Archive for the ‘Buyer Tips’ Category

Growing Economy May Mean Higher Rates for Everyone

Many buyers are not aware that the interest rates that we have been seeing for many years are historically low. In 1985, when I purchased my first home the interest rate was at 12%. Today, you would be shocked if a lender offered you a mortgage rate that high. But as the economy grows, it may mean higher rates. Expect those low 4 and 5% interest rates to begin to rise soon.  Thirty year fixed rates may rise to 6% by December and 6.5% by the end of 2011.

Today, you have an unbelievable choice of housing to select from. Hundreds of good, solid homes are on the market at reasonable prices. Without a doubt, if you are a first time buyer and your credit and income are good, this is THE time to purchase.

Take a look at what is available on my website at: 123HomeSweetHome.com.

You can view homes for sale in Lombard as well as all other areas areas throughout Chicago and the Western Suburbs with no sign in required. Just browse and look at the opportunities out there.  And if you see something that you would like to see in person, just give me a call at 630.730.8027 and I would be happy to schedule an appointment for you.

To subscribe to this blog by email use to box near the top of the left hand column.

To talk to a Realtor® who knows Lombard and the surrounding areas like the back of her hand, Call Caryn Kuhlman 630-730-8027

House Hunting Tips for Buyers in Chicago’s Western Suburbs

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. Here are a few tips for buyers.
1. Know thyself: Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a two story? If you want a fixer upper, do you have the $$ and the time? Start a Priority list of “Need”, “Want” and “Dreams”. Keep updating and deleting the list.

2. 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.

Call Pat Cannone at Coldwell Banker Home Loans @630.962.6680 and tell him Caryn sent you. He will be able to tell you what you can afford and will offer you a FREE pre approval letter.

3. Research before you look: Begin your search by going to 123HomeSweetHome.com and use my FREE home search. You don’t have to even sign in. See what your price range has in the way of amenities. Can you actually get into the neighborhood you have always wanted? While you are there, check out my link for schools in the area.

4. Think long term: In today’s Real Estate environment, you need to be thinking in the long term. You should plan to be in your new home for at least six to seven years. Location is as important as it ever was, perhaps even more so today than ever before. Find an area you love and you can never go wrong. If you are not sure about what area would suit you, give me a call and I can help you narrow your search.

5.  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. I once had a client who refused to see anything that had a blue house on the same block. True Story!

6. Find an agent you trust and Listen to their advice: 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. I recently had a client that missed out on his dream home because he didn’t believe there was a second offer and wanted to think about it. It was SOLD that night.

If you are just beginning your first home search or are in the market for your end house, I would love to work with you. Take a moment and see what my clients are saying about me on my website: 123HomeSweetHome.com.

To subscribe to this blog by email use to box near the top of the left hand column.

To talk to a Realtor® who knows Lombard and the surrounding areas like the back of her hand, Call Caryn Kuhlman 630-730-8027

Out and About in Lombard -17 days 17 hours 27 minutes 14 seconds

As of today, we have only 17 days left on the Home Buyers Tax Credit.

This can be the result of taking advantage of the tax credits available

In order to qualify you must have a completed purchase contract on a condo, townhouse or single family home dated by April 30th and close on that purchase by June 30, 2010.

If you are just now thinking of purchasing to qualify for this credit, you need to find a home that is NOT a short sale. Short sales are very attractively priced, but the chances of you closing on the deal before the end of the Home Buyers Tax Credit are just not in your favor. In January, I helped a young couple to close on a short sale purchase within two weeks, but had already waited almost two month before the initial contract was accepted.

Right now in Lombard we have 326 homes available for purchase. The inventory is high and there are many homes that might fit your individual need. But you will have to act quickly to qualify for the Home Buyers Tax Credit. We are not expecting this to be extended.

However, don’t lose hope. On May 1st, 2010, Coldwell Banker is coming out with a new program that is actually better than the government tax credit. It’s better because there are NO restrictions as to who can qualify. Keep checking my blog so you can be the first to hear the details.

To subscribe to this blog by email use to box near the top of the left hand column.

To talk to a Realtor® who knows Lombard and the surrounding areas like the back of her hand, Call Caryn Kuhlman 630-730-8027

Mortgage Tips For Lombard Area Buyers

These tips apply not to Lombard area buyers but buyers throughout Chicagoland.

If you are thinking of buying a new home, please keep this in mind:
Sometimes, it’s not getting the mortgage approval that’s tough.  It’s keeping the approval.

Don't lose your dream home by making one of the 8 mortgage mistakes

If you are applying for a conventional mortgage or going FHA, getting to the closing table can take up to 2 months, depending on the speed of the appraisal, bank signoff, and other factors.

It’s especially longer with short sales, foreclosures and short refinancing.

During those 60+ days, a lot can happen to a person that changes their underwriting disposition.  For example, one could lose their job, get injured, or have a home damaged by a storm.  The more time there is between application and closing, the more likely a catastrophic event is to occur.  Of course, catastrophe tends to lead to a mortgage turndown and, sometimes, bad things just happen.  However, there are things that you can plan for; things within your control.

Mortgage approvals are fragile, and nothing is done until it is done.  Good behavior matters.

Keeping that in mind, here are 8 things you should absolutely not do between the date of application and the date of funding.

Bad Mortgage Behavior, Defined

1.    Don’t buy a new car or trade-up to a bigger lease
2.    Don’t quit your job to change industries or start a new company
3.    Don’t switch from a salaried job to a commissioned job
4.    Don’t transfer large sums of money between bank accounts
5.    Don’t forget to pay your bills — even the ones in dispute
6.    Don’t open new credit cards — even if you’re getting 20% off at the register
7.    Don’t accept a cash gift without filling out the proper “gift” paperwork
8.    Don’t make random, undocumented deposits into your bank account

It may be impractical to follow every rule to the letter.  If your car lease is expiring, check with your Mortgage Advisor to see if extending the lease for short-term is a better solution than entering a new lease or buying.  The same goes for accepting cash gifts from parents.  There’s a right way and a wrong way to accept a cash gift.  Doing it the wrong way may preclude your ability to use the gift as a source of down payment without backtracking.

Check with your Mortgage Advisor, there are “gotchas” in Mortgageland and with underwriting times getting longer; it’s more likely that the average applicant will trip one.  Following the above 8 rules is a good start!

For more information, just give me a call at 630-730-8027 and I will put you in touch with a good Mortgage Advisor.

To subscribe to this blog by email use to box near the top of the left hand column.

To talk to a Realtor® who knows Lombard and the surrounding areas like the back of her hand, Call Caryn Kuhlman 630-730-8027