Supplement your Credit Line

A common problem when some are trying to qualify for a mortgage loan is the lack of recent good credit.  If a borrower does not have enough credit or any credit at all reporting on their mortgage credit report, some of our mortgage programs will allow a borrower to prove pay history through alternative sources to supplement the credit report.  Nontraditional or alternative credit sources include but are not limited to the following:

• Rent – if the borrower can supply the last 12 month’s cancelled checks, it would be best
• Insurances such as auto, life, medical, supplemental (excluding those paid through payroll deductions)
• School tuition
• Payments to retail stores
• Evidence of reserves of assets built through steady monthly savings
• Rent to own stores
• Small finance company accounts
• Car lot financing
• Gym or other club membership
• Utility Bills
• Dr. installment bills for example payments on a large bill with a  Dentist or Orthodontists 

If a borrower is looking to use these sources for additional credit, request a credit reference letter from each source covering at least the last 12 months history

You do have to prepare your house for an inspection, however.

1. Clear the way for an inspector to get in all attics. Usually these trap doors are located in closets, so removing the clothes and shelf items is necessary.

2. If you haven't replaced your filter in the furnace in a while, now is a good time.

3. Burnt out light bulbs should be replaced or else someone will say that the receptacle isn't working.

4. Clear a path in the basement so the inspector can walk around the perimeter of the wall.

5. Make sure there is access to any mechanicals, such as the furnace, air conditioner and water heater.

6.  If you have had any recent services or maintenance on any mechanicals, the documentation might dispel any issues if there are any questions.

Have more questions about the process after, call me, Jan McNulty 847-274-0535

Check list for Spring Cleaning:

Bath

According to the National Kitchen & Bath Association, kitchen remodeling is up to 36% in the third quarter of 2011. The kitchen is the #1 focal point of many home buyers and sellers. Comparison shopping by buyers usually lands on this feature, so many agents make recommendations to their sellers about some easy updates.Check out the gallery link for the National Kitchen & Bath Association for ideas.

1. Hardware: Check out Lowes, HomeDepot, and other stores for an easy update by the more modern and cute designs in handles, knobs and hinges. 

2. Faucet: So many choices today in height, spouts, pullout hoses and folding necks with quality faucets. 

3. Lighting: Brighten up the kitchen! Under cabinet lighting, canned lighting, better fixtures will invite people to the meeting place. Lighting over the divider from the kitchen to the eating 

4. Organization: Practical storage in the kitchen goes a long way! baskets in the pantry, drawer organizers, wall hooks for pots and pans, and maybe some stackable shelves for the spices. Shelves of baskets goes a long way.

5. Countertops: Laminate can mimic the contemporary look of granite at almost 1/2 the price of granite. Look at the knock off brands!

6. Consider a modern backsplash coordinating not matching the countertops. 

If you  need any ideas, call Jan McNulty, Broker Realtor at RE/MAX SUBURBAN 847-274-0535.

In just 30 days, the Northwest Suburban market has flexed its muscles and added 1636 homes on the market. The market adjustments totaled 299 listings. Closed activity has given us a resounding 692 homes, where there are 1185 homes pending and under contract in the last 30 days. 

Agents in my office and me are having appointments, showings on our listings and there is an energy in the market. Busy working from one appointment to another, and realizing that time is of the essence in the market.

If you are contemplating changing homes at this historic time, be forewarned that you definitely have competition. I am hearing multiple offers, trying to schedule appointments and finding they just got a contract, so hurry up! I do note that the market has many hot spots in the market or more activity than others. Obviously the least expensive are selling faster, over 300,000 moving a bit slower. However I say that with a grin :>). My new listing at 259A Woodland has had 10 showings for this 4 bedroom, full basement 2story. 

If you need additional market data, please contact me at 847-274-0535 directly. You'll be talking to a hard working Broker Realtor, Jan McNulty

Yes, today’s buyers are certainly looking for more upgrades in their home search.. All agents understand that “Price is King” to get your listings sold, but next to price is that condition of those homes. Those homes that have been updated the most tend to sell a lot faster.

Simple things like painting those walls a neutral color will go a long way to satisfy those buyers, who are looking to match up their furniture in those rooms. I often hear many of my buyer clients complain about the selection of colors for various rooms in the homes that I show. My advice to any sellers would be to stay with a neutral color, and repaint if you have too.

Buyers have often complain about the outdated light fixtures, outdated kitchen appliances, kitchen cabinets, kitchen counter tops, bathroom and kitchen faucets, door hardware, outdated ceiling fans, carpet and flooring in certain wet areas of the home, etc. I have noticed that today’s buyers who are looking at homes older than 10 years expect the sellers to make those simple upgrades. The only exception has been with foreclosed or distressed homes, since all those buyers understand they are buying those homes “As Is”.

 I would suggest to any home owner who plans to list and sell their homes in today’s Buyer’s Market, to invest in a few simple things to upgrade your homes to overcome those objections from Today’s buyers. Keep in Mind: It takes a special kind of buyer to take on a major project of completely remodeling a whole home from the roof to the foundation. Believe it or not, it’s even a challenge for some buyers to change the color of the paint on the walls, let alone, making major changes with remodeling the kitchens, bathrooms, and all the flooring throughout the whole home. Today's buyers are working long hours and have little time to make a home more presentable to their friends.  My advise to sellers would be to make cost effective updating to an older home that will give your home a chance to compete with the nicer looking homes in the neighborhood.

Look at some low cost remodeling items first like painting, replacing light fixtures, replacing kitchen and bathroom sinks and faucets, replacing those light fixtures or ceiling fans, and any hardware too. Kitchen cabinets and flooring can be expensive, but it might help sellers to sell their homes faster if they are replaced or updated. Replacing outdated kitchen appliances will also help sell your homes faster too.

If you are planning to buy or sell in and around the Chicago land Northwest Suburban market area, contact Your Chicagoland Real Estate Broker at 847-274-0535 or visit my website for more information on subdivisions in the area.

The custom of relying on friends to help make a move from one place to another has been replaced by reliance on professional movers.

Professional moving companies offer a wide range of service options, including professional packing.It will cost you less if you do the backing however, some movers will not insure fragile items, such as dishes or glassware, if they do not pack them.

Begin your preparations 3-5 weeks in advance for the move by calling several companies for estimates.. Ask each company how they compute the charges, how much time they expect the move to take, and what kind of insurance coverage they offer against loss or damage. Talk to your insurance company also--no need to get double coverage. If you have to store your things temporarily, ask what arrangements they have as well as looking for a month to month temporary place.

Long-distance movers may send a representative to your home for an estimate, while local companies may quote an hourly rate over the phone. Be sure to ask the same questions of each company so that when you compare bids you will be using the same criteria.Remember to compare apples to apples!

1^st example shows the investors can not buy and the financing must be cash or conventional.

2^nd example shows the investor can buy and rent the unit out, but financing is still cash or conventional.

Property Type: Attached Single Status: Closed, Pending Area: Palatine, Arlington Heights, Mount Prospect, Des Plaines (Equals Any) Type Attached: any of (Condo) and none of () and all of () # Garage Spaces: 1 or more Months Back: 12 Months For Investors, Can Owner Rent Unit? (Y/N): No (Equals Any) Sale Terms: any of () and none of (FHA, VA) and all of ()

Property Type: Attached Single Status: Closed, Pending Area: Palatine, Arlington Heights, Mount Prospect, Des Plaines (Equals Any) Type Attached: any of (Condo) and none of () and all of () # Garage Spaces: 1 or more Months Back: 12 Months For Investors, Can Owner Rent Unit? (Y/N): Yes (Equals Any) Sale Terms: any of () and none of (FHA, VA) and all of ()

As you can see, the investor or buyer who has the safety net of being able to rent the property, the property sales average was median price of 145000. With the amount of insecurity with the economy, that safety net has a value in the market place.

Next examples allows for FHA/VA financing for purchasers. Currently condo's that are approved for FHA are very hard to find because of lack of understanding by the associations. The difference to a buyer is that their down payment would be 3.5% with MIP (normally known as PMI), rather than conventional financing requiring as much as 10% down, with PMI.

Financing today is crucial. Conventional buyers need to save 10% down, whereas an FHA buyer needs 3.5% down and VA still can buy with no money down.

The 1^st example is the investor is not welcome, but FHA & VA financing is available to the buyer.

The 2^nd example is the investors are welcome and FHA & VA financing is available to the buyer.

Property Type: Attached Single Status: Closed, Pending Area: Palatine, Arlington Heights, Mount Prospect, Des Plaines (Equals Any) Type Attached: any of (Condo) and none of () and all of () # Garage Spaces: 1 or more Months Back: 12 Months For Investors, Can Owner Rent Unit? (Y/N): No (Equals Any) Sale Terms: any of (FHA, VA) and none of () and all of ()

Property Type: Attached Single Status: Closed, Pending Area: Palatine, Arlington Heights, Mount Prospect, Des Plaines (Equals Any) Type Attached: any of (Condo) and none of () and all of () # Garage Spaces: 1 or more Months Back: 12 Months For Investors, Can Owner Rent Unit? (Y/N): Yes (Equals Any) Sale Terms: any of (FHA, VA) and none of () and all of ()

Financing today is crucial.

Conventional buyers need to save 10% down, whereas an FHA buyer needs 3.5% down and VA still can buy with no money down. Because of the recession or adjustment in the market place, the prices are much more affordable. The investor or buyer who wants a safety net of being able to rent the property, the property sales are showing a huge value in the market place.

Short Sale application process is very similar to the loan origination process when you received your loan from a bank. This package must be prepared for a bank to consider approving your request to sell your home short.

• Financial Information:
• Tax information --two most recent 1040's and 2 most recent W2's
• 60 days of current bank statements-(this is ongoing until the approval)
• 30 days of current pay stubs or commission check stubs.
• If self employed- pay stubs or YTD profit and loss statements
• Monthly budget/financial statement signed and dated

Hardship Information

• Hardship letter dated and signed same day as purchase contract
• Any documention supporting the actual hardship
• Medical Bills
• Child support or alimony payment information and divorce decree or child support order.

Mortgage & Other Relevant Property Information

• First Mortgage Statement
• 2nd mortgage statement if required (home equity loans?)
• Recent Real Estate Tax bills
• Recent condo association bills if applicable
• Any recent water, sewer bills, electricity, gas bills.

Other Documention

• Authorization form for lawyer and Realtor
• Short sale disclosure
• Waiver of conflict if representing the buyer
• 3 recent comps
• Listing agreement
• Offer to purchase agreeement
• Listing history
• Buyer proof of funds letter or Pre approval letter. 

It is important to understand that the above documents are required for almost every short selling bank. There are also bank specific forms that, in most cases, must accompany the above.

The end result if packaged correctly will be a happy buyer, seller and bank negotiator. By preparing yourself for the financial details you will make this horrendous task an easier one.

1. Zillow reported that 47% of all buyers think that the average appreciation in real estate is 7% a year.....

      j-whoa there! Real estate appreciation in normal times was 3-5% in the   Chicagoland area.

2. Zillow reported a misconception about mortgage insurance.

       j-Mortgage insurance is paid by a buyer who has less than 20% down to protect the Bank. There is no value to the buyer at all ==> it's a risk to the Bank to protect their portion of their money.

3. Zillow reported that 56% thought appraisers for the Bank acted as a HOME INSPECTOR.

        j- An appraiser is there to justify the price paid in the market for a house. The Bank is protecting their interest in your choice of housing.

         A Home inspector is there to tell you the up and down side of used housing. Every home has a problem, and it behooves the buyer to have a crystal clear view of potential problems with any home.

4. 37% of all buyers thought that Homeowner's Insurance was an optional insurance.

         J-All Banks require Homeowner's Insurance, and if you fail to pay your premium, the note allows the Bank to charge you for the insurance they pick.

5. Zillow reported that many people believed the signed offer to purchase means they own the home.

          J-Not until the Bank has commited the funds, the deed has been transferred in your name, does a buyer own the home.

Let me clear up your questions on Home Purchases! Call me anytime.

• Home price declines: not only are millions of homes available to investors at deeply discounted pricing but the low prices are changing consumer attitudes on housing as an investment
• Hurdles to buying: down payment requirements, higher FICO score thresholds, and income verification are making it harder for households to even consider buying
• Costs of ownership: without home price inflation, costs like property taxes, home owner association dues, maintenance and repair make ownership less attractive
• Demographic effects: Gen Y growth is heading up while baby boomer households are downsizing
• Unemployment, labor insecurity and mobility: long unemployment durations make labor mobility (and thus renting) more important

Morgan Stanley says the U.S. home ownership rate, which has fallen to about 64 percent from close to 68 percent at its peak, is really closer to 60 percent when you factor in home owners who’ve stopped paying on their mortgage and only remain in their house because the bank hasn’t finished processing their foreclosure yet. Once these cases make it through the system, they’ll move to the renter side of the equation.

So how I see it is if you can get a mortgage, or you have savings, some of the distressed properties are such a bargain, (of course, you'll do some rehab), your return on an investment is increasing. It was interesting to me that 4 out of 10 people prefer to rent rather than purchase at this time.

j

• Home price declines: not only are millions of homes available to investors at deeply discounted pricing but the low prices are changing consumer attitudes on housing as an investment
• Hurdles to buying: down payment requirements, higher FICO score thresholds, and income verification are making it harder for households to even consider buying
• Costs of ownership: without home price inflation, costs like property taxes, home owner association dues, maintenance and repair make ownership less attractive
• Demographic effects: Gen Y growth is heading up while baby boomer households are downsizing
• Unemployment, labor insecurity and mobility: long unemployment durations make labor mobility (and thus renting) more important

Morgan Stanley says the U.S. home ownership rate, which has fallen to about 64 percent from close to 68 percent at its peak, is really closer to 60 percent when you factor in home owners who’ve stopped paying on their mortgage and only remain in their house because the bank hasn’t finished processing their foreclosure yet. Once these cases make it through the system, they’ll move to the renter side of the equation.

So how I see it is if you can get a mortgage, or you have savings, some of the distressed properties are such a bargain, (of course, you'll do some rehab), your return on an investment is increasing. It was interesting to me that 4 out of 10 people prefer to rent rather than purchase at this time.

j

Mortgage Bottlenecks Hold up Closings

Written by: editor Mon, October 24, 2011

Beyond Today's News, Crisis Watch, Housing Crisis

Print

Radon- A Health and Safety Issue for your Family

Radon gas can be a worry for homeowners. This naturally occurring substance has been found in homes throughout the Illinois and the country. 47% of the entire state of Illinois has this problem, and interesting enough the house next door may be under the 4.0 psi measure and you maybe way above.

It is odorless, colorless and undetectable without sophisticated testing. Radon is a health and safety issue in home inspections, and  has been linked to many diseases, and environmental experts caution that it should be tested. Remember that if radon gas is detected, it can usually be removed at a relatively low cost with simple ventilation systems.

Concerned about radon in your home? You can have it tested. You can contact your the Environmental Protection Agency for information about how to find a reputable company qualified to perform the tests or you can call me, since I have had to do the research for some of my sales and listings. If you are buying a new home, you might consider including a radon test as part of the inspection contingency clause. And if you are planning to sell your home, you can test it for radon before placing it on the market. If there is no problem, your fears will be put to rest, and even if radon is detected, it is neither difficult nor costly to correct.

Walk to train, library and shops in Proud Des Plaines In Town area!

This 2 bedroom, 2 bath condo with garage is Value Priced in the market at 109000. The advantages of this great location are many with a walk score clearly in the 90's. The home has been well maintained by the original owner with newer windows, newer furnace and central air conditioning.

Enjoy the south exposure balcony in this all brick elevator building with laundry on the same floor. This neighborly building is all owner occupied. Get more information and tour in the link below:

http://www.janmcnulty.com/property/1436-THACKER-ST-409-DES-PLAINES-Illinois-2

Illinois housing market forecast for the second half of 2011

by Mary Schaefer on August 18, 2011

Illinois housing market forecast for the second half of 2011

by Mary Schaefer on August 18, 2011