Chicago's North Shore - North and Northwest Suburbs Real Estate

Many new home buyers are surprised to find that when they go to closing to finalize the sale, that the costs to close were more than they expected. Unfortunately, the Good Faith Estimate that tells the buyer an estimate of the fees associated with a mortgage loan due at closing, is exactly that – an estimate. Many times these costs increase by the time the buyer gets to the closing table without warning.

There is good news for homebuyers, as of January 1, new federal rules adopted by the Department of Housing and Urban Development took effect. The new rules will implement a redesigned, simplified Good Faith Estimate form to help buyers avoid those closing-table surprises.

Until now the way lenders would provide the borrowers with the estimated fees was complicated and confusing. Under the new rules lenders will all be required to use the same form for their Good Faith Estimates – a three-page document issued by HUD.

There are also new rules that will put a cap on the increases in costs that are indicated on the Good Faith Estimate and guidelines so that fees listed on the initial estimate reflect the actual cost at settlement.

Neighborhood Watch is one of the oldest and best-known crime prevention concepts in North America. The National Sheriffs' Association (NSA) created the National Neighborhood Watch Program in 1972 to assist citizens and law enforcement. In 2002, the NSA in partnership with USA Freedom Corps, Citizen Corps and the U.S. Department of Justice launched USAonWatch, the face of the revitalized Neighborhood Watch initiative, which represents the expanded role of watch programs throughout the United States.

This program empowers homeowners to become active in protecting their community through participation in Neighborhood Watch groups. Residents participate in Neighborhood Watch in their area by organizing residents to communicate any suspicious behavior to others by phone trees and reporting it to the authorities.

If you are interested in starting a neighborhoood watch in your community, below are some steps to help you get started!

• Form a small planning committee of neighbors to discuss the needs of your community, gage the level of interest and potential problems, decide on a date and place for an initial Neighborhood Watch meeting
• Contact Your Local Sherrif's Office or Police Department for more information or to arrange a speaker
• Arrange a meeting location close to your neighborhood. It should have enough room to hold your invited neighbors and, if needed, for the use of audio visual aids such as an overhead projector.
•  For more information and educational materials related to starting a Neighborhood Watch, visit the National program's website.

There are many different types of loans available but if you already are a homeowner and need to purchase a new home, a bridge loan might be for you. Also known as a swing loan, gap financing, or interim financing, this type of financing is a short term loan that a homeowner takes out against their current property to finance the purchase of a new home.  When a home buyer is buying another home before selling an existing home, two common ways to find the down payment for the move-up home is through financing either a bridge loan or a home equity loan (or home equity line of credit).

Generally, a home equity loan is less expensive, but bridge loans contain more benefits for some borrowers. In addition, many lenders will not lend on a home equity loan if the home is on the market. It is a good idea to compare the benefits between the two loans to determine which is a better fit for their particular situation and plan ahead before making an offer to purchase another home.

How Do Bridge Loans Work?

When applying for this type of a loan, you must be able to prove to the lender that you are you are financially able to pay both mortgage payments in case the primary property does not sell right away. To ease the transition, most bridge loans will allow you to have a few months before your actual first payment is due. However, interest will accrue during that time.

Bridge loans are meant to be short term loans, normally coming due in a year or upon the sale of the primary property. Because it is a short term loan, the interest rates are usually quite a bit higher than regular mortgages and there are fees associated with it.

Benefits of a Bridge Loan

• A bridge loan is a great solution if you want to purchase another home without having to sell your current property.
• The buyer can immediately put a home on the market without restrictions.
  Bridge loans may not require monthly payments for a few months.
• If the buyer has made a contingent offer to buy and the seller issues a Notice to Perform, the buyer can remove the contingency to sell and still move forward with the purchase.

Cons of a Bridge Loans

• Bridge loans cost more than home equity loans.
• Strict lending requirements. Buyers must be qualified by the lender to own two homes and many will not meet this requirement.
• If the buyer is unable to sell their primary property, they will have to pay 2 mortgages and risk foreclosure on the 1st.

As with any loan option it is a good idea to look at both the pros and cons and consider all your options. If you think a bridge loan might be the solution for you, check out this Bridge Loan Calculator to see an estimated idea of payments.

Bridge Loan Calculator  http://www.1stbridge.com/calculator.aspx

Tax time is here, but homeowners have an advantage with many tax breaks. Make sure you’re not missing out on important home-related tax deductions. Everyone has a different situation and you may actually qualify for other deductions you were not aware of, so always check with your tax advisor to find out which deductions apply to you. Below are some of the common deductions.

Deducting Real Estate Taxes. Real estate taxes are deductible in the year paid. They are generally reported on Form 1098, Mortgage Interest Statement, the annual statement from the financial institution holding your mortgage, or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are not always included on Form 1098, but may be itemized on your real estate closing statement.

Deducting Loan Points Paid on a Purchase or Refinance
The points you pay on a loan for a home purchase are tax-deductible for the year you made the purchase. You can deduct the points you paid as well as those a seller paid on your behalf if you meet the following criteria:

•   The loan is secured by your primary residence
•   The loan was used to buy, improve or build the home
•   Paying points is a common practice in your geographic area
•   The points are calculated as a percentage of the loan principal

First-time home buyer credit.  A $7,500 tax credit is available to eligible taxpayers must have bought, buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. and before July 1, 2009.  You are considered a first-time home buyer as long as you did not own a home during the three years leading up to the purchase of your new home.

Residential Energy Efficient Property Credit.  For 2009 and 2010, homeowners can take a tax credit up to $1,500 for energy efficient home improvements. If you purchase an energy-efficient product or renewable energy system for your home, you may be eligible for a federal tax credit. Click here for more information

Health-Related Improvements - Any home improvements for medical purposes can be deducted entirely from your taxes as long as the improvements do not add to the overall value of the home and have been made for a chronically ill or disabled person.

Moving expenses. If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods. 

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Whether you are planning to sell your home or if you just want to freshen up your living area, he appearance of the carpet in a home are one of the first things noticed. Having your carpets professionally cleaned is an easy, cost effective way to give your house a face lift before showing it to prospective buyers.  Stains and worn traffic areas can cause potential buyers to rethink the home and the thought of having to replace the carpet can cause them to walk away. If it is not in your budget to replace your flooring, having your carpets cleaned by a professional can do wonders by removing stains as well as lifting the nap of the carpet to reduce the traffic wear and giving it a fresh look.

There are many different options you have when looking for a professional to clean your carpets, below are some of the methods available. Contact a professional in your area you are not certain which method is best for your style of carpet.

Hot Water Extraction or "Steam" Cleaning
This is the most common method where a cleaning solution is sprayed on the carpet and immediately extracted (along with the dissolved soil) by a wet vacuum. Extraction equipment can be portable or truck-mounted, the latter being more powerful in terms of spray pressure, heating capabilities and power of the vacuum pumps. Hot water extraction is often referred to as "steam" cleaning and is considered by many carpet manufacturers as the most thorough method. Drying time is generally between 4 to 6 hours.

Dry Cleaning 
The dry cleaning method of cleaning carpets is when the cleaning agent, an absorbent dry compound (containing solvents and detergents) is sprinkled on the carpet and worked into the pile by a machine. It is vacuumed off after about half an hour, removing the soil suspended by the compound. Many companies offer organic, natural materials when cleaning. Drying time if any is usually less than 1 hour.

Foam Cleaning
This system uses detergent in the form of a foam.  A machine generates a foam, which is agitated on the carpet by brushes. The foam is then removed, with trapped soil, by an extraction-vacuum pickup.

Bonnet Cleaning
With this method of cleaning, a bonnet is placed at the base of a buffer. It is dipped into a shampoo solution first and then it will go over the carpet, just as if buffing a floor. The bonnet starts to get soiled. This means it is actually removing dirt from the carpet. It is usually rinsed out and this is continued until the dirt is removed. The carpets are vacuumed once the carpets are dry. Drying time is usually 30 minutes.

When buying a new home there is no doubt that there will be many expenses, both planned and unplanned. You have to figure in closing costs, inspection fees, utility hook up costs and many other things that can pop up and drain your budget quickly. Especially in a difficult economy saving money and cutting costs anywhere you can is vital. Below are some cost cutting tips to help you save money where you can when you move.

Moving your belongings yourself is going to be a big money saver but it may not always be possible. If you do plan to use a professional service, be sure to shop around. As with any professional service, it is a good idea to do your homework and get at least three estimates. It's important to remember that the cheapest service may not always be the best value. Check references, ask questions, look for red flags and do your homework before deciding on a moving company to avoid being scammed.

Be creative and use your own packing supplies. Most moving companies will charge big fees for supplying packing supplies. You can save big money by being creative and using items you already have to pack. Things like suitcases or plastic bins are great for packing clothes or other small items. Consider using linens and towels to wrap breakable items. Instead of paying for boxes, start collecting free cardboard boxes from local stores as well as newspaper for packing.

Look for discounts. If you are using a professional service, be sure to ask about all available discounts. Some movers will give discounts if you are able to give the mover some room when it comes to pickup and delivery dates. If possible, give the movers a span of three to five days when they can pick up the load and three to five days when they can deliver. Be sure to ask about hidden costs such as if the mover has to go up stairs or if there are accessibility problems on arrival.

Pack It Yourself. Having a moving company pack your items is expensive-sometimes up to or more of 25% of the moving cost. Something to think about is to do a partial pack where you pack things like your clothing, linens and then have the mover handle the breakables.

If you have just purchased a new home or are going to be

The cost for these warranties are fairly inexpensive, typically ranging from $250 to $600 annually, depending on coverage. There are many different plans with different requirements, most tend to operate the same way. If an appliance or item covered breaks or stops working, the home owner calls the home warranty company. The home warranty company calls a provider with which it has an arrangement and they contact the homeowner to come out to fix the problem.  Typically if the problem can be fixed per the contract coverage than the warranty company pays the contractor directly.

Each company is different in what items they cover but below are some typical systems and appliacnces that are covered and what are not typically considered to be included.

Typically Covered

• Air conditioner system/ Furnace / heating
• Dishwashers
• Doorbells
• Water heater
• Garbage disposals
• Inside plumbing stoppages
• Ceiling fans
• Electrical systems
• Range and oven

Typically not covered

• Outdoor items such as sprinklers, or pool filters/spa systems
• Not all plans pay for refrigerators, washers & dryers or garage door openers
• Spa or pools, unless specific coverage requested

It is important to know that pre-existing conditions are not covered. The home warranty company expects to start with a clean sheet and they require home owners to fix any pre-existing issues before the new policy becomes effective. It is a good idea to get the home inspection done before you sign the contract, so that you have a proof if necessary.

With the arrival of the colder weather in the Chicago area, there is an increase in the number of fuel-burning appliances being used in the home. Such appliances include ovens, space heaters, generators, and fireplaces. These appliances can also cause dangerous levels of carbon monoxide (CO) to build up in the home. According to the Journal of the American Medical Association, carbon monoxide poisoning is the leading cause of accidental poisoning deaths in America. With these factors it is a good idea to install a carbon monoxide detectors to safeguard your family. 

Carbon monoxide is an odorless, tasteless, invisible gas. It results from the incomplete combustion of fossil fuels, such as wood, kerosene, gasoline, charcoal, propane, natural gas, and oil. This gas can form in the home from incomplete combustion from any flame-fueled (i.e., not electric) device, and open flames, such as from ovens and ranges, are the most common source of carbon monoxide. Vehicles are the most common cause of carbon monoxide poisoning.

If you are considering purchasing a Carbon monoxide detector, they work by triggering an alarm based on an accumulation of carbon monoxide over time. Carbon monoxide can be dangerous if you are exposed to high levels in a short period of time, or to lower levels of carbon monoxide over a long period of time. Carbon monoxide detectors range in price from $30 to $150 and are most effective models are those that offer that offer back-up battery power.

Purchasing a detector is a great idea and below are some tips to help protect you to avoid any problems.

•  Prevent any problems by making sure that your heating appliances are in good working order and used only in well-ventilated areas. Never use a stove for heating.

•  Don’t run a car engine in the garage, even to warm it up; move the car outside first. CO can leak into the home.

•  Install a CO alarm outside every sleeping area, on every level of your home and at least 15 feet away from every fuel-burning appliance. Be sure to check  the batteries on your CO alarms at the same time you do your fire detecors – and replace the batteries twice a year.

•  Have all gas, oil or coal burning appliances inspected by a technician every year to ensure they’re working correctly and are properly ventilated.

The hiolidays have arrived in Chicago! Aside from shopping and decorating our area offers many fun and festive events to enjoy during this wonderful time of the year. Giving to those less fortunate is a wonderful way to celebrate the season, below are some ways to do both! Have a safe and happy holiday season!

Charitable Events

Connections For The Homeless-Evanston:
2010 Dewey Ave. Evanston,  847.475.7070/Ext. 100
This organization supports families in housing need in the Evansotn area, operating emergency shelters. They currently are in need of the following donations: Coats, boots, gloves, men's long pants and jeans

Toys For Tots
Cars of America in Glenview is partnering with the U.S. Marine Corps Reserve Toys for Tots Program and is collecting new, unwrapped toys during October, November and December each year. Typically, these toys will be distributed in and distribute those toys as holiday gifts to needy children in the community in which the campaign is conducted. Toys will be collected at Cars of America. 1727 Chestnut Ave. Glenview , M-F, 7 a.m. – 5 p.m. Call 866carCARE for further information

Tree Sales

If you are looking for the perfect tree below are some options!

Deerfield:
You can find fresh trees at the Optimist Club sale located at the corner of Jewett Park Drive and Park Avenue, Monday - Friday, 3 - 9 p.m., Saturdays 9 a.m. - 6 p.m. and Sundays, 9 a.m. - 5 p.m.

Glenview:
Wagner Farm will have fresh cut trees, wreaths and greenery for sale beginning Saturday, November 24. They're located at 1510 Wagner Rd., on the corner of E. Lake and Wagner near the Glenview/Wilmette border.

Holiday Events

Macy's Santa Breakfast at Westfield Old Orchard
December 12, 2009 - December 13, 2009
Reservations Required. Located in the Lower Level Marketplace, a balloon artist, face painter and Santa himself entertain with a special gift for each child. Event begins at 9am. Adults $16; children $12. Type: Festivals/Fairs.   Macy's Westfield Old Orchard Shopping
I-94 and Old Orchard Road, Skokie, IL 

Menorah Lighting Downtown Evanston
December 14, 2009 - December 14, 2009
Mayor Elizabeth B. Tisdahl and Rabbi Dov Hillel Klein will light the Menorah. There will be greetings from city officials and community members, a boys choir, music and refreshments.    Fountain Square , Davis St., Sherman Ave. and Orrington Ave. Evanston, IL

Grove Holiday Store
December 16, 2009 - December 20, 2009
Choose those specials holiday gifts from a selected collection of personalized ornaments, holiday decorations, unique home accessories, crafts, gourmet and baked items and more. 10 am-5 pm.  The Grove  1421 Milwaukee Ave., Glenview, IL 847-299-6096 

New Year’s Eve Fun Skate
Location: Winnetka Ice Arena, 490 Hibbard Rd.
Date: December 31st
Time: 7 - 9 p.m.
Cost: Free

The final details of buying a new or pre-owned home take place on closing day when the purchase price is paid and title is transferred from the seller to the buyer. In most states the mortgage lender's attorney or a title agent will handle the closing details and protect buyer and seller rights as a neutral 3rd party.

You will receive a number of important documents at the closing meeting. Review this list of documents before you go, so that you'll know what to expect when you're there.

Documents the Buyer Typically Receives

• Settlement statement, itemizing the services provided and the fees charged
• Truth-in-lending statement
• Mortgage note
• Mortgage or deed of trust
• Sales contract
• Any required affidavits, if any
• Copy of the deed
• Keys to the home

Closing costs are one of the least-understood aspects of the home purchase procedure. You should be sure to speak up and ask about anything you don't understand. Closing costs can vary but they generally are between two and five percent of the home's purchase price and include:

• Attorney fees
• Escrow fees
• Property taxes to cover the period to the closing date
• Interest from the closing date to one month before the first monthly payment
• Loan origination fees
• Recording fees
• Survey fees
• Mortgage insurance, if applicable
• Title insurance, both for the buyer and the lender
• Loan discount points
• The first escrow payment for future real estate taxes and insurance
• Homeowner's insurance policy payment or receipt
• Appraisal fees
• Pest or other specific inspection fees
• Document preparation fees

The closing is the final step in the home buying process and ultimately the most important. You should always be sure to ask questions on anything you don't understand. There are many websites that can be a good resource to help answer questions but you should check with your realtor or attorney on any specifics you don't understand..