Deciding how much house you can afford Before you start house hunting, you need to determine how much house you can afford, which will entail getting either prequalified or preapproved for a home loan. A real estate agent can help you find a mortgage broker to begin the process. While getting preapproved is a more in-depth process, a preapproval letter lets both real estate agents and sellers know that you're a serious shopper who means business. What do I do to get prequalified? A prequalification can be done online or over the phone and does not require your submitting financial documents. You will be asked to provide basic information about your finances - for instance, your household income versus your debt load. With this information, the lender will estimate what your maximum loan... 05/09/2008

Negotiation is back in style, and is likely to remain a necessary part of buying or selling a home in today's residential housing market. Needless to say, you need to work with the best real estate professionals you can find in your area. In most cases, it takes a team effort to put a home-sale transaction together and see it through to fruition.HOUSE HUNTING TIP: Successful negotiations usually require give and take by both parties. It has been said that the sign of a successful negotiation is one where both parties walk away feeling they have won. It has also been said that the key to a mutually acceptable agreement is that both sides feel a little wounded. A must in this market is a commitment to exhaust all possible ways to put and keep a deal together before calling it quits. Recen... 05/06/2008

Overcoming the misconceptions about the "credit crisis"You've watched the news and read about it in the papers. You know, the "credit crisis" and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren't making loans anyway. So, why bother, right? Wrong!We're right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers.  It seems the press just can't get enough of all the gloom and doom in the housing industry.  The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn't required.  You just need to know where to look.  Who are these lenders? They're right ... 05/06/2008

Get a copy of your credit report as soon as you decide to move. Nearly 80 percent contain some type of error and 25% of those mistakes are serious enough to drag down your credit score, potentially disqualifying you for the most competitive interest rate on a mortgage, according to U.S. PIRG, the federation of state Public Interest Research Groups. Someone with a score of 620, for example, would pay at least one interest point higher than a borrower with a score of 720 (or may not even qualify for a loan at all), says Geoffrey Sheerar, a mortgage broker with Apple Mortgage, a New York City-based mortgage brokerage firm. Reviewing your credit report also gives you a chance to discover and settle any delinquent accounts. "I've seen a client get a worse credit score than he should have ove... 05/02/2008

Mold is a potential health danger for any family and also a legal liability for sellers. Because of the fear over mold contamination there are so many lawsuits flying around today that sales of resale homes are in jeopardy -- and insurance companies are scrambling to avoid liability, with some U.S. insurers refusing to write any new homeowner policies. So what do you need to know about mold .....1. Molds are everywhere and have been around forever. Many people have the impression that this is a new problem -- think, "Attack of the killer molds!" -- and that we now must arm ourselves against the impending invasion. Nothing has changed, however, but the awareness of the presence of mold. Instead of fear -- we need to focus on total elimination, prevention and control. This is easy: Sunlig... 05/02/2008

If you are thinking to relocate to the Will County or DuPage County suburbs, please give me a call.  I've worked with a large number of relocations from throughout the United States. I can help you with locating the perfect home by setting you up on an MLS search based on your specific criteria. I will assist you to learn the areas in which you are wanting to buy. Visit my website at http://www.lanitacates.com/ or call me at 630-341-1545. I look forward to hearing from you! 04/29/2008

Why selling now makes sense Homeowners reluctant to sell because prices have fallen should do the math and realize that the market downturn could work in their favor."People are finding houses at prices they thought they'd never see again," I would like to point out that to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer's own home also has lost 20 percent of its value.In general, the toughest will be for people who bought within the last three years, at the height of the market. But even for these homeowners, selling now may make sense as long as they can at least break even, or their trade up property is down more than their current property. (ie., that $500,000 home 3 years ago tha... 04/29/2008

If You Think You're Saving Money Renting ... Think Again  A new report by the National Association of Realtors shows the real reason why home sales don't crash for long -- rents. When purchase demands slow down, rentals speed up. Rents provide the floor that stops housing prices from major declines.  Home prices going down has been the big news lately, but in the shadows is a statistic that may surprise you. The first quarter of 2008 makes the 24th consecutive quarter that rental prices have escalated nationwide. According to Reis Inc., a New-York based research firm, the soft home market and stricter loan terms are combining to turn more potential homebuyers into renters. The troubling part is that renting isn't necessarily better for consumer pocketbooks than owning. A new report by t... 04/29/2008

Pride of OwnershipPride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future. AppreciationAlthough real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation.Mort... 04/28/2008

Most Popular Home-Staging Suggestions In a slow market, it's particularly important to get a house ready to sell quickly. Here are some of my most frequently made suggestions: Fix any visible problems that might be a red flag for potential buyers, including repainting walls. Cover damaged kitchen or bathroom floors with inexpensive peel-and-stick vinyl floor tiles - if a more expensive change seems out of the question. Repaint public rooms that will garner a lot of a buyer's attention, including the kitchen, dining room, and living room. Clean up the exterior of the house, add potted plants, repair damaged walkways, and put a fresh coat of paint on the front door. Rent a storage unit and get rid of about half the furniture and most of the personal items in your home. When showing the pr... 04/26/2008

Short Sale Advantages:1. Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure"2. Less impact on your credit score   About the author:  Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Plainfield, Naperville, Aurora Illinois or any place in the country. Cheryl has created a team of professionals throughout the Chicago suburbs to ensure that you enjoy a smooth transition to your new area. Please visit http://www.cherylbowers.com/ for your real estate needs.  Please give me a call if you have questions about the Plainfield, Naperville, and Aurora real estate market. Cheryl Bowers, REALTOR® (630) 712-1921 (Copyright © 2008 By Cheryl Bowers,... 04/07/2008

Are you self-employed or a partner in a small professional practice? If so, you're probably very familiar with all the different challenges of running a business. Ultimately, you're responsible for attracting and retaining customers, providing them with quality services or products, getting paid for your work, and then paying your employees and vendors-all before ever paying yourself a penny.Then, from the remaining profits, the government wants their "fair share" of your success. Fortunately, with some knowledge and planning, you can take steps to minimize the taxes you end up paying. Here are five ways that self-employed individuals and Realtors® can cut their tax bill.1. Employ your childWhile you get to deduct the wages you pay to your son or daughter as a business expense, your ch... 04/07/2008

Top Ten Short Sale Questions AnsweredNumber 10I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score...is a short sale right for me?Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close. Number 9If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?The mortgage insurance is not there for your protection, just the mortgage lender's.Number 8Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?No. Technically speaking there is n... 04/03/2008

The following information is from www.yourillinoishome.com.  A great resource for home owners.How to Avoid ForeclosureIf you are a homeowner at risk of foreclosure you need to know there are programs and services that can help. It's important to act quickly and before you are three months delinquent on your mortgage payment, says Beth Llewellyn, CEO of the Partnership for HomeOwnership and a U.S. Housing and Urban Development (HUD)-certified homeownership counselor with over 12 years of experience helping lower-income families achieve homeownership. "Foreclosures in Illinois are a nine-month judicial process but after 90 days the lender will turn the delinquent loan over to foreclosure attorneys and then the fees really start to mount up," says Llewellyn. "The key is to not ignore lette... 03/27/2008

How to get a loan in a tight credit market. While there is home financing available for people with good credit, the options are fewer if your credit score is less than stellar.  If someone has a credit score below 680, they will pay more private mortgage insurance on loans above 80 percent LTV.  Below 620 it's going to be extremely difficult. Mortgage insurance companies that typically do loans for people with lower credit scores aren't offering it without extremely high monthly premiums. If the client has face-to-face counseling, most mortgage insurance companies will lower the cost of private mortgage insurance by half or two-thirds." Homebuyers should interview lenders like they do when shopping for a car. Ask, what are your estimated closing costs? What is your PMI rate if I have a... 03/27/2008

Larger Loan Amounts. Lower Interest Rates.Now Available On FHA Loans.Good news! Qualified customers can now borrow loan amounts from $417,000 and up to $729,750 without paying a typically higher jumbo interest rate. The new FHA loan amounts are only available in certain metropolitan areas.That means, for a limited time, purchasing or refinancing a home:• Is more possible• For more people• In more metropolitan areas.If you've been waiting for a better time to explore your options -it's here!Get More Details Right AwayFind out soon if one of our government-insured FHA loans is right for you.  Contact me today for a free no obligation buyers consultation.About the author:  Cheryl Bowers is a Chicagoland Area Residential Real Estate Expert, who can assist you with the purchase and/or sale o... 03/27/2008

Economist suggests $5,000 home-buyer tax credit to spur homeownership.  In the March Real Estate Insights, NAR (National Association of Realtors) chief economist Lawrence Yun, analyzes several federal plans proposed to curb foreclosures and stimulate the housing market. Yun proposes a homebuyer tax-credit of $5,000 tax credit (which currently exists in Washington, D.C.), which would cost the federal government $40 billion. Yun says: "A reversal in the weakness in the housing market, which has been subtracting about one percentage point off GDP growth, can add $40 billion to the U.S. Treasury, essentially offsetting the cost of the tax credit. If the initial $40 billion cost is hard to swallow, how about a more targeted tax credit for only first-time home buyers? That would cost the gove... 03/26/2008

February home sales activity improved slightly from January as we gear up for the spring market.  According to the IAR's (Illinois Association of Realtors) latest report, total home sales were up 15.1 percent in February 2008 to 6,832 sales compared to January 2008 sales of 5,938; sales were down 22.9 percent from February 2007 totals of 8,860. The Illinois median price in February was $181,265, down 5.6 percent from $192,000 in February 2007. "REALTORS are seeing some signs of the spring market with increased activity and interest from potential buyers. If people have good credit, their finances in order, and are looking for a home for the long haul, they should get in the market with confidence," said IAR President Kay Wirth. "Conditions in many local markets are good and present oppo... 03/26/2008

My dad as a Motorcyclist is aware of his surrounding at all times. Below is a test that he's passed on to me. He even failed the test. Click to take this test. As good as I think I am in regards to Motorcycle awareness I failed the test. Yes, I failed. Oh No. How will you do? Take it to see. About the author: Cheryl Bowers is a Naperville, Plainfield Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Naperville IL., Plainfield IL., or any place in the country. Cheryl has created a team of professionals throughout the Plainfield, Naperville IL. area and the country to ensure that you enjoy a smooth transition to your new area. Please visit www.CherylBowers.com for your real estate needs. Please give me a call if you have questions abou... 03/23/2008

Fed steps in and cuts again Bernanke pulls out all the stops to ailing economyThe Federal Reserve significantly cut rates for the sixth straight time since September, this time cutting 75 basis points. This follows a busy weekend where the Fed also extended its hand to Wall Street, bailing out Bear Stearns with JP Morgan Chase. While rate cuts look good at face value, you need to prepare for what's to come. Why did they do this? The Fed wants you to start spending money and wants to boost consumer and Wall Street confidence. Consumers are under stress with increasing consumer prices and a slowing housing market. Wall Street banks have been under stress from mortgage defaults and their impact on corporate balance sheets. How does this impact you? Fed rate cuts are inflationary. Since the... 03/23/2008