FAQS

The difference between the terms "pre-qualified" and "pre-approved"? 0

If you are "pre-qualified" you have determined, with a loan officer, what price you can afford based on the down payment you have to offer, your debts and the amount the mortgage company will approve for your mortgage. Being "pre-qualified" is only a determination of your probable credit. If you are "pre-approved", your credit, employment and funds have already been approved by the lender.

I'm not sure how much of a monthly mortgage payment I can afford? 

Since purchasing a home is most likely the most expensive purchase you will make if will help your get pre-approval from your lender.  This will give you a safe guideline as to how much home you can afford to buy.  In most cases it is wise to estimate that about 28% of your gross income should cover your mortgage payments, taxes and home owners insurance. 

 How Can I Find Out about Schools and Activities in the Community to Help Excite My Children About Moving When They May Be Reluctant to Accept the Idea?

Since moving can be a stressful time you may want to call the park district and ask about what activities might be available for your children to enjoy based on their own personal interest in sports and creative programs.  Your local school board can direct you as well, to the latest "Report Card" which is a special report comparing the academic performance of the schools in the neighboring communities.
 

How much earnest money should I submit with the offer?

Approximately 1-2% of the purchase price.

 

How Will Changing Jobs Effect Your Real Estate Transaction? 

In most case you will be able to obtain a mortgage loan without a problem if you change jobs and are relocating to increase your salary or hourly rate of pay.  If you receive and W-2 and will be continuing to do so as long as you are not accepting a lesser salary or hourly rate there should be no problem with changes employers.  It is also more probable to get loan if you are switching for a 1099 or (self employed position) to a W-2 salaried or hourly position and lenders are more easily able to calculate your ability to make your mortgage payments. However be aware of the fact that your chances of getting a mortgage if your are self employed are extremely bleak as the lender views your self employment for any less than two years as having a lack of two years of employment history.  Therefore it would be a good idea to buy your home first before considering becoming self-employed for the sake of more easily getting the mortgage loan you want.

 

What Will a Professional Home inspection Include?

At minimum every home inspection should include, but not be limited to the an inspection of the following features in your home:

1. Foundations

2. Roof

3. Septic tanks, wells or sewer lines

4. Plumbing and electrical systems

5. Common areas (for condominiums)

6. Heating and air conditioning systems

7. Insulation

8. Ventilation

9. Ceiling, walls and floors

10. Doors

11. Hazardous materials concerns
 

                                 What are the tax advantages of home ownership?

Four key advantages are: (1) Real estate taxes are tax deductible. (2)Mortgage interest is tax deductible(3) Local tax benefits are available in many areas. You can enjoy tax-free profits of up to $500,000 from the sale of a primary
residence that you have occupied for two of the last five years if you are married and filing jointly. If you are single or married and filing separately, you can enjoy tax-free profits up to $250,000. (4)  Moreover, you can use the exclusion as often as you meet the qualifications. Mortgage interest is tax deductible.

Should I Be Home While My Home Is Being Shown To Potential Buyers?

                        
The answer is Absolutley Not!  Because purchasing a home is such an emotional decision, buyers need time to look your home over properly to make their decision. Being present, may make the buyers feel obligated to move through your home too quickly. Even though is may me of an inconvenience to,  leaving your home when it's being shown could make the difference between selling your home or losing a sale. Allow your Realtor to take charge in this situation and don't let your feelings get in the way with a prospective purchaser.
 

Is it possible that two, ten-year-old home with the same square footage, nearly identical floor plans and only a few blocks from each other vary in price by more than $10,000?

For an example, a home on a cul-de-sac may generate a higher price for the same reason-less traffic. Cul-de-sacs are frequently like a maze and they discourage drive-throughs, which is, of course, a definite benefit to residential privacy. Even properties on one side of a street can be worth more than a similar property across from it. Why? Certain communities, because of their name, are more prestigious than others. Beverly Hills, California, of course, is one. It is known worldwide for its high-end shopping, expensive housing and impeccable name. In sections where Beverly Hills is divided from other cities and/or communities by a street, the homes on the Beverly Hills side of the avenue command a higher price than those in the non-Beverly Hills city across from it.

Forgetting, for a moment, the interior improvements that set one home apart from another, there are exterior factors that also influence price. For instance, homes on primary ingress and egress streets-(that is, the main streets that lead in and out of a tract)-generally appreciate more slowly than those within the tract that are not on primary streets. Primary ingress/egress streets generate more traffic and are therefore, generally less desirable. Thus, they have lower prices.

Some other factors that influence price: What commercial developments are adjacent to the tract? How (undesirable are they? And, don't forget supply and demand.

Existing homes may differ radically in price for another reason-one homeowner wants to sell, and the other has to sell. The motivation for each is quite different, and so may be the pricing strategies.

The wise buyer checks one other thing-a community's master plan. This is a must, especially if a tract (or home) is surrounded by vacant land. Most communities have one. It is usually drawn up by planners within the city of county and approved by a local planning commission. Find out what is going to be built nearby and determine how it might impact the value of the tract. A real estate agent can frequently be of assistance in this area, too. All this, of course, takes time and homework. But, it is well worth it, especially when you consider that the purchase of a home is usually going to be the largest, single financial investment most people make in a lifetime.
 

When can we close on the home we are buying?

Generally, 25-60 days after accepted offer.
 

What if something turns up during the inspection?

You have the right to negotiate the repairs needed to remedy the improvements requested, or withdraw the contract.