Navigating the Mortgage Maze

Sometimes what we believe is simple and obvious can turn out to be anything but!  Here you are, ready to start the process of pulling together lots of data:  documents and records of all kinds for your Mortgage loan application.  ...no worry, piece of cake!  Really? Professionals I have known over the years, almost without exception, all have stories about client documentation compilation that are pretty hard to believe – and some even funny!    One of mine involved a woman who wasn’t sure if she was really divorced!     Don’t laugh too hard -- it was just one more of the many things that her former spouse handled...and she just wasn’t sure. Getting your hands on the vital information that is critical to your Mortgage loan potential can sometimes be tricky.   Of course, there are exceptions in both directions -- those who are meticulous to a fault and have everything filed and labeled and close at hand.    Then those who insist:    “...I know I have it here... somewhere..

It is very tempting to say “independence,” but let’s be honest. We all depend at least in part on ˆsomething or someone” in our lives – regardless of stage or status!  Self-sufficiency is a bit more realistic; and, unlike independence, having the goal of a life that is relatively self-sufficient, in major aspects and function, is a goal that’s quite attainable. Setting the goal to buy a home of your own takes you a giant step toward self-sufficiency!    And, achieving that goal brings a lot of perks and privileges.  Let’s just start with all the things you can’t do while living in rental property!  That can be a pretty substantial list.   Landlords, of course, have the right to call the shots (it’s their property, after all); it amounts to living with rules and restrictions with which you might not agree!   Most of those handicaps disappear when you own your own home. The most obvious change is that you now have control of the place where you live, and how you wish to live t

When making almost any kind of a serious plan, it’s probably smart to also consider the possibility of some kind of a glitch creating some kind of an interruption!   Interruptions to a plan for purchasing your own home can come in dozens of ways, from any number of directions.   But, understanding that reality, and accepting that “possibilities” may come up, shouldn’t be a reason to worry unnecessarily or become a bundle of nervous “what ifs.” Challenges, and many perfectly normal life situations, might arise and interrupt the original rhythms and timing you have developed for your master plan.    Most such things can be managed, and need not critically damage your plan.     An interruption to how you want things to proceed will probably just mean adjustments, modification and a little finagling! What’s most important, when the unexpected happens, is to keep your sights on your plan as a whole.   For instance, an employment status might change that alters your income; a

They are definitely connected!  Understanding both – and their possible positive potential – can make measurable differences in your financial life! Having a formula, some disciplines and a plan for money to reserve may sound like an old fashioned homily, but savings don’t just happen – savings accumulate by determination and repetition.    When an unexpected “windfall” drops into your hands, it can be added to your existing reserves, or it can be a beginning to what you may have been intending but never quite got around to: some savings! Windfalls have several sources! A simple one might be an unexpected raise in pay, or an unexpected bonus!   The key determinator here is “unexpected.”   We all know how easily it can just disappear into the cash flow that’s already flowing! But, wait a minute.   Before it happened, you were probably making ends meet, one way or another, right?   Well, you now have an opportunity to treat a Windfall differently.    You can add it to exist

The decision to buy a home of your own, includes both the consideration of, the added expense of and the mandate to carry the appropriate insurance coverage for the property you are considering.  It’s a “given” that qualifying for your Mortgage Loan means your new property must be insured to protect the property you do not actually own until your Mortgage loan is fully paid. Many factors drive the amount and the kind of insurance you must carry for your specific property.   The recent factors of repeated (and repeated!) wildfires and floods have inspired many new insurance considerations and changes that directly relate to both of those “natural” disasters.    It is not that floods and fires did not exist in the past.   However, the more recent phenomenon, of wildfires originating miles away then sweeping across densely populated areas some distance from their point of origin, is seriously impacting fire insurance availability and limits.    Newer, current insurance coverage mu

Let’s face it!  We are a “credit driven” society!  So, it’s easy to see that we should take our personal credit management responsibilities very seriously.  “Credit” is a social and business system that can help and enhance our lives – or become a serious problem affecting our ability to grow and progress financially. I call that management task the process of being the steward of your personal credit system! The first two parts of this series looked at exactly what Credit is, and how it is of value in your financial aspirations; then, how to go about fixing a Credit picture that’s in trouble.   Now, I’ll discuss ways to guide and benefit from a good Credit profile. Staying on top of the status of any form of Credit that you implement is the key!   It only takes one blip to endanger your Credit condition – and, therefrom, your Credit “score.”   Just as you carefully check on the accuracy of your utilities statements, the phone bill or the tab you get at the end of a nice di

It doesn’t have to be a game changer or the spoiler to a good plan.  However, “bad Credit” has the power to possibly stall, complicate or even prevent your financial progress toward large, significant transactions such as purchasing a home.  So, it needs to be fixed!   Let’s just start there and work through the challenge. As I discussed in “Credit: Part I: The Value Of Credit” professional help and guidance can get the situation under control.   Of course, you’ll have to do the work, but the right guidance will assure that the remedial work you do is appropriate and effective. If you can come to see clearly that Credit, in good condition, is a valuable, essential, powerful factor for your financial progress, you will be able to feel better and more confident about the task of fixing the problems. So, what are the individual problems and how do you proceed? For many, a major factor can be that you are trying to function financially above the actual capacity of your

To begin with, it’s a complex term!   It means different things to different people.  It is regarded differently in different contexts.    It is often misunderstood concerning its importance in financial situations.   And, to some, it seems to run contrary to popular assumptions about whether or not it’s a good thing to have a lot of Credit and owe any money longer than thirty or sixty days! Credit is sometimes a puzzling concept to novices in major financial issues – such as applying for a large loan to buy a first house.    It doesn’t seem to make sense that having outstanding debts   (such as credit card balances) is better than working hard to pay everything off before applying for that large loan!    Haven’t most of us been taught to pay off obligations as quickly as possible because it’s not a good thing to owe money? So why does the advice to “acquire a record of outstanding Credit” seem to fly in the face of dear old Dad’s cautionary advice? Having Credit in var

For specific situations that are on our day list or in progress, most of us get the needed documentation together, distribute it where required, acquire it where entitled and move on.  But, when it comes to documentation we should have ready, in advance, for when it’s needed some time in the future – we tend to put it off, forget to update or just procrastinate.   Maybe you are one who has it all under control, but for the rest of us, here’s a nudge! To begin with, it’s not just our personal documentation obligations that are important.    When we participate in our business community, our general society, our government and our acquisitions – such as the purchase of a home -- it’s vital to be sure others provide the correct documents to us for what we buy, own and use, etc.   Some documentation is about an outreach factor on our part; and some is about the compliance of others. Many factors drive the kinds of documents we need to pull together, provide, execute, acquire, s

Let’s face it:  Buying a home in any situation is a big job!   It can be an easy big job, a tough big job and even a complicated big job.   It all depends on the circumstances; and, the circumstances in a family member to family member transaction cover a lot of details that require very careful consideration. Buying the home of a family member is a really good opportunity, and is one of those situations with a lot of new things to consider – both before and after the possible transaction.   When you are a relative of the owner, there are many advantages to buying their home. You may simply be the designated inheritor -- that’s probably the easiest path!   Or, you may be a related, named executor in a will for a family member’s property that includes their family home; and the opportunity is just right there in front of you.    You might be another relative of the deceased family member whose disposable property includes a home that you would like to purchase from the

Almost all would agree:  Structures and their surrounding property have “Personalities!”  Those personalities reflect many factors that reach all the way back to the original architects and designers, through all the owners and residents – each leaving their marks, over time.   Some perfect external examples might be how individuals groom their landscapes, or how they decorate to celebrate holidays!  Your home’s personality has been seriously influenced by weather patterns, various extraordinary occurrences, geography, and even by its neighbors!      Much of your home’s personality was intentionally bestowed – its contours, materials, paths and landscaping.   And, over time, both gracious modifications and troubling realities have left their marks. It’s important to understand the new responsibilities that are related to the overall condition of your new home.   When a homestead becomes someone’s new home, it’s important to learn that home – its realities, both wonderful an

It is so tempting to launch into the New Year with enthusiastic “resolutions” that often come to ... well, not much!   Right on the heels of “...making a list and checking it twice, gonna find out who’s been naughty or nice...” come promises, promises, promises! How about considering something new?   How about trying the softer, more manageable, more attainable path of planning, considering and intending!      Resolve is part of any sensible plan, of course, but it can sometimes feel like setting hardline goals implying daunting effort! From my perspective as a professional home mortgage loan officer, I see two very important New Year perspectives for new homeowners and wannabe homeowners!   Either scenario invites many planning and “intentions” opportunities. In one case, you may be a person who has been thinking about -- and seriously considering – starting the process toward buying a home of your own...but.    And, maybe, this New Year is the year to convert all that

It takes on a whole new meaning when “home for the holidays” means you at home in your own new home for whatever holidays you celebrate as the season sets in!  It could be your very first home, or it could be your “move up” home to accommodate a growing traditional family, a creative “expanded” family or any one of many contemporary family structures that grace a home together.  It has been an exciting year, and when you look back over what you were able to accomplish, you have a lot of reasons to be excited and even a bit self-satisfied!   You started with the decision to work hard and to realize your dream of a new home – maybe your very first own home. Your home is a gift that you give to yourself – and it’s a gift that will keep on giving!   If you are a first time homebuyer, you are at the beginning of an almost magical path.    It starts with ownership itself, and travels forward, making its own unique way, developing its own patterns, customs and traditions.   Al

Few would deny that each changing season brings certain delights and its own challenging changes.  Winter is almost in full swing, and one consistent thread comes with it: cold!   Mild or severe, the Winter temperatures swiftly drop away from the warmth of Summer and that “Indian Summer” lull of Autumn we all love.   With the arrival of the cold come Winter winds, the first frosts and blessed rain!   The fire threat recedes into memory for another year. Thank goodness!   We haul out our winter clothes, stock up on firewood or pellets and start making big pots of hot soup!   We start to notice some very, very early signs of the coming holidays – like the coffee shops offering “holiday flavors.”   Invitations to holiday inspired gatherings are popping up in emails – and snail mail; and, a lot of us are visiting our attics or storage sheds to pull out those boxes of ornaments! The onset of Winter has significant impact on everything we have going!    That most definitely could

Just the word “Thanksgiving” can conjure up much more than that holiday turkey feast -- especially if you are approaching the holidays in your own new home.  Counting the blessings that come with home ownership makes for a very long list. Ending rent payments and moving on to monthly mortgage payments that are the path to your long-term investment in yourself, is a major reason to be thankful.   Working toward your fully owned home is a goal shared by many, yet still a dream for others. Having a “home” does not always involve home ‘ownership.”   Our societal circumstances have escalated the historical condition of homelessness to huge proportions.   The result is way too many homeless citizens.   Our own Lake County microcosm of the larger circumstance challenges all of us who are more fortunate and who have at the least shelter, and at the best a home we own.     Thankfulness, then, is relevant... For far too many, actually owning a home is a dream they may never reali

Your excitement has gone from those early dreams to the reality of owning your own home.  The process was an adventure that was challenging at times, and educational throughout.  Overall, new advantages have developed and emerged that may have been quite unexpected! Your initial move of making the right “fit” by connecting with your competent, congenial and appropriate Home Mortgage Loan expert has led to a vital bonus:   the development of a “professional team” that can move forward with you well after you have received the keys to your own home. In past articles, I have mentioned the importance of having the right professionals to comprise your home acquisition team. The process that unfolds is not a “one person” situation.   The skills and expertise needed for success is actually a coalition of several experts.   In the process of acquiring your home loan, each step and stage reaches outward from your home mortgage loan agent to other relevant experts.   Each of their ro