AFTER Your Mortgage Closing: Keeping the Lines of Communication Flowing

AFTER Your Mortgage Closing:

Keeping the Lines of Communication Flowing    

     This post, although specifically aimed at my mortgage clients, contains a message that can pertain to other service provider's customers too ...  

       The topic?  Communication!  

     Specifically, the lines of communication established during our Mortgage Process and Closing together ... and the great importance of keeping those lines of communication open after your Closing is over.

     As your Mortgage Lender, I believe that one of the most important elements of the service I provide you concerns your mortgage and credit "education".  The better you're educated and informed as you enter and navigate your transaction, the better equipped you are to make sound decisions regarding your financing and Mortgage Process, but also your financial future.

     I also believe that my mortgage services and the educational process I provide you should not end at the Closing table.  Nor should the communication flowing between us ...

     As a result, on an ongoing and consistent basis after the Closing, I:   Email, snail mail, blog, use social media, call, text, and utilize every method of communication at my disposal to keep you (and my referral partners) up-to-date and informed as to the latest real estate, financing, and credit news.  
    

     Much of the info provided is client specific and addresses your personal financial scenario, interests, and needs.  The info and the ongoing service is FREE.  And is valuable.

     Now, all of the above is how I HOPE to continue to assist you after your Closing.  But all too often, I begin to find that the lines of communication begin to fail.  Clients' emails change, as do other means of contact.  The helpful information and communications go unseen.  The potential benefits never realized.

     So here's my plea:  Please ... keep me updated as to any changes in your email addresses, telephone numbers, social media, and etc.  

     I can't help you or provide beneficial info, if I can't find you or you don't open your messages.  Keep our lines of communication open, accessible, and flowing.  You'll be glad you did ...

    
     *  Hoping to Buy, Build, or Refinance a Home in New Lenox, another Lincoln-Way Community, Will County, or elsewhere in the Chicago area?  Contact me today!  Work with a Mortgage Lender that will help you navigate your mortgage transaction .. and will continue to provide beneficial services after your successful Mortgage Closing.
     I can be easily found at:

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  815.524.2281

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. 

      

     

     

     
     

     

    
     

Love Your New Construction .. But Educate Yourself About Future Tax Bills

Love Your New Construction ...

But Educate Yourself About Future Tax Bills

     

     *  I want to preface this article by saying it's geography specific to the Chicagoland Area and its collar counties ...

     So you've opted for building or buying a newly constructed home ... 

     You've decided you'll invest most, or all, of your savings to cover Down Payment and Closing Costs.  After all, it's a new home, you hopefully won't need money for repairs or improvements for quite a while, right?  

    

     Plus:  The property taxes for your newly constructed home will initially be lower, as they'll be based upon the vacant lot on which your new home is built.  (The new home wasn't completed yet for the previous tax year's bill.) 

     But how does this affect your future tax bill and the tax portion of your monthly mortgage escrow payment?

     When obtaining financing:  During your first year of a new construction occupancy, the real estate tax portion of your escrow account is based upon the last available tax bill for that property.  

     Again, that tax bill, (referred to above), is based on the vacant lot, so your Mortgage Escrow Account, set-up at the time of your Closing, has been funded by low monthly escrow payments ... maybe as low as $50 to $100.  

     It's important to point out:  As your Mortgage Originator, I am required to base your tax escrow figures upon the MOST RECENT AVAILABLE tax bill.  I, like all Lenders, am prohibited from collecting anything beyond that.  

     The pros for homeowners as a result of this are:  Initial monthly mortgage payments are quite low.  But unfortunately, there are cons that come with this too.  

     What are those negatives?  In the second (2nd) year of occupancy, the County Tax Assessor having jurisdiction over the property will note that the property (vacant lot) has been improved upon with a newly-constructed residence.  

     In Chicago and its Collar Counties, the following is an example of what the typical ramifications of this vacant lot/new construction tax escrow scenario are ... and the time frame in which they occur:

     An Example:

   1.  Closing occurred in:  August 2015.  The Occupancy Permit is issued on that date.

   2.  Taxes for the previous year of 2014 (based on Vacant Land), payable in 2015, were $100.00.

   3.  The Builder paid the 2014 tax bill for $100 at the time of the Closing in August, 2015.

   4.  The Buyer/Borrower's Mortgage Escrow (based on the 2014 tax bill) is figured and set-up at Closing.  The Mortgage Lender/Originator requires they pay $50 per month into their escrow for Real Estate taxes, beginning with their first payment due in October, 2015.  

   5.  New tax bills were issued in May 2016, for the previous 2015 tax year.  They still don't reflect the newly-constructed improved property, as the Assessor's Records aren't updated in time to reflect that improved property's existence.

   6.  AFTER these tax bills were issued, the Tax Assessor updates the property record card noting the Occupancy Permit issuance and the date of Occupancy, August 2015.  The Tax Assessor then submitted the new improved evaluation and assessment accordingly.

      

     Fast forward to May 2016 ...  

   7.  New tax bills are once again issued, but now they reflect 16 months of improved property (the last 4 months of 2014 and the entire 12 months of 2015).  This new tax bill was issued at the current tax rate levied for the property's Township.

   8.  As a result, the Homeowner's/Borrower's Escrow Account was short.  It didn't have enough money in it to pay the new tax bill reflecting the improved (newly constructed) property.  * 

     Remember:  The Escrow only had collected the low $50 per month amount allowed at the time of Closing.  But the new bill was "catching up" on the missed months of taxes based upon the improved property.  

   9.  The Mortgage Lender/Originator, based upon the new tax bill they have received, sends the Homeowner/Borrower notice of an increase to their escrow payment ... or they provide the Homeowner an option to cover their shortage in escrow with a lump sum payment.

     
     The result of this new construction tax scenario can be scary and burdensome for a homeowner.  If they haven't prepared by setting aside an estimated amount for their new higher taxes, panic can set in.  

     All too often, I've seen the homeowner have to opt for the larger monthly escrow payments because they have not prepared for this event.

    If you're considering the buying or building of new construction in Chicago or a Collar County:  

   Don't be caught off-guard regarding your new construction property taxes.  They will rise at some point.  Be fully prepared for that. 

     While you're in your initial Mortgage Process and your Closing, listen to your Mortgage Originator.  Heed my advice regarding your escrow and future tax bills.  

     This issue is too important to not fully understand it, prepare for it, and act upon it ...

     

  *  Thinking of buying, building, or refinancing a home or investment property in New Lenox, Will County, Chicagoland - IL/WI?  

For thorough, detailed financing advice and 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.

Direct:  815.524.2280

Cell/Text:  708.921.6331

eFax:  1.815.524.2281

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. 

Your Referrals & Testimonials are Greatly Appreciated!

 

    

      

      

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The Reason I Dislike Online Mortgage Calculators

The Reason I Dislike Online Mortgage Calculators

      There are real estate and mortgage financing topics that are written about often ...  

     For someone outside of the real estate or mortgage industry, it must seem somewhat repetitious (and maybe even somewhat boring) to see a particular topic written about one ... more ... time.  Yet I, as a Mortgage Lender, feel strongly that some real estate and mortgage financing topics are that important and bare repeating ... and continuous updating.

     But even I will admit, there are those times I just cringe when I see a trendy, or often-repeated topic, pop-up once again.  For me, a good example of a topic like that are articles regarding:  Mortgage Calculators.  

     Now I know that many Mortgage Lenders provide mortgage calculators on their website.  I don't.  Just never been a big fan of doing that.  That's especially true now.  

     I think that the number of factors that contribute to the equation for a mortgage payment (and a mortgage approval) ... and those factors within the equation that can change quickly ... has grown too dramatically to make a calculator available to visitors on my website. 

     What are some of these contributing factors?

• Interest Rates
• Mortgage Program availability
• Viable and "Approvable" options for the individual Home Buyer
• The terms that coincide with those Options and Programs
• Taxes related to a specific property
• HOA Fees
• Income Factors and eligibility
• Many more ... 

      It's a fairly common occurrence for potential Buyers to tell me they have used a mortgage calculator prior to our meeting or talking.  They've been online and they think they "know" what they can afford to buy and what their monthly mortgage payments will (and can) be.  Yet, the great majority of the time they are wrong. 

     Fact is: Calculations and calculators are only as good as the info and numbers plugged into them.  And these days, that info and those numbers can be challenging to discover and utilize.  It takes an experienced mortgage professional.

     I've heard many of the agents I work with here in the Chicago area say that they typically won't show someone homes until they have been Pre-Qualified for their mortgage financing.  Why?  Many relate that they believe it's almost cruel to take that risk with their clients' emotions.  

     Think about it:  What if a clients falls in love with a home, only to find out when Pre-Qualified after viewing it that they can't afford to buy it?  How painful!

     I say mortgage calculators can do much the same thing.  I've had clients come into the initial mortgage conversation thinking they already knew what they could afford.  Yet upon Pre-Qualification I found that their calculations were wrong.  Reality revealed something quite different.

     When this happens, the client, even before they've really begun, often gets upset and disappointed with their mortgage process and their journey to buy a home.  Like I said, to me that seems almost cruel and it can ruin what should be a happy experience.

     My suggestion?  Forgo the mortgage calculators you see online or on websites.  Resist that temptation.

     When you've got questions or want fact and figures ... contact me, your Chicago area Mortgage Lender.  I'll be happy to hear from you and provide the info, facts, and figures you need to move forward with your home search and mortgage financing.  

     That way you don't run the risk of over-or-under evaluating your financial potential and miss viewing the homes you can truly afford ...

      
     *  Hoping to Buy, Build, or Refinance a Home in the Chicago area?  Contact Me Today!  I'll get you the facts, info, and figures you need to make the best home buying and mortgage financing decisions for you and your future.
     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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