Category: Mortgage and Financing

How to Read Your Credit Report

How to Read Your Credit Report

Do you know your current credit score? Before you even look at properties, if you are taking out a home loan, you will need to obtain a loan pre-approval. There are various factors that determine what you can afford and your credit score plays a big factor. Some buyers think they can afford more, or that their credit score is better than it is, so it is a good idea to obtain your credit score as soon as possible.

Learn more about your credit report from this Time video:

Dos and Don’ts When Applying for a Mortgage

You will have to obtain a home loan pre-approval (if you are taking out a loan) or provide proof of funds (if you are cash/not taking out a loan) in order to look at properties; however, a loan pre-approval is not always a loan approval…mainly because applicants may not always follow important steps in obtaining a loan and being qualified.

Make your loan application process go more smoothly by starting with this as a guideline, provided by Rebecca Mott and her team at Guaranteed Rate. This is just a start – talk with your lender in detail and look around to find the best lender for your needs.

Dos and Donts of Mortgage

(click image to enlarge)

Rebecca Mott
VP of Mortgage Lending/New Construction Specialist
Phone: 630.969.4607

Inventory Rises To Meet Demand For Housing

The Federal Saving Bank shares reports on how housing inventory is rising to meet demand.

According to a July 17th joint release from the U.S. Department of Housing and Urban Development and the U.S. Department of Commerce, construction increased in June 2015. The Federal Savings Bank thinks this jump in construction will also meet the rising demand for housing as first-time home buyers decide to invest in real estate.

Construction increases in June
The volume of building permits in June jumped 7.4 percent when compared to the previous month. The number of authorized privately-owned housing units was also 30 percent higher on a year-over-year basis.

In addition to building permits increasing during the month of June, the total number of housing starts rose 26.6 percent from the previous year.

The joint press release also indicated housing completions of privately-owned structures increased 22 percent when compared to June 2014.

According to The Wall Street Journal in a July 17th release titled “Apartment Demand Drives Home Construction”, multi-family housing was the primary driver of new construction. In fact, the number of new condos and apartments increased 29.4 percent in June when compared to the previous month.

Quick Tips for Getting Started on Your Home Purchase

Quick Tips for Getting Started on Your Home Purchase

1040 screenshotBuying a home can be a complex process, but it doesn’t have to be. With a little preparation, you can save a lot of time and hassle by having all of your documents ready when your mortgage professional needs them.

To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets.

In order to expedite the paperwork process, start gathering the following items:

– Most recent paystubs for one month.

– W2s from the last two years.

– Signed copies of your last two years’ tax returns, including all schedules that were filed.

– Homeowner’s insurance company name and number.

– Most recent bank statements for two months.

– Most recent statements from any retirement and investment accounts for two months.

What costs are involved?

Within 3 days of your application, your Loan Officer must provide you with a good faith estimate of closing costs. Along with any down payment, you will have to pay closing costs at your closing as well. This is a brief rundown of some of the fees that could be associated with your new mortgage:

– Application/Processing Fee – Charged by the loan officer to process your loan application.

– Appraisal Fee – Charged by the appraiser to determine the current value of the property.

– Closing Fee – Charged by the closing agency (escrow, attorney, title) to ensure the close of your transaction.

– Credit Report Fee – Charged by the credit reporting agency to provide your credit report to your loan officer and/or lender.

– Title Search/Title Insurance Fees – Charged by the title company to ensure the property is free from liens or title defects.

– Origination Fee – Paid to the originator to obtain a lower interest rate. This is usually expressed in the form of points. One point equals 1% of the loan amount.

– Discount Points – Paid to the lender to secure a lower interest rate.

– Miscellaneous Fees – VA and FHA loans may have other fees associated with them.

– Private Mortgage Insurance (PMI), document preparation, notary, recording and tax service are other fees which may fall under this category.

Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your individual goals and needs. This is brought to you by: Pamela Jackson, Mortgage Banker, PHH Home Loans
Phone: (630) 881-4378  Fax: (630) 757-6622  License:NMLS#346456

Mortgage Rates Below Four Percent

Fixed-rate mortgages fell back near yearly lows again this week, lowering borrowing costs for home buyers and refinancers. The 30-year fixed-rate mortgage averaged 3.99 percent this week, Freddie Mac reports in its weekly mortgage market survey.

“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in the video commentary embedded here.

Freddie Mac reported the following national averages with mortgage rates for the week ending Nov. 20:

  • 30-year fixed-rate mortgages averaged 3.99 percent, with an average 0.5 point, dropping from last week’s 4.01 percent average. The 30-year fixed-rate mortgage dipped to 3.97 percent in mid-October, its lowest average so far this year.
  • 15-year fixed-rate mortgages averaged 3.17 percent, with an average 0.5 point, decreasing from last week’s 3.2 percent average. A year ago, 15-year rates averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 3.01 percent, with an average 0.5 point, falling slightly from last week’s 3.02 percent average. A year ago, 5-year ARMs averaged 2.95 percent.
  • 1-year ARMs averaged 2.44 percent, with an average 0.4 point, inching up slightly from last week’s 2.43 percent average. Last year at this time, 1-year ARMs averaged 2.61 percent.

Source: Freddie Mac

Understanding Credit

Of course, credit is important. If you are looking to move, and will be taking out a loan, getting a pre-approval from a lender if the first step in the home buying/viewing process. You will need a pre-approval before you look at homes, so you know your loan amount /how much you’ve been approved for, which depends on different factors, including your credit. Here Credit Karma  debunks some common credit myths.


New Credit Scoring and Homeownership

Fair Isaac Corp., or FICO, stated that it will no longer penalize borrowers for certain debt-collection activities when calculating credit scores.

National Association of Realtors® President Steve Brown stated:

“This move will ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores. Since the housing crash, overly restrictive lending has been the greatest obstacle to homeownership.”

“NAR will continue to support efforts to broaden access to credit for qualified homebuyers.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Is it Time to Refinance Your Mortgage?

Guaranteed Rate has listed the five most important questions for you to answer as to whether refinancing is for you.

Time to refinance your mortgage


But before you refinance, there are a few important things to think about.
Research and preparation are the keys to a smooth and useful refinancing experience. Guaranteed Rate has put together this short e-book to shine some light on how you can get started now.
The Five Most Important Questions to Answer When Refinancing Your Mortgage are:
– Can you refinance your loan?
– Should you refinance?
– How do you get the best rate?
– What else can you do to lower your monthly payments when refinancing?
– What details can reveal new savings opportunities?

If you have any questions after reading this, you can call Sanette Isa-Bruton, Loan Officer ( at 708-995-3061) or one of Guaranteed Rates other Home Loan Experts at 1-866-934-7283, post your question on their Facebook page ( or tweet them @GuaranteedRate.


Home Loan in Process? Some Things to Know…


While your loan is in process there are a few housekeeping tips to remember, from Rebecca, our office PHH/Coldwell Banker Home Loans Mortgage Advisor…

1)Please do not incur any new debt while your loan is in process including increased credit card debt.

2) If you are retaining another home you will need 6 mths reserves for each retained home (these funds can be from your 401k)

3) If you are not retaining a home you will need only 2 mths reserves for conventional financing

4) Any large deposits other than your pay check into your bank account will need to be sourced and documented. Along with a letter of explanation.

5) Gift funds are acceptable as long as you have 5% of your own funds.

If you are buying new construction please send in updated bank statements each month and a updated pay stubs.

6) If there is a change in your job please notify us immediately. (we will need 30 days worth of pay stubs)

7) If you gave earnest money to the builder or agent to purchase a home, please send in the bank statement (s) showing those funds clearing your account.