Illinois Home Loans - Refinance - Purchase

Turning away clients...never easy, but sometimes necessary!

Mon, 17 Nov 2008 10:36:28 -0600

The real estate market is a tougher place today. Underwriting guidelines are changing almost daily, rates are a roller coaster at times, and some buyers have listened to the doom and gloom of the media afraid to do anything in the real estate market. When I received a call from what seemed to be a very well qualified buyer interested in purchasing a couple of homes to rent out and to rehab, I was more than happy to help.

The referral came from a Realtor partner. I spoke to Mr. Smith (name changed to protect the guilty) about the first property, he wanted to make an offer. I gathered all of the information, which turned out to be his wifes information. According to Mr. Smith, his wife is a doctor for a well established clinic in an upscale area and just did not have the time to provide me with a phone call. I explained to Mr. Smith that I would prefer to speak with Mrs. Smith and in order to provide a "pre-approval" I would need supporting documentation. I do understand that at times one spouse may have more time than the other, but when speaking with one and the loan will be only under the other spouse I am uncomfortable with that.

I was referred to Mr. and Mrs. Smith's on staff full time accountant for all documentation necessary to provide a pre approval. I found this to be awkward and as difficult as getting a 2 year old to understand why they cant eat candy all day. It took almost 2 weeks to get just about everything I needed (2006/ 2007 W2's, 2 months bank statements, and other asset documentation) except the pay stubs. I spoke with the accountant on several occasions, but the last conversation with him concerned me. I asked about the copies of recent pay stubs and was asked if a copy of the check she received would be sufficient. I explained that I would need the stub as this would provide me with all the detailed information as well as year to date income, which would be necessary for underwriting at a later date anyway. Mr. Accountant informed me that Mrs. Smith is no longer a W2 employee, she is 1099. Now as a 1099 employee, she is self employed. Underwriting guidelines require 2 years self employment. Unless automated approval only requires a YTD profit and loss or 1 year current 1040's, which she would not have. After explaining this to Mr. Accountant within a day I received a call from the very busy Mrs. Smith.

Mrs. Smith wanted to check status on her pre-approval as well as tell me that they had put in an offer on another property and needed to close next week. I explained the issues with needing her pay stubs and that as her accountant told me she is now self employed. She was shocked, she does not know why her account said that, she was very sure she is still a W2 employee. I accepted that and asked that she provide me with her current pay stubs so that I could move forward with her pre approval process.

A couple of days later I received fax with 2 most recent pay stubs for Mrs. Smith. The pay stubs were created from quick books. One had a pay period date of 10/1/08 - 10/15/08, the other had a pay date of 10/16/08 - 10/18/08. The check stub was very vague, not your usual looking pay stub. Missing was some of the usual suspects, Medicare Tax and State Tax. I explained to Mrs. Smith that it looked like some of the deductions were missing from the pay stub. She was unsure why it was showing up this way, but she would see what she could do to correct this.

At this point the red flags were getting bigger and bigger. I did receive new pay stubs, with all the deductions now on the pay stubs but the dates were still unusual. I received several calls from Mr. Smith wanting to move forward. I informed my Realtor partner that I did not feel comfortable providing this information to my underwriter or providing a pre-approval for this borrower. My lively hood is and has been for almost 12 years now working with people to purchase and refinance homes. I love my work and can not and will not risk my license for something that just doesn't smell right.

Maybe I am being silly, maybe over reacting? My woman's intuition is telling me different. I have not knowingly been a part of mortgage fraud and even though as a loan officer my name is mud because of the others that have, I will continue to do what is right for me. So with all those red flags, I turned away a client.

Kim Murphy

1st Advantage Mortgage a Draper and Kramer Company

Providing Loans in Illinois for DuPage, Kane, Lake, Will and Cook Counties

Media Bullpucky

Tue, 07 Oct 2008 20:12:23 -0500

Despite what the media is saying mortgage lending has NOT come to a complete hault. There are still great loan programs available, some of which do not require a 20% down payment or equity position, and some which still allow credit scores well under 720.

-FHA Cash out refinance to 95%. Equity line closed or frozen, still need cash for home improvements or college tuition. Want to consolidate high interest car loans and credit cards, and take advantage of tax deductible interest? As long as you have owned your home for at least 12 months you may be able to do an FHA cash out refinance up to 95% of your homes current value. Credit scores accepted as low as 580.

-FHA purchase loans to 97% FHA purchase mortgages still only require a 3.5% down payment! And, the down payment $$$ can come as a gift to the borrower from a family member or can be borrowed from most approved retirement accounts. Again, credit scores as low as 580 generally get approved, but the last 12 months must be clean. Sellers can pay up to 3% for closing costs, so today's homebuyer can take advantage of the great opportunities in the marketplace for as little as 3.0% out of pocket. With FHA rates still low, it's an outstanding time to buy!

VA loans with no money down. In the industry, we have talked a lot lately about things "going back to the way they used to be" Most qualified military veterans can still get a loan up to $417,000 with no money needed for a down payment. This is an outstanding benefit for the thousands of military heroes in the country today. In fact, this is one of the very few $0 money down loan still available in today's marketplace, as it should be; a special benefit to Veteran's of military service.

-Home Equity Line of Credit (HELOC) to 95%. We do still have a HELOC program that will allow you to borrow up to 95% of the current value of your home, less the outstanding 1^stmortgage balance. HELOC's are generally tied to the Prime lending rate which is very low today at 5%!

Guidelines have certainly changed a lot in the mortgage industry the last 1-2years and are still changing by the day. Many programs are gone or down payments and credit requirements have gotten much more restrictive. But, there are still great loans available to help in reaching your financial goals and objectives.

Kim Murphy, 1st Advantage Mortgage, A Draper and Kramer Company

Loans for DuPage, Kane, Cook, Will and Lake Counties

Thank you to a young fallen soldier!

Fri, 19 Sep 2008 09:30:19 -0500

Today is a sad day for Carol Stream residents and students and staff of Bartlett High School.

An announcement was made at school today that Lenny (Leonard) Gulczynski was killed in the line of duty in Iraq. Lenny is a 2007 Graduate of Bartlett High School and joined the Army at 17. He followed in the footsteps of his father and others in his family fighting for our Country.

Bartlett High School will have their flag at half-mast in honor of this fallen soldier Friday September 19, 2007. They will also have a photo and wreath at the flagpole for any community members who would like to pay their respects, or leave memorials in honor of Lenny and his bravery.

I did not know Lenny well however, I remember when he played football with my son. Thank you Lenny for your service and fighting for our Country and our Freedom!

Added 9/19/09

Thank you to everyone who has read this post and offered their condolences and prayers for Lenny and his family. I have not heard any details of a service yet. I will post when I learn more. I am looking for anyone from the Patriot Guards and will also recruit Rescue Riders to ride with Lenny in honor of his service. Please contact me to arrange the details.

Riding, blogging and Insurance - Welcoming a newbie to AR!

Wed, 17 Sep 2008 21:59:14 -0500

Dean Akey of Akey Financial Services is an Insurance Agent in St. Charles Illinois. He provides insurance for Illinois, Wisconsin, Indiana, Iowa and Missouri. I met Dean through my husband when he joined Dean in his quest to help other bikers with Rescue Riders. We did a ride for a charity a month or so ago and I finally had the pleasure to meet Dean. As you can tell by his picture, he is not your typical looking Insurance Agent. But then again, Don't judge a book by its cover, as I explained last year.

I was first impressed by Deans size. He's a very tall man, my guess about 6 foot 6', bald and tattooed. I also discovered his passion for Rescue Riders a non for profit group he started. Dean has also raised 1,000's of dollars to help many charities. In 2008 Dean won a prestigious Award. He was awarded the Ray Lynch Award for exceptional customer service.

Dean has hit the ground running on AR with 2 blogs. His first gives you an in site on insurance, with a informative and sensible approach in You are doing it all wrong. Then he topped it with One of these things is not like the other, providing information on how to lower your current tax bill.

Please take a look at Dean's first 2 blogs and welcome him as I believe he will be a great asset to the Rain.

Protecting your credit!

Wed, 10 Sep 2008 22:54:00 -0500

In June last year I posted about protecting your credit. In light of my recent issue where an Employee at Countrywide sold my informationI will be taking my own advice. When your information has been compromised it is important to be pro active. During times when people become more desperate they stoop to desperate measures. Unfortunately fraud and identity theft is a major problem and continues to grow.

I felt it important to repost this information!

Illinois Mortgage Lender warns Protect your credit ~Part 2

Protecting yourself when falling victim to identity theft

Place a freeze on your credit with all 3 credit bureaus. To place a freeze on your credit the credit bureaus will ask for a copy of your police report must be provided to show that you are a victim of identity theft. When a freeze is placed on your credit, none of your credit information can be shared with potential creditors. You can place a freeze on your credit to also avoid identity theft, however you will have to remove the freeze to apply for credit. Placing a freeze on your credit will cost $10.00 with each credit bureau, unless you have been a victim of identity theft or over the age of 65.

The 3 major credit bureaus are:

Trans Union

To order your report call 800-916-8800 or go to the website

To report fraud call 800-680-7289

To request a security freeze:

Trans Union Security Freeze

PO Box 6790

Fullerton CA 92834

Experian

To order your report call 888-397-3742 or go to the website

To report fraud call 888-397-3742

To request a security freeze:

Experian Security Freeze

PO Box 9554

Allen TX 75013

Equifax

To order your credit report call 800-685-1111 or go to the website

To report fraud call 800-525-6285

To request a security freeze:

Equifax Security Freeze

PO Box 105788

Atlanta GA 30348

To place a security freeze each credit bureau will require a letter sent by certified mail. If you are a victim of identity theft you will have to include a copy of the police report, your full name, (including middle initial as well as Jr., Sr., II, III etc.) address, Social Security number and date of birth. You should also include information stating your addresses for the past 5 years, proof of current address, such as utility bill or phone bill, and a photocopy of a government issued identification card. (Drivers license, State ID card, or Military ID, etc.) If you are not a victim of identity theft and under the age of 65, you will also need to include a check or money order payable to the credit bureau for $10.00.

After 5 business days from receiving your letter, the credit reporting agencies will place a freeze on your credit. Ten business days from receiving your letter to place a freeze on your credit, the credit agency will send you a confirmation letter containing a PIN or password.

You can open new credit accounts if you temporarily lift the freeze on your credit. To do this you will have to contact the credit agencies, provide proper identification, your PIN or password provided by them and inform the credit agency of the period of time your credit report will be accessible. Or you may give the credit reporting agency the name of the company you want the freeze lifted for. If you are not a victim of identity theft or are under the age of 65 each time you temporarily lift the freeze the cost for each bureau is $10.00. The credit bureaus must lift the freeze no later than 3 business days from receiving your request. You can order your own credit report through each bureau while your credit report is frozen, but anyone else will receive a message or code stating that the file is frozen.

Who is using your credit?~Part 1

Kim Murphy

Providing home loans for Illinois including DuPage, Kane, Cook, Lane and Will counties for over 11 years!

Playing, working, blogging in the Rain

Wed, 10 Sep 2008 21:50:36 -0500

Playing in the rain as a child was always fun. Running and jumping in the puddles. Finding worms everywhere and bringing them home to mom. As an adult the rain has new meaning. The rain can be powerful, destructive, beautiful, refreshing and cool. After a rain you see the grass get greener, the flowers perk up, a rainbow from time to time.

I have been blogging on ActiveRain since May 2007 but paused in November 2007. I was active and addicted in the beginning, made many friends and new contacts. I received many who found me because of playing in the rain. I have closed many loans because of my playing in the rain.

As the Holidays were near and life tends to take over my last blog was November 19, 2007. But during my short time of giving my opinions, my experiences and providing information to the world wide web through Activerain, I became a staple on the first page of google and yahoo when searing for a DuPage Mortgage Lender or other similar versions.

I am #2, 3, 5 and 7 on page 1 of google!

I have recently posted 2 blogs in August but if you notice the older blogs are still showing. Google seems to like me better as I am on the first page several times, but the #1 on Yahoo.

My point being that playing in the rain is still just as much fun as it was as a kid, but realizing the power of it is tremendous. I just closed a loan on Monday from someone who found me on the Internet from blogs that were between May 2007 and November 2007. That is powerful stuff!

I am not suggesting that you should take time away because you will be on page one anyway because someone else could decide they want to play too and take your place.

I have built my business on referrals. I have made a name for myself in the mortgage industry as someone you can trust, a mortgage lender that will answer your calls and give you honest information and advice. I find blogging another way to get the information out there so that more consumers are educated. I am not an expert in any one thing when it comes to mortgages. I know mortgage very well and I know how what I am doing. I say I am not an expert only because every situation is different and programs seem to change almost daily as of late. But I know that no matter the situation I am the perfect lender to help!

So keep playing in the rain and blogging to educate and inspire!

Kim Murphy

1st Advantage Mortgage

An employee at Countrywide sold my information!

Wed, 10 Sep 2008 12:02:24 -0500

Yesterday afternoon in the mail was a letter addressed to my husband from Countrywide. The envelope stamped important information about your account. I typically just shred this because its advertisement to refinance or take a home equity loan. But I opened it this time and the letter reads:

"We are writing to inform you that we recently became aware that a Countrywide employee (now former) may have sold unauthorized personal information about you to a third party. Based on a joint investigation conducted by Countrywide and law enforcement authorities, it was determined that the customer information involved in this incident included your name, address, Social Security number, mortgage loan number, and various other loan and application information."

The letter goes on to talk about the necessary precautions that should be taken and the termination of this individual to access customer information. (I would hope so)

An offer of 2 years credit monitoring has been offered free of charge to my husband! Hold the phone, I'm on that loan too.

At the bottom of this letter is a hot line. I called the hot line number and John answers asking me my name and reference number. I tell John that I would like to discuss the fact that I am a co-borrower on this mortgage loan information that has been sold to a third party.

John takes a moment and says let me read you the script I have been given. He reads the script to me that basically says as a co-borrower on the account my information has not been compromised and therefore I have nothing to worry about. I explain to John that as a co-borrower on the account my information is included on the account. Just as if I was to default on this loan or miss a payment, they would not ignore the fact that I am on this loan and only go after my husband.

After asking to speak with a manger as I was put on hold and assured many times by John that my information is safe. A manager never made it to the phone as they were very busy with other individuals calling, probably about the same thing I called about.

Knowing that your information has been compromised is frustrating. Talking to the Company that hired an employee that compromised your information and having them read from a script as a blanket statement is even more frustrating.

Countrywide, if you are going to take responsibility for this as you should, you should also take responsibility for all parties involved not just the primary on the account.

I dont need a Realtor or your referral....

Thu, 21 Aug 2008 12:21:32 -0500

I know this subject has been covered before however I find it necessary to repeat. I find many buyers and sellers going it alone. You don't have to do it by yourself, you shouldn't fumble in the dark feeling your way through it all. The process of buying or selling a home is not as easy as we may make it look sometimes.

For sellers: Listing your home with a Realtor is a huge advantage! When you list with a professional you will have someone on your side. They will show you an accurate value of your home and list it accordingly, a professional to guide you in negotiating the contract, marketing your home, notifying other Realtors in the area about your home, holding an open house, and working with you to get it sold at a fair and accurate price. When you stick a sign in your yard and pick out a price to sell your house, do you know what the other homes in the area have sold for? Do you know if you are selling yourself short or setting yourself up for a long time waiting by listing too high?

For buyers: Did you know that working with a Realtor is not an expense to you? Working with a professional to show you homes in the area and price range you want is what they do best. When you just pick out homes on the Internet, do you know if they are listed for a fair price? How do you know if you are getting a good deal? Are you sure the area you are looking for has the best schools as you thought? Are there any special assessments that you may not know about ahead of time, will the taxes in that area be affordable?

The above just lists a few things professional Realtors do for buyers and sellers. Behind the scenes many more tasks are completed for you to have the best experience in purchasing or selling a home.

When a Realtor offers you names and phone numbers to an attorney, home inspector, mortgage lender or an insurance agent they are giving you professionals they have worked with in the past. In today's market this is more important than ever! With the real estate market changing almost daily, you want to make sure you are working with professionals that will work with you to obtain your ultimate goal of buying or selling.

The misconception of referrals is that the person referring you to another professional is that they will receive some type of commission. This is NOT true and not allowed! The reason for the referral is to work with another professional and know that the job will be done properly for YOU!

Check with friends or family to see who they are worked with, read the blogs on the Internet and get to know a professional. You will be happy you decided to not go it alone!

Kim Murphy

Providing home loans for Illinois including DuPage, Kane, Cook, Lane and Will counties for over 11 years!

Where does the time go?

Fri, 15 Aug 2008 23:36:55 -0500

The last time I blogged was November 2007. I can't believe I have been out of the rain that long. I've missed it!

Many changes have happened in the mortgage industry since November. Stated loans were still around and so were about 40 other big lenders. I feel like I'm talking about way back in the day and in reality major changes have happened in the last 9 months. I think I love the mortgage industry just as much today as the day I started 11 years ago. 1^st time Home Buyers are still my passion. Dispelling the rumors of the impossibilities of buying a home, and showing them it is possible, and still with little money down - and tax credit to boot. The rates are still GREAT and it is a great time to buy a HOME!

I started lurking in the rain again a week or so ago and noticed many changes too. Re-blogging? New Localism! Posting to an outside blog. WOW AR! Impressive. Almost 105,000 members, I think in November the number was around 70,000. I have a lot of catching up to do!

Where does the time go?

I think I know what happened...Thanksgiving, Christmas, Vacation, Spring break, Graduation,Graduation parties, Summer vacation, and then the kids are out for the summer. Keeping up with life and changes in the mortgage industry seem to have taken away from my blogging.

I see many familiar faces and look forward to learning all the new things. I really missed playing in the rain!

Still your best source for Illinois Mortgages!

Kim Murphy

Girls Only!

Mon, 19 Nov 2007 00:04:37 -0600

Growing up I was always considered more the tom boy then the girly girl. That changed for a while when I was in high school. Prior to high school, I would watch my dad work on his cars, motorcycles and fix things in the house. I was intrigued! I played football in the front yard with the boys next door, played kick the can across the street with the neighborhood kids and arm wrestled the boys, and sometimes won! During high school I became more of the girly girl. I had to if I wanted a boyfriend, I couldn't just beat them all up to make them go out with me. But then when I got older I mixed the two. I changed the oil, did the tune ups and rotated the tires on my own cars. I ride a Harley and look like a professional woman daily for work.

Working in a mostly male dominated field, it was important to me to establish myself in the "boys club" as I like to refer to it. I was the first woman in our office to make it to this "boys club". This will be my 5th year in the "boys club". The boys club consists of those that make it to the Presidents club. Each year the stakes are raised and the reward is a company trip determined by management.

As this year has been slower than those in the past few years, it was time for me to create new contacts and rekindle old ones. I have been keeping in touch with my database better, sending out newsletters, making more phone calls and networking!

DPWN (DuPage Professional Woman's Networking) is for Girls Only! Lets face it woman network differently than men. Women helping Women. DPWN was formed in 2003 and meets twice a month over lunch. DPWN was created to meet the needs of professional working mothers. Many professional working mothers are unable to commit to early morning meetings. The meetings are from 11:30am until 1:00pm, allowing enough time for building new business relationships, sharing networking opportunities, marketing ideas and generating new business through referrals. The excitement for a womens networking group has been so well received, 5 new chapters have been formed this year alone. I enjoy networking with other women in business. The Chicago Suburban News ran an article on DPWN ~~ click here to read the full story.

Girls get out there and take a stand! Let them know who you are and what you can do!

Kim Murphy

First Advantage Mortgage

"I make dreams come true without Murphy's Law"

Illinois Mortgage Lender | Serving DuPage, Kane, Lake and Cook Counties

Pictures courtesy of photobucket and DPWN

Reaching out

Sun, 18 Nov 2007 12:51:18 -0600

I have started and stopped this post, edited and re-edited more times than I care to admit. A subject near and dear to my heart but uncomfortable talking about at times. Within my circle of friends, family and colleagues it is not difficult to mention or talk about. But when it comes to talking to the community it becomes more difficult.

With the market slower, many in our industry are having a difficult time financially and emotionally. This can reek havoc on many families. Not only in our industry but throughout the country in many other industries.

The Holidays are a difficult time of year for many. Those with addictions seem to indulge even more and depression is a major concern for many. Holiday celebrations often include more drinking and then driving home or to the next celebration.

Unfortunately, I have lost friends and family to suicide and alcohol/drug related accidents.

Please reach out to someone if you or someone you know is having a difficult time during the Holiday season.

Please call a cab, friend or family member to drive you if you have been drinking. The cost of being caught or worse yet hurting or killing yourself or someone else because you didn't make that phone call is more than the financial implications.

Sometimes its difficult to make that call. Sometime you don't know who to call. If you need a ride and are in the Chicagoland area, I am willing to pick you up or get you a ride.

I challenge you to make the commitment to be a source for someone to call if they need a ride or someone to talk to.

pictures courtesy of photobucket

Murphy's Law

Sat, 17 Nov 2007 19:54:50 -0600

I have never given it much thought, but when I saw the 30 second commercial contest, I wondered what my commercial would say. Its really to bad that I cant show a video each time I need to recite my profession to make an impression. Showing all the things that could happen if you follow "Murphy's Law". So I have given it some thought and here is what I have come up with...

Kim Murphy, 1st Advantage Mortgage

working to make dreams come true

without Murphy's Law.

I know not brilliant but there it is...

Get out of my house!

Mon, 12 Nov 2007 23:34:55 -0600

About 2 weeks ago a client of mine, a first time home buyer, closed on his new home. My client is a young single Chicago Police officer. I couldn't believe he was old enough to be purchasing a home, let alone a Chicago cop! I think the older I get the younger these young men and woman look. This young man has protected different areas of the city of Chicago for the last several years, and has my respect.

Anyway....This client was a referral from a past client, and was already working with a Realtor and found a home. The seller is an older woman with medical issues and financial difficulties and unfortunately had to sell her home. She has not had the finances to keep the property in good shape and it was in need of some work and TLC. My buyer knew the listing price was a good price and put in an offer. The Realtor he is working with is also the listing agent. Normally this does not bother me, but I have never worked with this Realtor, so I wasn't sure what to expect. During application, I talk to him about his attorney. He did not have one yet, so I referred him to a few attorneys I have worked with. A few days later my client tells me that he found out that they sellers attorney is a former Chicago Police Officer and he is just going to use the same attorney. Again, normally this does not bother me either, when I know the attorney. I explained to my client that using his "own" attorney may be in his best interest. He declined.

I attend about 90% of my closings, however I could not attend this one. The closing date had been scheduled for a different date then originally agreed upon and I had already scheduled another appointment. I told my client that I would be available via phone should any questions or concerns arise.

When closing in Illinois it is very typical for the buyer to obtain possession on the day of closing, but this client had agreed to allow the seller 2 weeks to get her things together and take possession then. My client knew that he was getting a good deal on the home and felt that allowing the 2 weeks was fair. Apparently, he also allowed this without a rent back. My client called me on Sunday afternoon, telling me he was having a hard time with the seller. She finally returned his calls after several days of leaving messages, and told him, she would not be ready to move. I asked my client what the attorney drew up at closing for the agreed move out date. He read the agreement to me. Basically, it protected the seller and not the buyer. It did not have a move out date. My client has been more than agreeable, has trucks ordered for his move, help arriving, and a lease expiring.

Its important to use your own attorney when closing on your home. Your attorney will have your best interest, will fight for your rights, and protect you. Using an attorney that is working both sides can make it difficult as learned the hard way by my first time home buyer. Using an attorney, Realtor, loan officer, home inspector that has been referred to you by someone you know is your best bet.

Have you had a seller refuse to move, I'd like to hear your story!

**** Updated 10/13/07**** I received a message from my client. He went to his new home with a loaded truck and friends to help move him. The seller hired movers and was out just as he was pulling up. All is well that ends well!

I've been spotted in the Rain

Mon, 22 Oct 2007 20:25:01 -0500

In May of this year I found Active Rain and found an amazing community of Real Estate Professionals at many different levels. Often I would read about sharing this community with others. I understood the idea of sharing AR with those in the Real Estate Profession but not other Mortgage Lenders in my area. I didn't want them to know how powerful blogging on AR could be. I didn't want them to gain Google rankings higher than mine. I have had many clients new and old find me when searching the Internet for various things. Google juice is weird that way. I know the power of Google juice.

One day last week, a co worker called me and asked how I was able to be number 1-3 and 5 on a Google search he had done. I had to fess up, I have been spotted. Apparently, he was doing a search for mortgage lender in Lombard, and there I was. He was actually looking to see where he was in the rankings with his own personal web site. He wasn't on the first page and he pays for his web site. So I am now sharing the wealth. They say give and you shall receive.

In any case, I would like you to please give Keith Hoffman a very warm AR Welcome. Keith is a partner at 1st Advantage Mortgage and a friend. He is already an addict and is now saying very nasty things to me after getting him addicted. Please visit his blog and welcome him. You can visit his introduction blog here

Since I am only 40,000 points ahead of Keith I guess I better get off my hiatus from AR and get back to blogging.

What was I thinking?

Mon, 17 Sep 2007 16:46:22 -0500

I am a mother who is always warning my children (as most mothers do) about the dangers of things. Don't get in the car with a stranger, don't help find a lost pet, don't take candy from strangers, and don't let someone in the house you don't know the list goes on and on!

Well, Sunday afternoon, my husband and I were sitting in the front room just talking away and someone knocks at the door. I answer it and its a nicely groomed young man with a big personality. He is a neighbor (not so sure now) and most of my neighbors have helped him with this contest. He was selling magazine subscriptions, and looking forward to earning his trip to be a host on Sports Channel. I'm telling you this kid was a great salesman. I typically politely say, "No thank you" and that is the end of it. But I took a look at his list of magazines, and wouldn't you know it, if there wasn't any I was interested in, they would be willing to send a subscription of my choice to a local hospital. Who wouldn't want to help out those in the hospital? I guess at this point SUCKER was written all over my forehead. He asked to come in to write down the information, of course, he seemed like a nice guy and my husband was home, what could he possibly do?

Well this young man with a big personality was just joking and talking up a storm. Petting the cats, talking about how his parents say he should find out what people do for a living to become more rounded. Well, I order a 2 year subscription to a magazine.

Shortly after he left my husband and my daughter, who was in the other room at the time, asked me what I was thinking? Hello... you couldn't have stopped me before he left with my check? Immediately I got a pit in my stomach. I have taken the CPA (Citizens Police Academy) I know he should have had a permit a badge or something to show he is registered with the village of Carol Stream. I walked outside with my husband to see where he was off to, thinking that now I should contact the police. He was gone, disappeared into thin air. I got in my car and drove up and down the street, he was still no where to be found.

Now all kinds of thoughts are going through my head, check washing, identity theft, stalking, scam. OK maybe I am going overboard, but I believe I have been taken. The amount of money wasn't much, but he sure was good at getting all kinds of information from us with his winning personality.

Today I looked over the receipt, the one I had to ask for otherwise I don't think I would have gotten one, and there is NO phone number! On the back a disclaimer about cancellation within 3 business days. I decided I would look up the website that was on the receipt with the BBB. Wouldn't you know it, "Based on BBB files, this company has an unsatisfactory record with the Bureau due to unresolved complaints."

So now I go to the website to see what else I can find out. There really isn't much information there either, however the guy that was at my house was pictured with many others. All of these "sales people" couldn't have been more than 19 years old. I'm now feeling bad for these kids, what have they gotten themselves into? I find the contact us link and there is only a form to complete and they will get back to me via email within 24 hours. I don't want to wait 24 hours. I find a phone number on the BBB's site and call it. Its a cell phone number, with a voice mail that has not been set up. Now I know I should have said No thank you! I fill out their form and tell them my frustrations with contacting them, and that I will be stopping payment on my check.

Stopping payment on a check $32.00

Lesson learned PRICELESS!

Listen to what you tell your children, it is meant for the adults too. There is a reason why we tell our children these things. There is a sucker born everyday, and I guess Sunday was my day!

Have you done something and later you realize wasn't such a good idea?

Illinois Homeownership| GI Loan for Veterans and Active Service Personnel

Sat, 15 Sep 2007 20:23:29 -0500

In my opinion anyone who serves our country is a Hero. Illinois has created a program for these Heroes.

GI Loans for Heroes is available to Veterans and Active Service Personnel

GI Loan Highlights:

Minimum down payment is $1,000.00. The down payment must be from the buyers personal funds.
Income and Purchase price limits apply
No buy downs
Private Mortgage Insurance (PMI) may be required
For the purchase of a primary residence 1-2 unit
Can not be used more than once
1^stMortgage with IHDA (Illinois Housing Development Authority) mortgage interest rate
2^nd Mortgage loan will be at 0% for a 30 year term up to $40,000.00
Closing cost assistance available up to $2,500.00
Homeownership counseling is mandatory. IHDA will reimburse the cost of counseling up to $350.00
Origination funding fee is 1.5%. Loans less than $58,000.99 IHDA will pay $875.00
No cash back at closing

This program is only for the purchase of a home, can not be used to refinance a currently owned property. You do not have to be a first time homebuyer to qualify for this program.

All participant of the program, including others listed on the mortgage are subject to credit review.

If you are a Veteran or Active Duty looking to purchase a home in Illinois, the Illinois Homeownership Program for Veterans and Active Service Personnel may be for you. This program is sponsored by the Illinois Housing Development Authority.

For more information or to see if you qualify contact your IHDA approved lender.

Mortgage Loans| Know the Lingo

Sat, 15 Sep 2007 07:33:54 -0500

Knowing what your Mortgage Professionalis talking about is important when obtaining a mortgage. There are acronyms and words that are spoken regularly that just make you say HUH?! I remember my daughter asking me a couple of years ago what a ARM had to do with a mortgage, and why I was talking about other peoples ARM's. Most clients are already familiar with the term however are not always sure how it works. Below is a list of some common words used in mortgage lending.

APR - Annual Percentage Rate is listed on the Truth-In-Lending statement. The APR refers to the total cost of the loan.

ARM- Adjustable Rate Mortgage is a loan with a rate that will adjust after the original term. For instance a 5 year ARM will have the same rate for the first 5 years and adjust yearly thereafter

Balloon - A Balloon Mortgage is due in a lump sum at the end of the term. A 5 year balloon mortgage will be due in full after 60 months. Some lenders will allow you to lock the balance of your loan for the remainder of the term.

Buydown - Money paid by buyer, seller, lender etc to lower the rate or monthly mortgage payment for a couple of years or the entire term of the loan.

Escrow Account - An escrow account is set up with your mortgage so that when your payments are made monthly a portion of the payment is applied to an account that will pay your taxes and insurance when they come due.

Good Faith Estimate (GFE)- Provided by the lender to itemize all costs related to the purchase or refinance of a home.

Mortgage Commitment - Agreed upon date on the purchase contract for a buyer to obtain their mortgage financing.

Negative Amortization - A loan where the monthly payment is not full principal and interest payments causing the outstanding principal balance to increase.

PITI - An acronym for Principal, Interest, Taxes and Insurance.

Settlement Statement - Also referred to as the HUD-1. A form used to itemize buyer and seller charges, fees, escrows, credits, etc at closing.

Truth-In-Lending (TIL) - Federal law requires lenders to disclose the terms and conditions of the mortgage. The truth in lending includes the APR.

PMI - (Private Mortgage Insurance). PMI is required when putting less than 20% down on the purchase of a home or having less than 20% equity when refinancing when 1 loan is obtained. PMI can be paid upfront in one lump sum, monthly, or by the lender resulting in a slight increase in rate. PMI is to protect the lender against losses caused by mortgage default

Points - Points are paid for different reasons. Origination points are paid as a fee by the lender to obtain the loan. Discount points are paid to buy down the rate.

Pre Payment Penalty- Pre Payment Penalties are paid when you sell or refinance your home prior to the expiration of the term of the pre payment penalty of your loan. Not all loans have pre payment penalties.

When working with a Mortgage Professional it is important to ask questions and understand terms. Knowledge is power and without it you could end up with something you didn't bargain for.

Kim Murphy - 1st Advantage Mortgage

Providing Home loans for over 10 years

Do you want to close, or tell you what you want to hear?

Fri, 14 Sep 2007 21:37:59 -0500

When shopping around for a mortgage rate and program, if it sounds too good to be true it probably is. Just like anything else. By fault I analysis everything. When I have a client that is looking to refinance or purchase a home, with an unusual situation I will try to come up with every possible situation or problem that could occur.

I don't have a problem with a client shopping me with another company, but sometimes I find that they return with off the wall information. Sometimes programs that no longer exist are offered by other lenders, or rates that are untouchable by any lender. This usually ends up as the bait and switch. Nothing fries my rear end more than the bait and switch.

For instance: A client is looking to purchase a home with very little money down, and this client is self employed. He is looking for a stated income mortgagewith credit scores at about 680. After talking with a couple of other mortgage lenders, my client is offered the possibility of purchasing the home with no money down. 100% financing as a stated 30 year fixed, with 6% credit from the seller. This program left with the sub-prime melt down! When the stuff hit the fan 100% stated programs went with it. I assured my client that this was not an option, but when you hear what you want to hear, you go for that gold!

Its like going to the doctor you have had for many years, he tells you you have cancer. You go for a second opinion, that doctor tells you that you do NOT have cancer and you will be fine. The third opinion gives you the same news as the first doctor, but you choose to believe doctor number 2 because that is what you wanted to hear.

When you decide to go for the option that seems too good to be true, you need to hold on tight, the ride will be bumpy. And in the end the roller-coaster ride may not be worth it.

Working with a trusted Mortgage Professional is important today with all the changes in loan programs. Today you have to provide more documentation, have better credit scores, have some money to put down. Long gone are the days of fogging the mirror to obtain a loan.

This is not to say that 100% programs are not available, they are under certain circumstances and criteria.

In the end, my client did meet with the lender offering 100% financing for a purchase on a stated income loan with a 6% seller credit. I received a call later that day, that lender couldn't offer it either. I'm just glad he was told before they got started instead of just prior to closing. But just getting him in the door seemed to be the objective, hoping he'd stay.

It may not be what you want to hear, but it will be what is available for you!

Kim Murphy| 1st Advantage Mortgage

Providing Home loans for over 10 years

What's with the attitude?

Wed, 12 Sep 2007 23:26:47 -0500

Being in the "sales" field I learned a long time ago, treat people as you would want to be treated.

I have had clients with credit that is less than stellar and worked with them as if they were clients with A+ credit. Clients facing divorce, foreclosure, bankruptcy, getting married, buying for the first time, buying for the 5th time. Refinancing to lower their interest rate, pay off debt, or obtain a home equity loan for emergency. No matter what the situation they all have been treated and respected with the same fairness. I don't think I am any better than the client with the low credit scores nor do I think I am any less than the couple with the stellar credit, or the clients driving a Ferrari or riding a bicycle.

Over the labor day weekend, my husband and I found ourselves in a pickle! We were pulled over on our way home from Wisconsin Dells on our motorcycles. We were cruising along at 62 mph on a 65 mph highway. Cars and trucks flying past us at 75 -80 mph. In the middle of the 4 lane highway is a state trooper taking radar facing us as we cruise by. Neither one of us think anything about it, were not speeding, we are in the "slow" lane and minding our own business. About 5 miles later down the road, Mr. Friendly State trooper with an EGO two times bigger than himself, blares his siren behind us. We pull over to the side of the road, cars and trucks still whizzing by. Mr. State trooper manages to maneuver himself and his big badge out of the squad car.

Long and short of it is we were not pulled over for speeding, as you would think, as he was taking radar. We were pulled over because we have loud pipes on our motorcycles. ARE YOU KIDDING ME? Could you say that again Mr. State trooper, I can't hear you over the trucks that are flying by us as we stand on the side of a 65 mph road. The entire time Mr. State trooper spoke to us in his condescending tone and managed to contain his smirk, he assured us he was not out to pick on Harley's. He did however need to put a stop to the loud motorcycles due to the fact that he has had a blown ear drum, and the "little old ladies" on his block are constantly complaining about the loud motorcycles at the stop sign. I'm sorry I must have missed the little old lady and the stop sign?! After receiving our tickets, with a price tag large enough to buy a nice new TV, we spent the next 5 minutes or so trying to get back out into speeding traffic. It's still unclear to me how my loud pipes were more dangerous than us pulling over on a 4 lane road with a speed limit of 65 mph and then trying to get back out into it?

For those of you that are going to say, well, they are illegal. I agree, there are certain standards for the decibel level, and the tickets we received are probably not arguable because of this law. In my opinion, those pipes have saved my life on more than one occasion.

My whole point here is, we felt inferior to Mr. State trooper with his obviously big badge. He was arrogant, condescending, and down right rude. I cant tell you the last time either of us had received a ticket. But I can tell you than I may not be as frustrated with this situation had we been treated with respect.

Regardless of what type of industry you work in always remember, treat people the way you would want to be treated. Everyone is someone's mother, father, sister, brother, aunt, uncle, grandparent etc. Would you want any of your family treated the way you may be treating someones else's loved one?

Kim Murphy| 1st Advantage Mortgage ~ Treating you with the respect you deserve!

Mortgages| Know what your signing!

Wed, 12 Sep 2007 22:21:17 -0500

About 2 weeks ago, I received a frantic call from my sister, who is out of state. She informed me that she had just received a bill from her insurance company for her yearly insurance premium. She contacted the insurance agent about the bill to inform him that she had escrowed for her taxes and insurance and that the bill should have been paid by her mortgage company. The agent informed her that in-fact it was NOT!

Her call started with, I'm embarrassed to tell you this and I hope your not mad. She explained the conversation she had with the insurance agent and also that she had contacted her lender to get the paperwork from her refinance several months ago.

Now, I'm sure your thinking, why did she use another lender? At the time she was going to refinance, we were not licensed in her state. She had already contacted her bank, in which she has had a long time relationship. We went over all the details, gave her all the questions to ask, and made sure that it made sense for her refinance, given the rate and closing cost options she was offered. It DID!

The Branch manager of this (large-well know BANK) came to her house for the closing, she again thought she had asked all the right questions, paid attention to all the documents she was signing and was told she would receive a copy of her paperwork within a few days. As life takes over, sometimes you forget about the paperwork. This is what happened in her case.

Now she is freaking out because in fact her taxes and insurance are NOT escrowed, her loan is a Line of Credit for a 1st mortgage, and her payment is currently I/O. WHAT?!?! I thought we talked about this, and you asked all the questions? Her reply, I know, I thought I did too!

After calling the bank where this loan originated, and after pulling a few teeth, she was told she would receive a copy of her paperwork from the closing in a few days. A week later, still no copies. Another phone call and obvious irritation from my sister and brother in law to the branch manager, the paper work will be available for pick up the next day. After receiving the paperwork, there is a PRE PAYMENT penalty! WHAT?! We talked about this!

The pre-payment penalty, thankfully is minimal so we will continue with her refinance. She will actually have approximately 100.00 less payment escrowing her taxes and insurance on a 30 year fixed rate. The loan with the bank was a 20 year loan. She is getting a lower rate, the security of a fixed rate, no pre payment penalty and taxes and insurance escrowed with her payment. She will pay approximately 120.00 a month extra towards her principal balance and have the loan paid off in about the same time had she stayed with the 20 year loan.

Understanding mortgages is not for everyone. Asking the right questions and reading all the documents can still get you into something you didn't bargain for.

Working with the right Mortgage Professional is KEY!

Know what your getting into. Get as much information as you can. Have your documentation reviewed before funding.

Kim Murphy| Providing Home loans for over 10 years!

With a little help from my friends...

Sat, 08 Sep 2007 18:40:08 -0500

I love baseball in the summer. Sitting in the stands with a baseball mitt in one hand and a handful of peanuts in the other, watching your favorite team hoping for a fly ball to come your way. Its getting closer to the end of the season and many are hoping for a Cub World Series. I know, I know its been a long time, but if your going to dream make it a good one.

The Cubs have started auditions for the biggest Cubs fan and Pete Mastro from Carol Stream and my friend Caryn's cousin auditioned. With over 2000 applicants to sing "Take me out to the ballgame" during the 7^th inning stretch, Pete made the top 10. Pete Mastro has been a Cubs fan since the 60's, and is a VERY loyal fan. As you know to be a Cub fan all these years takes patience and loyalty. He is the Cubs biggest fan in my book. Pete would make Harry Cary proud, just as Dutchie Cary is impressed in his interview. Take a look!

Regardless of your favorite team please place a vote for Pete to sing during the 7^th inning stretch on September 22, 2007. Please help make a dream come true!

Vote here ~~> Vote for Pete M

With the help of almost 47,000 friends on AR, Pete could see that dream come true! Thanks!

Picture courtesy of flick

Nope Not Interested

Thu, 06 Sep 2007 22:26:00 -0500

Active Rain is amazing in so many ways. I have learned so many things, I have met so many wonderful friendly people and have been viewed and contacted by many consumers since finding my place on the first few pages of Google and Yahoo.

What I have become since becoming a member of Active Rain is a Target! A target for those looking for new Mortgage Professionals. In the last 2 weeks, I have been bombarded a couple times a day by someone looking to interview me based on my on-line "resume". However flattering that can be, most probably feel they are the only one calling me. After call 5 or 6 it is not as flattering anymore.

Every Company has the latest and greatest. Automated underwriting, work from anywhere, in house underwriting, in house closing, licensed in every state, contracts with Real Estate offices, and best of all federally chartered to avoid the new laws effecting Mortgage Brokers.

I am stating my disclaimer for anyone else looking to pick up the phone and ask if I would like to take a look at what they have to offer.

At 1st Advantage Mortgage, I have everything I need, want and could use. I have been a Mortgage Professional with 1st Advantage Mortgage for almost 8 years. When I started it was a small company with many open desks. I have watched Paul Lueken, President of 1st Advantage Mortgage and President elect for the IAMP, take this company to a level of success and continue to grow and expand. I have watched Paul Lueken originate loans just as the loan officers he hires, and typically produce numbers that would make many envious. I work for a fair man and an honest man. There is very little turn over which says a lot for a company of this type. We have offices in several states, we are licensed in many states and continue to grow even in a slower market.

So I say this, I am NOT interested in changing companies, I am NOT interested in seeing what you have to offer, and I do not want to just do lunch to take a look. However, if you decide that you want to take a look at a company that has integrity, longevity, stability, honesty and everything else you need to be a Mortgage Professional, give me a call!

Kim Murphy

630/ 376-0527

Protecting your credit during Seperation or Divorce

Tue, 04 Sep 2007 22:14:16 -0500

Divorce is never easy, whatever the reason it's a major change in your life. Even the most amicable divorce can get messy as some point. It's important to remember to protect your credit you've worked to hard to establish.

During a separation or divorce a breakdown of communication is common. A promise once made to make payments on bills can go unfulfilled. A spiteful spouse can max out credit cards. It is important to know what bills are outstanding and what is in both names.

If you are proactive and know what is on your credit, you wont have to start over and rebuild your credit.

One of the first things to do when facing a separation or divorce is to get a copy of your credit report. The 3 major credit bureaus are Equifax, Experian and TransUnion. (You may obtain a free credit report once a year from AnnualCreditReport.com)

Once you know what is on your credit report you can create a list of all the accounts that are currently open. You will want to make note of the name of the creditor, the account number, type of account, status of the account, monthly payment and how the account is held. (joint/individual, authorized user)

Two types of accounts usually held are secured (mortgage or car loan) and unsecured (credit cards).

The secured accounts are tied to assets such as your home or cars. You can either sell them or refinance them. If you choose to refinance either the car or the home, you want to make sure you have a written agreement as to what your spouse is expecting to get from this. In other words, if you home has equity of $50,000, your spouse may be looking for half of that amount of equity to have their name removed from the home. If you chose to keep your name on the secured debt and not the one making the payments an unfulfilled promise to make the payment can leave you with damaged credit. Also, when you stay on the loan, make sure your name is also kept on the title. If you name is removed from title you will no longer have ownership in the property, but will still be responsible for the payments.

When looking to refinance your home, it is important to speak with a mortgage professional to review your current home loan, the equity available and any options available.

With unsecured debt there are several different methods you can take. If you a authorized user or signer on the account, call and have your name removed. If your spouse is a authorized user/signer on the account call and remove their name from the account. Even request a new card with a new number be sent to you. If you are a joint card holder on any accounts call and close them. If you have a balance on the accounts, you may have to ask that the account be frozen. This will prevent future charges or cash advance from being made on the accounts.

You can choose to open an account in just your name and have the balance transferred to your new account to ensure that it will get paid.

Continuing to make payments on any accounts that carry a balance is very important to preserve your credit. One 30 day late payment can drop your score dramatically. It is also important to know that a divorce decree will not matter to a creditor, secured or unsecured. If you are on the loan or credit card you will be just as responsible for the payment. If you divorce decree states that your spouse was responsible for the Discover bill and he missed several payments your credit will reflect those late payments, unless your name was removed.

Make a plan, know what you have in your name, know what bill is due when. When you have the information it is easier to protect yourself.

There is life after divorce and protecting your credit will make it just one less thing to worry about later.

Talk to a mortgage professionalto help you refinance your home or obtain a new home after seperation/divorce.

Kim Murphy - providing home loans for Illinois including DuPage, Kane, Lake and Cook Counties

Sub Prime Mortgage to FHA in 1 year

Fri, 31 Aug 2007 00:01:31 -0500

FHA as you have heard is coming back faster than ever. FHA can be helpful in many ways when purchasing or refinancing.

I am currently working with clients that bought just over 1 year ago, with another mortgage lender, and they were put into a sub prime loan with a sub prime rate. These clients at the time of their purchase did not have much of a choice after looking at their credit history. They have had 2 Chapter 13 bankruptcies that were dismissed in the last 10 years, and a Chapter 7 that was discharged almost 2 years ago.

When they came to me about refinancing I looked at the credit and knew this would not get an approval through automated underwriting with the past credit history. At 1^st Advantage Mortgage, we have a DE FHA Underwriter. (Delegated in house underwriter for FHA). I had our underwriter review the credit for a manual underwrite to see if she would give it the thumbs up. After reviewing the credit, she requested a letter of explanation as to why they had filed the 3 bankruptcies in the last 10 years before she could give it an ok.

My clients have had some very rough spots obviously. While trying to get a trucking business off the ground, the contracted with a company for their trucking needs. The company was later found to have been smuggling drugs across state lines. (My clients did not ever transport anything illegal) Their largest client was now out of business and in jail. Their business suffered and so did their bills.

Fast forward to 2006 - They purchase their home with the sub prime mortgage, with a chapter 7 just one year from discharge. Since then they have paid all their bills on time including their mortgage. Their credit scores are in the mid 600's and would like to lower their interest rate and payments.

FHA doesn't really care about your credit score, however they do care about your payment history, especially in the last 18 to 24 months. With the letter written by my client and given to my underwriter for review she gave it a thumbs up. Providing that the debt ratio was in line, they have reserves of 3 month PITI (principal, interest, taxes and insurance), and can provide all bankruptcy papers for all of the bankruptcy filings.

In the end my clients will have a ton of documentation to provide, but they will receive a much lower interest rate and save approximately $300.00 on their monthly payments.

What is sad, is prior to contacting me, they spoke with a couple other mortgage lenders and banks that did not offer FHA, and did not work to help them find an option. They were offered another sub prime loan at a rate higher than they are paying now, and a flat out denials prior to even completing a loan application.

Working with a Mortgage Professional is important. Work with someone who will work with you. If you have credit issues ask how to work past it or correct it. Ask how long before you may be able to apply for a mortgage based on your current credit history. A Mortgage Professional should be able to answer your question and point you in the right direction to home ownership.

Also take a look at

10 things you NEED to know about a refinance

10 more things you NEED to know in a refinance

Mortgages| Painting the picture

Thu, 30 Aug 2007 23:17:20 -0500

What is the underwriter looking for when they review the loan application?

The underwriter will be looking for assets such as checking, savings, 401K etc. You will also be asked to provide income documentation, recent pay check stubs, W2's (tax returns if self employed), and employment history. If there is a co - borrower for the loan they will provide the same information. Providing as much documentation makes it easier for the underwriter to see the whole picture without asking for more information.

A consistent and stable job history is important. If you have just started a new job, but have been in the same line of work for several years that is considered consistent. If you have just graduated from school and started a new job in the field you studied, providing your school transcripts will help the underwriter to understand this. If you are a seasonal worker and have gaps in employment that are normal for your field there are programs that will work for you. If you are self employed the underwriter will look for a 2 year history in income.

You asset documentation will be reviewed for an average balance. If you have a large increase in your checking or savings account in the last month or two, you will need to show documentation as to where the money came from. In some cases you may have received this money from a relative. If so, if they are "gifting" you the money, they will complete a gift form, stating this. If you liquidated a 401K or IRA, showing the paper trail is necessary.

The underwriter will also review the appraisal for the value on the home. The home should appraiser for the amount of the purchase price or more.

If you have any inaccuracies, bankruptcies or late payments on your credit report, you should provide a written explanation for these items.

Not all of these items are always required for all loan applications, it will depend on several different things. There are hundreds of loan programs available, and none are a one size fits all.

However, if you work together with your Mortgage Consultant, they will provide you with the information needed for a smooth transaction.

Paint the picture, and the underwriter will frame it!

Buying a home in Illinois| 10 things you NEED to know!