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Joliet, IL Real Estate News

By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  "To Condo or Not to Condo" That Should Be the Question ...        As a Chicago-area Mortgage Lender, I never try to influence a Buyer as to the type of property they should or should not buy.  That's their personal choice ... and not my place.      But as their Mortgage Lender and Advisor, I DO try to educate them regarding different property types and the pros and cons associated with each as it pertains to their upcoming mortgage process.  Why?        Because there are some fundamental differences in how differing property types flow through that process.  There can also be some differences in costs incurred while moving forward, as well.       When I talk of "differing property types", what exactly do I mean?  Here's my simple explanations: Single-Family Residence Detached:  No com...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
   The Many Ways Poor Credit Scores Cost You      A large percentage of the potential home-buyers I speak to have a basic knowledge of how credit scores influence the interest rate received when they finance their home purchase.  Most understand the basic principal:  The higher their credit scores, the lower their interest rate.     I read a CNBC article today entitled, "How poor credit costs you on homeowners insurance".  It delivered a strong message.  Poor credit scores cost you.      In that article it was reported that:  "Homeowners with median credit pay 29 percent (29%) more than those with excellent credit."  29%!   Ouch!        But the "hits" you take for lower credit scores go beyond higher insurance costs.  And even small dips or variations in  scores can cost you ... and cos...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
    Waiting Periods and Extenuating Circumstances After a Short Sale, Foreclosure, Bankruptcy       I wrote recently about Fannie Mae's announcement regarding the extension of the waiting period for those Buyers hoping to become Homeowners once again after having experienced a Short Sales (Pre-Foreclosures).        The waiting period is now extended out to 4 years ... regardless of Loan-to-Value considerations (or Down Payment percentages).     Naturally, there's been a wide range of reaction to Fannie Mae's announcement.  There's also been many questions asked in regards to this change and my post.  So, I'm addressing some those questions here.       I'm also featuring information regarding those exceptions seen as viable hardships/options for Short Sales ... and the financing options ...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
Here's this week's news, info, and timely articles I thought you'd find of interest and benefit.   Should you have specific topics or questions you'd like covered or addressed in future blasts, please let me know.  Your suggestions and input are always appreciated ...     Mobile Apps are available for almost everything these days. But the security surrounding them should always remain foremost in any user's mind.    Below you'll find questions to ask prior to making any payments utilizing your mobile devices ...      5 Questions to Ask Before you Pay with Phone  ...   "Cash, credit or smartphone?" isn't something you're likely to hear at a retailer or restaurant. (MORE ...)     Because you can open windows and dry painted walls quickly, summer is a great time to freshen-up the interior...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
         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.        Many mar...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  My Wide & Vast Mortgage Background Sets Me Apart & Provides Value-Added Benefits to Borrowers      I've been reading many of the post submissions to the  "What Sets You Apart:  Your Value Added Benefit?  An ActiveRain Contest"  over the last few days.  It's obvious that ActiveRain has many talented and successful professionals within its membership.     As I've read these posts, I've been astounded by the wide range of talents, value-added services, and successes celebrated and shared here on ActiveRain.  Some of those have been:   Experience Social Media Prowess In-depth Knowledge of Construction Quality Service    Education Caring More      These posts have spurred me to once-again assess myself as a Mortgage Lender.  But through this self-assessment, I've confirmed what I've though...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  How to Avoid Unwelcome Surprises When Buying a Chicago-Area Condominium or Townhome        One issue that has cropped-up often throughout the time I've been a Mortgage Lender (and continues to do so routinely) surrounds the question ...     Is the property I'm purchasing really a Condominium ... or is it a Townhome?          Just last night, the question came up one more time.  My client, who had been told they were purchasing a Townhome, is in fact buying a Condominium.      The Legal Description of the property proves it is a Condominium.  The tax Permanent Index Number (PIN) shows the property is a Condominium.  Note:  They signed their Sales Contract before they talked to me.     As you can guess, my Borrower is not very happy.      Calls and emails flew back and forth all night b...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  FHA Announces New Blueprint for Home Buying Success: "Homeowners Armed with Knowledge"            It probably comes to you as no surprise ...       Hopeful home buyers are struggling to save the funds and down payments needed to purchase homes. Many are also finding that securing their mortgage financing can be a bit of a challenge.        FHA (Federal Housing Administration) loans have long been a source of financing for home buyers, especially those that have been "down payment challenged" and First-Timers. But as of late, the costs that accompany FHA financing have increased.  Increased to the point where many potential Home Buyers believe FHA Mortgages no longer make sense for them.        What are the typical costs seen?  The National Association of Realtors (NAR) estimates that ...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
   How to Dispute Credit Report Errors While in the Mortgage Process      Veterans of the Mortgage Industry can remember a time when clients suffering errors or inaccuracies within their Credit Report, were typically advised to "dispute"  those errors ...       But because of recent changes that have taken place in the Mortgage Industry's Automated Underwriting Systems (commonly referred to as AUS), the advice given to current mortgage clients may be quite different from that of the past.            Today's advice ... and the suggestion as to the timing and direction of recourse, will be based on a variety of information related on the Report, including:     When the errors, inaccuracies, or reported items showing on the Credit Report took place The Nature of the items involved (Late Pa...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
   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 Mo...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
   "Because" ...   The Mortgage Underwriter is Requesting it!           As parents, we often find ourselves trying to explain things or reason with our children.  And when we do, it's almost inevitable that we hear a "Why?" after each attempt.  I know each of my boys did this.  Sometimes relentlessly.        If you're like me, when this occurred you eventually reached a breaking point.  Thoroughly exhausted mentally and having no more explanations, you finally offered up the only answer left to you ... "Because!"      Yesterday I wrote a post entitled, "Creating a Paper Trail to Document Funds for Your Mortgage Closing".  In that post I related just how important it is to create and prepare a trail of easily-understood and easily-followed documentation prior to and during a Mortgage App...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
Creating a Paper Trail to Document Funds for Your Mortgage Closing            It used to be years ago, that couples .. husbands, wives, and even the kids, kept their financial accounts together in one bank, one savings account, and typically just one checking account.  I know my parents and my wife's parents certainly did it that way.      But these days, multiple accounts in multiple institutions is the norm.  Each individual often maintains their own accounts: savings, investment, retirement, and credit.  They maintain and pay their own personal accounts, plus they've divided the responsibility for payment of household bills.  The household may have multiple checking accounts too.     No, Americans no longer conduct their finances as simply as they once did.  "Simple" doesn't come cl...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  Buying Homes Owned by Banks and Government Agencies: What Benefits Might Exist             Property Sellers are often showing up on real estate contracts these days as Entities or Companies, not as human beings.  Government Agencies including Fannie Mae, Freddie Mac, HUD, VA,  and banks are as well.     The housing inventory has been low (at least in Chicagoland housing markets), as local Sellers have been reluctant or incapable of taking a hit financially from lower housing values and sales prices.  Recent trends point to increasing housing values from 2013 and into 2014, and we've been seeing competing offers on listed properties in some housing markets.  As ever, real estate and housing trends remain local.  But there is some hope to be found in the most recent reports.     That sa...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
    Taking the Mystery Out of Credit Scores       Were you recently denied approval on a loan application?  Do you suffer from lower Credit Scores?  Did you receive an Interest Rate higher than someone else with higher Credit Scores?        If so, there's a chance one of the following issues was the reason.  They're some of the most commonly seen issues affecting Credit Scores or preventing loan approvals: Missed Payment(s) on a Mortgage, Installment Loan, or Credit Card(s) Major Events - A Bankruptcy filed in the last 2 years, Foreclosure, Short Sale, or Deed-in-Lieu of Foreclosure Outstanding Judgments, Tax Liens, or Collections (Not Paid, or Not Satisfied)  Multiple late payments on accounts, multiple number of disputed accounts, multiple number of recently opened accounts, multiple ...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  In Today's Real Estate Appraisals: Info is King, Data is Available          In this automated day and age, a huge amount of real estate sales data is readily available to professionals ...         With a few clicks and the entry of a few parameters, a Real Estate Appraiser can create an instantaneous list of data for their viewing and use.  Appraisers can realistically and confidently expect that they have a reliable process of finding the most recent, most proximate, most similar property types, featuring the most similar functionality and amenities for their Appraisal Reports at their disposal.        In addition, most Assessors post property records online to capture more reliable data on square footage of living area.  Not that pictures tell every story perfectly, but many times t...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
I've Applied for a Mortgage:  What is Automated Underwriting?         If you've read much about Mortgage financing ... or talked to a Mortgage Lender lately, you've probably heard the term "Automated Underwriting" ...       This form of Underwriting, performed electronically by a computer, has become the method by which the majority of banks and lending institutions make a decision regarding the "lendability" of a potential Borrower.  It's the analysis of all relevant financial data collected from an Applicant.      First implemented in the late 1990's, Automated Underwriting has now become the preferred method of analyzing Mortgage Applications.  The 2 most obvious pluses found in Automated Underwriting are: The results are deemed more objective and void of human prejudices or bias  Re...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  A Recipe for Disaster: Entering your Mortgage Transaction "Flying by the Seat of your Pants"           Have you ever heard the old saying "flying by the seat of your pants"?       I sense that's exactly what some of my potential clients are doing when they first talk to me about buying and financing a home.  It's like the idea of Buying a Home dawned on them in the middle of the night in the middle of some dream.       In this day and age of more challenging housing and financing markets, it's not wise to be "flying by the seat of your pants" when entering the Home Buying or Mortgage Process.  Potential Home Buyers and Borrowers need to give the entire process some good hard thought and preparation.  Otherwise they'll meet with frustrations and failures.     Now I'm not trying to scar...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  Credit Card Security Breaches:   How to Find if YOU Have Been Effected.  How to Protect Yourself Moving Forward              The recent breach in security at multiple well-known retail stores has Credit Card holders more than a little nervous and concerned.  Rightly so ...     These breaches have led to a number of my clients (those currently in the Mortgage Process and past clients as well) to inquire ...    "How do I check to see if I'm a victim of these security breaches?"    "What should I be doing about my account?"        Unfortunately, there isn't one definitive answer that addresses all the various scenarios that may exist concerning these credit breach issues.  I typically suggest to my Mortgage clients that they call Customer Support at their Credit Card Company, aka the Cre...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  The Effect Real Estate Taxes and Insurance have on Mortgage Loan Approvals and Monthly Mortgage Payments          There is an acronym in the Mortgage Loan Industry known as PITI.  This stands for: Principal Interest Taxes Insurance(s)   (Insurance for Homeowners Premium and Monthly Mortgage Insurance must be calculated and included in an Estimated Housing Payment.  Mortgage Insurance is required if a Down Payment is less than 20%).      If buying a property within a Homeowners Association, you can add an "A" to the end of that list/word, so it becomes PITIA.        PITI/PITIA is the actual total housing payment that is arrived at when a Loan Officer is "pre-approving" a Home Buyer.       As Mortgage Lenders, we tend to focus mostly on the Sales Price or Loan Amount for Home Buyers' Pr...
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By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
  Boomerang Buyers: What to do if you see a  Short Sale in your Rearview Mirror           You've probably seen me mention the term "Boomerang Buyer" in a few of my posts before.  This is a classification of potential Home Buyer that is contacting me more and more often for info, as of late.  As the housing downturn gets further and further in our rearview mirror, I believe that will happen even more often in the future.     Because of the financial and real estate scenarios that gave birth to the "Boomerang Buyer" moniker, many of the questions I receive today surround the topic of Short Sales ... and their effect on Credit Scores.  That certainly was the case with one couple that I spoke to a short time ago.     As this couple was marrying soon, they also wanted to know how one future ...
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