advice: EFFECTIVE Property Searching -- # 3 - 07/02/08 01:03 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
We will help you learn to intelligently read listing sheets. Here are some clues:
2a.  What's the difference between ‘new', ‘newer', and ‘updated'? ‘Newer' and ‘updated' are NOT new! A newer kitchen may be 7-10 years old! Rehabbed' or ‘Gut rehab' may be misused, but should mean all is new.
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
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advice: EFFECTIVE Property Searching -- # 2 - 07/01/08 04:12 AM
Here is some of how we think an EFFECTIVE property search works.  Further thoughts will follow in other postings.
1.  First, analyze and compare all neighborhoods of interest. Under Sales/Demographics at our website, we provide 10 years of price appreciation data and detailed maps of each of the 77 areas you can print. The "60% more detail" tab will let you register for our exclusive private client reports. And the Chicagoland2to4Flats.info ‘Magic Map' property search will let you quickly overview many areas-to SEE what different areas offer.
When all is said and done and you know several neighborhoods to investigate, ask … (0 comments)

advice: EFFECTIVE Property Searching -- # 1 - 06/30/08 02:14 AM
In this market where listings range so much by type and condition, it is so easy to end up on a wild-goose chase. What must occur instead is to learn to separate wheat from the chaff and hone in on what you want. In coming posts, we will show your how we think an EFFECTIVE property search works:
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #21 - 06/28/08 04:15 AM
5. Recommended Lenders / Loan Officers
The lending partner of Chicagoland2to4Flats.info is Guaranteed Rate, located at 3940 N Ravenswood, Chicago, IL 60613 (our contact is Brian Weis - phone: 773-290-0591; fax: 773-516-5732). Guaranteed Rate is the Midwest's largest independent residential mortgage lender. We love their expertise in the 2- to 4-flat market, the wide range of products they offer, their ability to help you intelligently pick the right loan, and the fact that they have both an In-house Underwriting staff for quick turnaround times and onsite Closing and Funding Departments for easier closing.
Besides a good lender, you'll need a good … (0 comments)

advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #20 - 06/27/08 02:46 AM
4f. Choosing the Right Type of Loan
And the sixth and last type is:
NOTE:  This may only apply to better, easier times.  This may not be available now.
 
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #19 - 06/26/08 03:19 AM
4e. Choosing the Right Type of Loan
The fifth type is:
NOTE:  This may only apply to better, easier times.  This may not be available now.
 
Visit our website to read more about Chicago multi-family homes: multi-units with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #17 - 06/23/08 03:53 AM
4c. Choosing the Right Type of Loan
The third type is:
NOTE:  This may only apply to better, easier times.  This may not be available now.

Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #16 - 06/21/08 01:31 AM
4b. Choosing the Right Type of Loan
The second type is:
NOTE:  This may only apply to better, easier times.  This may not be available now.
 
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #15 - 06/20/08 03:50 AM
4a. Choosing the Right Type of Loan
The first type is:
NOTE:  This may only apply to better, easier times.  This may not be available now.

Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #14 - 06/18/08 11:08 PM
3c. Closing Costs / Earnest money
The other option for financing closing costs is...
Earnest Money. $1,000 typically goes with the opening offer. An increase to 2% is typically the minimum sellers will accept, 3% is normal, and the earnest money may be 5% if it is a larger down payment. Whatever it is, it will count toward your down payment and closing costs. And, remember, even if you are doing 102% financing, you still need earnest money!!!
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #13 - 06/17/08 11:34 PM
3b. Closing Costs / Earnest money
NOTE:  This may only apply to better, easier times.  This may not be available now.
One option for financing closing costs is...
Seller Assistance on Down Payment. This is, in essence, 102% financing (the contract gets written for 2% more than the seller agreed to sell you the property for, with that 2% going toward your closing costs-meaning that, except for the earnest money you posted upfront (and which gets refunded at closing), you need NO cash out of pocket to make the purchase.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #12 - 06/17/08 12:28 AM
3a. Closing Costs / Earnest money
Closing costs typically amount to around 2%, but you might even finance that:
The options for this will follow in the next posts.
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #11 - 06/16/08 03:12 AM
2d. Down Payment
NOTE:  This applies only to better, easier times.  This is probably not available now.
Your third mortgage choice is:
0% down. A 100% loan is one option-and the only option some buyers qualify for. Here you pay PMI, but as noted above, for many families, PMI charges are now tax-deductible (and no longer so disadvantageous).
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #10 - 06/14/08 04:46 AM
2c. Down Payment
Your second mortgage choice is:
80 / 15 / 5. Here your cash down payment is 5%, and you avoid PMI by taking out a 2nd mortgage for 15%. (Since the first mortgage at 80%, this combination is called an 80 / 15 / 5.). With 10% down, this would be called 80 / 10 / 10.
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #9 - 06/13/08 02:29 AM
2b. Down Payment
Your first mortgage choice is:
20% down. With 20% down you avoid PMI and have a lower monthly payment, but this is NOT an option that many first-time buyers have the resources for!
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #8 - 06/12/08 01:22 AM
2a. Down Payment
If the primary mortgage is for MORE than 80% of the value of the property, you normally must pay PMI (Private Mortgage Insurance). This has been, for most people, a no-no, but as of January, 2007, for many people PMI charges became tax-deductible-and the biggest objection to PMI may have vanished. The alternative for most is to take out TWO loans, with one being for 80% and the other for up to 20%.
Specific choices will follow in subsequent posts.
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #7 - 06/11/08 01:14 AM
1c. Your Pre-Approval
And the third thing you need to know is:
Debt / Income Ratios. Lender guidelines are no longer so rigid here, and you will get credit for most or all of rent collected, but of course it remains that lenders want to know you can afford the payment.
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #6 - 06/10/08 12:32 AM
1b. Your Pre-Approval
The second thing you need to bring with you is:
Documented vs. Stated Income. Many people are in jobs that allow for a stated (not documented) income application. The interest rate for Stated may be a little higher, but there can be extra flexibility in what you qualify for.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #5 - 06/09/08 01:10 AM
1a. Your Pre-Approval
You and I both need to know what you can afford BEFORE we begin to shop, and a preapproval letter will be needed for any offer you make.  The first thing you need to bring with you is:
Credit Score. Most lenders regard anything above 700 as very good - and anything below 600 as a serious problem!  You should talk with your lender about what your score is-and potentially how to improve it.
Visit our website to read more about Chicago multi-family homes with two or more flats.
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advice: Mortgage 101 (Buying Your First 2- to 4-Flat) #4 - 06/07/08 01:30 AM
Finally, remember that, especially in this market, all that glitters is not gold! Few mortgage brokers are true experts in this market-and the initial low rate many quote may turn out to be something that you won't be able, in reality, to qualify for. Instead, we recommend you explore your options with an expert.
Visit our website to read more about Chicago multi-family homes with two or more flats.
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