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

 

 

•      Have the required minimum Credit Score, but have outstanding, past due collection accounts.   
  
•       Do NOT have the funds needed to pay-off debts/collections in their entirety ... but still have the necessary savings for Down Payment and Closing Costs.

 

I think this post by Don Sabinske, Sabinske & Associates Inc., is excellent.  It goes hand-in-hand with my latest blog perfectly.  Don's message addresses the issue of Buyer's VS Seller's market in his service area of Elk River/Sherburn County, MN ... and his assessment that his service area is seeing MULTIPLE offers for those seller's properties that have been priced correctly, and thus ending the reign of the buyer's market there.

My latest blog addressed much the same issue and the improvements that many markets are reporting in sales.  We both conclude that current home buyers need to be aware that the pendulum is swinging back once again.  That time is of the essence and buyers can no longer assume they have all the time in the world to make decisions or that they can lob low-ball offers at sellers.

Don Sabinske is right.  If you want to know the truth and reality of what is happening in your local housing market ... you call Don (if in the Elk River/Sherburne County, MN area) ... or an experienced real estate professional in your own market.  Do yourself a favor ... put yourself in qualified, experienced, LOCAL hands when buying a home ...

Gene

 

 

    

Coulda ...  Woulda...  Shoulda!

That's What You're Going to Say,

if You Don't Buy Now!

 

 

 

 Missed Opportunities!

 

 Regrets!

 

 Lost Potential!

 

    Coulda ... Woulda ...    Shoulda! 

 

    

     That's what you're going to be hearing yourself say ... if you don't buy a home while the current unique and beneficial housing market's opportunities exist.

 

     Why?  How do I know this??  Because I've  begun to hear some  Coulda ... Woulda ... Shoulda's ... stories related to me already.   People are telling me they're kicking themselves over lost housing and savings' opportunities.

 

     Reports from many agents and potential home buyers alike, say homes in many areas of Chicago, Chicagoland, Will County (and elsewhere) are moving more quickly once again.  (One Example relating this change in the housing market comes from Chicagoland Agents:  Read this post from  Howard & Susan Meyers, The Hudson Company, regarding the housing market on Chicagoland's North Shore:  "The Worm Has Turned".)

 

    Many markets are healing and seeing rebounding prices.  Sellers are receiving multiple offers for their properties.  

     Bidding wars have returned to many housing regions.  Buyers are simply losing the "edge" they have been enjoying over sellers for the last couple of years. The tide is turning. (See this post from  Jane Peters, Power Brokers International, Beverly Hills, CA ... "What Exactly is a Buyers' or a Sellers' Market in Real Estate?")

 

     Opportunities have been lost by some potential home buyers, leaving these potential home buyers wishing THEY had taken action sooner.  

 

     What kind of action??  Those I have talked to wish they had contacted a mortgage lender to be pre-qualified for mortgage financing much earlier.  Started preparing themselves for their mortgage application further ahead of time. 

      A few of my own clients have said they regret not regaining control over their own finances or taking action to improve their credit prior to talking to me.  They wish they had checked their Credit Report sooner and more often.  They now know they'd be much further ahead and have more financing options open to them when they buy.

 

    Many have stated they simply wish they had listened and followed their real estate agent's advice better.  They mistakenly thought they were going to "low-ball" a bid and steal a home at a ridiculously low price, then ended-up losing out.   The "low-ball" philosophy just didn't work.

 

    Still others have been fence sitters.  They've delayed making a sales offer too long and lost-out to other buyers capable and willing to make a home buying decision. 

 

   Good news does still exist!  Interest rates and housing prices remain low. 

 

     But do not doubt this ... time is of the essence.  You need to take action.

     Take steps NOW to prepare yourself.   At minimum, find and team-up with an experienced, professional mortgage lender.  Get the home buying ball rolling. 

    There are no negatives to having your credit report run.  Most mortgage lenders will do it for free.  I do.  And whether you buy a home soon or down the road ... you win.  You save money on all sorts of services because you've improved your credit scores.  Insurance.  Cell phone service.  Credit cards ... you name it.  The better your credit, the less you pay, the more money you save.

 

    So,  Contact me now.  Get started on your home buying journey today. 

      Avoid the Coulda ... 

    Dodge the Woulda ...  

    Protect yourself from the Shoulda ... 

 

    

 

 

 

    * Discover what home buying and financing options exist for you, whether in Will County, IL, Chicagoland, or any of the 50 states.   Contact me today!  We'll work together to get you on the right path to homeownership ... now ... or for the future.

    I can be contacted through any of the following:  

Direct:  815.277.4036   Cell/Text:  708.921.6331

Email: gmundt@thefederalsavingsbank.com

Website:  www.genemundt.com

Conveniently thru Skype:  630.219.1316

4 a:  NO Cost NO Obligation

Mortgage Consultation 

 

 

 

   

  

 

 

Experience Your Own Home Buying

"March Madness"

 

 

 

     Ever try to guess when the best day of the week is to buy gas for the car?  Ever try to predict the stock market?  Second-guess Presidential primary winners? How about NCAA "March Madness" Tournament winners? 

 

 

      Oooooo ... all scenarios where even the most skilled, experienced professionals and statisticians struggle at making successful predictions.

 

 

      I bring this up, not only because the season of "March Madness" is upon us, and guessing "winners" of any kind is currently on a lot of people's minds ... but because I'm hearing lots of questions from clients regarding the timing of locking interest rates. 

 

      And although I agree that guessing the winner of primaries, the NCAA tournament, etc., can be fun and rewarding ... and I also believe securing a great interest rate is of importance ...

 

      I also think that:

 

      If all the positives currently available in housing and mortgage financing aren't enough to get you off that home buying fence and in the game now ... there is most likely something else contributing to your NON-decision to buy. 

 

      If:      

 

•       The current interest rates for a 30-year fixed-rate mortgage (4% +/-) don't get you off the bench ...
•       A 15-year fixed-rate mortgage (3% to 3.5% range) doesn't make you lace-up your home buying high-tops ...
•       Or your not hearing the roar of the crowd cheering "ARMs!!" ... (under 3.5%), "FHA!!" (3.5% down) ... or other special financing programs attributes ...

 

      It's time to go back to the clipboard, re-examine your game plan, and reflect intently. 

 

     Also consider this.  Taking your home buying game into overtime now may cost you more money when you finally buy too.

      In the last week alone ... interest rates went up a 1/4% ... and ... for the same interest rate quoted prior to that increase ... a borrower will have to pay 1 "point" (1% of their loan amount) as additional Closing Costs.  (See my article regarding mortgage "points")

 

      A 1 "point" increase in costs??  Oooooo Foul!  Somebody blow the whistle!!  Penalty!

 

      Listen up if you're considering entering the home buying market.  My message is a timely one.  The NCAA isn't the only thing experiencing "March Madness".   These are the current "stats" being found in many March 2012 housing markets and present financing terms ...

 

   Approvable Credit

+

    Stable Employment

+

   Great Interest Rates

+

  Fantastic Housing Prices

+

Attractive Down Payment Requirements

='s

A Winning and Happy Home Buyer!

 

     

      Don't focus so intently on only one aspect of your mortgage financing game, that you're blinded or unintentionally "double-dribble" on another. 

 

       Find a professional and experienced big league home buying "coach" (your mortgage lender).  Ask them questions, including, "If I postpone buying a home now ... how long will it take me to regain the monthly interest rate savings I will pay/lose in EXTRA "point" fees at my Closing later?  What's my financial tipping point?  When is it a "losing" proposition for me to wait further to buy?"

 

      My suggestion is this.  The time to prepare and enter the game is now, if you want to buy a home and your credit and finances are in good shape. This is especially true in many housing markets where they currently are returning to pre-recession good health.

 

      Don't let the opportunity to take part in the winner's bracket slip away.  Surround yourself with skilled team members.  Expect to work a little at this game.  Grab your gear.  Sharpen your focus ... and your home buying elbows.   

 

      Do all this, and YOU will be a "March Madness" winner!

 

     

 

      *  Work with a team player with the skills and knowledge to guide you to the winner's circle in all 50 states.  Contact me today.  I'll put my 35 years of experience and expertise to work on your behalf.

      I can be contacted at any of the following:

Direct:  815.277.4036  Cell/Text:  708.921.6331

Email:  gmundt@thefederalsavingsbank.com

Website:  www.genemundt.com

Skype:  630.219.1316

Click Here 4 a: NO Cost NO Obligation 

Mortgage Consultation

 

 

 I Promise to Love, Cherish ... and Pay My Bills??

    *  Food for thought: 

 

 

• Always Remember:  Call/Contact your Mortgage Lender, if you need ANY advice. If considering a purchase in the next 90 days, or in the next year (if you have credit issues especially,) contact me/your mortgage lender for a FREE tri-merge credit report.  Find out just what/where you stand credit-wise, then take action!
  
• Manage your credit cards, making sure ALL balances are kept BELOW the maximum credit available (at worst), and below 10% of the limit (ideally).
• Know the ABC's of your TOTAL debt, from the following criteria:    

1.      Mortgages (Know the name and address of the Lender, Amount Still Owed, and Your Monthly Payment Amount)
2.      Home Equity Lines (Again, Know the name and address of the Lender(s), Amount(s) Still Owed, and Your Monthly Payment Amount(s).
3.      Student Loans  (Again, Know the name and address of the Lender(s), Amount(s) Still Owed, and Your Monthly Payment Amount(s).
4.       Auto Loans  (And finally, the same as above.  Name, Address(es), Amounts Owed, and Monthly Payments)
5.      Installment Loans  (Meaning:  Boat financing, Recreation Vehicles, Motorcycles, Secured Loans, etc.)
6.      Credit Cards of ALL Types  (Know who holds/offers the Card, Account Number(s), What is the Outstanding Balance on Each, and the Minimum Monthly Payment of Each)

Click Here 4 a: NO Cost NO Obligation Mortgage Consultation

 

 

How to Best Prepare Your

• Compile the last two (2) years of Tax Returns and W-2's or 1099's.  (Only the U.S. Returns are needed).  Please note:  That if any income is derived from a business or self-employed venture, the Corporate Returns will be needed from the most recent 2 years.
• If NOT self-employed, create a file folder to keep ALL paycheck stubs.  If paid by direct deposit, please know/learn how to retrieve or request the last 30 days of paycheck history online or from your employer.
• If receiving documentable income from alimony, child support, or other sources ... written confirmation will be requested.  Typically a minimum of three (3) months of documentation will be required, as well as proof of the length of time the income will continue (typically 3 years or greater).
  

• Checking/Savings Accounts:  Keep ALL bank statements and ALL pages of same.  The most recent two (2) months  (* 60-days of a transaction history/report) will be required at mortgage application.  PLUS, the next statement from the account that the Earnest Money Check was written from will be needed.  (If Earnest Money was donated, that money will have to be verified from the donor's account.  Same statements apply for the donor).
  
• *  If quarterly Statements, the most recent quarter ended will be required at time of underwriting.
• Stocks/Bonds/Mutual Funds:  Two (2) months (or the most recent quarterly statement) of most recent Statements will be needed.  Funds to be used for Closing will need to be liquidated (sold) and moved to a verified account to be deemed "available" come Closing.
• Retirement Funds:  Proof of statement indicating the name of the Borrower, name of the Fund Holder/Administrator, and the account number/balance.  If used at Closing, the terms of the loan or withdrawal, must be attained prior to Underwriting.  Funds to be liquidated MUST be tranferred into and documented as "available" in an already verified account.      
• Gift Funds:  Proof of fund transferred from the Donor to the Borrower(s) must be verified.  A GIFT LETTER form is needed.  It will be provided by the Loan Officer/Banker, for the Borrower.  A specific process must be followed, so please ... consult with YOUR banker.
• Cash/Coins:  Unverifiable and NOT Acceptable.  Consult with your Loan Officer/Banker well in advance.  

 

 

Considering Helping Your Child

Buy a Home?

What Parents and/or Co-Signors Need to Know

 

   

   Within the current housing market, there is great opportunity to be found, especially if you're a first-time home buyer.  Home prices are down ... lower than they have been for almost an entire decade.  And Interest Rates??  The cost of borrowing, in regards to Interest Rates, is at historic lows ...   truly a gift, should you be able to take advantage of them.

 

    With all the positive opportunities that exist, many buyers, along with their families, are looking for ways to take advantage of these 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.

 

     As a mortgage lender, it is not uncommon for me to receive  questions regarding this method of home buying.  "Co-Signing" is happening more and more often.  In mortgage terms, this method of buying/borrowing is called being a "Co-Mortgagor" ... a fancy term for "another borrower".

    This practice is typically utilized when the "non-occupying" Co-Borrower (let's just say a parent) is the stronger applicant on a mortgage ... and his/her income, credit, and assets make for an approvable loan when the "main borrower/buyer" is not able to qualify for a mortgage on their own.  Put another way, the child in this scenario is buying their first home, often has adequate credit ... but lacks the job history or income to qualify on their own. 

    Considering the (child's) parent's income and credit and debt, makes the loan approvable because the parents' "vitals" help the numbers ... meaning the debt-to-income ratios ... needed to reach the approval level. With FHA, the down payment requirement is only 3.5%, and the Borrower (who MUST occupy the purchase residence) gets as good of Interest Rate as if they had borrowered on the mortgage alone.

    Obviously this is great for the son/daughter, but what about the "Co-Signor, Co-Mortgagor, Parent" involved?  The fact is, they will share the same debt and note responsibility as the main applicant.  That debt/responsibility will appear on their credit report as their mortgage obligation.  If the child misses a payment, the parents (Co-Signors/Co-Mortgagors) credit report will show as having a late payment.  A very valid reason for all parties involved to give this great consideration prior to agreeing to start the mortgage process.

 

     Consider this tho ... Co-Signors/Co-Mortgagors (in my most recent Co-Signor/Co-Mortgagor case) were considering buying a home on their child's behalf, because they didn't think the child could qualify on their own.  These parents were fully-prepared to put forward a 20-25% down payment, purchase the home in their own names, and then move the child in as a tenant.  The ability to become Co-Signors/Co-Mortgagors changed the financial scenario they received significantly for them and their child.

 

     How did it change?  What are the differences to be found within the two methods of home buying?

 

     The biggest difference is in how the bank perceived their upcoming ownership.  Parents that just buy a property outright and rent it to their child are considered investors by the bank lending money.  Investors pay higher interest rates to borrow money (typically a minimum of 3/4%) ... and/or their Closing Costs rise several thousand dollars.  Why?  Because the bank considers this type of loan a higher RISK because of the "occupancy" status of the property.

 

     Now you know a bit about the ins-and-outs of Co-Signing/Co-Mortgaging.  But if you're a parent, or someone considering Co-Signing/Co-Mortgaging, you're going to need to know ... where and how do you start the process?  What financial documentation will be expected from you?  What funds will be subject to verification?

 

     Much of the process of mortgage financing will be the same for Co-Signors/Co-Mortgagors as for the actual resident(s) of the property. A handy list of those financial documents needed for mortgage application can be found via my website, by clicking ...  "HERE".  

 

      What is probably the most common concern or question I hear from Co-Signors/Co-Mortgagors (parents), is ... "How has the mortgage process changed since I last participated in it"? 

      There is no denying the truth.   For a great many parents the mortgage process will be unrecognizable from their own prior financing experiences.  And admittedly, the requests for documentation and verification will seem a bit overwhelming. 

 

     But documentation and verification is what is required to move the modern mortgage process along to successful completion.  Underwriters and end-lenders will not be deterred from it.  Co-Signors/Co-Mortgagors must be prepared to have monies/accounts/downpayments verified, along with their employment, credit/debt, and more, just as their child will. 

 

     Now, more than ever, the mortgage process itself is specific to those borrowers taking part in it ... so individual and personalized instructions regarding your financial scenario will be provided by your mortgage lender.  Listen.  Learn.  Comply.

 

    If you do so, those requests are completed in a timely fashion, and the lender's instructions are followed, Co-Signors/Co-Mortgagors can help their child successfully establish credit, obtain historically low interest rates, and buy a home at very friendly housing prices. 

 

     Should this be a financial step you are considering within your own family ... contact me, or your own mortgage professional, to obtain information specific to your needs. 

 

     Becoming a Co-Signor/Co-Mortgagor for your child could be the gift that sets them down the path to a healthy financial future.

 

 

 

      *  For personalized mortgage information and service regarding your family's Co-Signor/Co-Mortgagor options in Chicago, Chicagoland, or across the nation, please contact me.  I will put my 35 years of mortgage experience and expertise to work on your family's behalf.

     I can be contacted through any of the following:

Direct:  815.277.4036     Cell/Text:  708.921.6331

Email:  gmundt@thefederalsavingsbank.com

www.genemundt.com

Skype:  630.219.1316

Click here 4 a: NO Cost NO Obligation Mortgage Consultation