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Tips for Making Your Home Buying Process Easier.

Buying a home is a big step for most people, which is understandable. It will likely be the largest purchase you have ever made. Because there is so much involved in purchasing a home, it makes sense to try and prepare as best you can for the experience. The better prepared you are, the smoother the process will be and the better you will be able to weather any unexpected hurdles you run into along the way.

I can tell you that when you are well prepared to buy your first home things will go a lot more smoothly! When your ducks are all lined up, you will be able to proceed with the home buying process much more confidently.

That being said here are six excellent tips for making the home buying process easier.

1. Get your finances in order

The first thing anyone buying a home needs to do is make sure that his or her finances are in order. If you are like most buyers, you will be approaching lenders for a mortgage, and you can expect those lenders to want a lot of information from you – proof that lending to you is a smart business decision.

Your mortgage, and how much you pay in interest, will hinge on your credit score. It is extremely important to boost your score as much as you can if you want to save thousands, possibly tens of thousands, of dollars on your mortgage.

You should request a credit report from the three major credit report companies to get a clear picture of your status. The Fair Credit Reporting Act (FCRA) requires that these companies give you a free report every 12 months if you request it, so if you haven’t gotten one recently, you can do so at no cost. If you have requested one within the last year, it is still worthwhile to pay the fee to get another report so you can have accurate information on your credit.

Carefully review the report and clear up any errors. If your score is fairly low, consider working on improving it if you want to get a better interest rate.

2. Get pre-approved by a lender

You need to know how much you can spend on a house before you start shopping. The best way to determine your budge is to get pre-approval from a lender. It is a good idea to shop around for your mortgage, as you may get better results from one lender than another. They will be looking at your credit and your income to determine what you can borrow.

Keep in mind that pre-approval is not full approval. If your credit status or employment status changes in a negative way between the time you are pre-approved and when you actually try and buy a house, you may not be able to get the loan on the same terms, or at all. As soon as you are pre-approved, it is advisable that you get started shopping for the home.

3. Find a great real estate agent

Look no further I  AM  YOUR REAL ESTATE AGENT!

4. Get your timing down, for when your lease will end

You don’t want to be without a place to live, so you need to buy a house and close on it before you lease ends – but hopefully not too early. There is no need to pay any more rent money than you have to. Discuss the timing of your home purchase with your real estate agent. He or she can give you a good estimate on when you should start shopping and how long you can expect to wait for the sale to finalize so you can move.

5. Target areas and neighborhoods you like

This is another area where your real estate agent can prove invaluable. A good realtor will be informed on all the neighborhoods in the area where you want to buy a home. You can explain your goals and dreams, what you want out of your new home, to your agent. Then he or she can direct you towards areas that will work with your budget and your lifestyle needs.

6. Have clear goals

Knowing what you want before you start shopping is important if you want to save time and be satisfied with your purchase. Take some time to write down all the things you want out of a home and bring this list to your agent. He or she can go over the list with you while keeping your budget in mind, and help you clarify what things are the most important.

Buying a home is often about making compromises. When you know what is most important, you can look for homes that have those qualities. Who knows, you may find one that has everything you could ask for. But if you don’t, you will at least have a home that works for you and your needs.

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Loan Types

VA Loans

VA is an acronym for Veterans Administration. As the name implies, these loans are offered to qualifying members of the military. The VA has a list of qualifications for people that either served actively in the military or in either the reserves or National Guard. Your loan officer can go over your service time and determine your eligibility.

One of the main attractions of the VA mortgage program is the zero down payment. For qualified borrowers, VA will allow a mortgage up the home’s selling price or appraised value, whichever is lower.

Another major selling point is that mortgage insurance is not allowed on VA loans. Most loan programs will charge mortgage insurance to borrowers if they pay less than 20% down at the time of purchase. However, VA has no such rule.

The VA guidelines for credit are also quite forgiving. Typically, the loan underwriter will analyze the most recent 12 months of credit history for the qualifying borrower to determine eligibility.

Please Note: The VA mortgage program is available to eligible Veterans only

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Can I Buy a House After a Chapter 7 Bankruptcy?

So I got a call – from a client of mine and the client was like, “I have filed for bankruptcy. But, do you know, how long before I can buy house? "How long is it gonna take me to buy another house?” The questions went on and on. I explained to her the process as best as I could of course always consult your attorney.

I told her rest assured, there are lots of reasons people file Chapter 7 bankruptcy, and none of them have to mean the end of the world for your future credit. Medical bills from a serious illness or surgery often financially overwhelm people and lead to bankruptcy. For some, credit card use becomes a first solution instead of a last resort. Simply put, bankruptcy results when you can't pay your bills because your debts so greatly outweigh yourincome.

I told her YOU CAN buy another home after bankruptcy. Buying a home after bankruptcy is possible… provided you meet a few conditions.

For the most part, bankruptcies are classified into one of two categories: Chapter 7, and Chapter 13. A Chapter 7 bankruptcy gets rid of all your outstanding debts, while aChapter 13 bankruptcy makes an arrangement with your lenders so that you can pay your lenders a pre-established sum over a period of time. A large portion of lenders treat both kinds of bankruptcies equally—that is, both bankruptcies require that two conditions be met:

1. A period of 2 to 4 years passes between the point where you have paid off and/or wiped out your debts, and the point where you apply for a mortgage after bankruptcy.

2. New credit must have been established.

Below are the FHA Guidelines on obtaining a loan after some serious events in your life. FHA (Federal Housing Administration) is a type of loan there are others like USDA, VA, Fannie Mae & Freddie Mac.

Here is a PDF Purchase Waiting Period BK & Forclosure on the waiting periods as listed below.

2015 FHA Guidelines

Bankruptcy – If you had a prior Chapter 7 bankruptcy, you can qualify for a FHA insured mortgage loan after a two year waiting period after your bankruptcy discharge date as long as you have not had any late payments after your bankruptcy discharge and have re-established credit.  For those who had a Chapter 13 Bankruptcy, you can qualify for a FHA insured mortgage loan one year into the Chapter 13 Bankruptcy re-payment plan with the Chapter 13 Bankruptcy Trustee approval.

Foreclosure - If you had a prior foreclosure, you can qualify for a FHA insured mortgage loan after a three year waiting period from the recorded date of the foreclosure that is reflected on the county records.

Short Sale / Deed in Lieu – FHA will treat a deed in lieu of foreclosure the same as a standard foreclosure so the three year waiting period after a deed in lieu of foreclosure will apply from the recorded date of the deed of your property that is reflected on the recorder of deeds office.

Minimum credit scores required to qualify for FHA Loan:   Minimum down payment required for a FHA Loan is 3.5% down payment.  To qualify for a 3.5% down payment, you need a credit score of 620 FICO.  If you have a credit score under 620 FICO, you need a 10% down payment.  The lowest credit score you can have to qualify for a FHA insured mortgage loan is 500 FICO.

Sheriff’s Sale:  There is a three year waiting period after the date of the sheriff’s sale of your property to qualify for a FHA Loan.

Bankruptcy Will Affect Your Credit

If you have a good credit score before filing for bankruptcy, expect it to take a big hit whether you file for Chapter 7, which wipes out your debt, or Chapter 13, which reorganizes it. If you have a bad credit score, it will still fall off the cliff but the drop won't seem as steep. Lenders aren't eager to give more money to a debtor who couldn't handle prior loans.You have credit scores from each of the three major credit bureaus: TransUnion, Equifax, and Experian. These bureaus track all of your credit activity. That includes the use of your credit cards and whether you pay them in full, your student loans, mortgages, auto loans, and more. Each item the bureaus track is factored into your credit score, which generally ranges from 300 to 800.

The exact mechanism by which the bureaus arrive at an individual’s credit score is proprietary – they keep it secret so that, in theory, no one can game the system. However, FICO recently released some data about how much certain common events will affect your credit score.

For a person with a credit score of 680, filing for bankruptcy will lower your score by 130-150 points. For a person with a score of 780, filing for bankruptcy will cost you 220-240 points. The higher your score, the more points you’ll lose for filing for bankruptcy. The lower your score, the less it costs you. To give some perspective, a foreclosure will cost you 85-105 points if your score was 680. If your score was 780, you’re looking at a drop of 140-160 points.

Needless to say you can buy a home after bankruptcy so don't lose hope. 

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¿Por qué esperar a la primavera? El invierno es un buen momento para comprar casa.

Diciembre es por lo general cuando la gente está buscando decorar sus propios pasillos, no comprar otros nuevos. Pero la compra de una casa en diciembre y enero puede ser una decisión inteligente. No hay mucha competencia. La gente sabe que van a estar ocupados o de viaje durante las vacaciones, por lo que la mayoría de las ofertas se han cerrado o personas pospuesto la busqueda hasta después de Año Nuevo. Todavía hay casas en el mercado, pero no como muchas personas buscando comprar. Esto es una ventaja tanto a los compradores. Si es una temporada baja, no significa eso inventario será más bajo? Sí, pero los vendedores están motivados. Estos son probablemente los hogares que por cualquier razón no cerraron durante la temporada alta. Los vendedores quieren cerrar el trato, sobre todo por costos fiscales o de inpuestos. Para mucha gente, es mental. Es el final del año y quieren atar cabos sueltos. Esto es una ventaja para los compradores, especialmente si hay puntos para negociar. ¿Podría un comprador pasar algo por alto mientras que la compra en pleno invierno? Comprar en invierno puede ser la prueba de fuego definitiva para una casa, ya que todos los grandes sistemas, como calefacción, cañería y el techo y las canaletas se ponen a prueba en el frío. Algunos de los atractivo exterior puede haber desaparecido, pero la fijación de paisajismo es mucho menos costoso que averiguar meses después de que su caldera no funciona. Así que no espere hasta que la temporada alta "de verano" que podría lamentar no tomar este paso ahora! Llámame y hagamos su sueño una realidad.

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Why Wait For Spring? Winter Is A Great Time To House Hunt

December is usually when people are looking to deck their own halls—not buy new ones. But buying a home in December and January can be a smart move.

There isn’t a lot of competition. People know they’re going to be busy or traveling during the holidays, so most deals have been wrapped up or people have put off looking until after the New Year. There are still homes on the market, but not as many people gunning for them. This is an advantage to both buyers.

If it’s a slow season, doesn’t that mean inventory will be lower?

Yes, but the sellers are motivated. These are likely the homes that for whatever reason didn’t go during the peak season. The sellers will want to get the deal closed, especially for tax purposes. For a lot of people, it’s mental. It’s the end of the year and they want to tie up loose ends. This is an advantage for buyers, especially if there are points to negotiate.

Could a homebuyer miss or overlook something while buying in the dead of winter?

Buying in winter may be the ultimate litmus test for a home, since all the big systems such as heating, plumbing and the roof and gutters are put to the test in the cold. Some of the curb appeal may be gone, but fixing landscaping is a lot less expensive than finding out months later that your boiler doesn’t work.

So don’t wait till peak season “Summer” you might regret not jumping on that listing now! Call me - let’s get your home buying started.

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Préstamos hipotecarios cuando usted tiene mal crédito

De crédito es uno de los aspectos más incomprendidos de la compra de una casa. Desde la crisis financiera, muchos compradores potenciales piensan que ahora tiene una puntuación de 740 créditos y el 20% de enganche! Nada podría estar más lejos de la verdad. Por suerte, usted encontrará la verdadera historia en este artículo! Así que los prestamistas quieren hacer buenos préstamos. Hemos visto lo que sucede cuando la gente llega a los hogares que no pueden permitirse el lujo - y nadie quiere que eso suceda de nuevo. Entonces, ¿qué buscan los prestamistas para? Bueno, aunque hay alguna variación entre los prestamistas, la mayoría son bastante similares y van por normas similares, dependiendo del tipo de financiamiento que estás buscando. Echemos un vistazo más de cerca. Tipo de Préstamos Préstamos de la FHA - requieren una puntuación de 600 de crédito y sólo un 3,5% de pago! Así es - solamente una puntuación de crédito 600 - apenas "restrictiva". Si usted tiene un puntaje de 640 de crédito, usted puede calificar para asistencia de pago inicial, así! Los préstamos convencionales - requieren un pago 620 puntuación y 5% hacia abajo. Similar a la FHA, si usted tiene un puntaje de 640 de crédito usted puede calificar para los programas de asistencia de pago inicial. VA - Este programa es para los veteranos y sus cónyuges - y requiere una puntuación de 640 créditos. La financiación es a préstamo de 100% al valor, lo que significa que no es necesario un pago inicial en absoluto! Capítulo 7 bancarota deben ser dados de alta durante 2 años en la FHA y VA y 4 years para financiamiento convencional. Capítulo 13 bancarota se deben pagar durante 12 meses, pero todavía se puede estar en ellos por la FHA y VA financiamiento. Mal crédito Ejecución de una hipoteca y ventas cortas requieren un período de 3 años a la espera de la FHA y 7 para Convencional. Va requries 2 años a partir de una ejecución hipotecaria, pero no hay límite de tiempo para una venta corta - a menos que fuera en un préstamo VA. También hay que tener en cuenta que estos programas también pueden utilizar un regalo de un pariente de sangre para el pago inicial y el vendedor puede estar dispuesto a contribuir con un crédito de costo de cierre también. Es importante sentarse con su prestamista y luego trabajar con su agente de bienes raíces para obtener el mejor financiamiento disponible. En general, si usted está interesado en la compra de una casa, pero siente que su crédito puede ser la celebración de vuelta, consulte con su experto hipotecario local. Pueden no sólo le guiará si usted está listo ahora, sino que también debe ser capaz de darle consejos valiosos para ayudar a reparar su crédito si es necesario. ¡Buena suerte!

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Home Loans When You Have Bad Credit

Credit is one of the most misunderstood aspects of purchasing a home. Since the financial crisis, many potential home buyers think that you now need a 740 credit score and 20% down! Nothing could be further than the truth. Luckily, you will find the real story in this article!   So lenders want to make good loans. We’ve seen what happens when people get into homes that they can’t afford – and NOBODY wants that to happen again. So what do lenders look for? Well, although there is some variation amongst lenders, most are pretty similar and go by similar standards, depending on the type of financing you’re looking for. Let’s take a closer look.  

Type of Loans

FHA loans – require a 600 credit score and only a 3.5% down payment! That’s right – only a 600 credit score – hardly “restrictive”. If you have a 640 credit score, you may qualify for down payment assistance as well!   Conventional loans – require a 620 score and 5% down payment. Similar to FHA, if you have a 640 credit score you may qualify for down payment assistance programs.

VA – This program is for Veterans and their spouses – and requires a 640 credit score. Financing is at 100% loan to value, meaning you do not need a down payment at all!

Chapter 7 Bankruptcies must be discharged for 2 years on FHA & VA and 4 yearsfor Conventional financing. Chapter 13 bankruptcies must be paid on for 12 months, but you can still be in them for FHA and VA financing.

Bad Credit

Foreclosure and short sales require a 3 year waiting period for FHA and 7 for Conventional. Va requries 2 years from a foreclosure but there is NO time limit for a short sale – unless it was on a VA loan.

Also keep in mind that these programs can also utilize a gift from a blood relative for the down payment and the seller may be willing to contribute a closing cost credit as well. It’s important to sit down with your lender and then work with your Realtor to get you the best financing available.

Overall, if you are interested in purchasing a home but feel your credit may be holding you back, check with your local mortgage expert. They can not only guide you if you are ready now, but they should also be able to give you valuable tips to help you repair your credit if need be. Good luck!

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First Time Home Buyer Down Payment Assistance: IHDA

designed to help first time homebuyers make the leap from renting to owning. Through 1stHome Illinois, presented through the Illinois Housing Development Authority (IHDA), new buyers can obtain a 30-year, fixed-rate, affordable loan and a $7,500 grant to help with down payment or closing costs.

The 1stHome Illinois program is available beginning Aug. 3 to buyers in Boone, Cook, DeKalb, Kane, McHenry and Will counties who have not owned a home in the past three years. For more information, contact me 

http://connectmls.mredllc.com/common/externalAction.jsp?do=dynaconn.soy.setup.leadwidget.SubmitLeadForm&agentID=246433&fromLink=true

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We will stay on Condo’s this week. What are the Condo Fees?

What are Condo HOA fees and Master HOA fees?When you are looking at Condos you will want to know what the monthly fees are. Sounds like and easy question for your Realtor to answer, Right? Well it is not always as easy as you would think. Every Condo Community has variables regarding Condo fees: 1) Condo HOA fee: These fees are used to maintain, and insure the building and surrounding lawn, carports, storage area… (you will still want to carry and interior contents policy much like a renters insurance policy) In addition this fee may items such as: cable, internet, pest control, trash, property management, accounting, water, sewer,irrigation ect. The list of items included will vary from community to community. The Condo HOA fee that is higher may be the better deal since Condo Associations get bulk rates on services. These fees are billed structure varies as well the fee may be collected monthly, quarterly, or Semi-annually. 2) Master HOA fee: This fee is utilized to pay for common grounds, guard gate, street lights, club house, gym and other amenities. This fee may be billed may be monthly, quarterly, or Semi-annually and is often separate from the Condo HOA fee. Not every community designates a Master fee but instead builds it into the Condo HOA fee. So at first glance one Condo fee may look very high until you realize the the community you are comparing it to has both a Condo and Master HOA fee. 3) Social membership fee: Some communities are Country Club communities and may have an annual social membership. This fee will give you access to the Private Country Club, dining, tennis, golf (if the community is a bundle golf community). 4) Golf membership fee: If the community has a private golf course and the membership is not Bundle golf (also known as mandatory golf or golf included) you will have to buy into the membership as well as pay an annual fee to belong to the Golf club. 5) Application fee: Once you have executed a contract to purchase a condo you will most often be required to fill out an application with the condo association. There may be an application fee which is a one time fee charge prior to closing on averaging this fee is $100-$250. 6) Transfer fee: This is a one time fee collected a closing this cost can range from $0 to $15,000 depending on the community and its amenities. For example a Country Club community that does not have an annual social membership may have a higher one time transfer fee vs. a Country Club community with an annual Social membership. 7) Special assessments: Some communities have made a collective agreement among owners to add and a new amenity or do an improvement that was not planned for in the annual budget. To avoid raising HOA fees they may have added an Special Assessment. The manner in which the owner is charged for this Special Assessment varies.(Do not confuse the Special Assessment with Monthly assessments see below.) To complicate things even more some communities lump the Master and Condo HOA fees into one category and call it either Master or Condo HOA. If this is the case it is due to the book-keeping protocol for the community. Again this fee may be charged monthly, quarterly, or Semi annually. I hope this is helping you understand a little more about Condo fees. In order to understand what the monthly fees are and to compare apples to apples you will have review the fees on a case by case basis. For Example: Master HOA is $2000 semi annual 2000 x 2 = 4000 per year Condo HOA is $1750 quarterly 1750 x 4 = 7000 per year 4000 + 7000 = 11,000 divide by 12 This would give you a monthly assessment of $916.00 And remember to look at what is included. I hope you find this information useful, Please give me a call or email me for further assistance during your next Real Estate transaction.

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Are you sure you want to buy a CONDO? 3 Pro’s and Cons

Pro 1 - if you live in the MidWest paying the HOA (Home Owners Association) dues, covers all the clean up.  Need I say more!!

Pro 2 -  the cost of owning a single family home can be more expensive. Especially if you need to replace a roof, you will need to have $10K ready, HOA has that covered as part of the dues.

Pro 3 -  many condo communities offer residents amenities that are out of reach for the average homeowner.

Now here comes the downfall of owning a condo..

Con 1 -  lack of privacy (remember you will be sharing walls)

Con 2 - resale value, most people look for single family homes and almost never think about Condos.

Con 3 -  the purchase of your home becomes a contract with the HOA. You agree that you’ll obey all the HOA rules. The fees can be expensive and increase when extra money for maintenance is needed.

So if you are in the market for a condo be sure you are ready to buy one, do you think you are ready?