With Golf and Mortgages: It's Important to Know the Rules

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
http://actvra.in/54gk

With Golf and Mortgages:

It's Important to Know the Rules


There are a LOT of rules in golf ...  

That fact has drawn increasing attention as of late.  But truth is, golf rules have always provided controversy and remained in the forefront of gold tournaments over the years.  Just ask these pros: 

 
LPGA star Lexi Thompson, PGA players Craig Stadler and Paul Azinger, golf mega-star Tiger Woods, and more.  Not knowing ... or being unaware of a rule ... cost them strokes during important golf rounds and ultimately a win (and money) on the tour. 
 
Strong parallels between the importance of the rules in golf and mortgage lending can be made.  Be unaware or not know the rules of mortgage lending?  It can possibly cost you ... in time, money, and opportunity to attain success.  
 
Just as in golf, the rules of mortgage lending are important.  They are intended to ensure all play by the same rules.  The "rules" demand that Lenders ... and the entities that insure loans ... approve borrowers that are "qualified" to borrow money and have the ability to repay the loan in full, no matter race, sex, familial status, location of property (redlining), and more.
 
The Mortgage Pre-Approval is another good example of a "rule" existing in the modern mortgage process.  While the act of being pre-approved was suggested by agents years ago, it has now become almost a necessity.  While some agents may show a property to a potential Home Buyer that has not pursued Mortgage Pre-Approval, it's become increasingly rare. 
 
So how and why did this "rule" come about?  
 
The process of obtaining a Mortgage Pre-Approval likely started with Home Buyers needing to prove an "edge" over their buying competition in a highly competitive housing market ...
 
When a Buyer proves they can successfully complete their home financing to buy, they are viewed more favorably by Sellers.  It's easy to understand why most Sellers (and their agents) stick to this "rule" regarding Mortgage Pre-Approvals and entertain offers from pre-approved Buyers only.
 
Do otherwise?  They risk a possible loss of valuable time and money.  And disappointment.
 
The backbone of any Mortgage Pre-Approval is the potential Borrower's Credit Report.  In order for me to order a tri-merge Credit Report, I, as your Lender, need the following basic info from each Borrower to be placed on the Mortgage:
 
  • Full Name(s)
  • Address(es):  2 years required*
  • Social Security Number(s)
  • Date(s) of Birth
  • Permission to run the Credit Report(s)

     * If you haven't resided at your current address for two (2) years:  Info regarding your previous address(es) is required.  

     If currently renting, sometimes, the following is needed:  The name, address, and telephone number(s) of Landlord or letter from Landlord stating the amount of Monthly Rent and the Statement "Paid as Agreed for past 12 Months". 

 

What does the all-important Credit Report disclose to your Lender?

 
It provides your Credit Scores from each of the 3 main credit bureaus: EquifaxTransUnion, and Experian.  The middle Credit Score received is the score that Lenders utilize during your Pre-Approval.  
 
Here's an example of that "rule" ...
 
Credit Bureau 1:  723 Score
Credit Bureau 2:  735 Score
Credit Bureau 3:  741 Score
The score the Lender uses is:  735
 
Why are Credit Scores so important to Lenders?
 
Most mortgage loan programs/loan types have minimum Credit Score requirements.  Some loans are simply not available to Borrowers with lower Credit Scores ... or those that don't meet minimum loan requirements.
 
"Rules" regarding Credit Scores are clear.  The lower your Credit Score, the lower your chance of securing a Loan Approval.  Likewise, lower Credit Scores typically mean higher Interest Rates, increased financing costs, or both.  The higher your Credit Scores, the lower the Interest Rate earned for financing. 
 Future Pro - Marilyn Mundt! 
Once it's determined that you are credit eligible, you will be asked for more detailed information regarding:
 
  • Employment - Employment History
  • Current Employer
  • Length of Employment
  • Income
  • HOW you are paid (Salary, Hourly, Commission Bonus, Overtime, Social Security, Pension, Investment - if retired or disabled)

 

Those items or documentation that will verify income will be required at this time too.  Those include:

  • W-2's
  • 1099's
  • Tax Returns (Last 2 years)
  • PayStubs (Last 30 days, consecutive)
  • Court Orders for Support or Alimony  
 
You then move on to the topic of Down Payment Funds.  Be prepared to answer the following questions:
 
  • What Down Payment Funds do you have available, if any?
  • Are Gift Funds being provided to you?  If so, by whom?  And how much?
  • Are your eligible for VA Home Buying Benefits?  

    Note:  Should you wish to flex your VA Home Buying Benefits, you will be required to supply the following documentation in addition to all the basic info:   

  • Copy of your original Certificate of Eligibility
  • Copy of DD-214
 
Most Buyers are typically asked for the following: 
 
  • A copy of your Driver's License of State ID Card
  • A signed copy of the Real Estate Contract on the home being purchased, plus any Riders
  • Names & Contact Information for your Attorney
  • Name and Contact Information for your Insurance Agent 

 

Where/When applicable, you may be asked for the following:

 

  • All pages of your Recorded Divorce Decree(s) or Separation Agreement(s)
  • 12 Month Court Printout of Child Support received
  • Bankruptcy Papers:  Recorded Bankruptcy Discharge, plus the Schedule of Creditors
  • Collection Documentation:  Filed & Stamped Release of any Judgment, plus explanations of any outstanding Collections
  • Your most recent Social Security Award Letter or Pension Award Letter

 

If you currently own Real Estate, you'll be required to provide the following info:

 

  • Mortgage Account Information
  • If applicable: Info on any Home Equity financing
  • Home Insurance Policy Info
  • Real Estate Tax Bill
  • Address and Info on additional Real Estate owned (Investment, Vacation, Second Home, Timeshares)

 

For those that are Self-Employed and seeking Pre-Approval or Mortgage Application, the following documentation is typically required:

 

  • The last 2 years of filed Year-to-Date Profit and Loss Statement
  • 2 years of complete Tax Returns
 
If you hope to be Pre-Approved and apply for a Mortgage, you can pretty much count on all the above questions and requirements being in play.  Those are the "rules" with financing currently.  
 
Yes, you're right ...  
 
There are lots of "rules" involved in the current mortgage process.  But as a I pointed out above, a knowledge of the rules beforehand helps immensely.
 
So, if you have questions (and you should have many), ask them.  The sooner the better.  Want to know more about the mortgage process?  Reach out to me.  Hope to be Pre-Approved or apply for a Mortgage in New Lenox?  Will County?  Elsewhere in the Chicagoland area?  Contact me.  
 
Know the "rules" regarding mortgages ahead of time.  Be aware of what info and documentation you'll be asked to produce during your Pre-Approval or Mortgage Application (and gather it pro-actively).
 
It helps you elevate your financing "game".  Helps you avoid the "traps" and "water hazards" some find during their mortgage process.  And it will make you a winner ...
 
 
 Contact Gene Mundt to Find Out More
*  Hoping to be Pre-Approved ... or to buy or refinance a home in New Lenox or elsewhere in the greater Chicagoland agrea?  Contact me!  I'll put my 40+ years of mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
 
Gene Mundt
Mortgage Originator  -  NMLS #216987  -  IL Lic. 031.0006220  -  WI License 216987 
 
American Portfolio Mortgage Corp.
 
nmls #175656
 
 
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
 
 

 

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                   IL Lic. #0006220  -  WI License                                                                                                     

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

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Re-Blogged 7 times:

Re-Blogged By Re-Blogged At
  1. Jeff Dowler 04/28/2017 03:54 PM
  2. Gita Bantwal 04/28/2017 05:06 PM
  3. Roy Kelley 06/04/2017 01:00 AM
  4. Tony and Suzanne Marriott, Associate Brokers 04/29/2017 04:32 AM
  5. Debbie Reynolds 05/03/2017 12:00 PM
  6. Gabe Sanders 05/08/2017 11:50 PM
  7. Nick & Trudy Vandekar, 610-203-4543 05/10/2017 06:26 AM
Topic:
Lending / Financial
Location:
Illinois Will County New Lenox
Groups:
Mortgages
Chicago Area Real Estate BUZZ!
First Time Homebuyer
Buyer Information - What Buyers Need to Know in Today's Market
Bananatude
Tags:
mortgages
mortgage process
mortgage rules
golf rules
documentation needed for mortgage ap
mortgage process rules
educating borrowers for mortgage financing

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Rainmaker
936,849
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

I knew there were rules for mortgages, but there are rules in golf? Haha

Apr 29, 2017 03:39 AM #9
Rainmaker
334,405
Scott Seaton Jr. Bourbonnais Kankakee IL Home Inspector
SLS Home Inspections-Bradley Bourbonnais Kankakee Manteno - Bourbonnais, IL
The Home Inspector With a Heart!

Golf rules sometimes make me think...why would anyone do this? Buying a house seems much easier, especially when they use you. Have a great day Gene.

Apr 29, 2017 04:09 AM #10
Rainmaker
2,226,649
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ...the rules of mortgage lending are important.  They are intended to ensure all play by the same rules.  The "rules" demand that Lenders ... and the entities that insure loans ... approve borrowers that are "qualified"...

Right on target - and - re-blog!

Apr 29, 2017 04:32 AM #11
Rainmaker
308,203
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

Good analogy and full of good information. Thanks, Gene!

Apr 29, 2017 06:24 AM #12
Rainmaker
670,832
Hella Mitschke Rothwell
(808) 226-1095 or (831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Great information put succinctly. Something to bookmark.

Apr 29, 2017 07:16 AM #13
Rainmaker
2,100,254
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The man is at home in the loan or golf world. He can help you getting a home too

 

Apr 29, 2017 07:43 AM #14
Rainmaker
2,296,806
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

Gene,  Not knowing the rules .... "It can possibly cost you ... in time, money, and opportunity to attain success."

Unfortunatley, I've seen that happen with buyers ... what the lender did not know did cost the buyer thousands of dollars.  It is our job and our duty to know the rules.  

Apr 29, 2017 10:09 AM #15
Ambassador
3,009,899
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I don't play golf but know enough to understand that there are many rules and what-if's. It is the same with mortgages and the rules there are constantly changing.

Apr 29, 2017 05:56 PM #16
Ambassador
1,886,490
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Like Debbie Reynolds, I don't play golf either but, know that you do know your stuff, Gene! This is great information to pass along to all of our buyers - especially those first-timers who don't really have a full understanding of the process.

Have a great week, Gene!

Apr 30, 2017 08:34 PM #17
Rainmaker
3,578,225
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Gene.  Great analogy that's so true for much of life's adventures.

May 01, 2017 04:38 AM #18
Rainmaker
1,769,216
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Great analogy! Of course what do I know about golf? I dated a golfer for a very short time about a hundred years ago....he tried to teach me how to swing a club once and that was the end of that. LOL

Congrats on the feature Gene!

May 02, 2017 12:23 PM #19
Rainmaker
1,089,455
Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

Uh oh. You mean I  can't move a ball out of a divot! Another great post, Gene. I always learn so much from them. Now you need to write one on golf :)

May 03, 2017 12:45 PM #20
Ambassador
2,430,875
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Lots of information here on getting qualified to purchase a home.  The one difference with t mortgages is you don't need to worry about a third party scrutinizing a play and phoning in their thoughts.

May 03, 2017 06:52 PM #21
Rainmaker
234,568
John Wiley
Jones & Co. Realty - Cape Coral, FL
Lee County, FL Real Estate GRI, SRES,SFR,PSA

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi knows the rules of the Mortgage business.

The consumer will do well to have a lender like Gene because he knows the best way to get a mortgage for each situation.

Finding a mortgage does not go well if the consumer is not interested in knowing and following the rules.

May 04, 2017 04:43 AM #22
Rainmaker
103,993
Karen Deis
ApartmentToolKit.com - Minneapolis, MN
When In-house training is not enough!

Love your post-now if everyone who played golf followed the rules......

May 04, 2017 06:52 AM #23
Rainmaker
3,022,590
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Gene

An outstanding post on explaining  . . . . Golf . . . . Mortgages . . . . and following the rules.

Good luck and success.

Lou Ludwig

May 05, 2017 07:19 PM #24
Rainmaker
495,941
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

Great post, missed it until Gabe Sanders reposted it.

May 10, 2017 06:16 AM #25
Rainmaker
2,381,756
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

Knowing the rules is always important...AND knowing they change is important too !

May 24, 2017 01:06 AM #26
Rainmaker
627,251
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

Nice analogy Gene.    As a golfer, I get it.  Happy Sunday!

Jun 04, 2017 08:27 AM #27
Rainer
63,051
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Gene hello.

Great post.

Thank you.

Jun 04, 2017 03:05 PM #28
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Rainmaker
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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