The Difference Between Prequalification and Preapproval of a Mortgage: North Shore Real Estate

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Once you’re ready to purchase North Shore real estate, or any real estate for that matter; knowing the basics of prequalification and preapproval can be a financial and time preserving benefit for all involved.

There are different stages of the mortgage approval process, and it’s important to know what they are and what they mean. The breakdown below will shed light:

Prequalification is a lender’s estimate of how much you could be eligible to borrow based on information you supply. Prequalification does not mean you will get the loan. Prequalifications are usually free.  The standard questions a lender will ask or use to start to process:

  1. Does the prospective buyer have enough money to make a down payment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a down payment and between 2 and 7 percent of the price to cover closing costs.
  2. Is the prospective buyer’s income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).
  3. Does the prospective buyer have good credit?  Has a review and/or correction to a credit reporting status occurred.
  4. Does the prospective buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.

With a pre-qualification in hand, this often means that you have a rate hold for 30-120 days. However, this is not a guarantee. There will be a number of conditions attached to the pre-qualification before it is fully approved. At this stage the lender hasn’t even seen your mortgage application.

Preapproval usually means that the lender has reviewed a mortgage application and is ready to process a mortgage loan based on the information and documentation you provided at the time you requested a preapproval. The preapproval will say how long it is valid for and may contain some other conditions for you to get the loan. Your lender may not require that you pay any fees except the cost of a credit report at the time processing starts. More information HERE

Our Glencoe, Illinois; top ranked Coldwell Banker Residential Real Estate office can be a source to depend on for mortgage lending needs.  Stop by today and we can guide you through various options for buying and selling North Shore real estate. We are a trusted member of the community, and have been for over 40 years; located at 640 Vernon Ave in the heart of downtown Glencoe.

Glencoe-North Shore Market Trends: Update May-June2012

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More glowing North Shore Real Estate news! As we spring into 2012 summer with a 15.7% surge…home sales volume reports display top numbers not seen in two years! In addition, statewide median prices show steady performance for the second straight month, per April-2012 housing data released by the Illinois Association of REALTORS®

Spring is traditionally a strong North Shore selling season, and this year proves no different with even greater outcomes. The low home prices and interest rates that are nearly a full percentage point below April 2011 levels are producing clear signals to buyers that they need to get off the fence.

“The fact that median prices remain steady and sales continue to outpace previous-year levels is a positive sign for the housing market,” stated Loretta Alonzo, CRB, GRI, president of the Illinois Association of REALTORS® he added that “despite the month-to-month increases in median prices, it’s clear that there still are very attractive deals out there.”

Bob Floss, president of the Chicago Association of REALTORS® stated “In the city of Chicago, a more than 19 percent increase in condo sales through April 2012 over the same time period last year is positive. With rents increasing in the city of Chicago and surrounding areas including the North Shore coupled with a limited supply of rentals available, renters are reviewing their options. Bob Floss added “historically low interest rates and great opportunities in the market are compelling to both first-time and move-up buyers looking to spend their dollars wisely and own their own home.”

An added bonus, the monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 3.89 percent in April 2012, down from 3.99 percent during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in April it averaged 4.87 percent.

Statewide home sales including Chicago’s North Shore (including single-family homes and condominiums) in April 2012 totaled 9,961 homes sold, up 15.7 percent from 8,606 home sales in April 2011. This was the best performance volume since 2010 when 10,897 homes were sold in April.

In the nine-county Chicago Primary Metropolitan Statistical Area, which includes North Shore area Cook and Lake counties (PMSA), home sales (single family and condominiums) in April 2012 totaled 6,814 homes sold, up 19.3 percent from April 2011 sales of 5,710 homes.

Sales and price information is generated by Multiple Listing Service which includes North Shore closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of May 7, 2012 for the period April through June 2012. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. Find Illinois housing stats data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats

Our Coldwell Banker Residential real estate office in downtown Glencoe, Ill-640 Vernon Ave, 60022; can be a source of information regarding this and other North Shore real estate market reports. Feel free to stop in and let any of our high performing, top ranked realtors assist you.

Top Services Needed When You Sell: North Shore Real Estate

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I’m often asked, what are some of the top real estate related services needed through the selling process?  Ideally consulting with a North Shore real estate professional or associated expert to assist with the sale of your home is a must. Here is a list of common services you may need as you complete a real estate transaction:

  1. Real Estate Attorney
  2. Appraiser
  3. Home Inspector
  4. Mortgage Loan Officer
  5. Environmental Specialist
  6. Lead Paint Inspector
  7. Radon Inspector
  8. Tax Advisor
  9. Sanitary Systems Expert
  10. Occupancy Permit Inspector
  11. Zoning Inspector
  12. Survey Company
  13. Flood Plain Inspector
  14. Termite Inspector
  15. Title Company
  16. Insurance Consultant
  17. Moving Company

    Used with permission from Kim Daugherty, Real Estate Checklists and Systems, www.realestatechecklists.com .

Our Coldwell Banker North Shore residential real estate office , located in downtown Glencoe, IL -640 Vernon Ave-60022; can provide resources for the services recommended above. Feel fee to stop in for guidance. We pride ourselves on producing,  performing and maintaining 40+ years of superb North Shore real estate service.

A Green Home and Remodeling: North Shore Real Estate

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North Shore homeowners as with any homeowner share a common goal worth considering….remodeling: definitely a way to personalize and update a space. A real estate trend making a large impact is “Green Renovating”.

For some this means simply tearing down a wall or two or rearranging the furniture, while for others, it is a much more sophisticated and purposeful process. The idea of reducing the carbon footprint and increasing personal appeal or comfort is the goal.

Green renovation not only helps the earth, but can also increase the value of a home in the case you want to ever resell. The tips below help to balance earth, personal style and North Shore living (as with anything, do a little research to select the materials and enhancements that are right for you/your home):

Preserve

Part of keeping green is preserving the beauty of old things, especially if the North Shore home has a history. Instead of stripping it down and ordering new materials, a better way may be to preserve and bring out the old beauty. Moldings, workmanship details, mantle pieces and even furniture can be restored and saved in this way.

There are many little things you can do to turn your home into a greener one. Remodeling your home with a green perspective can not only net you more savings in the long run, but could make the home more appealing to future buyers.

Recycle

That Tudor window may not be the nicest thing for your idea of your home, but a willing North Shore buyer may find it irresistible. Recycle wood and other materials from your home. Old tiles can be made into interesting tabletops or floor mosaics. Old mirrors can be revamped into trays or interesting focal pieces for a great room. Old glass can be reused as new windows or put to different uses (try a bookcase with old glass shelves!).

Sustainability

Search for sustainable materials to use. Bamboo is a favorite with the Earth movement, since the grass uses a minimum of resources to grow and is easily replaceable. You may want to insert rain gutters to collect rainwater for your garden or home tasks, or select a part of the land to grow vegetables, herbs and flowers. Cork flooring is also very popular, as it is versatile, water resistant, as well as warm and cozy.

Natural Ventilation

For homes in lighter climates, natural ventilation is the way to go. Not only is it healthier (some insulation may trap allergens in the vents), but it saves you from cranking up the air conditioning, except on really hot days. Larger windows, airy rooms and great ventilation have the added benefit of giving the home a bigger feel even if it is not.

Green Power

Mini windmills, solar paneling and great insulation go a long way toward saving some energy and saving you a few dollars when the electric bill comes. Condensing heaters and boilers can mean your heat is used more efficiently and that your heating bill stays low, even in the coldest of winter months. Weather-stripping doors and windows can prevent heat from escaping out and keep you toasty warm all throughout the winter season. More information HERE..

The Coldwell Banker Residential Real Estate office, located at 640 Vernon Ave in Glencoe, IL is home to outstanding top performing real estate agents.  Feel free to visit us with questions on buying or selling real estate within the communities of Chicago’s North Shore.

Real Estate Outcomes April2012: Chicago’s North Shore

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Property Sales

Top North Shore real estate selling reports state that now in May 2012 the previous month of April; Property sales were down -21.4% from April of 2011 and 37.5% higher than North Shore sales last month. April 2012 sales were at a mid level compared to April of 2011 and 2010. April YTD sales of 35 are running -27.1% behind last year’s year-to-date sales recorded.

Prices

The Median Chicago North Shore Sales Price in April was $766,500, down -1.1% from $775,000 in April of 2011 and down -21.1% from $972,000 last month. The Average North Shore-Glencoe Sales Price in April was $907,227, down -15.4% from $1,071,804 in April of 2011 and down -44.9% from $1,645,063 last month. April 2012 ASP was at the lowest level compared to April of 2011 and 2010.

Inventory & MSI

The Total Inventory and (monthly supply inventory or MSI) of North Shore Properties available for sale as of April was down -10.1% from last month and down -24.6% from April of last year. April 2012 real estate Inventory was at the lowest level compared to April of 2011 and 2010.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The April 2012 MSI of 8.1 months was at its lowest level compared with April of 2011 and 2010.

Market Time

The average Days On Market (DOM) shows how many days the average North Shore Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyer’s market, a downward trend a move towards more of a Seller’s market. The DOM for April was down -10.9% from last month and up 1.8% from 112 days in April of last year. The April 2012 DOM was at its highest level compared with April of 2011 and 2010 real estate reporting.

 Inventory / New Listings / Sales

The last view of the North Shore real estate market combines monthly inventory of Properties for sale along with listings and sales analysis. The graph above shows the basic annual seasonality of the market as well as the relationship between these items. The number of New North Shore Listings in April 2012 was 27, down -18.2% from last month and down -28.9% from  April of last year reporting figures

Gloria Matlin can be found at the Glencoe, Illinois Coldwell Banker Residential Brokerage office located at 640 Vernon Ave, 60022. The office can provide detail on this and other market reports. Feel free to use us as a trusted resource for North Shore Real estate questions about homes for sale, homes for rent, or property financing options.  We have been a top producing, top selling real estate example for well over 45 years.