Temptation at the Cash Register. Ho Ho Ho ... You Just Lost the Chance to Close Your Loan

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI

     Gene Mundt Chicago Bancorp Holiday Smart Shopping Post

    

    

     You're out doing your holiday shopping. It's 11:45 pm .. and you're in that store because they have exactly what you want and have been looking for ... at an unbelievable price, but only if purchased during the hours of 10 pm to midnight.

    

    

      Plus, in your hand you have an additional coupon that you found at an online site. The coupon will give you a whopping and additional 10% off your purchase!

    It's your turn up at the register and you're feeling like a California goldminer about to hit the motherlode. The clerk behind the register now utters words that will cause a meltdown in any frugal shopper's heart ...

     "Would you like to open up a "fill in the blank" credit card to save an additional 10% on your purchase today"?

     You can feel your heart racing. You almost feel faint. But somewhere in the back of your mind is this faint voice whispering to you. It's your damn pesky butt-inski mortgage banker's voice. And he's/she's telling you ... "Don't take out any new credit or run any more credit reports without checking with me first. It could sink your loan's approval. Hinder or stop your loan from closing".

     Oh man ... what to do? What to do? An additional 10%!

    Gene Mundt Chicago Bancorp Credit Past Due Ornament Pic

     Let's do some simple math. Let's say what you're going to buy is a fairly high ticket item like a television. It's a big one and typically well over a $1000 dollars. It's on sale for $768.00, with another $100.00 off if you purchase it during the special late-night hours.

     You've got that covered and have whittled the cost to $668.00. Your internet discount coupon takes another 10% off the price, leaving a cost of $601.20. Tack the additional credit card offer ... another 10% off ... and you're now buying the TV for $541.08! $541.08!!!

    

     You can feel the sweat pouring down your back. But you hear that obnoxious little voice again ... whispering "Don't do it"! Do Not Do It!! Seems you might need some common sense smack talk right about now.

     Do you really want to risk your beautiful home's closing ... lose the perfect home at the unbelievable price you negotiated? Do you want to throw away all the hard work and saving you have done for your home?

     Is forfeiting the unbelievable amount of paperwork and documentation you had to fork over during processing what you had in mind?

     You might be doing exactly that ... and all for a 10% off offer that equals $60.12. Is it really worth it to you?

     I am being perfectly honest when I say, "it has happened". Because clients didn't weigh they're options carefully, plan their expenditures, deny themselves, didn't believe or follow their mortgage banker's advice, or just temporarily lost sight of their goals ... the ability to close on the house they wanted and loved so much was lost. LOST!

     So think very carefully this holiday shopping season about your credit and financial decisions should you be in the process of closing on a home ... or thinking of buying a home in the near future. That small store credit card and small $60.12 in savings could mean a huge loss to you or your abilities to buy a home.

     Don't let this holiday season's temptations bite you. Remember your ultimate goal. Don't save yourself OUT of your new home ...

 

     * Work with a mortgage banker that offers you solid, sound advice based on over 35 years of successful mortgage banking experience and expertise. Contact me if you need mortgage lending advice and service. Cell: 708.921.6331. Email: gene@chicagobancorp.com. Or through my website: http://www.genemundt.com.

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

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! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

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Re-Blogged 26 times:

Re-Blogged By Re-Blogged At
  1. Deborah "Dee Dee" Garvin 11/28/2010 10:10 PM
  2. Craig Frazer 11/29/2010 03:17 AM
  3. Charita Cadenhead 11/29/2010 03:41 AM
  4. Jim Hale 11/29/2010 04:01 AM
  5. Lizette Fitzpatrick 11/29/2010 06:50 AM
  6. Terrylynn Fisher 11/29/2010 07:29 AM
  7. David O'Doherty 11/29/2010 08:44 AM
  8. Roger Johnson 11/29/2010 09:34 AM
  9. Andrea Peters 11/29/2010 09:37 AM
  10. MeLisa Minter, Realtor 11/29/2010 03:22 PM
  11. Josette Skilling 11/30/2010 01:36 AM
  12. Debbe Perry 11/30/2010 01:50 AM
  13. DeAndrea "Dee Dee" Jones 11/30/2010 02:17 AM
  14. DeAndrea "Dee Dee" Jones 11/30/2010 02:17 AM
  15. Karen Crowson 11/30/2010 02:29 AM
  16. Tony and Suzanne Marriott, Associate Brokers 11/30/2010 03:30 AM
  17. Joetta Fort 11/30/2010 03:48 AM
  18. Joetta Fort 11/30/2010 03:55 AM
  19. Renae Bolton 11/30/2010 04:46 AM
  20. Elena Roud 11/30/2010 09:40 AM
  21. Coral Gundlach 11/30/2010 12:28 PM
  22. Laura Dobbins 11/30/2010 03:36 PM
  23. Christine Smith 12/01/2010 03:06 AM
  24. Beverly of Bev & Bob Meaux 12/01/2010 01:10 PM
  25. Bob & Leilani Souza 12/05/2010 02:17 PM
  26. Lyn Sims 12/06/2010 02:56 AM
  27. Evelyn Santiago, Managing Broker Heart Realty Group, Inc. 12/06/2010 06:19 AM
  28. Rosemary Brooks 12/26/2010 08:29 AM
  29. Dagny Eason 08/01/2011 03:29 PM
Topic:
Lending / Financial
Location:
Illinois Dupage County
Groups:
Mortgages
Home & Credit Savvy
1st Time Buyers
First Time Homebuyer
Advice for Buyers
Tags:
buying a home
credit cards
common sense
holiday shopping
mortgage financing
saving money
lending advice
gene mundt chicago bancorp

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Rainmaker
638,444
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Well said Gene!  10% just sounds like a lot at the time, I'm sure, but like you said, they need to think it out and through!!!

Nov 30, 2010 03:29 PM #76
Rainer
16,482
Laura Dobbins
Blanchard and Calhoun Real Estate Co. - Evans, GA
Helping Families Make the Right Move.

Excellent post and one we can all relate too!  I'm going to contact my buyers and remind them not to go crazy during the holidays and ruin their pre-qual standing!  Thanks for the reminder!

Nov 30, 2010 03:33 PM #77
Rainer
117,648
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

I think this is going to be the first blogI repost. Very well done. Ihope you write a secondary blog explaining WHY this causes such a problem and what it means to the underwriter when he/she sees this. This is the part buyers don't connect with well to make them feel the importance of this.

Dec 01, 2010 01:08 PM #78
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

DeeDee:  I so agree ... and we're programmed to always think we need to take advantage of sales.  In this particular case though ... it's just not a good move.  Goes against the grain to think that though, I understand.  Hopefully we in the industry get the message through well ...

Laura:  Maybe the best words I've read in a comment.  The fact that you're actually taking action and also acting pre-emptively ... is just great!  Best of luck to you and your clients ...

Bev and Bob:  Thank you.  That's quite a compliment and appreciated.  I hadn't considered a follow-up, but will have to definitely give it thought now.  Stay tuned!!  Maybe pursuing the topic would serve a good purpose?   Thanks for writing ...

Gene

Dec 01, 2010 03:56 PM #79
Rainer
118,466
Noah Levy
Coldwell Banker - Highland Park, IL
Coldwell Banker Highland Park IL

Gene

Great post and a very good time of year to post ~ anytime I sell a home to a buyer I caution them to wait until they are in their new home to buy the furniture and/or the new car ~

Dec 01, 2010 10:46 PM #80
Rainer
225,639
Ed Vogt
Midwest Properties of Michigan - Grandville, MI
Grandville, MI Midwest Properties

I had a couple that went out and purchased engagement rings before closing even though I warned them not to spend any money before closing.  I guess I wasn't specific enough, since they did not purchase them outright, they bought the rings on credit.  It really almost cost the deal. 

Dec 02, 2010 06:39 AM #81
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Hi Noah:  It's good to meet another fellow-Chicagoland AR member!  I'm glad you dropped by to comment.

It sounds like you're giving the best advice possible concerning this issue.  Please ... continue doing so!  I love hearing it!  Your contributing to the message certainly makes my job much easier.  It definitely protects your clients from heartache.

Thanks again for writing.  Best wishes for a busy, prosperous, and healthy holiday season ...

Ed:  The young ones especially get caught up in the thrill and the moment, don't they?  It's so very hard to tell them NOT to ... but it's the road that they must travel to get into their new home.  Sounds like you saved their deal ... so congratulations!  Hopefully when you pass that little tale on to others, it makes a deep impression ...

Thanks for taking the time to write ... it's appreciated.

Gene  

Dec 02, 2010 07:49 AM #82
Rainer
432,134
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

What a great presentation.  I hope all the Buyers read it before it's too late!  Margaret C.

Dec 02, 2010 12:00 PM #83
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Margaret:  How kind .. thank you.  I hope the message gets through as well.  Have a great weekend ..

Gene

Dec 02, 2010 03:10 PM #84
Rainmaker
273,464
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

This is good advice Gene. I advise my clients not to buy anything until the house closes.

Dec 04, 2010 01:30 PM #85
Rainmaker
1,003,391
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Gene, I just re-blogged this timely post...it's a great "reminder" for homebuyers to keep in mind during the Christmas shopping season! :)

Leilani

Dec 05, 2010 02:20 PM #86
Rainmaker
1,431,289
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Great story on how to blow your closing over 62 bucks and a new television set!  Funny, I just went thru this on Black Friday, TV yes? TV no?  What a deal, etc.  It's still fresh in my mind.

Dec 06, 2010 02:53 AM #87
Rainmaker
308,069
Evelyn Santiago, Managing Broker Heart Realty Group, Inc.
Heart Realty Group, Inc.. - Oswego, IL
Passionate About Real Estate & Our Clients!

Gene:

If only buyer's would read this!  They don't listen - and then wonder why they lost out on the home!  Great blog and will reblog because I think its so important.

Dec 06, 2010 06:15 AM #88
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Wayne:  Great advice you are giving your customers ... and advice that will see them thru to a successful closing.  Keep handing it out ...

Leilani:  Thank you for the kindness.  I hope that this post proves beneficial to your current and future clients.  Best wishes for a happy holiday ...

Lyn:  Hard to believe that a supposed savings can actually end up costing us something more.  My sympathies that you had to suffer through this very issue ...   Hope to talk soon ... and maybe have another AR group get-together after the holidays?  Let me know your thoughts ...

Evelyn:  What you say is unfortunately true.  Sometimes they are hard of hearing.  Exactly why I posted the advice here.  I still hope that it will help someone ... someone that does listen.  The re-blog is greatly appreciated.   As I mentioned to Lyn above, I'm going to try a post-holiday AR get-together again.  Something to liven up a cold January or February evening??  Hope you're interested ...

Gene

Dec 06, 2010 01:29 PM #89
Rainmaker
215,865
Liane Thomas -Top Listing Agent
BROKER Allison James Estates & Homes BRE 01885684 - Corona, CA
Bringing you Home!

Gene,

every year I call my active buyers over Thanksgiving weekend and talk "turkey" with them. We talk about the need to avoid credit inquires and credit pulls. We talk about leaving their money in savings, rather than spending it on gifts. Keep your clients focused on their goals, and everyone wins. 

Dec 23, 2010 02:12 AM #90
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Liane:  Great idea ... I try something similar with my buyers year-round.  Reminding them as often as possible without it becoming painfully redundant.  When they follow intelligent guidance given them ... they DO win.  It's great to hear that others in the industry are taking a pro-active approach to their clients ...

Gene

Dec 23, 2010 03:08 AM #91
Ambassador
566,489
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

Tis the season for a reason!! I re-blogged this so that others will read it.  Thanks

Dec 26, 2010 08:33 AM #92
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Rosemary:  Your re-blog was a holiday gift!  Thank you .. and I hope it serves a purpose for your readers.  Have a fantastic New Year!

Gene

Dec 27, 2010 02:43 AM #93
Rainer
135,626
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

Very good post, and such an important reminder to buyers at ANY time in the year.  It's amazing how people will sacrifice the home of their dreams to save $12.00 on their Express or Limited bill by applying for a new credit card. 

Aug 02, 2011 05:25 AM #94
Rainmaker
1,172,012
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Matt:  Thanks for the thumbs-up on the blog's message!  Temptation rears its ugly head year-round .. you're so right.  Agents and lenders need to team-up and remind clients, then remind them again while in processing.  Hopefully we get good results then ...

BTW ... love the name of your realty!

Gene

Aug 02, 2011 10:23 AM #95
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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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