Gene Mundt

I recently had an associate that forwarded an article to me regarding the findings of a survey conducted with prospective first-time home buyers. Being a mortgage banker, he knew the results of such a survey would naturally be of interest to me.

The information contained within this article surprised me just a little bit, I have to admit. Maybe it's because I am employed within the real estate industry and sensitive to every move and gesture of it, but it seems to me that news, information, and opinions regarding our industry are everywhere and delivered non-stop. At times, it feels almost relentless.

Still, the findings of this survey clearly pointed out that nearly 3 out of 4 potential first-time buyers think it's difficult, if not nearly impossible, to get a loan and over 40% knew nothing of the tax credit that is available to them through November . Also, half of these first-timers thought that having "enough" money down for a purchase still meant a large percentage down payment. I found this news almost disheartening. Where is the disconnect between the barrage of information I see and hear and the real information getting out to these buyers looking to enter the real estate market for the very first time? How do I address it and act upon it?

My wife (my marketing guru) keeps telling me that I need to reach out in ways that young first-timers will see, accept, and be comfortable with. The old-fashioned way of marketing just doesn't appeal or work with many within this age-bracket. Another problem is, the media has recently had a tendency to "demonize" all of us within the mortgage industry to some extent, even if we did not write bad loans or steal millions like Bernie Madoff. The younger generation has always had a tendency to mistrust the prior generation some or at minimum think we don't know much or understand their issues. (Remember the "don't trust anyone over 30" during the 60's?) The bad press sure doesn't help.

So I ActiveRain, Facebook, Twitter, email, text message, Blackberry, and etc. with the hopes that I can reach those of a younger generation looking to gain knowledge regarding our present real estate market and securing their first home loan. I hope by approaching them utilizing the more modern methods of communication, that I can reach them more effectively, diffuse misconceptions, and help to better supply the vital information they need to move ahead with their dreams of owning a home.

For those reading this article in ActiveRain and looking to purchase a first home, pass this message on to everyone you know ... mortgages and answers do exist and down payment assistance may be available for you. Do not be deterred by stories heard about others experiences. Do not be afraid to ask as many questions as you need to or seek information that pertains to your personal financial situation through an experienced, professional mortgage banker.

Obtain facts regarding the new $8,000 tax credit, monetary gifts, FHA lending and available credit/debt solutions. Get the facts and explore all the options that exist for you. Do not become a survey statistic, one that did not act because they carried misconceptions or were uninformed about their chances at purchasing their first home. The market is too advantageous for you to miss out on the opportunities that exist.

Please contact me or your local mortgage professional for all the information and assistance you need. You will be glad that you did.

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp

The state of the nation's economy and current housing market is creating quite differing financial scenarios for some americans. While many are suffering hardships or battling through mortgage mayhem, the very same issues they are facing are causing quite the opposite effect for others and opening up avenues of opportunity.

Most areas of our country have seen prices of homes and property drop or level-off. Although admittedly harder to obtain than in the past because of the financial credit crisis and more stringent guidelines, mortgages are available for those that have a reasonable amount of debt, have good credit scores, and are and have been employed for a set period of time. Especially for first-time buyers, incentives and programs exist that will greatly assist in purchasing a home.

Misconceptions abound pertaining to current financing. I want to address these misconceptions and name the mistakes I most commonly hear and see first-time buyers make. I hope by tackling these issues, that home buying novice is saved aggrevation, time, and money.

Maybe the most important point I wish to make to first-time buyers is this ... if you are thinking of buying now or in the future ... seek advice from a professional mortgage banker. They will work hand-in-hand with you to establish credit if you have no documented credit history. They will also help you get your credit back on track if poor credit scores are presently involved. If you don't know what your credit score is, they can assist you by running a credit report. I, and many others, offer this service free of charge. Having a plan for the future and getting started towards implementation is much easier to accomplish with professional guidance and assistance.

If you just graduated from college, you have college bills, your job history is short, or you think your salary isn't enough to qualify for a loan do not let it deter you from contacting your professional lender and starting the process. A qualified lender can recommend actions, options, and/or programs that may help in the future, will move you closer to buying, or actually get you in a home now. Again, working with a professional lender is key. Together you can discover what options are presently available to you or if you'd be better served by taking a more long-term approach.

"I need to have 20% down on my property", is a sentiment still commonly expressed. The assumption that you need a large down payment is wrong! The fact is ... most americans cannot save fast enough to keep up with inflation, even now. It's also a fact that historically, buying a home has been a beneficial investment. Recently, many counties and cities have been stepping in and assisting in the local housing market by offering "stimulus packages" aimed at getting foreclosed homes off the market and into the possession of new home buyers. The federal government is also assisting through their new tax-credit plan for first-time homebuyers. The point is, that options and programs exist that can possibly help you in a purchase. But, unless you start the process, you will not ever know if you can reap the benefits from them.

Many times, first-time home buyers believe that they can save big dollars by looking at "For Sale by Owner" properties. You must remember, buyers don't pay the commission on a sale. Having an advocate and real estate professional on your side protecting your interests during showings and negotiations is a very smart step to take. Trying to deal with home owners, listing agents, lenders, attorneys, and more can actually end up costing you money and valuable time.

Searching for that perfect home all on your home can be a daunting task. Doing the preliminary fact-finding by researching newspapers, taking drives, and checking online sources can be informative, helpful, and prepare you for your upcoming home search. To go any further on your own can be extremely frustrating, costly, and tiresome because you and only you are taking on the entire process's burdens. How many of us have the time or are prepared to do the search, write a contract, secure financing, clear up details, attend the closing alone, and possibly more?

Again, I want to stress ... call your professional mortgage lender before you begin your home buying process. Avoid as many missteps and misconceptions as possible. Especially for first-time buyers, having this experienced, knowledgeable professional at their side is crucial. These professionals can assist in many critical ways and make the American Dream a reality for you.

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp

The old saying goes "a picture is worth a thousand words", and it is true. I valiantly try to keep my customers and referral partners informed and educated about industry topics and more specific points pertaining to their personal needs and recent changes that would effect them. At times though, you can see the results of information overload taking their toll. A glaze rolls over their eyes and panic can be seen creeping in. You can almost hear their minds screaming, "enough"!

But pictures ... they can provide what fleeting words can't. Concrete reminders of important information and facts that can be hung on a wall or filed conveniently in a file (either on computer or cabinet), and called up later when needed. Pictures can evoke emotion and set mood. They sear images, time, place, feelings, and importance into the viewers mind.

So, each week I create a picture or flyer for my customers or referral partners that informs or reinforces an important topic for them. I've found that this visual form of communicating ideas, views, and facts seems to increase their retention and the response I receive.

Recently I worked-up a flyer about Reverse Mortgages and the facts and misconceptions that get bandied about regarding them. The feedback I received was very positive and I was informed that my flyer/information was hanging on many cubicle walls and offices. It also got reprinted and distributed to others not usually found on my contact list. This "rippling effect" especially pleased me, as it assists more people and also spreads the word of my services.

I've attached the flyer here. I hope that it fulfills a need and answers questions regarding these mortgages. As I have stated in prior messages, I only provide FHA Reverse Mortgages because of the vast safeguards contained within them for seniors. Counseling is required prior to taking out these mortgages and measures are taken to thoroughly educate and inform the interested borrower regarding the pros and cons of the loans. That way they, and their family or counsel, feel comfortable and at peace with their financial decision before proceeding.

This flyer does not begin to answer all questions that seniors may have, but it does address some of those most commonly heard. If questions still exist, please feel free to contact me for further clarification or information.

Recently I have been working on a young couple's application for mortgage that has been less than simple and filled with roadblocks. Lower credit numbers than previously portrayed during initial conversations were the first hurdle that cropped up and caused some anxiety. Then came the choice of property. The home had some "issues" and they only made the appraisal and subsequently the lending more of a challenge. That the purchase was being arranged for and sold through a government-owned agency added to the dilemma. It was also becoming quite clear that the realtor representing the couple was inexperienced in this type of transaction. All sorts of landmines were being discovered.

Now let me be clear, in today's financing world it is not easy to say what the hard and fast rules regarding some lending programs are. Sometimes they change quickly or they are not always clearly defined. Underwriters within the same company can sometimes vary on their needs and requests. Constant vigil is demanded (and many phone calls) to stay on top of the new and changing regulations and programs and even veterans of the mortgage industry are breathless trying to keep up. So, it's easy to see why it could be confusing and very hard to stay current.

Caution should be the word for anyone writing a contract and also for lenders quoting availability of programs. Before contracts are signed and promises are made, especially in transactions involving short sales, foreclosures, government agencies and special programs, questions should be raised regarding the wording, timing, and special needs attached to lending requirements that may apply. If a dialogue between realtor, buyer, and lender takes place, many future problems may be avoided. In the case of the young couple that I am currently assisting, I had to ask for clarification on records and follow-up documentation in order to pave the road to a clear closing. All-in-all nothing huge, but aggrevating to them and sometimes hard to explain as well.

I suggest that now, while the industry is a bit wobbly and changes are coming so rapidly, that extra precautions be taken to insure as few problems and stumbling blocks as possible. Take the time to make those phone calls and seek the information you need. Open up that dialogue. Your buyers and lender involved will be most appreciative of the extra efforts made and care you exhibit. Deals that may have not closed otherwise will experience smooth sailing also!

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp

Unfortunately, even after portions of the new stimulus dollars have been dispursed, many banks are still not lending to small businesses. The infusion of the Fed's capital has not loosened the lending as we'd like.

We are now facing the reality of 5 & 7 year balloon clauses written on commercial loans in '02 through '04 having, or soon coming due, as well. Value on many properties has dropped, and the bank's are not willing to always renew those notes. If this is what you or your borrowers/owners are facing, what do you do? What options exist for them or you? The answer to the dilemma may be found within an unique lending product.

Please consider the unique asset-based loan ... money lent solely on the size and strength of publicly traded stock. Some of the benefits of an asset-based loan are:

• There is no reporting of income.
• No appraisal needs to be done.
• No underwriting is involved in these loans.

If the borrower/owner has stock of substantial value, lending can occur at interest rates of 3.5% to 6%, interest-only, up to 80% of the value of the stock. You, or an owner, can payoff the bank note held with this new loan. The stock gets pledged as the loan's collateral.

If you, or someone you represent, is facing this scenario now or in the near future, please contact me for further information. This loan may afford a great opportunity to the situation you are facing, offer a unique solution to your lending needs, and place you on the right financial path for the future.

The opportunity for lending is open for those in multiple areas, as my company and I are fully licensed and able to assist in many states across the nation. I look forward to speaking with you very soon.

Gene Mundt, Professional Mortgage Banker www.genemundt.com Chicago Bancorp