demanded by the Automated System to receive an Approval for my clients.  

     The better educated I am regarding Underwriting demands, the more likely it is I (and my clients) will find success with any file.    
    
     An Automated Underwriting system considers the basics, or "bones" of a Mortgage Applicant's finances. 

     It considers:

• The Applicant's Outstanding Credit 
• Credit History
• The Value (Appraisal) of the Property being financed
• The type of Mortgage Financing being applied for
• The Applicant's capability to repay their Mortgage
• The Applicant(s)' Income
• Their Employment
• Their Bank Accounts
• Assets
• and More ...

     The above info must be fully-supported by documentation.  

     Physical proof of income (including copies of paystubs, W-2's, etc.), bank statements, tax returns, any decrees - judgments, investment accounts, and more may be required from a Mortgage Applicant prior to submission of their file in to Automated Underwriting.  (For a Checklist of those items typically needed for Mortgage Application, click HERE).

     Underwriting is where a Mortgage Originator's level of experience and expertise come into play and pays-off for the client ...  

     An experienced Originator will know the "ins-and-outs" of any Mortgage Program's Underwriting requirements and fully-prepare their Client and their loan file prior to submitting it for Underwriting Approval.  Fewer issues will need to be addressed after submission as a result.    

     While the goal for the client and Originator is to obtain an "Approval or Accept" rating, it's only the beginning.  The full processing of the file then begins, and the second or "neutral" layer of verification of income and assets then occurs. 

     Receiving the Automated Underwriting Approval simply allows a file to move forward to meet the review and scrutiny of the human portion of the Underwriting Process, where the validity and accuracy of the supporting data and loan application are attested to.  

     When all goes well, the objective becomes to first obtain the "Clear to Close" from the human (more formal portion) of the Underwriting review process. Then all the parties involved within the transaction must structure the Closing date and contribute numbers and figures for that Closing.

     Automated Underwriting is important to the Mortgage Process and to Borrowers.  It's the "test" that a Borrower's finances and documentation must pass in order to continue on to the ultimate Mortgage nirvana ... the Closing.

   

 
     *  Hoping to Buy, Refinance, or Construct a home in New Lenox elsewhere in Chicagoland - IL - WI?  
Contact Me!  I'll assist you from first contact, through Pre-Qualification, Automated Underwriting, and on to successful Mortgage Closing.
     I'm easily found at:

Gene Mundt

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

American Portfolio Mortgage Corp.

NMLS 175656

Direct:  815.524.2280

Cell or 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, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 

 

 



    

    





    

            

     


     
    

     

5 Indicators Point to the Wisdom of Home Buying "Sooner than Later"

5 Indicators Point to the Wisdom of Home Buying

"Sooner than Later"

     Today's news looks something like this ...

 

Mortgage Rates Convincingly Higher,  Momentum Shifts

 

     Those headlines come fast on the heels of Interest Rates recently having taken a slight downward track over the last week or so.  Moving forward, the consensus of experts seems to be (along with these articles) that Rates will move generally upward during the year (2014). 

      Often it's hard to predict with real accuracy where Interest Rates are headed, especially in these quickly changing times.  Interest Rates, much like gas and oil prices, are like yo yos and rise and fall in tandem with the Financial Markets.  The Financial Markets rise and fall upon the events occurring around the world.  Who can predict those?  

     Here's a good everyday example of what I'm saying:  Ever go to the store and see the gas price at one level only to come back from the store just minutes later to see it higher?  Things can change in a blink of an eye.

 

     So if you're a hopeful Home Buyer, how are you possibly to know when it's the best time for you to hop on the "Home Buying Train"?

     A few indicators would point to the wisdom of buying a home "sooner than later":  

• 1st Indicator:  The majority of predictions typically point to Interest Rates rising as the year progresses.   Higher Interest Rates = Higher Monthly Mortgage Payments
• 2nd Indicator:  The prices of homes in many housing markets is on an upward swing.  Higher House Prices = a need for a larger Down Payment and Higher Monthly Mortgage Payments
• 3rd Indicator:  Recent changes have taken place in the Mortgage Industry, most notably the Qualified Mortgage Rules.  Those entering Home Buying can do so more certain that they will be able to make their payments in the future.
• 4th Indicator:  Landlords all across the nation are raising rents.  Higher Rental Costs = Less Money Saved.  The old question remains ... why pay someone else's Mortgage or help them build equity?
•  5th Indicator:  A slightly improved Economy, rising home prices, and fewer delinquencies have eased the stress on Lenders. The result may be more Mortgage Lenders willing to make Mortgages, ultimately making it a bit easier for Home Buyers to finance. 

     At minimum, these indicators should serve as your motivation to inquire as to the options and possibilities that exist for you in financing a home purchase.  It costs you ZIPPO ... nothing ... to obtain the information and answers you need to make your decision.  

     Should you want to buy a home, there is never a better time than NOW to ask those questions.  For FREE, you'll find out one of two things ...

• You CAN buy ... and you get started towards fulfilling your Home Buying dream
• You cannot buy ... and you get started towards building your Credit, repairing and polishing your Credit, or saving for a Down Payment ... by following the advice of your Mortgage Lender.  

     Again, it's FREE to find out, so why not ask?  Either answer gains you valuable info and knowledge.  And either answer moves you in a positive direction and closer to what you ultimately want and hope for.

    5 Indicators Point to the Wisdom of Home Buying "Sooner than Later".  In the Chicagoland area, contact me today ...      

      

    
  *  Wondering if Home Buying, Refinancing, or Constructing a home for yourself is possible in New Lenox, another Lincoln-Way Community,  Will County, or elsewhere in Chicagoland?  Contact Me now!  I'll put my 36 years of Mortgage experience and expertise hard to work on your best behalf.

     I can be easily found at:

Direct:  815.524.2280815.524.2280

Cell or Text:  708.921.6331708.921.6331

eFax:  815.524.2281815.524.2281

gmundt@goapmc.com

www.genemundt.com

Click HERE for your FREE Mortgage Consultation!

Ready to Apply for your Mortgage?

             

            

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. 

      

     

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