Those folks going through the loan process today may find the process a lot more complicated than it was many years ago:
I've Applied & Successfully Closed on a Mortgage Before.
I'm Buying Again ... What Now?
In Illinois and the Chicagoland area, Spring typically signals the kick-off of a new home sale year.
New construction starts popping-up as warmer weather allows for digging and pouring of home foundations. Nicer weather also makes the viewing of existing homes an easier more comfortable pursuit.
Families with school-age children hope to move prior to a new school year starting in the Fall. The arrival of Spring acts as a motivation for many home purchases.
Spring's arrival means mortgage inquiries pick-up too. Over the last month or so, that's certainly proven true for me here in Will County and the Lincoln-Way Area of Chicagoland. Requests for Pre-Approval letters have certainly risen.
One of the most recent requests I received came from a past client of mine. They had successfully closed on a home using my services a few years back. During our phone conversation together, they shared that they had just listed their current home and had already been out looking for a new home a few times.
They wanted to know, "Could I send them a Mortgage Pre-Approval right away?" They'd seen a home they liked and wanted to make an offer immediately.
Now as their Loan Officer, I obviously want to accommodate my clients and help facilitate their new home search and financing as quickly and fluidly as possible. But upon asking a few necessary preliminary questions, I found my client was under the opinion that:
- Because they currently owned a home ... and had financed through my services previously ... that they were all set to "go" on a new home purchase too
- They assumed that they didn't need to be Pre-Approved once again to buy another home
- They thought it was "one and done". In their mind, they'd already proven they were good reliable Buyers
Unfortunately that's not true and I had to explain, this is not how it works when financing homes. Pre-Approvals ... Mortgage Approvals are like food or canned goods. They have an "expiration date" or shelf life of sorts. They are not good forever.
Fact is, EVERYONE hoping to finance a home purchase ... or the refinancing of their current home ... must start a new mortgage process.
- A Mortgage Pre-Approval process/Application (typically specific to the new property being purchased) must be started
- If a Refinance is requested, a new Pre-Approval process/Application must be started
- New, updated Financial and Credit information will be required by their Mortgage Lender
- New, updated Employment information will be required by their Lender
- Questions will need to be answered.
- Documentation will need to be updated and supplied
- A new, updated Credit Report must be ordered
No one is exempt from this required process ...
The above requirements will need to be met no matter how many properties the Buyer or person refinancing owns, has owned, or how recently they have financed previously. As life has unfolded since their previous mortgage financing took place, those "life occurrences" must now be reported, reflected, and verified for any new request for mortgage financing.
Now, that is NOT to say that there aren't advantages to utilizing the same Loan Officer or Lender's services as when financing previously. That action can prove a definite help and advantage to a Mortgage Applicant and simplify their financing process.
Why? That Loan Officer already has much of the required personal and earlier financial information needed for application in their possession and at their quick and easy disposal. As a result of having earlier and basic information on file, only new or updated information must then be shared with the Loan Officer.
Only the following new info would need to be supplied upon a new request for Pre-Approval or Mortgage Application:
- Info/ Documentation regarding current income/employment
- Info regarding balances of savings accounts, Retirement Accounts, credit accounts, etc., as nothing stays the same for long...
- Updated information on Marriage status, new Dependents, etc.
- (Additional info may be required, as well)
But again, it is mandatory that a new process or application be started. Repeat buyers ... repeat mortgage clients ... must not assume they will not have to update and supply recent information to their Loan Officer.
Because most housing markets are experiencing a severe shortage of homes available for sale ... competition is currently fierce between Buyers making offers on homes. If you're hoping to successfully buy in a highly competitive market, you must be prepared to act quickly when you find the home you wish to purchase. That means you must already have been Pre-Approved and ready to submit an offer, Pre-Approval already in hand.
For anyone thinking of selling their current home and buying again: I strongly suggest that you speak with your Loan Officer BEFORE listing your home. Gaining full knowledge of all your options, both real estate and financial, is the best thing to do before taking any action.
Should you have questions regarding mortgages or financing in New Lenox - Chicagoland - IL or WI ... or should you be in need of a referral to other real estate-related professionals in the area, please reach out. I'll be happy to assist you with your questions and needs ...
I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.I'm easily found at:Gene MundtMortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed #216987American Portfolio Mortgage Corp.nmls #175656Direct: 815.524.2280Cell or Text: 708.921.6331eFax: 815.524.2281Gene 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!
Mortgage Originator - NMLS #216987
IL Lic. #031.0006220 - WI License #216987
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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