Be Prepared! Act Proactively! Gather & Retain this Documentation & Info for Future Mortgage Application
There is typically one bit of knowledge that the overwhelming majority of home buyers already know when they contact me for a mortgage ...
They know they'll need to provide "a boatload" of information and documentation to get their mortgage ball rolling.
What exactly does "a boatload" entail? Well, they're not sure about that.
And that's certainly understandable. Until you've actually gone through the process of pre-qualifying and applying for a mortgage, there's typically no exposure to or need for that having that kind of information.
The many questions and comments I received regarding my recent post about Private Mortgage Insurance prove that PMI remains a topic of real interest and concern for Borrowers and real estate professionals alike ... After reading my post, many readers raised the question, "Is there any way to avoid paying monthly Mortgage Insurance"? The short answer to that question is "yes", there is. But as typical with most things in financing these days, there are asterisks attached to that answer ... and stipulations must be met first in order to do so. … (29 comments)
The weather in Chicagoland has been especially mild as of late, so this last weekend I walked the perimeter of my home to assess what home maintenance needs to be tackled as warmer Spring weather permits. Unfortunately, I discovered that one bit of maintenance just can't wait for Spring to officially arrive ...
My garage door opener had been acting up. Sometimes going up or down, other times not. Then it went completely kaput. I had to make a repair call.
Happily, I can report the problem wasn't as bad as I feared. A fairly simple fix was all that was needed. But as a … (17 comments)
It's possible that you can now Refinance and save money on your monthly Mortgage payments through a FHA Streamline Refinance ... How do you save? Reduced FHA Mortgage Insurance Premiums: FHA recently enacted a 50 Basis Point reduction in Monthly Mortgage Insurance costs to Borrowers, resulting in most cases, a half-percent cut on Mortgage Insurance charges. (For more info regarding these changes, click HERE ). Interest Rates: FHA interest … (10 comments)
chicagoland mortgages: A Very Satisfying Mortgage Closing
- 02/09/15 05:59 AM
A Very Satisfying Mortgage Closing Some might say that I'd worked almost a lifetime to experience the Closing on a recent loan ... How's that? Take a look at the pic below. It was taken a little over 2.5 decades ago during a program presented by a class at St. John's Pre-school in Mokena.
The cute little guy on the far right wearing an elf's hat is my youngest son, John. The little cutie wearing the big red heart in the front? She's my latest successful mortgage client, Carrie. As of last … (18 comments)
Friend: Hope this finds you surviving all the snowfall we had this last week ... and you're healthy, safe, and warm ... I've included a variety of topics within the articles for this week's blast. Finances to gardening and more. All included to educate, entertain, and be helpful as we move towards Spring. Refinancing, as a result of low interest rates and recent changes regarding down payment requirements, is proving beneficial for many at this time. If you'd like to discover if refinancing could lower your monthly costs, please contact me. We'll run some numbers to see what your current … (6 comments)
There's an abundance of info available for Home Buyers looking to be Pre-Qualified and Pre-Approved for a Mortgage. And that's great ... Gaining financing info is the first step towards successful home buying ... and perhaps the most crucial.
Let's face it. The majority of home purchases today depend on it. But what are some of the things that you as a Buyer should be aware of and concerned about while your loan is being processed? How … (44 comments)
Both FHA and Fannie Mae (Conventional Loans) have recently announced upcoming changes that will kick-in on January 26, 2015 ... FHA has announced a 50 Basis Point reduction in Monthly Mortgage Insurance costs to Borrowers, resulting in most cases, a half-percent cut on MI charges. An example of cost reduction realized: A $200,000 Loan reaps an $83.33 per month savings. That reduced Mortgage Insurance payment savings gives a Borrower MORE buying power,perhaps as much as $17,000 in price and/or loan approval. It also means the Borrower realizes a reduction in their Debt-to-Income (DTI) Ratio … (16 comments)
chicagoland mortgages: Think You Can't Buy a Home in Chicagoland? 10 Facts That May Change Your Mind
- 11/06/14 04:34 AM
Think You Can't Buy a Home in Chicagoland? 10 Facts That May Change Your Mind I've found that Home Buyers looking to be Pre-Qualified for a home loan purchase are sometimes quite surprised by their ability to successfully get a Loan Approval without having PERFECT credit. To add to that (pleasant) surprise, they also find that they can obtain a Mortgage with just 3.5% down payment for a FHA loan, or even no (0%) down payment as a Veteran (VA Loan). In certain rural areas, USDA-Rural Development Loans are also available with no down (0%) payment requirements. … (13 comments)
chicagoland mortgages: A Recipe for Disaster: Entering your Mortgage Transaction "Flying by the Seat of your Pants"
- 02/10/14 11:31 PM
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 … (14 comments)
chicagoland mortgages: When Should a Will County - Chicagoland Home Buyer First Seek Financing Guidance?
- 10/22/13 07:41 AM
When Should a Will County - Chicagoland Home Buyer First Seek Financing Guidance? As a Mortgage Lender, I recommend that potential Home Buyers contact me up to one year in advance of their purchase. That is especially true when that Home Buyer is a First-Time Home Buyer. And here's why ... I recently had a young newly-engaged couple contact me for Mortgage financing. They were hopeful First-Time Home Buyers wanting to learn how well they were currently positioned to buy a home. They also wanted to know more about their Mortgage financing options and … (22 comments)
chicagoland mortgages: The Modern Chicagoland Real Estate Transaction & Mortgage Process: A Cast of Thousands
- 09/23/13 03:56 AM
The Modern Chicagoland Real Estate Transaction & Mortgage Process: A Cast of Thousands Hollywood is known for promoting its epic movies as having "a cast of thousands". "Ben Hur", "The Ten Commandments", "Dances with Wolves", "Cleopatra" ... all are great examples of mega-movies that had large numbers of cast members and extras within them. Well, Hollywood has nothing on the modern Home Buying transaction and Mortgage Process when it comes to the number of players involved in its "productions". Stop to think of the many people or "cast members" now involved in Real Estate transactions … (25 comments)
My Dad was raised during the Great Depression. An excellent mathematician, he became an Accountant for a living. Both because of his experiences while growing-up and I believe because of his own nature, he was a frugal man. Now that's not to say that Dad wouldn't buy anything. There's a difference between frugal and cheap. When something had value or he thought it would grow in value, he'd buy or invest. When the time came that I expressed an interest in … (10 comments)
Back in January of this year, a report from Standard and Poor's/Case-Shiller showed that Chicago and the Chicagoland Suburbs housing market was "lagging behind" other U.S. metropolitan cities as it related to the housing recovery. And through my contact with other real estate and mortgage professionals outside of our area, I certainly agreed with that assessment at that time. Although our Chicago and Chicagoland housing market did seem healthier to me at that point than it had previously, I didn't sense that I was seeing … (14 comments)
chicagoland mortgages: FHA Appraisal Changes Coming January 2nd, 2012
- 12/20/11 09:52 AM
FHA Appraisal Changes Coming January 2nd, 2012 Following Fannie and Freddie's lead taken this last Fall, (September 2011), as of January 2, 2012, FHA (Federal Housing Administration) will be asking Appraisers to rate Condition of Property and Comparables from a pre-determined range of existing conditions. These existing conditions will be rated from 1 to 6, (1 being new construction - to 6, being in need of total rehab and unacceptable condition). The same will be true for ratings of Quality of Construction, and other identified factors. Utilization of these ratings will bring uniformity … (14 comments)
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