Tell me about the neighborhood…

When you are looking for a home, what is one of the most important topics that the listing sheet does not address?  What is the community like?

Here is a resource for Chicago and suburbs that pulls information from many resources and can provide you with information and feel of the community, its schools, the demographics and more.

Check it out and I know you will be back for more!

Click here for information.

Could any major mortgage rules cause a delay in closing

Guest contributor of this post is Tricia Rieth, Senior Mortgage Consultant at Baird & Warner

New Loan Disclosure Rules may cause delays…as of July 30, 2009 any changes in closing costs that cause the APR (the actual cost of borrowing) to change by .125% from the initial Good Faith Estimate, the lender must re-disclose to the borrower at least 3 business days before closing.  During that 3 day period the borrower has the right of recission.  The lender may not close the loan during this 3 day period.  This 3 day period can only be waived if there is a bona-fide personal financial emergency which needs to be in writing by the client.  Note:  Be sure to help avoid delays by closely reviewing your Good Faith Estimate and Truth in Lending Disclosures when you receive them.

Another BIGGIE is the Fannie Mae Loan Quality Initiative (LQI). The LQI is to promote improved loan data delivery that is complete, accurate and fully reflective of the terms of the mortgage.  It is also to help ensure that the loan meets the credit and eligibility standards, pricing guidelines, and so on. A key point to remember: Fannie Mae wants lenders to verify that borrowers have not taken on new debt during the processing of the mortgage.  If new debts are found, the mortgage is subject to a new underwriting review and a possible turndown.

To avoid home purchase delays and to learn more contact Tricia Rieth (cell: 847-312-4202 or email: tricia.rieth@bairdwarner.com)

But I have a moving deadline…

1) How long it takes to find a home to make an offer on depends on the time priority you give the hunt and how honest and specific you are with your agent.

2) An offer is being written and what should you expect as far as response time. First and foremost, it will depend on terms of your offer (price seems to always have priority) and then there may be countering back and forth. So, here in Chicagoland:

a) If it is a motivated, non-distressed seller, you can potentially close on the sale within 30 days if it works for the seller or as long as 90 days. Check with your lender on how long your rate is good for or you could be in for a surprise later.
b) If it is a bank-owned (REO) property, the bank will most likely want to close the sale as soon as possible, sometimes as quick as two weeks and usually no longer than 30 days. Make sure you have everything lined up and ready to go…mortgage, inspections, etc., because there will be no time for lollygagging.
c) If this is a distressed seller in a “short sale” situation (owner owes more on the mortgage(s) than home is worth and he can prove a hardship case), the offer will go to owner for signature but it is subject to lender approval. Once it goes to lender, plan on one of the following time frames, provided listing agent or sellers’ attorney know how to work with short sales:
• If only one lender involved, 4 to 12 weeks to hear back from lender
• If more than one lender (main mortgage, plus 2nd lien by another mortgage or Heloc loan), expect 3 to 9 months and sometimes longer to hear back since they will have some issues to settle amongst themselves.

Once again, as soon as you hear from the lender that they are accepting your offer, expect them to want to close very, very quickly.

You, as the buyer, have control over how you handle your part of the search and offer/counter-offer but the remainder is in the hands of another party. Plan ahead, make clean offers that are in the park price-wise, and be prepared to move quickly.