Suburban Chicago Real Estate Blog -- Jeannie Visvardis

You've applied for your mortgage & you've found your dream home.  Don't make some of these common mistakes, which can potentially delay your closing.

1. Don't make any new large purchases.  You're contract is signed & you have a closing date lined up.  Don't get ahead of yourself & make a large purchase such as furnishing your new home, buying a new car, etc. This new debt could mean new qualifications for your mortgage.  New debt = higher debt to income ratio's.  In some instances, this could cause you to no longer be qualified for your loan amount.

2. Don't close any open credit accounts.  Don't close a current open credit line.  Open accounts have an impact on your credit score.  Your credit score is composed of many aspects including length of credit history.  Closing these accounts can have a negative impact on your score. 

3.  Don't apply for any new credit accounts.  Just as closing accounts impact your credit score, adding new accounts will also impact your score.  Don't open any new credit accounts.  Each time you apply for credit, your giving consent for them to pull your credit, which in turn affects your score. 

4. Don't co-sign for anyone.  As a co-signer on a loan, you're obligated to that debt.  Again, this is changing your debt to income ratio & can potentially leave you no longer qualified for you loan.

If in doubt at all about what you can or cannot do, talk to your loan officer.  Remember that negative changes in your credit score can mean higher interest rates or even disqualify you from your loan.

Chase Bank has a cool new app on their website that gives an estimated value of your home.  It is a neat tool to use to get a rough idea of what your home may be worth.  Keep in mind, this does not guarantee value, or replace an appraisal.

*Please note, Chase Real Estate is not affiliated with Chase Bank*

Here is a link to the estimator:

Click Here

Are you looking to purchase your first home? 
Considering purchasing an investment property to flip or rent? 
NOW is the time to BUY! 
Homes available at all time low prices! This means instant equity in some properties -- large equity possibilities as the market comes up! 

I help investors find foreclosures, finance these deals, get the property rehabbed and then help sell or rent property. Our system makes investing in foreclosures predictable and repeatable.

I can help owner occupants find their dream home at unbelievably low prices! 

Servicing Chicagoland Suburbs -- Call Jeannie (815) 557-4360 for today's foreclosure hot list.

https://www.facebook.com/JeannieVisvardis.RealEstate 

Now is the time to buy!

If you've been considering investing in real estate or purchasing a home of your own, now is the time to do so.  Short sales and Foreclosures are selling quick.  The prices of these properties are continuing to drop to all time lows!  Why you ask?  It appears that lenders have been accepting some very low offers on short sales & foreclosures -- and this in turn is effecting the market.  This is the time to buy, or you might just miss out on some incredible deals. 

If you are serious about purchasing these properties, you must be ready to move fast.  This means you must have either proof of funds for the purchase or an approval letter from a lender.  I can refer you to lenders who work with owner occupants & investors. 

Call me today

Jeannie Visvardis 815-557-4360

Great news for Investors ready to buy & sell!

WASHINGTON – In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration Commissioner Carol J. Galante today extended a temporary waiver of FHA’s anti-flipping regulations through 2012.  Read the FHA's anti-flipping waiver.

“This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Galante.  “FHA remains a critical source of mortgage financing and stability and we must make every effort to promote recovery in every responsible way we can.”

With certain exceptions, FHA rules prohibit insuring a mortgage on a home owned by the seller for less than 90 days.  In 2010, however, FHA temporarily waived this regulation through January 31, 2011, and later extended that waiver through the remainder of 2011.  The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

The extension announced today is effective through December 31, 2012, unless otherwise extended or withdrawn by FHA.  All other terms of the existing Waiver will remain the same.  The Waiver contains strict conditions and guidelines to prevent the predatory practice of property flipping, in which properties are quickly resold at inflated prices to unsuspecting borrowers.  The Waiver continues to be limited to sales meeting the following conditions:

•         All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction;
•         In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the Waiver will apply only if the lender meets specific conditions, and documents the justification for the increase in value; and
•         The Waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

 Since the original waiver went into effect on February 1, 2010, FHA has insured nearly 42,000 mortgages worth more than $7 billion on properties resold within 90 days of acquisition.

FHA research finds that in today’s market, acquiring, rehabilitating and reselling these properties to prospective homeowners often takes less than 90 days.  Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The complete waiver is published online in The Federal Register.

Verifying Your Down Payment,
Closing Costs, Assets, Income and Debts

A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs and assets, as well as documenting income and debts. The lender uses this step to determine your qualifications as a borrower. 

Down Payment & Closing Costs

Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.

Take extra care to document the sources for any monies to be used for the down payment or closing costs.

Acceptable Down Payment & Closing Costs Sources

• Cash in a bank account
• Mutual funds / stocks / IRA / 401(K)
• Proceeds from the sale of another property
• Gift from an immediate relative
   

Assets

Collect information about your personal assets that add to your net worth and help to prove your credit worthiness.

 Common Assets Considered in a Mortgage Loan Application

• Stocks, bonds, mutual funds, 401(K) and retirement accounts

• Life insurance

• Personal property estimate - cars, boats, antiques, jewelry, etc.

• Other real estate or property

Income and Employment

The lender will want to confirm your current gross income and have evidence of stable employment. Documentation requirements vary depending upon a number of factors - including the source of income (hourly, salary, salary + bonuses, salary + commission, commission, self-employed, etc.).

Debts

Your lender will want to review a list of all your current debts. This along with your credit report will provide the lender with a snapshot of your obligations. The lender will want to confirm that you will not be overextended when the mortgage payment is added to your current debt load.

Staging Your Home Checklist

Remove all clutter from the house. Are countertops free and clear? Have you removed unnecessary furniture throughout the house? Remove the art gallery and coupon collection from the refrigerator.

Check the bathrooms. Are the surfaces clean and clear? Are shower curtains and doors hung properly? Is the flooring clean and fresh? Are towels neatly hung?

Check the walls. Is paint and wallpaper fresh and clean? Are the walls free from holes? Are there any colors or objects on the walls that need to be removed?

Check the floors. Is the carpet clean and free from stains? Are hard surface floors clean and free from stains?

Check windows and window coverings. Are all the windows clean? Are draperies and blinds clean?

Pet check. Are there any signs that this is a pet's home? Be sure to clean and remove kitty litter, pet toys and bedding.

How's the aroma? Try to air out the home prior to showings. If air freshener is necessary, use well before showings as a consideration to those with allergies.

Set the mood prior to showings. Open draperies and blinds. Turn on the radio to a classical music station, set the volume on low. If you have time, cook a batch of cookies to have the warm, welcoming aroma permeating the home.

Celebrate the Holidays with the Community of Minooka!

This weekend Minooka will be celebrating their Annual Christmas on Mondamin Celebration. 

Saturday, December 3, 2011 @ 4:30 - 7:30pm

Activities will include:

~ Holiday lights in historic downtown Minooka

~ Santa Parade on Mondamin Street

~Street Caroloers & other musical entertainment

~Food drive & Toys for Tots!!!

~Free treats, hot cocoa, coffee & popcorn

~& Chrildren's Visit with Santa (including one complimentary photo!)

To get more information click here!

Enjoy your weekend & Happy Holidays!

Looking for a weekend activity?

Yorkville will be celebrating their 5th annual celebration beginning Friday, November 18 through Sunday, November 20th.  Festivities include lighting of the tree ceremony, food, refreshments, ice skating, giveaways and a visit from Santa!

Friday's Event:
Holiday Under the Stars from 5-9pm

Saturday's Event: 
Taste of Yorkville from 2-10pm

Sunday's Event:
Chili Chase 5K Run/Walk -- race begins 8:30am (registration at 7am)

Follow the link below for details!

Yorkville 5th Annual Holiday Under the Lights