What is a Lender? What is a Loan Servicer?

 

What is a Lender?  What is a Loan Servicer?

No doubt about it, there's a large amount of information for borrowers to digest throughout their mortgage process ...  

From the first conversation with their lender/loan officer through the signing of closing documents, borrowers must be good listeners, quick learners, and respond quickly to the requests they receive.

Most borrowers focus laser-like on getting to the closing table, giving most weight to those pieces of information and requests that assist them in reaching their goal.  So it's no wonder that the details regarding future payment methods and loan servicing get less attention and are pushed by the wayside.

With that being the case, I (as their loan officer) often get post-closing questions surrounding loan payments, escrow disbursements, and loan servicing.  

While each facet of the process was explained earlier in the process, it now, understandably, has become the primary focus and concern of my client.  Rightfully so.

Typically, my borrower was directed at their closing (and via their closing documents) to make their first monthly mortgage payment to our mortgage company (in the case of my borrowers, that is American Portfolio Mortgage Corp).  They are also informed that future payments may be made to another servicer, should their mortgage be "sold".  

The selling of loans is commonplace and occurs with frequency, as it allows lenders (APMC) the working capital to lend to future homebuyers at lower interest rates.  When a loan is sold, the lender is required to give the borrowers notice a minimum of 15 days prior to the official sales transfer.  

Often it's the receipt of this notice that triggers my borrower's questions.  They reach out seeking assurance and guidance as to the facilitating of their upcoming monthly payments and escrow disbursements.  There often express a sense of alarm regarding the receipt of the notice.  

Again, the sale of loans has become commonplace.  But they want to know:

• Is the notice legit?
• Why are they receiving the notice?
• Does the sale change their loan terms?  
• Will they have a new payment date?
• Do they need to inform their insurance agent of the change?
• Will the new servicer pay their tax installments?
• How do they actually make their monthly payment?
• Will the new servicer make escrow disbursements?
• and more ...

Each question is fully answered in turn.  Each borrower is assured of these facts:  

1. No matter what service lender they are making their monthly payment to, I will remain their loan officer. 
2. I will continue to watch out and advocate for their best interests.  
3. I will continue to serve as their main resource for future information, advice, and lending services.   

The services of a good loan officer go well beyond the closing table.  Those services should include the facilitating of information and assistance regarding new loan servicers.  

It should be noted, however ... 

Ultimately, the borrower will have to work directly with that Servicer's team for specifics on their loan payment processing, escrow payments, etc. 

Should you have questions regarding the above or be in need of other mortgage information or services, please do not hesitate to contact me.  I'll be happy to hear from you and assist you in successfully reaching your goals.

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


Referrals are Appreciated & Welcomed!  

 

How to Keep Kids Safe When Building Snow Caves and Tunnels

How to Keep Kids Safe When 

Building Snow Caves and Tunnels

As I write this post, I just know that my 3 grandkids are out enjoying the bright sunshine playing in the deep snowfall the Chicagoland area received last week ... 

I can just picture them all bundled up, their sleds and snow fort block-building tools in tow.  I'm sure the new action pics of their fun, activities, and construction accomplishments will begin to flow in soon, for sure.

But as their grampa, I worry that their fun could turn into trouble or danger for them quickly ...  

So I did some digging.  I thought I'd share some safety tips I found and shared with their families regarding building snow caves and forts with you.  

I hope these safety tips keep your kids safe from collapsing snow forts and caves, frostbite on the skin, and hypothermia.

And maybe some flying snowballs too!  

Safety Tips:

*  Make it a rule that your kids check-in often when outside playing in the snow & cold

*  Do NOT let them build forts & tunnels alone. Building in pairs or teams helps prevent tragedy

*  Do NOT let them build forts & caves by a road, a pond, stream, or fencing 

*  Do NOT let them build a tunnel or fort taller than they are (This helps in case of collapse)

*  Leave a top/roof off the fort or cave.  Provide a roof (such as cardboard) to complete their snow building

*  Have your kids build tunnels & forts that can accommodate
two or more people.  That way they always have help & assistance, if needed

*  Dress your kids in layers to keep them dry & protect them against cold

Make sure your kids remain aware of each other and their surroundings.  Have them learn and practice these cautionary safety tips when outside in the snow.  That way they and their friends will have fun and remain safe. 

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


Referrals are Appreciated & Welcomed!  

Did You Put Your Search For a Home on Hold?

Did You Put Your Search For a Home on Hold?

The year 2021 certainly proved to be a challenging one for those seeking homeownership ...  

Last year's housing market was fiercely competitive across much of the nation.  So much so, that many buyers ultimately decided to "wait out" the limited inventory of homes available hoping for better things to come in the new year.  

As a loan officer, I tell you, I can't blame them.  The process of viewing homes, getting preapproved, bidding on, then ultimately losing out on a home (sometimes multiple times) can be thoroughly frustrating and exhausting, both physically and mentally.

So ... if all that's true and you're a buyer that found yourself in this scenario:  

• How do you move forward? 
• What do you do next?  
• And how do you turn this housebuying "downtime" into a positive for you in the future?

You improve your buying power ...

To accomplish that goal, there are some distinct and important steps that you can take:

• Keep an eye on your credit and credit scores (A free credit report can be obtained at www.annualcreditreport.com)
• Pay down your credit cards.  Never let the balance owed on your cards exceed your credit card limit
• If trying to pay down your credit card debt, pay the balance down to under 50% (minimum), 30%, or 10% of the high limit allowed.  This will indicate to mortgage underwriters that you're able to restrain from using your available credit
• Focus on saving for a downpayment (or a larger downpayment). 

Remember that mortgage options exist for the following down payments:

1. 3% (Conventional) with Private Mortgage Insurance
2. 3.5% (FHA)
3. 5%, 10%, 15% with Private Mortgage Insurance (PMI) - Conventional Loans
4. 20% or more (No Private Mortgage Insurance (PMI) required)
5. If a Veteran, VA Loans are available with NO money down
6. USDA Loans may be available with NO money down

Also, remember the following options exist: 

• If short on funds for Down Payment: Consider a loan against your Retirement Account(s).  (Talk to your financial advisor)
• Gift monies are acceptable from family members if down payment funds are lacking   
• Avoid filing Bankruptcy, taking on more debt, or entering Mortgage Payment Forbearance if hoping to buy in the near future.  (Waiting periods apply after filing Bankruptcy and after a period of Forbearance)
• If making purchase offers containing a home selling contingency, talk to your mortgage lender regarding your ability to qualify for a new mortgage without having to sell your current home  
• If unable (or unwilling) to qualify for 2 mortgages, consider selling your current home, finding temporary housing, or renting for an interim time period.  It will improve your ability to be competitive when bidding on homes in the future.

If in this interim time you are offered:

• A new job position 
• Considering a change of employment type 
• Considering a change in the number of hours you're working 
• Thinking of starting a new business and becoming self-employed, etc. 

... it's very important that you talk to a lender PRIOR to making any of these employment changes.  It could affect WHEN or IF you can buy in the short-term.

By better "positioning" yourself and enhancing your credit and buying power during this downtime, you expand your mortgage options and possibly lower the interest rate you receive.  Each can translate to a sizeable savings of money over the life of your mortgage.

Simply, following these suggestions just makes "cents" ...

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


Referrals are Appreciated & Welcomed!  

 

 

What Happens at a Residential Purchase Mortgage Closing?

What Happens at a Residential Purchase 

Mortgage Closing?

If you're a first-time homebuyer or just someone that hasn't financed a home in a while, you might wonder ... 

"What happens at a home purchase Mortgage Closing?"  

It's a timely and relevant question, as current Mortgage Closings bear little physical resemblance to pre-pandemic Closings.  

As always, it must be remembered that Closing processes are subject to local standards, but typically on a purchase transaction, today's residential Mortgage Closing is physically attended by the:

• Home Buyers 
• Title Company Representative 
• Buyer's Attorney (if one is involved) 

The Sellers typically pre-sign their documentation prior to the actual Closing.  At this time, because of the pandemic, Chicagoland title companies are limiting the number of attendees at Closings and are asking or insisting that Realtors and Loan Officers do not attend.

Because of that, many of my home buyers then want to know "who handles the document signing and the explanation of forms?" Truth is, it depends on the case and the parties involved.  

What follows below is the most common or "typical" Closing scenario from a Lender's perspective:

1. After Final Loan Approval is received, the Mortgage gets scheduled to Close at the Title Company (in MOST Cases), OR at a hosting Mortgage Lender or Real Estate Attorney's office.
2. Lender and Seller then provide their closing figures specific to their client's transaction to the title company hosting the Closing process. 
3. Figures are shared with the Buyers as to how much to bring in Cashier's Check form or bank wire to the closing

These actions must then take place:

• Closing documents and disclosures are prepared by the Lender's Closing Department
• Legal documents such as the Deed get prepared by the attorneys or the title company (in most states)

On Closing Day, attendees at Closing appear before the title company Closer/Notary:

• Borrowers are asked to review, sign, and date the Closing papers. (Borrowers will note that there's a similarity between the documents they sign at Application and Mortgage Closing)
• The Note is signed by the Borrower(s) at Closing. It is their promise to repay the loan and states the Mortgage interest rate, terms, and payment for Principal and Interest
• The Mortgage document is also signed by the Borrower.  It allows the Lender the ability to record a lien again the property and lays out the rights of the Lender and Borrower, should a Borrower default.

The majority of the documents signed are the Lender's disclosure forms.  They detail the costs related to the transaction, those being the: 

1. Loan Estimate
2. Closing Disclosure
3. The working of the Escrow Account
4. Payment Notices
5. PMI (Private Mortgage Insurance), if applicable
6. Other miscellaneous authorizations

Lastly, the Closing Funds needed to Close the transaction are brought in check form or wired in by the Borrowers/Buyers. The Mortgage Lender wires their loan funds at this time, as well.

The Title Company hosting the transaction then collects all the signed documents:

• The documents are scanned (securely) to the Mortgage Lender's Closing Department
• The documents are reviewed by the Lender's Closing Department.  If found satisfactory, the loan "funds" and the Closing is completed  
• The Title Company distributes the various funds involved to those acting as "Agents" to the transaction
• The property keys, plus any seller-to-buyer documents are handed over
• The Title Company and Mortgage Lender's Closing Department finalize the remaining steps that formalize the process and close out the transaction
• The Borrowers are provided with electronic or paper copies of what they signed  
• Borrowers are provided specific instructions as to how to make their first mortgage payment

As a loan officer, my experience has taught me that, while the above describes the typical elements of the residential Closing Process in the Illinois/Chicagoland Area, each individual Closing has its own unique features and "personality". Saying "typical loan closing" is somewhat of a misnomer.

The Closing Process can vary by state, county, and municipality.  The individuals involved can also add their own flavor to the process.  Even the type of transaction (including the mortgage program utilized by the Borrower) can change the process a little.

But while the pandemic has changed many physical elements of the Closing process it has definitely not removed the personal from it.  Each of my transactions remains extremely personal in nature and meaning to those taking part in it ... and that includes me.  

That will never change.

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


Referrals are Appreciated & Welcomed!