Chicago Home For Sale

July 6, 2011 - An interesting statistic reported by the National Association of Realtors is that 30% of home sales in the U.S. from the middle of April to the middle of May this year were cash purchases. This report was highlighted in a recent Chicago Agent Magazine article and also stated that on June 28th, Fannie Mae activated a new delayed financing option to their rules.

This delayed financing rule lets all-cash buyers access equity almost immediately after the deal closes. Before, Fannie Mae required that all-cash buyers had to be listed on the title for at least six months.

The stipulations are that the mortgage taken out after an all-cash purchase must not exceed the cash investment in the property. There can’t be any conflicts of interest between the cash-buyer and the lender. Where the cash came from to buy the property must be verified and documented and an HUD-1 must document the property, according to the article.

This new option won’t be of much help to buyers or investors of Chicago real estate if the property needs a lot of renovation or improvements because the cost of those fixes could easily exceed the amount of cash paid for the property and so the cost couldn’t be included in a loan. Some buyers who find great deals on Chicago short sales may benefit from it though.

Technorati Tags: Chicago Short Sales, Chicago Condos, Chicago Real Estate

July 5, 2011 - We’ve heard time after time that now is a great time to buy Chicago condos or Chicago homes because of price cuts and excess inventory. But getting approved for a mortgage isn’t always easy. In fact, it can seem like the odds are stacked against you. But a recent article in the Sun Times pointed out five financial areas that affect your chances of being approved for a mortgage. We will go over those with you so you can be as prepared as possible when you do apply.

Being able to make a down payment is crucial. The article states that you don’t always have to have 20% of the purchase price. If you get approved for an FHA backed loan you could get by with a 3.5% down payment. The only downside to that is you’ll have to get mortgage insurance if you have less than a 20% down payment.

If you have a good work history and have been in your current job for a significant amount of time it helps your chances of getting a mortgage. If your job history reads like the phone book, some lenders may be afraid you won’t have a steady income to pay your mortgage every month.

Your debt to earning ratio is also important. If you currently just make enough to pay your existing bills, lenders may not be sure you can also afford a monthly mortgage payment. You’ll also probably need to have paper verification of your income, assets and bills.

Last but certainly not least is your credit score. We won’t go over all the ways you can improve it right now but will just say that the article cites the National Association of Mortgage Brokers low limit of 640 to be approved for a loan. Credit scores run anywhere from 300 to 850, so find out what yours is if you don’t already know. That way you won’t be surprised in a bad way when you apply for a mortgage.

We always advise buyers to do their homework and come prepared when it comes to Chicago real estate and the same thing applies when you apply for a Chicago mortgage.

Technorati Tags: Chicago Mortgage, Chicago Condos, Chicago Real Estate

July 4, 2011 - We’ve been hearing for some time about how occupancy rates at Chicago hotels has been down. Most hotels have offered deals and reductions to try and increase guest bookings, so it’s understandable that a hotel proprietor might get a little upset when something drives down business even further. One hotel in particular is going to court over claims of lost revenue, according to a Crain’s article.

The Talbott Hotel owner is suing Chicago real estate developer Michael Reschke because he claims that construction noise, dust and work on weekends and early mornings at Ten East Delaware has hurt his business. The 36 story, 118 condo tower did have a deal with the hotel to offer hotel services to condo residents at an on-demand rate. No word on whether that still stands or not.

The Talbott owners state that construction debris was actually thrown onto the 149 room hotel and cafe, vibrations were disruptive, dust was thick and fumes were bad. They claim that a lot of guest cancelled reservations, had to be moved to other rooms away from west side of the tower and the conference rooms on that side were not able to be used. Refunds were issued and gift certificates given to guests, resulting in lost revenue.

The hotel owner also alleges that there is a 7 inch difference in the ground floor of the tower and the hotel restaurant and that breaks an agreement the two parties had to make them level. The suit is asking for more than $50,000 in damages.

Mr. Reschke fired back in the article, saying that his Prime Group had already been reimbursed on a monthly basis because the hotel sent them bills. He also called the noise complaints “frivolous and without merit.”

The Gold Coast luxury tower started construction in 2006 and deliveries in 2009. Appraisal Reaearch Counselors states that Ten East Delaware is about 80% sold, with 91 condos under contract and 60 closed.

We’ll keep you posted on Ten East Delaware and any other news about Gold Coast Chicago condos.

Technorati Tags: Ten East Delaware, Gold Coast Chicago Condos, Chicago Real Estate