Shelley Goddard - Highland Park Real Estate, North Shore & Chicago Real Estate

Shelley Goddard

 
buyers
Let's make your home buying experience more rewarding!
Since your home will most likely be the largest investment you will ever make, it's important to stay organized and focused throughout the process. Whether you are downsizing or upgrading, I will be there with you every every step of the way.
"As a first-time home buyer, Shelley made the process fun, easy-to-understand, and as pain-free as possible. She was always available to answer my questions and went over and above to make sure the deal closed on time." -- Jessica G, Lake Bluff

Home Prices: Track Your Local Forecast
"It's probably the best time to buy a home in decades," said Pat Newport, an analyst for IHS Global Insight. Affordable mortgages combined with lower home prices may help bolster the housing market. See how the Chicago area housing market is expected to fare using CNNMoney.com's Home Price Data Tool.

6 tips for getting the best mortgage rate
Home prices are down 34% nationally since 2006. Mortgage rates are at their lowest since the 1950s. Buying a home may never be cheaper than now! This recent article from MONEY Magazine offers simple, practical advice about qualifying for the best mortgage rate you can get.

1. No new credit balances. Higher credit score equals lower mortgage interest rate. One large balance can knock 20 points or more off your score. Keep your credit cards in your wallet, and don't apply for any new cards or loans for at least 3 months before you shop for a loan.

2. Ask for time. If your sales contract gives you only 10 days to secure a loan, negotiate for more time to shop around.

3. Get at least six quotes. 30-year fixed rates can vary. Get quotes from national lenders, local credit unions and regional banks. Be sure to ask about fees.

4. Match the lock period to the loan. Getting an extension on a lock costs money - at least a couple hundred dollars. So ask your lender how long it's taking to close loans. If you're going to need 60 days, don't lock for less than 60 days.

5. Opt for an ARM. This can mean big savings if you KNOW you're not going to stay in the home more than seven years.

6. Talk to a broker. Mortgage brokers who have access to a lot of lenders can get you the best deal if you need a jumbo loan, or you're self-employed or have other unusual situations.



Learn about...
Closing Costs & Title Insurance Explained...Visually
Closing costs include taxes, lender fees and title fees a homebuyer paus at settlement. Title insurance protects against losses and legal expenses you may incur should a claim arise and question your ownership. Learn more about the real estate closing process and title insurance in these neat little videos.

Buyers: How to Avoid the Top 3 Deal-Killers
House hunting used to be fun. Nowadays, buyers find themselves anxiously waiting through the entire escrow process for obstacles - and whether their transaction will move forward.

Deal-Killer #1: Appraisal too low The appraisal process is entirely out of both the buyer's and seller's control, so this deal-killer may be the most difficult to avoid. To minimize the risk, check the recent comparable homes that have sold in the area before making your offer. Also, a local mortgage broker who originates loans through its own bank can choose from a smaller pool of appraisers they know are knowledgeable about your area.

Deal-Killer #2: Property condition dramas Lenders, finding themselves stuck with a lot of decrepit homes, are more concerned than ever about property condition. If you are buying a short sale or foreclosure property, as-is really means as-is. Make sure you know ahead of time what sort of shape your lender will require your home to be in.

Deal-Killer #3: Loan approval takes too long Most contracts include a standard loan contingency period of about 17 days, during which your earnest money deposit is refundable if the transaction doesn't go through. But if the appraisal takes too long, or the underwriter keeps asking for more and more documents, it can take longer than 17 days to get everything signed off. If you don't want to lose your deposit funds you have to secure an extension from the seller or let your transaction die. To minimize risk, be prepared to provide anything and everything the underwriter wants as quickly as possible, without pushing back.

Read the complete article by Trulia.com's Tara Nelson



Should You Get a Home Inspection?
Learn the how's and why's of home inspection in this video from the American Society of Home Inspectors. 
5 Questions to Ask Your Home Inspector
Tara Nelson's full article on Trulia.com teaches you how to decode inspector-speak such as "serviceable condition" and "conducive to deterioration" so you can use your home inspector's finding to make smart decisions as a home buyer.

1. How bad is it - really? Most inspectors are all about the facts - which can make it hard for you, the buyer, to understand what's a big deal and what isn't. Tara writes, "In many states, home inspectors are not legally able to provide you with a repair bid, but if you attend the inspection and simply ask them whether or not something they say needs fixing is a big deal, nine times out of ten they will verbally give you the information you need to understand the degree to which the issue is a serious problem (or not)."

2. Who should I have fix that? You might be surprised when your inspector tells you that a number of items on the report are really DIY-type maintenance items. For the larger repairs, your inspector may be able to give you a few referrals to the contractors you'll need to get bids from during your contingency period. The same goes for any further inspections they recommend.

3. If this was your house, what would you fix, and when? Most home inspectors are experienced enough to know that no house is perfect. This question puts your inspector in the position to help you understand what does and does not need to be repaired, prioritize the work you plan to do, get used to the constant maintenance that come with homeownership, and understand the importance of having a home warranty.

4. Can you point that out to me? At the end of the inspection, while you're still at the property, ask the inpector to walk you through the home and point out all the items they've noted need repair, maintenance or further inspection.

5. Can you show me how to work that? Learn how to operate your thermostat, your water heater, the emergency shutoffs for your utilities - among other things. Tara notes, "This one single item is such a time and stress saver it alone is worth the lost income of missing a day of work to attend your inspections."

Read Full Article



5 Next Steps When the Appraisal Comes in Too Low
"While low appraisals can be particularly potent deal killers, their danger to your deal can be neutralized in some cases. If you find yourself facing an appraisal lower than the sale price in the contract, add these five steps to your immediate action plan."
Read the full article by Tara-Nicholle Nelson on her Trulia blog

1. Appeal errors or bad comps to the appraiser
First, read the entire appraisal report carefully. A clerical error, such as a missed bedroom or underreported square footage, can result in the wrong "comparables" being selected by your appraiser to use as benchmarks of your home's market value. Second, ask your agent about whether the comparable properties used by the appraiser were reasonable. Send corrected information and/or applicable comps to your mortgage professional who can request that the appraiser revise their report and estimate of value.

2. Ask for a seond opinion
If your real estate agent and mortgage professional believe in your case, they may be able to convince the underwriter to authorize a second appraisal.

3. Renegotiate
Try to close the gap between purchase price and appraised value. If the gap is relatively small, the seller may agree to bring the price down if you can put some extra cash into the deal.

4. Pay the difference or split the difference.
Consider your personal position: Have you been house hunting for two years and finally found "the one" - in great condition, perfect location and not a short sale? Do you have the cash to pay the difference between appraised value and purchase price? Is the seller barely breaking even on the sale or has offered to split the difference with you?

5. Change lenders
Mortgage banks and local, hybrid broker-bankers are allowed to hand-pick their appraisers - and tend to fill their short-lists with those who have more local experience and can appreciate the nuances of neighborhoods, schools and city limits.



5 Real Estate and Mortgage Urban Legends
"...modern-day myths of easy-peasy seller financing, distressed sellers practically throwing their properties at buyers, and cosmetic fixers that can be had for pennies are just that - fairy tales which, if believed, can result in some not-so-happy endings."  Tara-Nicholle Nelson, Trulia.com's real estate realist, penned this excellent article about these urban legends and the truth which lies beneath.

Urban Legend #1: Got bad credit? Get seller financing.
Reality Check: Seller financing isn't as easy to get - or desirable - as they make it seem in the infomercials. Read more

Urban Legend #2: Buyers save big bucks on cosmetic fixers.
Reality Check: Sellers aren't stupid - and neither are their agents. Sellers expect to invest a little cash to stage and spruce up their biggest asset and get as much as humanly possible for it. Read more

Urban Legend #3: 100 percent financing for first-time buyers.
Reality Check: While first-time home buyers can and should seek out the assistance programs available to them, they should also tuck their pennies away and expect to have to put some of their own financial skin in the game. Read more

Urban Legend #4: Nearly free foreclosures.
Reality Check: Some of the best deals on today's market are to be had via negotiations with realistic owners of non-distressed properties who are ready, willing and able to make a deal. Read more

Urban Legend #5: Distressed owners who will sign their home over to you, gratis.
Reality Check: Why would you, a buyer, want to assume a mortgage balance vastly greater than the property is worth, even if you could? It's just not worth it. Read more

The real deal is that real estate is much more affordable than it used to be, but the barriers to entry are higher, and the days in which you could get something for nothing are over.



Shelley Goddard
Shelley Goddard
847-284-8634