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WHAT ARE THE GENERAL CLOSING COSTS?
There are other costs beside your down payment associated with purchasing a home. First- time homebuyers have to
take into consideration closing costs such as:
- Fees charged for obtaining a mortgage.
- Inspection fees.
- Homeowner's insurance (must be prepaid for one year at closing).
- Transfer taxes if there are any (although the seller may pay these or they may be shared 50-50 between buyer and seller).
Other fees may include points, lender's fees, title charges, escrows for your property taxes.
Many loan programs allow the seller to contribute up to 6% of the sales price to the buyer's closing costs.
The most expensive closing cost a buyer pays is often the loan origination fee charged
by lenders. One point is equal to 1% of the loan amount. A $250,000 loan with a one-point fee will add $2,500 to your closing cost bill. You can eliminate this charge
by taking a no-point loan with a higher interest rate and keep the cash.
WHAT ARE THE BASIC STEPS FROM CONTRACT TO CLOSING
- Buyer: signs real estate contract and
gives broker earnest money check;
- Seller: signs reat estate contract making
it binding upon both parties;
- Broker: gives one signed copy of contract
to seller and one to buyer;
- Seller: gives his attorney or the broker
his last paid tax bill, survey, Torrens Certificate
or owner's title policy;
- Buyer: after inspection and attorney's
approval period,
increases earnest money as specified in contract;
- Buyer:
applies for mortgage loan;
- Buyer/Seller: make sure mortgage contingency
is met as called for in sales contract;
- Seller: make sure his attorney sends the
title policy to buyer's lender;
- Lender: prepares mortgage or trust deed
and note and advises buyer that they are ready for
his signature;
- Buyer: signs mortgage documents immediately;
- Buyer: obtains homeowners'insurance (evidence
must be provided at closing);
- Lender: orders title, or a tax search
if property is in Torrens System;
- Seller: makes sure attorney has obtained
title report from buyer's lender and signs the deed,
bill of sale, and affidavit of title, and gets payoff
letter from his lender;
- Seller/Buyer: make sure appointment is
set for closing;
- Buyer: obtains dollar amount required
to close and then obtains a certified or cashier's
check for this amount made payable to the buyer;
- Seller/Buyer: meet for closing - money
and documents change hands;
- Seller/Buyer: possession granted in accord
with contract. Make sure all utility companies have
been notified and meters read.
HOW DO
I KNOW IF IT'S BETTER TO BUY VS. RENT?
Check this table. See how much you can save
over 1, 3, 6, 12 and 30 years. Any questions? Give us a call at 773.862.3886 or email us at thecondoexperts@yahoo.com.
ARE TOU
A FOR-SALE-BY-OWNER?
If your answer is yes, here are some facts YOU need
to know!
1.Sellers
have been employing Realtors for over 200 years.
2. 72% of the properties in Chicago are sold through
the broker network. Open houses and advertising are
meaningless.
3. Realtors can sell your house FASTER and for MORE
MONEY.
4. If you believe that you can save a considerable
amount of money by selling on your own, just remember
that, in order to join the ranks of the successful
10% of American homeowners currently handling their
own sales, you need to know exactly what's involved
in order to sell quickly at the highest price
5. Most For-Sale-By-Owners ask too much and can't
sell, or not enough and lose money. They forget that
what determines the fair market value of their property
is not what they want but what an informed buyer is
willing to pay.
6. Most For-Sale-By-Owners become overwhelmed when
- Creating and paying for their own advertising
which can run up your budget to hundreds of dollars.
- Determining whether or not a buyer is qualified
which can cost you a closing and more expenses
to put the property back on the market. 40% of
the deals fail through at closing.
- Scheduling showings. Your property is really
on the market when you're home. You never know
when a mistake may cost you the money you're trying
to save.
- Open houses. Can you trust the stranger who
comes to your open house? Don’t put your family
in danger. Agents always pre-screen their buyers.
- Familiarizing yourself with enough basic real
estate regulations to avoid any costly lawsuits.
- Understanding (and possibly even preparing)
a real estate contract.
- Being ready to negotiate. Whether in writing,
face-to-face, or by phone -- negotiation is one
of the great skills you should be looking for
in an agent.
- Coordinating the details of a closing.
7. A successful sale is based on factors such as price,
terms, condition, location, and exposure. What do
you do when you can’t control them all?
8. Location and price are critical in real estate.
What if a property does not sell within a reasonable
period of time? What are the negative effects of a
price reduction? A property, priced too high to begin
with, usually ends up selling for less.
9. When you have a legal problem you hire a lawyer
even if you know one or two things about law. Same
applies to real estate. According to industry estimates,
over 90% of homes are sold with the help of a real
estate agent. Trying home remedy for selling real
estate could be a waste of time and have devastating
consequences, unless you have significant home selling
experience and current knowledge of applicable laws,
regulations and market conditions.
10. 90% of Sellers don’t know how to prequalify a
buyer in order to eliminate troublesome situations.
Sellers have reason to be concerned that they are
not unnecessarily tied up and end up falling out of
escrow. A good agent is experienced and concerned
with prequalifying the buyer and eliminating potential
problems at closing before allowing his client to
be involved with a buyer.
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Do You Have Credit Concerns?
Good credit is mainly helpful to get the lowest interest
rates from lenders.
But you still can get a loan even if you have a few credit
blemishes on your record or if you suffered a foreclosure
or bankruptcy.
Repossessions, divorces, and health disasters
can also alter your credit rating.
If
you think that you can’t qualify for a loan, call
Diane N. Pyshos
Senior Mortgage Consultant
A & N Mortgage Services, Inc.
1945 N. Elston Ave.
Chicago, IL 60642
D: 312-909-9718
F: 773-751-5463
E: dianep@anmtg.com
http://www.dianeloan.com/
www.AandNmortgage.com
NMLS #137800 Company ID #19291
Why pay someone rent if you can own a home
for less?
Renting may give you a place to live but
it will never be YOUR HOME, something you can put
your heart into.
When you rent,
deep down it always feels kind of unsettled and temporary...
because you know that you’re not there to stay.
SO STOP PAYING RENT!
YES,THERE IS A BETTER WAY!
LET US HELP YOU!
CALL TODAY 773.862.3886.
NO COST. NO OBLIGATION.
WE ARE READY TO LISTEN.
DON'T DELAY, CALL US
TODAY AT 773.862.3886
Highest Chicago Rents
In the Lakeview neighborhood, the median rent for a one-bedroom apartment is $1,380, down slightly from a year ago.
This unit on West Diversey Parkway rents for $1,450 a month.
With a median rent of $1,970, a one-bedroom on the city’s near west side is more expensive than a year ago. This remodeled unit in the 500 block of West Kinzie rents for $1.914 a month.
The South Loop continues to see an influx of new apartment buildings, and the median rent for a one-bedroom unit is $1,730. This Vesta Lofts unit rents for $1,700.
Logan Square, which includes Bucktown, is a sought-after area and the median monthly rent of $1,350 for a one-bedroom is more than $100 higher than a year ago. This unit on North Kimball rents for $1,350 a month.
Median rents for a one-bedroom apartment in Lincoln Park are up more than 6 percent from a year ago, to $1,680 a month. This unit at 2555 N. Clark rents for $1,694 a month.
The median rent for a one-bedroom apartment in Chicago’s West Town neighborhood is down slightly from last year, to $1,850. This one-bedroom unit at Mondial rents for $1,900 a month.
Median rents on Chicago’s Near North Side, which includes trendy River North, are the city’s highest, with a median monthly rent of $2,070 for a one-bedroom apartment. This unit on East Chestnut Street rents for $1,950 a month.
Rents in the Loop also have moved up from a year ago, to a median price of $2,000 for a one-bedroom apartment. This unit on South Clark Street rents for $2,000 a month.
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