Contracts see a second week of decrease but it still outpacing 2019.

The market seems to cool in the last 2 weeks as the Fall Market approaches. Open Houses saw a 31% decrease from the last 2 weeks. Listings that went under contract fell for the second consecutive week. Though there is a cool down in the Chicagoland Real Estate Market it still saw a increase in key areas, including that the largest annual increase of 2020 is in closed Listings, a 71% increase compared to the same period from 2019. Click Here to get more Information on market conditions

Author: Crissinda Ponder

As far as major homebuying decisions go, choosing the right mortgage lender is right up there with finding a dream home. The following 12 questions to ask a mortgage lender can help narrow down your list.

1. Which mortgage programs do you offer?
It’s important to understand which mortgage programs each lender you’re interested in has to offer. Consider whether they provide:

Bad credit home loans
First-time homebuyer programs
Low-income home loans

Some lenders may also have programs that cater to homebuyers in certain professions, such as doctors and dentists, so inquire about those if they’re relevant to your career.

2. Which mortgage type is right for my financial situation?
Once you begin sharing details and documents related to your personal finances, your lender should be able to guide you to the best mortgage type for you and the lending requirements you must meet to qualify for that loan. Additionally, the questions to ask your mortgage lender should include figuring out which loan term and rate type make the most sense.

For example, would it be better to have a stable, fixed-rate mortgage rather than an adjustable-rate loan? Can your income support the higher monthly mortgage payments that come with a 15-year mortgage, or should you opt for the more affordable payments that are characteristic of 30-year loans?

If you have limited down payment funds and a lower credit score, it may make sense to choose a government-backed loan such as one insured by the Federal Housing Administration (FHA) or the U.S. Department of Agriculture (USDA).

3. How does the mortgage preapproval process work?
You’ll need to apply for a mortgage preapproval to be taken seriously as a homebuyer. A preapproval involves a review of your overall finances, including your credit history, income and assets. If you’re preapproved, your lender will send you a preapproval letter outlining the maximum loan amount you qualify for.

Ask your lender how long their preapproval letters are valid. If you don’t find a home within the designated time frame, you’ll have to apply for preapproval again after the letter expires, which includes another hard inquiry on your credit reports and review of your bank statements, pay stubs and tax documents.

4. Am I able to send my documents to you electronically?
Another important question to ask a lender: Does your company have the online platform to support a fully digital mortgage application? If they answer yes, you may be able to upload your asset and income documents electronically rather than faxing, mailing or scanning them. Having this feature can help speed up the mortgage process.

If you prefer an in-person experience, double-check that your lender has a nearby branch with loan officers on site to work with you.

5. What’s my minimum required down payment?
A commonly cited rule of thumb is to make a 20% down payment when buying a home, but that’s not doable for many homebuyers. In fact, the average down payment among all mortgage borrowers is 12%, according to recent data from the National Association of Realtors (NAR). First-time buyers put even less down — just an average down of just 6%, NAR found.

Some mortgage programs don’t require any money down, including USDA loans and mortgages backed by the U.S. Department of Veterans Affairs (VA) for eligible military borrowers. Others, like Fannie Mae HomeReady® and Freddie Mac Home Possible® loans, allow down payments of as little as 3%. Additionally, you can qualify for an FHA loan with a 3.5% down payment and a 580 credit score.

6. What’s your origination fee?
It costs money to borrow money, and you need to know how much your lender charges to provide your mortgage. Ask about the expected origination fee before you apply for a mortgage, which includes charges for processing, underwriting and funding your loan, according to the Consumer Financial Protection Bureau (CFPB).

You can confirm your estimated origination fee by checking Page 2 of the loan estimate you’ll receive within three business days of submitting your mortgage application.

7. Do I qualify for down payment assistance?
One of the most important questions to ask a loan officer is if there are any down payment assistance (DPA) programs for which you may qualify. This is especially important if you need extra help coming up with the cash for closing costs or the down payment.

DPA programs often come in the form of grants or loans and have stipulations that you must meet to receive the help. If your lender doesn’t offer this type of assistance, check with your local housing finance agency.

8. What are all the costs I’ll need to pay to get a mortgage?
Mortgage closing costs range from 2% to 6% of your loan amount and are charged on top of the down payment. Closing costs include all of the charges you’ll pay — most of which come from third-party services — to buy your home.

Review your loan estimate for a list of your expected closing costs and raise questions and concerns where necessary. Negotiate to have some your fees reduced or removed, such as the:
Application fee
Origination fee
Pest inspection fee
Survey fee
Title insurance services

9. What is my estimated mortgage interest rate?
Your credit score, debt-to-income (DTI) ratio, down payment amount and several other factors all help determine your mortgage rate. Having a higher credit score and larger down payment amount can work in your favor, while too high of a DTI ratio makes you more risky and can cost you, because a lender may charge a higher rate.

Shop around with multiple lenders to find the best mortgage rate to potentially save thousands over the life of your loan. Never settle for the first mortgage rate quote.

10. Am I being charged points for my quoted mortgage rate?
When a lender quotes a mortgage rate for you, ask if the pricing includes mortgage points. Also called discount points, these are upfront fees you can pay to get a lower rate. One point is equal to 1% of your loan amount. For instance, if you’re taking out a $250,000 mortgage, one point would cost $2,500 to buy down your rate.

Each point you buy can drop your rate by up to 0.25%. You can also check Page 2 of your loan estimate to see if there’s a cost included for points.

11. When can I lock my interest rate and what’s the fee?
Mortgage rates fluctuate every day. Depending on how the economy is doing, you may want to get a stable rate that won’t change dramatically before you make it to the closing table. A mortgage rate lock secures your rate for a set amount of time, usually 30 to 60 days. As long as you close within that time frame and your financial situation stays the same, your rate shouldn’t change.

Some lenders don’t charge a fee for rate locks. However, there could be a cost to extend it if the lock expires before closing.

12. Will you service my loan after closing?
The last on our list of questions to ask a mortgage lender: Is your loan being sold once you close? If so, you could be working with a brand-new company to make mortgage payments and resolve customer service issues.

You can’t control who services your loan. After all, your lender has the right to transfer loan servicing to another company. But if it’s important for you to maintain a relationship with the same company after closing, find a lender that services its loans in house.

Source: https://www.lendingtree.com/home/mortgage/frequently-asked-mortgage-questions/

Author: Laura Gaskill, Houzz

If you are planning to put your house on the market this summer, it goes without saying that you are hoping to sell your home as quickly as possible and get your asking price. Set the stage for success with these 21 tips for styling and upgrading your home, and see results
— fast.

1. Boost curb appeal. This is something you always hear, and with very good reason. Many people thinking of touring your home will do a quick drive-by first, often deciding on the spot if it is even worth a look inside. Make sure your home is ready to lure in onlookers with these tips:
  -Power wash siding and walkways
  -Hang easy-to-read house numbers
  -Plant blooming flowers and fresh greenery
  -Mow lawn, and reseed or add fresh sod as needed
  -Wash front windows
  -Repaint or stain the porch floor as needed

2. Welcome visitors with an inviting porch. Even if you have only a tiny stoop, make it say “welcome home” with a clean doormat, potted plants in bloom and — if you have room — one or two pieces of neat porch furniture. Keep your porch lights on in the evenings, in case potential buyers drive by. Illuminating the front walk with solar lights is a nice extra touch, especially if you will be showing the house during the evening.

3. Get your house sparkling clean. From shining floors and gleaming windows to clean counters and scrubbed grout, every surface should sparkle. This is the easiest (well, maybe not easiest, but certainly the cheapest) way to help your home put its best foot forward. You may want to hire pros to do some of the really tough stuff, especially if you have a large house. Don’t skimp — this step is key!

4. Clear away all clutter. If you are serious about staging your home, all clutter must go, end of story. It’s not easy, and it may even require utilizing offsite storage (or a nice relative’s garage) temporarily, but it is well worth the trouble. Clean and clear surfaces, floors, cupboards and closets equal more space in the eyes of potential buyers, so purge anything unnecessary or unsightly. But it’s my style! Guess what? It may not be the style of those seeking to buy a house in your neighborhood. So even if you have an awesome vintage-chic look going on, rein it in for the sake of appealing to the most number of people. You can bring your personal style back into play in your new home.

5. Strike a balance between clean and lived-in. Yes, I know I just said to get rid of all your clutter (and you deserve a big pat on the back if you did it), but now it's time to judiciously bring back a few elements that will really make your home appealing. Think vases of cut flowers, a basket of fresh farmer's market produce on the kitchen counter or a bowl of lemons beside the sink.

6. Style your dining room table. The dining room is often a blind spot in decorating the home. Between dinners, a large dining table can look bare and uninviting, so styling it up with visitors in mind can increase the appeal. An oversize arrangement can look too stiff and formal, so try lining up a series of smaller vessels down the center of the table instead.

7. Take a good look at your floors. At the bare minimum, give all floors a thorough cleaning (and steam clean carpets), but consider having wood floors refinished if they are in poor shape. If you don’t want to invest in refinishing floors, the strategic placement of area rugs can go a long way.

8. Rearrange your furniture. In the living room, symmetrical arrangements usually work well. Pull your furniture off the walls and use pairs (of sofas, chairs, lamps) to create an inviting conversation area.

9. Choose sophisticated neutral colors. Now is not the time to experiment with that "fun"-looking lime green. But that doesn't mean you need to go all white, either. Rich midtone neutrals like mocha and "greige" create a sophisticated backdrop that makes everything look more pulled together.

10. Create a gender-neutral master bedroom. Appeal to everyone with a clean, tailored master bedroom, free of personal items and clutter. You can't go wrong with clean, crisp linens, tasteful artwork and a blanket folded at the foot of the bed.

11. Open those closets! Open-house visitors will peek inside your closets. Closet space can be a make-it-or-break-it selling point for buyers, so show yours off to their full advantage by giving excess stuff the heave-ho. Again, this is really important, so even if you need to store a few boxes elsewhere, it's worth it. Aim to have 20 to 30 percent open space in each closet to give the impression of spaciousness.

12. Clean up toys. Of course there will be families with children looking at your home, but just because they have kids too doesn't mean seeing toys strewn everywhere will sell them on the place. When people are house hunting, they are imagining a fresh start. Show them that in this house, it is possible to have a beautifully organized kids' room, and they might be swayed.

13. Use "extra" rooms wisely. If you have been using a spare bedroom as a dumping ground for odd pieces of furniture and boxes of junk, it's time to clean up your act. Each room should have a clearly defined purpose, so think about what potential buyers might like to see here. An office? A guest room? Another kids' room? Whether you buy inexpensive furnishings, rent them, or borrow some from friends, making a real room out of a junk room will have a big payoff.

14. Try a pedestal sink to maximize space. If you have a small bathroom but a huge cabinet-style sink, consider swapping it out for a simple pedestal version. Your bathroom will appear instantly bigger.

15. Use only perfect personal accents. Especially in the bathroom, it is important that anything left out for visitors to see is pristine. If you have a gorgeous fluffy white bathrobe, hanging it on a decorative hook on the door can be an attractive accent —but if your robe is more of the nubby blue floral variety, you might want to hide it away. Look at every detail with a visitor's eye — bars of soap should be fresh and clean, towels spotless, the garbage always emptied (you get the idea).

16. Entice people to explore the whole house. By placing something that draws the eye at the top of the stairs, in hallways or in corners, you can pique curiosity and keep potential buyers interested throughout a whole home tour. A piece of artwork, a painted accent wall, a window seat, a vase of flowers, a hanging light or even a small, colorful rug can all work to draw the eye.

17. Show how you can use awkward areas. If you have any room beneath the stairs, or a nook or alcove anywhere in your home, try to find a unique way to show it off. By setting up a small work station, a home command center with a bulletin board, or built-in shelving, your awkward spot becomes another selling point.

18. Beware pet odors. Really, this can be a big one! If you have pets, get all rugs steam cleaned and be extra vigilant about vacuuming and washing surfaces. Also be sure to keep any extra-loved pet toys and doggie bones hidden when tours are scheduled.

19. Create a lifestyle people are looking for. Generally speaking, you want to play up what your neighborhood or area is known for. Have a house in a quiet, grassy suburb? Hanging a hammock in your backyard and a bench swing on your porch could be the perfect touch.

20. Stage the outdoors too. Even if your condo has only a teensy postage stamp–size balcony, play it up with a cute café table and chairs, a cheerful tablecloth and even a little tray of dishes or a vase of flowers. When people look at this scene, they won’t be thinking “small,” they will be thinking, “What a charming spot to have breakfast!”

21. Think seasonally. Make sure your garden is in beautiful shape in the summer, and that any extra features you have, like a pool or a fire pit, are cleaned and ready to go. Take advantage of the cozy vibe of the season in autumn and winter, by building a fire in the fireplace and simmering hot apple cider on the stove.

  March and April sank because of COVID-19. Things seem to be turning around because consumers began putting contracts on residental properties.Below is a snapshot of the market in the last week.

• Homes under contract, which can be seen as a forward-looking indicator of what the market may do showed there were 3,230 homes under contract on May 25, versus 4,846 the week ending June 15.
• The number of listed properties on the market also posted gains, with a 7.3 percent jump when compared to the week of June 8. (Excludes properties which have listing agreements, but are not to be shown.)
• Overall, closings this past week dipped 87.3 percent from 2019 numbers. The relatively low number of contracts currently correlates to a low number of contracts noted in April.

      Click here to get more information on the Real Estate Market in the Chicagoland Area.

MRED’s Weekly Market Snapshot showed strong consumer interest in early June, with homes under contract surging 22 percent over previous year numbers! For the week of June 1-8, 4,434 homes went under contract in MRED’s service areas.

Among other highlights:

• New listings were only off of previous-year numbers by 18 percent.
• Open houses are back in a big way. Three were just 238 scheduled open houses the week of march 23. For June 1-8, there were 2,692.
• Median prices remained relatively flat, declining just $1,000 year over year.