http://www.trulia.com/voices/profile/Real_Estate_Pro-Illinois-100610/The latest answers submitted by Greg Zaccagni to questions asked on Trulia Voicesen-ushttp://www.trulia.com/voices/Financing/removed-49397Answer by Greg Zaccagni: Cash flow, Credit & LTV are equally important today. The interest rate you will be offered will directly correlate with the amount of risk these numbers show. It's a good idea to do your own analysis on this property. Looking at it objectively like a lender does will help you determine the cost benefit of continued ownership and whether selling or paying for a refinance is the better option. Please contact me if you would like a simple spreadsheet to assist with this analysis. www.GregZaccagni.comSun, 1 Mar 2009 09:58:33 PSThttp://www.trulia.com/voices/Schools/what_is_the_magnet_program_all_about_-70362Answer by Greg Zaccagni: Are you referring to the magnet schools in Chicago?Mon, 1 Dec 2008 20:57:39 PSThttp://www.trulia.com/voices/Home_Buying/Where_are_the_best_deals_for_yr_fixed_mortgages_fo-71098Answer by Greg Zaccagni: Keith: I am a decade long member of the board of directors for an Illinois Credit Union. I can tell you that credit unions don't like to portfolio long term mortgage loans. Their nich is HELOC's & Auto loans. Great deals there! You will find me listed as one of the officers & directors here. http://www.centralcu.org/central_newsletter.pdf If you want a 30 year mortgage loan contact someone that specializes in this link - LIKE ME :-) http://activerain.com/blogsview/512280/Georgetown-Study-finds-Mortgage-Brokers-have-a-lower-average-APR-than-banksMon, 1 Dec 2008 20:54:59 PSThttp://www.trulia.com/voices/Home_Buying/Investment_property_possibly_Condo_in_Chicago-9706Answer by Greg Zaccagni: I agree with Ken about your timeframe not being long term. Unless you are a builder or rahabber creating new value to a property net appreciation will take much longer than your proposed timeframe. When the real estate market was more normal the general rule of thumb was that it would take approx 2 years with 5% appreciation per year to break even. That's because selling costs could be as high as 10%. Here is my blog on common mistakes when ibuying investment properties. http://activerain.com/blogsview/533939/10-most-common-mistakes-when-buying-commerical-propertySun, 9 Nov 2008 10:17:42 PSThttp://www.trulia.com/voices/Home_Buying/What_should_I_do_first_when_looking_at_a_Bank_Owne-66714Answer by Greg Zaccagni: As the others have said, why wouldn't you want someone skilled in negotiating real estate transactions to represent your interestes when they are being paid for by the seller? Please let me know if you would like a referral to a skilled buyers agent for your area. www.GregZaccagni.comSat, 8 Nov 2008 19:17:34 PSThttp://www.trulia.com/voices/Home_Buying/Mortgage_loan_payment_strategy-66942Answer by Greg Zaccagni: Kenneth: Discount points make more sense the longer you stay in the loan. Paying perhaps a 1% discount up front for a lower rate can save much larger sums over the life of your mortgage loan. The question you may wish to ask yourself is what are the chances you would need to relocate for business or other personal reasons even if you want to stay forever? Here is my blog on discount points for your consideration http://activerain.com/blogsview/151273/What-is-a-Point Good luck with your decision. Greg ZSat, 8 Nov 2008 19:13:03 PSThttp://www.trulia.com/voices/Market_Conditions/Do_you_think_home_prices_will_be_as_depressed_as_t-66255Answer by Greg Zaccagni: The good news is that many experts believe that overall home prices have hit bottom. The bad news is that it could be till 2010 till things start appreciating. As Brandon correctly states, much depends on whether lenders start loosening up lending guidelines to bring more buyers back into the market. That would create more demand for housing and start the appreciation rolling again!Wed, 5 Nov 2008 19:17:20 PSThttp://www.trulia.com/voices/Home_Buying/Would_a_house_seller_in_this_market_agree_to_this_-62466Answer by Greg Zaccagni: David: Another possible option for avoiding PMI would be a seller carryback - provided the chosen lender doesn't prohibit this option. It's always a good idea to use a buyers agent to represent you during the purchase negotiations. They can help you with these things including sellers paying closing costs, personal property such as fridge, washer/dryer etc. Please let me know if you would like a referral. www.GregZaccagni.comTue, 4 Nov 2008 19:09:57 PSThttp://www.trulia.com/voices/Financing/What_bank_will_refi_a_unit_investment_prop_with_a-65842Answer by Greg Zaccagni: Why is your credti score 640? I will be happy to provide suggestions to address this starting here. http://activerain.com/blogsview/113308/5-areas-that-determine-your-FICO-Score http://activerain.com/blogsview/690263/Advice-on-Disputing-Items-on-your-Credit-ReportMon, 3 Nov 2008 19:07:35 PSThttp://www.trulia.com/voices/Financing/Do_I_need_a_new_mortgage_broker_-66116Answer by Greg Zaccagni: Looks like you question has been answered so I wish to suggest you receive more than one mortgage quote before reaching any decision. www.GregZaccagni.comMon, 3 Nov 2008 19:01:32 PSThttp://www.trulia.com/voices/Home_Buying/i_m_a_first_time_buyer_i_have_a_credit_score_i_b-65544Answer by Greg Zaccagni: It only makes sense to know how much you can afford before you spend your time looking at homes. You can pre-qualify yourself with many online calculators including my own here. http://www.gregzaccagni.com/RequiredIncomeCalc Then you should talk with a mortgage professional about a pre-approval which involves looking at your specific income, asset & credit information as listed here. http://www.gregzaccagni.com/LoanApplicationInfo With credit scores below 680 FHA or VA (if applicable) should definately be considered. Check out this page for more about both. http://www.gregzaccagni.com/GovernmentLoanProgramsSun, 2 Nov 2008 13:47:22 PSThttp://www.trulia.com/voices/Foreclosure/what_website_is_their_for_foreclosures_that_is_tot-38890Answer by Greg Zaccagni: Try this http://www.gregzaccagni.com/ForeclosureListingsSun, 2 Nov 2008 13:39:32 PSThttp://www.trulia.com/voices/Home_Buying/Should_I_use_a_bank_or_a_mortgage_banker_to_get_a_-63834Answer by Greg Zaccagni: Chris: Thumbs up to you. The answer really lies in the competency of the mortgage professional as generally the same mortgage products from the same sources are available either way. www.GregZaccagni.comTue, 28 Oct 2008 10:27:39 PDThttp://www.trulia.com/voices/Home_Buying/Should_I_use_a_bank_or_a_mortgage_banker_to_get_a_-63834Answer by Greg Zaccagni: Frankly the differences between bankers & brokers are over -rated in today's market because very few bankers are really doing correspondent lending. The difference between direct lenders & Bankers/Brokers is more significant. Here are a couple blogs to help you. Bankers/Brokers/Direct lenders - whats the difference? http://activerain.com/blogsview/127391/Mortgage-Lenders-Bankers-Brokers-Originators-whats-the-difference Georgetown University Study Reveals Who Has LOWEST AVERAGE APR http://activerain.com/blogsview/512280/Georgetown-Study-finds-Mortgage-Brokers-have-a-lower-average-APR-than-banksSat, 25 Oct 2008 20:12:09 PDThttp://www.trulia.com/voices/Home_Buying/Try_to_buy_a_house_that_i_can_also_rent_out_to_oth-64061Answer by Greg Zaccagni: VA loans are great for purchase loans. Here is some information you may find helpful. http://www.gregzaccagni.com/GovernmentLoanPrograms http://activerain.com/blogsview/534256/FHA-vs-VA-Loans http://localism.com/blog/il/posts/534764/Are-you-eligable-forThu, 23 Oct 2008 19:37:29 PDThttp://www.trulia.com/voices/Property_QandA/can_i_see_this_house_can_i_get_this_mortgaged_-63578Answer by Greg Zaccagni: Wayne brings up some excellent points regarding the association. The lender will want to know how the common elements will be maintained. If you question goes to whether you can afford the property consider using my online prequal loan calculator. Use this weblink here. http://www.gregzaccagni.com/RequiredIncomeCalcWed, 22 Oct 2008 06:24:28 PDThttp://www.trulia.com/voices/Agent2Agent/Brokers_Agents_what_is_your_experience_with_owner-63567Answer by Greg Zaccagni: Seller financing doesnt have to be for the entire loan amount. It's also a great way to close the gap between what the lender is willing to finance and what the buyer has to put down. Often it's a baloon with the buyer required to refinance and pay off the seller 2nd within a period of 5 years.Wed, 22 Oct 2008 05:33:15 PDThttp://www.trulia.com/voices/Home_Buying/how_do_you_go_about_buying_a_home_and_getting_it_h-62755Answer by Greg Zaccagni: Ditto to Scott. FHA falls under the FHA Umbrella. Presumably your question therefore is what does FHA require to qualify for their insured lender programs? The Borrower must qualify based on documented income, 3.5% min down & reasonable payment history. More here: http://activerain.com/blogsview/114283/FHA-Loans-back-in http://activerain.com/blogsview/565661/FHA-modifies-9-day The home must qualify from the inspection as follows. http://www.pueblo.gsa.gov/cic_text/housing/inspection/home.htm Condos have additional requirements: http://activerain.com/blogsview/591941/FHA-Spot-Approval-RequirementsFri, 17 Oct 2008 15:00:33 PDThttp://www.trulia.com/voices/Financing/Any_HELOC_programs_for_investment_property_-62867Answer by Greg Zaccagni: Try M&I, St.Francis or US Bank. They may still have something left. www.GregZaccagni.comFri, 17 Oct 2008 14:52:27 PDThttp://www.trulia.com/voices/Property_QandA/I_heard_this_house_was_in_foreclosure_is_this_tru-61779Answer by Greg Zaccagni: Leo: Search foreclosures by state, county & city for free on my website here. http://www.gregzaccagni.com/ForeclosureListingsWed, 15 Oct 2008 21:50:05 PDThttp://www.trulia.com/voices/Home_Buying/Why_do_I_need_a_real_estate_agent_as_a_buyer_doing-18468Answer by Greg Zaccagni: If you could get an attorney to represent your for free on a simple traffic violation wouldn't you take it? Why wouldn't you allow the home seller to pay for a professional negotiator (buyers agent) to represent your interests on one of the most important purchases of your life? www.GregZaccagni.comTue, 14 Oct 2008 15:25:46 PDThttp://www.trulia.com/voices/Market_Conditions/What_are_they_doing_with_the_billion_stimulus_pa-62245Answer by Greg Zaccagni: Laura: My October newsletter was on this very subject. Consider visiting my website and entering your email address and you will have updated information monthly. The Mortgage Advisor - October 2008 (reprint) The plan calls for the Treasury Department to buy deeply distressed mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price. Some of the program's $700 billion would be devoted to a program that would encourage holders of distressed mortgage-backed securities to keep them and buy government insurance to cover defaults. The proposed legislation also calls for the financial sector to help make up the difference if the government does not recoup its investment in five years. The government will receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits. Money for the rescue plan will be phased in. The first $350 billion would be available as soon as the president requested it. Congress could try to block later amounts if it believed the program was not working. The president could veto such a move, however, requiring extra large margins in the House and Senate to override. The plan would require the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes. Despite the changes made during an intense week of negotiations, the heart of the program remains Bush's original idea: To have the government spend billions of dollars to buy mortgage-backed securities whose value has plummeted as hundreds of thousands of Americans have defaulted on their home loans. The legislation would place "reasonable" limits on severance packages for executives of companies that benefit from the rescue plan, said a senior administration official. www.GregZaccagni.comTue, 14 Oct 2008 15:03:42 PDThttp://www.trulia.com/voices/Property_QandA/Hello_Would_the_seller_of_this_home_be_intereste-61738Answer by Greg Zaccagni: What advantages do you see in overpaying rent with the hopes to purchase in the future? Lease/Purchase options are generally not where you find your "bargains." Sellers are more likely to discount when they get cash at close. Are you having trouble securing a mortgage loan? Is it the down payment? There are still 100% programs. Check out this link.. http://www.trulia.com/voices/Home_Buying/Ask_the_real_estate_community_and_get_an_answer_i-60331-- www.GregZaccagni.comMon, 13 Oct 2008 14:04:42 PDThttp://www.trulia.com/voices/Market_Conditions/Intrest_only_properties-62004Answer by Greg Zaccagni: Jim has some excellent questions here. I have seen many small investment property owners who sacrificed cash flow in the name of appreciation that are now stuck because values may have actually gone backward. As stated income is no longer an option should the IO period expire and you are unable to show suficient income from the property & don't make sufficient additional income to support it + your other obligations this could be a problem. Here are a couple of articles that might help with your decision. IL SB 1167 for small rental property owners http://activerain.com/blogsview/560940/IL-SB-1167-for What's likely to happen to mortgage rates after passing HR1424 http://activerain.com/blogsview/724631/What-s-likely-to www.GregZaccagni.comMon, 13 Oct 2008 13:34:22 PDThttp://www.trulia.com/voices/Home_Buying/I_am_wondering_whether_the_earnest_money_counts_to-61818Answer by Greg Zaccagni: Ute is right on with her answer. You will see the earnest money deposit reflected on your good faith estimate and later again on your settlement statement. Your lender will likely want proof of this payment so plan on providing a copy of the cancelled check as part of your loan application. www.GregZaccagni.comSun, 12 Oct 2008 18:07:39 PDThttp://www.trulia.com/voices/Home_Selling/How_to_builder_trade_ins_work_Is_it_a_good_deal_-61408Answer by Greg Zaccagni: I think it can be great for all parties. The builder is likely to offer you somewhere around 95% of the appraised value for your home. In exchange you don't have to pay a realtor comission which could be even more plus you both know for certain the transaction will close - subject to financing (that's where I come in). Find a builder home you like (that's more expensive than your existing home) and tell the builder you would purchase it if they agreed to buy your existing home. Make certain you are talking with someone capable of making that decision and if they turn you down, move on to another builder. What have you lost but some time? Here is a link to an article on this subject I hope you find helpful. http://money.cnn.com/2007/06/04/real_estate/builders_taking_trade-ins/index.htmSat, 11 Oct 2008 15:51:51 PDT