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

 

 

     These questions have been asked of me as a mortgage lender quite often as of late ...  

    

     Are mortgage funds drying up??

     Can buyers even get mortgage monies if they're approved for a mortgage?

     Before I go any further ... the simple answer is YES! 

     Mortgage funds are available!    

    

    

    

     But the longer, more advanced detailed version of that answer possibly has an asterik after it. There's a bit more to the story, as usual.

     Kim McMahon of Executive Realty Group (northern Chicagoland region) was one of those that asked me this question recently.  Kim was hearing rumblings of mortgage monies drying-up or becoming increasingly hard to come by.  For a real estate agent like Kim that works with commercial buyers and investors, my response could not be the more simplified, shortened version of an answer. 

      My answer to Kim McMahon, while still somewhat positive regarding the availability of funds for her clients, included clarification about WHERE to look for those much-needed funds,  WHICH mortgage providers were most likely to still be looking to actively lend, and WHAT properties they would most likely lend on.

     The bottom-line in any lending (especially in the current market) is risk factor.  The mortgage provider has to ask themselves, "What is the likelihood of this individual or business defaulting on the Subject Property we lending on"? 

     For banks that consider funding commercial loans, the answer to that question finds them presently limiting the number of loans they are willing to offer or consider.  Commercial or investment loans have historically been found to have a higher risk factor.  Meaning, the likelihood of the buyer walking away from the loan or defaulting is high.

     Larger banks, even with the interest rates being so very low on the money they borrow ... are not seeing a large enough of a difference between that interest rate and the interest rate they presently are lending out to mortgage clients on.  They don't want to take on what they see as an increased risk to their money.  They simply don't see enough profit in it to take that risk.

     And, the same lending rule-of-thumb is utilized for residential lending.  When credit scores and past credit history of a potential residential client indicate that the risk of lending to them is too high or borderline, the larger banks are presently determining that they will not lend monies.  Lending at these larger banks is occurring either on a less-frequent basis, under extremely tight restrictions, or not at all. 

     Right now, much of the media is reporting that resources of money have dried-up ... or at minimum, slowed to a trickle. And that reporting is just not entirely true.  Yes, the larger banks have tightened their lending and have become much more restrictive with funds.  But for smaller, more local lenders this may not be the case.

     In fact, as I reported to Kim McMahon ... and I report here ... my company, Chicago Bancorp is actively seeking opportunities to lend to home buyers and those refinancing.  We are not alone. Funds for home buyers ARE available.  The reports otherwise by  media is simply not true. 

     Mortgage lending and real estate is increasingly and largely micro-local, personalized, and individualized.  The answer to questions regarding mortgages, mortgage funds availability, and housing must also be local in nature and fact.      

     To broadcast information or rumor otherwise, could be detrimental to our housing industry even further, especially when that erroneous information keeps potential property buyers from entering the market.

     I cannot stress this enough.  At this writing, funds ARE available for mortgages and home buying.  I, through Chicago Bancorp, have funds available and presently see no foreseeable future that those funds will dry-up.   Other lenders have funds available also.  Buyers and referral partners need to be aware of this FACT.  They also must be educated as to WHERE to look for those funds and to WHICH lender they can depend upon to service their needs.  Again, I am such a mortgage lender.    

     My suggestion for buyers and referral partners alike is ...

     Look beyond the big lenders for mortgage availability and your mortgage pre-qualifications.  Look beyond the rumors.  Look at smaller, more local mortgage lenders.  Doing so might secure, not only the funds you need to buy a home or commercial property ... but also smooth and clear the path to property ownership while in mortgage processing.

 

 

     *  Should you be looking for answers to your mortgage lending questions, or in need of credit assistance or mortgage services, please contact me, Gene Mundt, Chicago Bancorp - Mortgage Lender .  I look forward to assisting you with all your financial and mortgage needs.                                                                        I can be contacted at:     Direct:  815.277.4036       Cell/Text:  708.921.6331      Skype:  630.219.1316          Website:  www.genemundt.com   Email:  gene@chicagobancorp.com                                                            Click here 4 a:  NO Cost NO Obligation Mortgage Consultation