Andrew

I'm currently doing something similar and half wish I hadn't gotten into it. Even if you can find a lender to accommodate this in some way (it won't be easy at all in the current climate, especially with < 20% down), hopefully you can either do the work yourself or understand what you're getting yourself into re dealing with contractors, etc. If not, think about it long and hard given that there are many homes available that are move-in ready and without the ridiculous granite countertop mark-ups of several years ago. - Mon Mar 10 2008, 12:09

I see. I guess I was wrong in assuming that this was the entire purpose of the pre-approval letter -- to convey that the loan is in place. Otherwise, I can see no reason for the letter. Anyhow, I can certainly understand the listing agent wanting to hear it from the lender's mouth directly as extra confirmation. However, for some reason anything beyond that annoys me a little. Not sure why, but knowing exactly how I will finance my loan, credit score, annual salary, etc. feels like it is private and should be between me and lender. I would have assumed that all sales agent wants to know is whether the loan is a done deal. Also, my approval cap is 400K more than what I'm offering (letter only mentions offer amount), but I don't want that revealed for negotiation purposes.

Thanks to everyone for the advice. Some of these issues are nuanced and getting several perspectives is valuable. This is great site. - Thu Jan 24 2008, 08:29

Thank you, CJ. That makes some sense to me, but it strikes me as odd that the selling agent wants to call my lender before they respond to my offer. I've told my lender to reveal nothing other than that it is a "real pre-approval". I guess their concern is that some pre-approvals don't mean as much as others. I can see why they wouldn't want to take the house off the market before double-checking, but I don't like them talking to my lender before we agree on a price in principle. Am I being paranoid? It's hard to reason out all of the ramifications, so it's good to hear from people with experience in these matter. thanks again ... - Wed Jan 23 2008, 22:28

Oak Park is superior to Beverly but probably 50% more expensive. Houses in Oak Park 400 and below can be pretty sad looking. - Sat Jan 19 2008, 23:14

At that price I would look at Beverly on the Southwest side. 23 minutes on metra to loop and a great stock of historic homes, very walkable, very diverse, actually hilly (ok not by SF standards but there are hills). I think the neighborhood is undervalued. It is well hidden -- many people don't know it exists, but it's a good option if you want an urban feel, attractive home, and a 75x150 lot but don't want suburbs and don't have $1M. - Sat Jan 19 2008, 15:40

I would add:
Want university students?: Go to Hyde Park, Evanston, or Rogers Park.
I have had good experiences renting to students. - Thu Jan 17 2008, 09:43

Judi: Since apparently the decline in inventory you refer to was not due to strong sales, do you expect many of the listings to reappear in Spring and Summer? I've noticed in the last week or so a large number of old properties being re-listed with new prices, in some cases with significant drops. - Thu Jan 17 2008, 05:38

My short impression: sellers are just finally starting to wake up in Chicago and some good deals are popping up. I would say that it's a good time to buy here if you are _very_ careful. First step is to pick a neighborhood or two. Then, spend a few months immersing yourself in the market so that you can identify a good deal when you see it (values vary block to block in chicago -- it can be nuanced and not obvious to an outsider). A good buyer's agent will help tremendously. A bad one will be a hindrance. Among other things, you can identify a good buyer's agent in this market if they scoff at most asking prices as unrealistic and help direct you to the handful of ones that aren't. What you'll find is that a few properties stand out far above the best in terms of quality per dollar. Those properties will attract a lot of interest and sell quickly, possibly at asking price. They are priced far below what they would have demanded a year or so ago, and I think they will turn out to be very good deals in the long run (who knows what will happen in the next year or two). But the key is to be able to identify what the good deals are. I would take my time and try to understand the landscape and not rush into anything -- open houses, drive-bye's, then visits with agent, internet photos (for what their worth). If you do that, I think you will be in good shape. - Wed Jan 16 2008, 17:48