Yes you will need an architect to do drawings and find a licensed contractor. I have worked with a really professional contractor Eugene Fahey and his number is 773-447-9687. Who ever you choose as your contractor will have to get permits from the City of Chicago do the work.
We are currently at historically low interest rates, 2.5-3% on a fifteen year fixed loan. I would not pay off my mortgage early, I would invest in more properties. With 25% down, you can easily cash flow with a 15 year mortgage in many Chicago neighborhoods. Then, in fifteen years, your tenants have paid for your properties and you own them free and clear!
I am not sure if you are asking what are good questions a homeowner should ask the lender or what are questions a homeowner should ask themselves?
A home owner should ask themselves the following:
1. Do I have equity in my home?
2. Do I have good enough credit?
3. What are my financial goals? **
4. How long do I plan to stay in this home? **
5. What are the terms of my current loan?
6. Do I have a second mortgage or line of credit?
** Very important questions.
Questions a homeowner should ask a lender:
1. Are there any upfront cost?
2. What type of loan would be best for me at this time a 15 year, 30 year, etc.?
3. Can I role a second mortgage or line of credit into the refinance?
4. What paperwork do I need to provide you? (W-2, taxes, etc.)
5. Will my credit rate affect my interest rate?
6. How long will it take to be approved?
7. If approved, how long will it take to close?
8. What do I need to bring to closing?
Anyone looking to refinance should shop around before committing to anyone lender. I am sure there are several questions not covered by anyone reading this has a starting point.... more
Most of the time when it says For Sale they are looking to sell and move on, not become a landlord. Most often the seller needs the money from the sale to buy something new and until they do they have no home if they rent it to you.... more
There is no simple answer to this question. It all depends upon your risk tolerance and your financial goals. The riskier the investment the higher the potential return in general. You need a realtor who can work with you to establish metrics for evaluating properties and then use those to find the best investments for you.... more
I have several listings on the Northwest side of the city that are unoccupied. They can be moved into on or before March first. I would love to tell you all about them!
Both are 3 bedrooms. Call me to discuss please.
Thomas G Kossnar
2447 N Ashland Ave
Chicago, IL... more
Your last question is key. The rules regarding rental income changes from lender to lender. You can find some local banks that will consider rental income as soon as the lease is signed. Or, most national lenders have strict guidelines for a minimum of 6 months.... more
I currently have a condo in Jefferson Park that I bought in 2008. I originally got the loan through BoA using their "No Fee Mortgage Plus" program. I didn't find out until very recently that the loan had LPMI - this was never disclosed to me verbally nor was it part of any of my loan documentation. The value of my condo has dropped sharply since I bought it, too. I'm probably about 70k underwater. This, combined with the LPMI on my loan, made it very difficult to find anyone willing to refinance. Eventually, BoA was willing to do the refinance in October 2012, but I had to agree to an FHA loan with a 4.25% rate - higher than what I was hoping for, though it still saved me about $300 a month versus my old mortgage.
Now, I'm looking to move. Ideally, I'd like to move into a single family home in the North or Northwest suburbs. I've crunched the numbers, and I think I can afford a home up to about $600k. My credit rating is excellent, I've had a stable job for almost 10 years, and I have enough cash at hand for around a 10% downpayment with about a year of PITI. I think selling my current condo is pretty much out of the question, though. I'm fairly certain that I'll need to rent my current condo. So, with all of this in mind, I had a number of questions:
- Are there lenders out there who would refinance an existing 4.25% FHA LPMI loan down to 3.25-3.5%? Or does the LPMI really preclude this from being a realistic option?
- In order to get the rental income for my current condo to count towards my monthly income, what do I need to do? I've been trying to find some information about this on the internet, and I'm reading a lot of conflicting information. Some say I need a signed lease with at least 1 year's worth of documented rental income. Others say I just need a signed lease with a security deposit. Most, however, agree that only a portion of your rental income gets counted. Usually 75%. What's the real story here?
- Assuming that I do qualify for a $600k home, that puts me into "jumbo loan" territory. I've read that you'll typically get much better rates if you split that into two different loans with each loan below 417k confirming loan limit. What are the typical "hidden" costs associated with this sort of loan arrangement over a jumbo loan? And is it possible to get these loans without a PMI if I have less than 20% down? I've heard of things like SFMI, SPMI, etc... but I don't really know how to qualify for them.
Thanks in advance to any who can help answer any of these questions!... more
Amanda, when you submit for short-sale approval it must consider the second lien in the HUD-1; the primary loan does not stand alone when there is a second mortgage lien on the property. It is always best to submit for the second lien approval at the same time you submit for the primary loan. The second lien will normally take 10% unless there is a HAFA involved which now pays up to $8500. Here is the solution that may work. If you have a purchase agreement for the last agreed short-sale amount resubmit it to the bank with an updated HUD-1 that includes the second lien's agreement to take the $2600. This should solve the problem.
Trying to drop the price by the demand of the second lien requires that you provide proof of the new value and that holds little water in the first 90 days after the BPO on the property which was used to approve the Short-sale offer.... more
Chances are it sold for higher than list price; there's fierce competition out there amongst buyers so you may need to be even more aggressive on the next one! Make sure you're working with a full-time experienced Realtor who can guide you through this process. Best of luck to you!... more
There is nothing at this moment. I would like to recommend that you utilize my free website at www.idealhomesinchicagoland.com. You will be able to search for properties throughout Chicago and the surrounding areas. My website features up to date information, so you will not be finding homes and properties that are no longer available like on some of the realty websites that you may be using. My website also offers an array of neighborhood and market information that can help you make your determination on homes and locations. My featured partners are industry leaders that can assist you in making any realty transaction easy and transparent. I welcome you to utilize this amazing tool. As always I will be available to answer any questions that you may have.... more
If you are prequalified with your Lender and establish a strategy with your Realtor, you shouldn't have a problem finding a home. You have to look at properties you can afford and act quickly once they become available.... more