Gene Mundt - Let's Talk Mortgages & Real Estate! : January 2010

     In today's economic climate, staying in business is a challenge and an art ... so when a business is celebrating its' 30th YEAR of providing service to its clients and community ...

     IT DESERVES SOME WELL-EARNED ATTENTION!

     Stringham Insurance Agency, Ltd. of Mokena, Illinois will officially mark its 30th Anniversary on February 15th. 

     Established and run by Richard and Mary Ann Stringham, this insurance agency has proven to its "family" of friends and the entire area that they are indeed ... "Small Town Professionals!"  Every day they offer the important, necessary,  professional service that their clients need and deserve with a personal, "small-town" touch ... something very novel in this fast-paced, internet-based world. 

     Both Richard and Mary Ann truly care about people.  Each has always been deeply involved in their business, community, their church, local organizations, and charities ...all while raising three daughters, enjoying three grandchildren, and caring for aging parents.  

      I met Richard and Mary Ann when we were all rookie members of the Mokena Chamber of Commerce.  They both impressed me greatly, and soon I and my wife were members of the Stringham Insurance "family" of clients.  Their advice has always been sincere and honest ... their service outstanding.  Stringham Insurance has now earned the business of my children, many of my family members, friends, and my own clients.  When you find businesses that understand the true meaning of "customer service" at affordable prices ... you stick with them ... and gladly pass their name on.  That has always been the case with Stringham Insurance Agency.

     Over the years, Stringham Insurance Agency has won countless awards ... but the awards are not why you find the many testimonials you do on their website.  As one of those testimonials reads ... "With Stringham, you know that Dick and Mary Ann are going to know you and remember you and your needs.  They'll work hard to provide you with the best professional and personal service." 

    For those searching for an insurance agency that will serve your best interests and act as your ally in time of need, I would advise contacting Richard and Mary Ann Stringham at Stringham Insurance Agency.

     Buying a home during today's challenging market can be intimidating.  Seeking the financing for that home ... frightening ... especially if it's the first time you've ever done so.

      The media can be full of horror stories of confusion, distrust, and fraud.  The perception is that evil lenders or real estate professionals lurk around every corner.  Traps are everywhere.   

     The truth is ... the real estate and financing industry is much like any other.  There are good and bad within these professions.  But, that being said, precautions do need to be taken to insure that you end up finding and utilizing the services of one of the many reputable professionals working within the industry.  

   

      How do you find these qualified and trustworthy individuals?  How do you avoid the problems and failures you read and hear so much about?  How do you protect yourself?  What is your best "insurance policy" for a good, healthy mortgage transaction and home purchase?

    You EDUCATE yourself.  Education regarding the mortgage process.  Education regarding the programs available to you.  Education regarding your options, both financial and housing.  Education about the purchase process.  Education and knowledge about the real estate professionals you choose to work with.
 

       "To pursue and educate yourself", is my best single piece of advice to any buyer or someone looking to finance.  But perhaps the second best piece of advice?  Expect the process to take time.  There are no quick and speedy closings any longer.  There are no quick and speedy fixes to credit issues or problems that arise within the sales or mortgage process.  

     If you have a set target date for which you'd like to be IN a new home, start the "process" with plenty of "lee-way" time.  It will make your home search and mortgage financing far less stressful.

    

      The first step you should take towards home ownership should be ... seek out a qualified and trustworthy mortgage professional. 

     The best route to finding that professional is through others.  Ask lots of questions.  Ask those that you know, work with, are related to, and trust for recommendations and referrals. Do you know someone that's recently closed a loan?  Would they work with that person again? 

     Do you know realtors?  Insurance agents?  Attorneys?  Other real estate-related professionals? Gather the names they offer and start comparing them.  Are names cropping up on your list repetitively?  

      Once you have a few names, take the time to check their references.  If they have a website, view that.  Call and ask them for their references and the names of past customers and contacts willing to testify to the integrity and quality of their services.  Educate yourself regarding their professional abilities and qualifications.

     

      After you have decided on your mortgage professional, contact them for a pre-qualification session. 

     This prequalification will help you educate yourself as to your capabilities and limitations regarding the financing for a home purchase or refinance.  Educate and/or update what you know of your credit standing and FICO score.  Especially in today's challenging market, credit scores are all important.  Starting the process early allows you time to improve credit scores and/or clear up any errors found on your report.

      Once you have actually entered the processing portion of your financing ... Be AWARE and ACCEPT that underwriters involved in mortgage financing are demanding documentation for everything ... and plenty of it ... and .... THEY WILL NOT ADVANCE YOUR TRANSACTION OR APPROVE YOU FOR FUNDS IF YOU DO NOT COMPLY.  Resisting their demands and not fulfilling their requests only delay your transaction's closing.  You will not change an underwriter's mind.  Reconcile yourself to that fact and comply ... your transaction will move much more smoothly and quickly.  Again, if you have started the process early,  you have allowed time to address these matters and many stressful situations can be avoided.    

      TIMELY TIP:  For buyers presently considering a move ... be aware that the present tax credits available to first-time home buyers and "move up" buyers alike, have definitive guidelines you must meet to claim them.  Do not miss out on these great opportunities for tax credit/rewards by being uneducated regarding the guidelines and/or delaying the start of your financing and home search.

    

     Again, education is key.  DO NOT BE AFRAID TO ASK QUESTIONS.  Keep asking them until you get the information you need and require to move ahead, fully prepared, and with full peace of mind. 

    If you have found the right professionals to work with, you will arrive at your goal.  You will fulfill the dream of moving into your new home and you will close on a loan that is a comfortable and beneficial fit for yourself and your finances.  

      

The information and illustration of the topic contained within this article is of such importance that I want to make sure all get a chance to read and understand it ... especially those presently involved or thinking of becoming involved in home buying or mortgage financing.

My thanks to Janet for writing about this timely issue.  All professionals involved in a real estate closing should reiterate this information throughout the closing processing time.  It's of that much importance ...

     ATTENTION!  ATTENTION!!

     ADD THESE ALL TOGETHER. 

     WHAT DO YOU GET? 

     LOST tax credits + RISING Home  Prices + RISING Interest  Rates    

     ANSWER:  VERY SAD HOME BUYERS AND HOME OWNERS!

     This morning's market reports were up ... down ... up ... down ... all over the place.  If you have been paying attention and following these reports and media accounts, you already know that predictions are ...  rates are climbing and predicted to continue to do so.    

     If you are in need of cold hard facts regarding the financial loss you will suffer should you wait too long for better rates ... talk to a lender today!  These numbers will hit you right between the eyes like a hammer.  Waiting can be extremely costly and painful to your piggy bank.

     Still Need Proof?  Have a lender work the numbers for you.  See what a small increase in rate will cost you in dollars over the life of your loan.  You will be floored.  The numbers are staggering. 

     Now, I totally understand that committing to a home ... to a loan ... is a big undertaking.  I understand that you want and need the mortgage terms that are most advantageous for your financial scenario.  But if the experts are correct ... rates are predicted to rise.

     I also understand (if you have started the process) that complying with the many requests you are receiving for documentation, information, and application can be somewhat overwhelming.  But dragging your feet or complaining about the requests will not change the requirements to get your loan closed.  Lending Underwriters will still demand the same things no matter how long you wait.  You only end up potentially hurting yourself with the delays.

     If you haven't contacted a lender, do so now.  Get the facts.  Start the process soon.  Today's reality is that loans are not processed and closed in the same amount of time as in the past.  It takes longer.  It also requires more work from and cooperation between all parties.  

     Especially if you are hoping to take advantage of the extended tax credit for first-time home buyers or new tax credit for "move up" buyers, time is of the essence.  Starting the process now will help insure that your closing will occur within the required time frame to receive the benefits.  This is even more true if you are interested in buying a "challenged" home such as a Short Sale or Foreclosure.  (For additional information on the new tax credits, see this helpful IRS video:  http://www.youtube.com/watch?v=GkzB03uuGlg)

     The key to savings and the success of your new home search and lending is communication between all parties involved, especially your mortgage banker.  Find and work with someone you know is a professional, knowledgeable, and trustworthy.  Develop the rapport and communication with them that is pivotal to your success.

     ATTENTION!   ATTENTION!   DO IT NOW!

     Last week after a particularly frustrating day, I wrote a message on my Facebook.  It was meant to be somewhat "tongue in cheek", but evidently that wasn't as apparent as I thought it was.  My comment was that I was going to put an educational seminar together for today's home buyers.  The topic would obviously cover the lending process, but would also cover all the many changes recently made within our industry. 

     I suggested that the largest portion of the seminar would be directed at those buyers that had previously closed a loan and were looking to refinance currently.  The focus of this portion would be what a buyer should currently expect during his purchase and financing process in contrast to his prior experiences. 

     The message I was trying to make ... and obviously did so very poorly ... was that expectations are fine if they are reasonable.  That day I was feeling that many of my clients and referral partners expectations were possibly a little "over the top" and I was feeling a little battered.  Thus my comments. 

     Now before anyone gets upset ... let me explain that I think there is an accountability to be met by a lender.  I also think that customers and referral partners are right to expect and demand a high level of expertise, professionalism, knowledge, accountability, honesty, and results from the lender they are working with.  That is not even up for debate.

     My simple point I was trying to make was this ... the customer has responsibilities and obligations within a transaction too.  Today's real estate transactions many times follow a twisting and bumpy path.  Costumers need to know and understand this ... and formulate their expectations around current reality.  

     Lenders and agents are real estate professionals ... not magicians and psychics.   Transactions are simply not conducted or accomplished like they once were.  Everyone involved needs to contribute towards a successful closing.  Everyone needs to do their part.

    My little comment seemingly struck a nerve on Facebook.  I received many responses to it expressing a thumbs-up on the idea.  Many thought a seminar should be mandatory too!  At the time I was being facetious ... but I think I'm on to something. 

     What are your thoughts and opinions?