Tag Archives: Home Buyers

Tips For Finding Your New Home

10 Thursday Dec 2015

Posted by in Chicago & Suburban Homes For Sale, Foreclosure, Home Buyers, Home Loan & Mortgages, Home Sellers, Homeowners, Investors, Real Estate Buyers & Sellers

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Couple & Realtor in front of house

1.  Know thyself.

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2.  Research before you look.

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3.  Get your finances in order.

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4.  Set a moving timeline.

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5.  Think long term.

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6.  Work with a REALTOR®.

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7.  Be realistic.

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues — like noise levels — that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8.  Limit the opinions you solicit.

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

Email Regina@ReginaWallace.com to get started.

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How To Buy A Home

13 Thursday Feb 2014

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Get Ready To Buy That New Home!

  • Want to find more opportunities in the Real Estate market?
  • Do you know what you need in order to buy in this market?
  • How much down payment do you need?
  • What type of financing is available?
  • What is the lender underwriting process and how do they evaluate you?
  • How do you get pre-approved for a mortgage loan?
  • What are the steps in the buying process?

Contact me for assistance:

Regina Wallace, Real Estate Broker

Prospect Equities Infiniti

Regina@ReginaWallace.com

http://www.ReginaWallace@Realtor

Posted by | Filed under Foreclosure, Home Buyers, Home Loan & Mortgages, Home Sellers, Homeowners, Investors

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Rules Loosen to Buy a Home After Foreclosure, But Lenders May Balk

10 Thursday Oct 2013

Posted by in Foreclosure, Home Buyers, Home Loan & Mortgages, Home Sellers, Homeowners, Uncategorized

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FHA and Fannie Mae are making it easier for homeowners who lose a home to foreclosure or short sale to buy again, but it might not make much difference if lenders don’t go along with the changes — since they don’t have to.

First, here’s what’s new at FHA and Fannie:
FHA rules now let you apply for an FHA mortgage 12 months after a foreclosure, short sale, or a deed-in-lieu of foreclosure if you meet two conditions:
1. Your loss was caused by economic conditions beyond your control.
2. You complete housing counseling.

Note: Mortgage lenders have traditionally made you wait two years after a short sale or deed-in-lieu and seven years after a foreclosure to apply for a mortgage.

Once you’ve met the conditions, you’ll still have to meet all the usual mortgage loan rules and guidelines that lenders use for everyone — like having enough income (and not too much debt) to afford the refinanced mortgage.

Fannie Mae credit reporting fix: Fannie, meanwhile, has cleared up a credit reporting issue that was holding back former homeowners who sold their homes for less than what they owed on the mortgage (a short sale) or signed over their deed to the lender to avoid foreclosure (a deed-in-lieu).

In theory, homeowners who work with the lender on a short sale or deed-in-lieu are supposed to take less of a hit to their credit than homeowners who lose a home to foreclosure. In reality, credit bureaus haven’t distinguished short sales and foreclosures on consumers’ credit reports.

Fannie Mae resolved the credit reporting issue by telling lenders to add a special code in the case files of consumers whose short sales or deeds-in-lieu are recorded in credit histories as foreclosures.

Starting Nov. 16, 2013, the Fannie Mae loan underwriting system will automatically ignore the foreclosure and correctly recognize the transaction was a short sale when the code appears. Until then, your lender will have to manually underwrite your loan to take advantage of the change.

Lenders Don’t Always Follow the Rules
This is all good news. But it remains to be seen whether these new rules will make a big difference for you if you’ve had a foreclosure, short sale, or deed-in-lieu.

“Most of the overlays have to do with adding basis points to the loan fee and to the price,” Frommeyer explains. They can also:
Increase the required downpayment.

Decide you have to wait two years instead of one.
Ask you to prove you’ve corrected your financial problems.
“They’ll probably ask for a written letter from the consumer to explain the previous problems and what they’re doing to solve the previous problems,” he says.

Credit Score Could Hold You Back
Regardless of the changes, if you were hurt by the recession you still may not qualify for a new mortgage because your financial troubles, especially a foreclosure, likely lowered your credit score.

How low is too low? In July 2013, the average FICO score for all closed first mortgages was 737, while the average credit score on denied loans was 702, according to Ellie Mae, which sells electronic mortgage origination systems. Credit scores go up to 850.

If you’re ready to become a homeowner again:
1. Check your credit reports for free.
2. Pay about $20 to get your FICO score. Credit scores aren’t included in your government-mandated free credit report, and the score you pay for may not even be the exact credit score lenders see. But it can help you decide if your credit will hold you back from getting a mortgage.
3. If your score is too low for you to get a mortgage right now, fix any mistakes.
4. Work to improve your credit score.

Call/Text or Email or Me For More Details: 708-966-9065 – Regina@ReginaWallace.com

8 Tips For Finding Your New Home

23 Tuesday Jul 2013

Posted by in Home Buyers, Home Sellers, Homeowners, Uncategorized

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House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline

Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

For Help Getting Started: contact me at:

Regina@ReginaWallace.com 

http://buysellorrentchicagohomes.com/

Foreclosure is just a one-time event—with discipline and perseverance, you can get a mortgage and become a homeowner again.

11 Thursday Jul 2013

Posted by in Foreclosure, Home Buyers, Homeowners, Uncategorized

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It won’t be easy to obtain a mortgage after foreclosure. But with enough time, discipline, and desire, you can own your own home again. Here’s what you need to do:

1. Stick with a job after foreclosure

Did you fall into foreclosure because of the lack of a steady job? If you did, the first step toward homeownership after foreclosure is finding and holding one. And if you already have one—stick with it, unless you can move to a better one. Note that potential lenders will require stable employment before they’ll give you a new mortgage loan after a foreclosure. Even if it means taking a lower-paying job, it’s worth it.

2. Rebuild your nest egg after foreclosure

Establish a safety net. Financial planners generally recommend three to six months of living expenses in a liquid account, but since you’re coming out of foreclosure, six is a minimum to show stability and that you’re able to pay your bills—including your mortgage—for an extended period if you lose your job.

3. Raise your credit score after foreclosure

This is the hardest and most time-consuming part. After foreclosure, your credit score, according to myFICO, probably dropped by about 150 points. You’ll need to raise it back up with perseverance.

Pay bills on time and keep your credit card balances below maximum levels. The foreclosure will stay on your credit report for seven years, but if you prove your money management skills have matured, it will become less of a red mark as years go by.

Tip: Consult a housing counselor. The U.S. Department of Housing and Urban Development offers free housing counseling for distressed homeowners with a foreclosure in their past. A counselor can help you with money management and budgeting. Counseling works—an evaluation of a program in Indianapolis discovered that credit scores greatly improved because of education and counseling, and increased average borrowing power by $4,500 per family.

4. Reduce your waiting time for a mortgage after foreclosure

Normally, you would have to wait seven years after foreclosure before you can apply for a new mortgage under Fannie Mae rules. (Fannie Mae changes rules frequently. You can check the latest rules at Fannie Mae’s site.)

However, you might wait only three years if you can show extenuating circumstances for your foreclosure, which are defined as “events that are beyond the borrower’s control that result in a sudden, significant, and prolonged reduction in income or a catastrophic increase in financial obligations.” These include:

  • Losing a job
  • Getting divorced
  • Having unexpected medical expenses

There’s one last alternative if waiting isn’t your thing—you can obtain seller financing, essentially bypassing the traditional mortgage. If both parties are amenable, you can enter into a lease with an option to buy, or take a mortgage directly from the seller. You’ll most likely have to show some hefty reserve funds, but if you’ve turned around your financial situation quickly after your foreclosure, it’s worth a shot to deal directly with the seller.

Keep in mind that sellers may be motivated to agree to this if they need to sell and the potential buyers they’ve met with can’t obtain a conventional mortgage—perhaps because they’ve been through foreclosures, too.

5. Be honest about your foreclosure

When you’re ready to apply for your new mortgage, don’t try to hide your foreclosure. On the contrary, be proactive and reveal the steps you’ve taken to remedy the problems that led to your foreclosure.

Tip: Try a mortgage broker, who can work with a variety of lenders to find you a loan. When you work directly with a retail lender, like a bank, they have a limited pool of loans to offer you. But a good mortgage broker—one with a vast network of lenders or has many options, and may be able to find a mortgage solution if the foreclosure in your past is creating challenges in obtaining one.

If you stay disciplined and positive, the American dream—obtaining a mortgage and owning a home of your own—can, indeed, be yours again. Even after foreclosure.

Contact me for help getting started: Regina@ReginaWallace.com or 708-966-9065

Hurricane Season Approaching — Are You Ready?

14 Friday Jun 2013

Posted by in Home Buyers, Home Sellers, Homeowners

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Hurricane season 2013 is expected to be very severe. Here’s what you need to do to hurricane-proof your home and protect your family.

Get ready — it could be a wild year for hurricanes. Saturday, June 1, is the official start of the 2013 hurricane season, which the National Oceanic and Atmospheric Administration says could be extremely active.

NOAA predicts seven to 11 hurricanes; a typical year has six.

Nobody wants to see another destructive Hurricane Sandy, but it makes sense to be as prepared as possible to protect your family and home. Here’s an overview and links to in-depth information to get you started.

Create a Home Emergency Preparedness Kit

You should always have a home emergency kit in case you lose power and have to hunker down in your home for awhile. Items in a home emergency kit include:

  • Flashlights
  • Batteries
  • First aid supplies
  • Water and food
  • Sanitation and hygiene supplies
  • Radio
  • Cash

Get more details about what to put in your emergency kit here.

Pack a Grab-and-Go Bag

In case you have to evacuate quickly, having a pack-and-go bag will save you time and headaches. Include essentials such as:

  • Prescription and over-the-counter medicines.
  • A change of clothes for each family member.
  • A back-up drive from your computer.
  • A copy of your home inventory.
  • A flash drive with copies of important documents such as insurance papers, birth certificates, deeds, tax returns, passports, and drivers’ licenses.
  • An inventory your home’s possessions.

Here’s a complete list of what to include in an emergency grab-and-go kit.

Make (or Update) a Home Inventory

If the worst should happen and your home is destroyed or severely damaged, you’ll have problems filing your claim if you don’t have a home inventory.

Having a checklist of items with serial numbers, brands, quantities, and estimated values will make the claim process much easier. You can get started by downloading a home inventory checklist here.

To be doubly sure, take pictures and/or videos of your possessions. Those photos will serve as proof to your insurance adjuster that you did possess those items.

Be sure to create duplicates of your checklist, photos, and videos to store online or in a safety deposit box — and as part of your grab-and-go bag.

More tips on creating a home inventory here.

Check Your Insurance for Adequate Coverage

Does your policy have any restrictions on wind and water damage? Many policies do. And almost all policies exclude damage resulting from floodwaters. If your home is in a high-risk area, you should probably consider flood insurance and check the price and availability of coverage for hurricanes, too.

We explain what’s covered, what isn’t — as well as pricing and eligibility — in these two articles:

Reinforce Your Garage Doors

Did you know that during a storm, garage doors are your home’s weakest spot? Because they are often flimsy and cover a large area, they are vulnerable to wind damage, which can result in water flooding your home.

There are two main options to hurricane-proof your garage doors:

  • Buy new hurricane-proof doors.
  • Install a door bracing kit.

Reinforce Your Windows 

Like garage doors, your windows are vulnerable. During a hurricane, winds coming in through broken windows can create dangerous pressure inside, causing walls and roofs to collapse.

There are several options for reinforcing your windows:

  • Putting up plywood.
  • Adding storm shutters.
  • Installing impact-resistant (hurricane-proof) windows.
  • Applying hurricane window film.

You can learn more about each of these options in this article: How to Hurricane-Proof Your Windows.

Reinforce Your Roof

Hurricane winds inflict an uplift effect on your roof that can pull off shingles, tiles, and even the roof sheathing. You can use roofing cement to strengthen your roofing shingles, or even hire a contractor to install hurricane clips or straps to secure your roof to your walls.

Learn how to hurricane-proof your roof here.

And Don’t Forget:

  • Check to see if your sump pump is working. Replace it if it isn’t.

Email me with your questions or comments – Regina@ReginaWallace.com

7 Tips for Improving Your Credit

12 Saturday Feb 2011

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By: G. M. Filisko

Published: February 25, 2010

Here’s how to clean up your credit so you get the least-expensive home loan possible.

 

1. Know your credit score

Credit scores range from 300 to 850, and the higher, the better. They’re based on whether you’ve paid personal loans, car loans, credit cards, and other debt in full and on time in the past. You’ll need a score of at least 620 to qualify for a home loan and 740 to get the best interest rates and terms.

You’re entitled to a free copy of your credit report annually from each of the major credit-reporting bureaus, Equifax, Experian, and TransUnion. Access all three versions of your credit report at www.annualcreditreport.com. Review them to ensure the information is accurate.

2. Correct errors on your credit report

If you find mistakes on your credit report, write a letter to the credit-reporting agency explaining why you believe there’s an error. Send documents that support your case, and ask that the error be corrected or removed. Also write to the company, or debt collector, that reported the incorrect information to dispute the information, and ask to be copied on any materials sent to credit-reporting agencies.

3. Pay every bill on time

You may be surprised at the damage even a few late payments will have on your credit score. The easiest way to make a big difference in your credit score without altering your spending habits is to diligently pay all your bills on time. You’ll also save money because you’ll keep the money you’ve been spending on late fees. Credit card or mortgage companies probably won’t report minor late payments, those less than 30 days overdue, but you’ll still have to pay late fees.

4. Use credit carefully

Another good way to boost your credit score is to pay your credit card bills in full every month. If you can’t do that, pay as much over your required minimum payment as possible to begin whittling away the debt. Stop using your credit cards to keep your balances from increasing, and transfer balances from high-interest credit cards to lower-interest cards.

5. Take care with the length of your credit

Credit rating agencies also consider the length of your credit history. If you’ve had a credit card for a long time and managed it responsibly, that works in your favor. However, opening several new credit cards at once can lower the average age of your accounts, which pushes down your score. Likewise, closing credit card accounts lowers your available credit, so keep credit cards open even if you’re not using them.

6. Don’t use all the credit you’re offered

Credit scores are also based on how much credit you use compared with how much you’re offered. Using $1,000 of available credit will give you a lower score than having $1,000 of available credit and using $100 of it. Occasionally opening new lines of credit can boost your available credit, which also affects your score positively.

7. Be patient

It can take time for your credit score to climb once you’ve begun working to improve it. Keep at it because the more distance you put between your spotty payment history and your current good payment record, the less damage you’ll do to your credit score.

Other web resources

How FICO scores are calculated

Answers to frequently asked credit report questions

G.M. Filisko is an attorney and award-winning writer who keeps a close eye on her credit scores. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.