Benefits of Year-End Real Estate Investing: North Shore Chicago

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Take Note…We are now with Compass Real Estate as of August 2019…Here on Chicago’s North Shore, next to spring, fall is often the busiest real estate time of the year. Although you can buy and sell houses at any time, the fall North Suburban real estate market offers abundant benefits to home buyers, including year-end tax breaks, pleasant weather conditions for moving, commonly a wider selection of houses, and the beautiful presence of mother-nature all around!

To further provide examples of the North Shore home buying advantages you can enjoy during the autumn months, below is a more detailed look into the benefits of looking for and purchasing a home in the autumn 2019 season.

Mortgage loan year-end tax breaks

By October and November, people are already reviewing year-end tax breaks they may be eligible for. Fortunately for home-buyers, owning a home can yield immense dividends in tax returns. For example, both mortgage interest and property taxes are deductible from gross income. In addition, if you have prepaid ant interest before the due date of your first payment and you close your loan before the year’s end, that amount will also be deducted. Consult a tax professional for specific details and guidelines.

Often more home buying choices

Given that North Shore home buying and selling is at a peak during the fall season, the real estate market often becomes a highly competitive arena. While there may be additional pressure to buy due to the quicker turnaround of houses on the market, at the same time you also benefit from the wider selection of homes available during the fall season. In fact, between the months of September and December, you may be fortunate enough to visit several North Shore open houses in a single day. Therefore, to make sure you don’t miss out on finding your dream house, it’s a good idea to examine on-line ads often since the listings are updated frequently.

Getting ahead of mother mature

Buying a North Shore house in the winter may not be very appealing to most home buyers. Low temperatures and poor weather conditions can potentially make moving more difficult. But by moving in early, mid, even late autumn, you gain the added benefit of eluding the sweltering summer heat.

Fall home buying TIP:  Taking into account that fall is the second busiest season of the year for buying and selling houses on the North Shore, you may be tempted to put a bid on a home for fear that another buyer will better your offer or snatch it up before you. Carefully assess your financial situation ahead of time and before your feet hit the pavement, know what your ceiling is and stick to it. More info HERE

The North Shore real estate Fall 2019 forecast calls for ongoing top tier results, high ranking top producing performance, and sustained elite service from Gloria Matlin and partner Zack Matlin of Matlin Residential Real Estate. With over 25 years of trusted real estate professionalism, she and Zack are the consummate guides on Chicago’s North Shore. Look to them for assistance with relocation, buying, selling, investing, or to inquire about local communities, they can help make North Shore real estate dreams a reality. Gloria’s home office is located within the top brokerage firm on the North Shore-Compass Real Estate office – 851 Spruce Street, Winnetka, Illinois 60093.

 

Glencoe-North Shore Market Trends: Update October-November2012

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More 2012 Progress! Chicago-North Shore Real Estate home sales increased 15.9% over previous-year performance volume in September of this year, lengthening a top run of more than a year of sales surge, according to the recent Illinois Association of REALTORS® report. In addition the data revealed the North Suburban market, along with other areas of the state had a median home price increase of 2.2 percent!

Continued North Shore real estate market stabilization has held steady for the first nine months of 2012. Prices, interest rates, and consumer confidence are further intensifying the improvements seen in North Shore communities and around other areas within the state of Illinois.

Listings in the North Shore-Barrington region decreased 11.6 percent to 840. Listings Under Contract were up 49.7 percent to 569. Inventory levels shrank 31.9 percent to 3,617 units. The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Shore-North Central region was 3.49% percent in September 2012, down from 3.60 percent seen in August 2012, according to the Federal Home Loan Mortgage Corp. Last September in 2011 it averaged 4.09 percent. Supporting North Shore real estate data can be seen in the summary figures from the North Shore Barrington Association of Realtors and Midwest Real Estate Data LLC below (click to enlarge).

In the nine-county Chicago-North Suburban Primary Metropolitan Statistical Area (PMSA) including Cook and Lake, home sales (single family and condominiums) in September 2012 totaled 7,484 homes sold, up 24.0 percent from September 2011 sales of 6,035 homes. Forty-five (45) of 101 Illinois counties reporting showed year-over-year home sales increases in September 2012. See supporting real estate analysis in the figures provided below (click to enlarge).

Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of October 7, 2012 for the period September 1 through September 30, 2012 into November 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 atwww.illinoisrealtor.org/marketstats.

Gloria Matlin, a top ranked North Shore Chicago Realtor; is your source to review this and other market action reports/conditions.  640 Vernon Ave, Glencoe, Illinois-60022, in the heart of downtown.

Just Listed -716 Sycamore Ln., #Glencoe.

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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.

Top Loan Types & Lender Checklist: North Shore Real Estate

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Chicago’s North Shore real estate buyers are benefiting from historic mortgage interest rates that continue to hover at or near 60-year low points. This is a great time to buy or sell for seasoned investors as well as first time home buyers. Every buyer and seller should have running knowledge or at least brush up on basic North Shore mortgage products and types. It’s also good to have a checklist of what’s needed to get the mortgage process rolling. Below are some handy-dandy tips to take note of:

  • Common mortgage terms.   Mortgages are generally available at 15, 20, or 30-year terms. In general, the longer the mortgage term, the lower the monthly payment.   However, you pay more interest overall if you borrow for a longer term.
  • Fixed or adjustable rate loans. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase.  ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect      your income to grow significantly in the coming years.
  • Balloon loans. These mortgages offer very low-interest rates for a short period of time —often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
  • Government-backed mortgages. These loans (Fannie and Freddie) are sponsored by agencies such as the Federal Housing Administration or the Department of Veterans Affairs and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly impact your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use an online mortgage calculator: HERE

North Shore Mortgage Lender Checklist: What you need for a real estate mortgage

  • W-2 forms — or business tax return forms if you’re self-employed — for the last two or three years for every
    person signing the loan.
  • Copies of at least one pay stub for each person signing the loan.
  • Account numbers of all your credit cards and the amounts for any outstanding balances.
  • Copies of two to four months of bank or credit union statements for both checking and savings accounts.
  • Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
  • Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
  • Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
  • Copies of your most recent 401(k) or other retirement account statement.
  • Documentation to verify additional income, such as child support or a pension.
  • Copies of personal tax forms for the last two to three years.

Our top producing Chicago-North Shore real estate office, located at 640 Vernon Ave-Glencoe, Illinois 60022 is a resource for mortgage product questions and guidance. Visit HERE for additional information on North Shore home loans, interest rates, homes for sale, homes for rent, and general real estate financing options.

Real Estate Terms Every Buyer and Seller Should Know: Chicago-North Shore Real Estate

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Below are definitions to be familiar with, if you are thinking of or are involved in buying or selling North Shore real estate. Or, just for your general knowledge. There are several terms, commonly used jargon, in the real estate industry that may appear to be a peculiar language all its own:

7/23 and 5/25 Mortgages Mortgages with a one-time rate adjustment after seven years and five years respectively.

3/1 5/1 7/1 and 10/1 ARMs Adjustable rate mortgages in which rate is fixed for three year five year seven year and 10-year periods respectively but may adjust annually after that.

Acceleration The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower) or by using the right vested in the Due on Sale Clause.

Adjustable Rate Mortgage (ARM) A mortgage in which the interest rate is adjusted periodically based on a pre-selected index. Also sometimes known as a renegotiable rate mortgage variable rate mortgage or Canadian rollover mortgage. 

Adjustment Date The date that the interest rate changes on an adjustable rate mortgage (ARM).

Affordability Analysis An analysis of a buyer liabilities and available funds and considers the type of mortgage you plan to use the area where you want to purchase a home and the closing costs that are likely.

Appraisal An estimate of the value of property made by a qualified professional called an “appraiser. based on an appraiser’s knowledge experience and analysis of the property.

Assessment A local tax levied against a property for a specific purpose such as a sewer or street lights.

Assumption Fee The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place.

Bridge Loan A second trust that is collateralized by the borrower’s present home allowing the proceeds to be used to close on a new house before the present home is sold. Also known as “swing loan.”

Buy Down When the lender and/or the home builder subsidized the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low they will increase when the subsidy expires. 

Conventional Loan A mortgage not insured by FHA or guaranteed by VA.

Credit Report A report documenting the credit history and current status of a borrower’s credit standing.

Credit Risk Score A credit risk score is a statistical summary of the information contained in a consumer’s credit report. The most well-known type of credit risk score is the Fair Isaac or FICO score. This form of credit scoring is a mathematical summary calculation that assigns numerical values to various pieces of information in the credit report. The overall credit risk score is highly relative in the credit underwriting process for a mortgage loan.

Debt-to-Income Ratio The ratio expressed as a percentage which results when a borrower’s monthly payment obligation on long-term debts is divided by his or her gross monthly income. See housing expenses-to-income ratio.

Deferred Interest When a mortgage is written with a monthly payment that is less than required to satisfy the note rate the unpaid interest is deferred by adding it to the loan balance. See negative amortization.

Earnest Money Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.

Equal Credit Opportunity Act (ECOA) A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race color religion national origin age sex marital status or receipt of income from public assistance programs.

Equity The difference between the fair market value and current indebtedness also referred to as the owner’s interest. The value an owner has in real estate over and above the obligation against the property.

Escrow Payment The part of a mortgagor hazard insurance mortgage insurance lease payments and other items as they become due.

Fixed Rate Mortgage The mortgage interest rate will remain the same on these mortgages throughout the term of the mortgage for the original borrower.

Foreclosure A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property.

Market Value The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

Preapproval The process of determining how much money you will be eligible to borrow before you apply for a loan.

Private Mortgage Insurance (PMI) In the event that you do not have a 20 percent down payment lenders will allow a smaller down payment – as low as 3 percent in some cases. With the smaller down payment loans however borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on your loan’s structure.

Realtor® A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors.

Survey A measurement of land prepared by a registered land surveyor showing the location of the land with reference to known points its dimensions and the location and dimensions of any buildings.

Third Party Origination When a lender uses another party to completely or partially originate process underwrite close fund or package the mortgages it plans to deliver to the secondary mortgage market.

Title A document that gives evidence of an individual’s ownership of property.

Underwriting The decision whether to make a loan to a potential home buyer based on credit employment assets and other factors and the matching of this risk to an appropriate rate and term or loan amount.

For More information on these terms as well as other mortgage terminology click HERE. Also, feel free to visit our Coldwell Banker office in Glencoe, IL 60022. 640 Vernon Ave in the heart of the downtown area. We can show you how these terms and others can impact a home for sale, rent, or for first time home buyers. Let our legendary 45 years of North Shore Real estate knowledge work for you!

 

 

 

Does a Housing Upgrade Make Sense..Now?-North Shore Real Estate Trends

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Despite aspects of sluggishness in the Chicago-North Shore real estate market, one group continues to be active and thriving : buyers or sellers with or without families, who are bent on upsizing for space, walkable communities, and better school districts.

The following questions will help you decide whether you’re ready for a North Shore home that’s larger or in a more desirable area. If you answer yes to the majority of the questions, it’s a sign that you may be ready for a move.

  1. Have you outgrown your neighborhood? The Chicago-North Shore neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for the long-term. For example, you may have realized that you’d like to be closer to your job, life style conveniences or live in a better school district.
  2. Are you comfortable moving in the current  North Shore housing market? If your area is showing continual progress in home sales, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.
  3. Have you built significant equity in your current North Shore property? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.
  4. Has your income or financial status improved? If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving and moving up.
  5. Is there a reason why you can’t remodel or add on? Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your city doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best next choice.
  6. Do interest rates look attractive? A low mortgage rate not only helps you buy a larger home, but also makes it easier to find a buyer.

For information on moving up or down in this market click HERE and HERE

Visit http://www.gloriamatlin.com for community comparison and market snapshot data. You may also stop by our North Shore Coldwell Banker office for information on mortgage rates, loan options, market reports, data and outcomes statistics..640 Vernon Ave, Glencoe, IL 60022

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