SmartBuy mortgage program can help eliminate student loan debt!

Turn your student loan debt into a home ownership! We work with our lenders concerning many homebuyer and mortgage programs. The SmartBuy program is an awesome opportunity for would be home buyers carrying student loan debt. Check out the link above and contact my loan officer Steve Dunnett.

National sales numbers rebound, Chicago matches July 2019

 

Unit sales rebounded nationally and in Chicago to either equal levels or up over 2019. (All photos Eric Rojas, Broker, Kale Realty)

In February of this year some clients and real estate experts were sounding the alarm about the coronavirus.  I was having conversations about potential impact when selling in the spring market. "If I buy a house will I be able to sell my existing condo?".  Then we went full pandemic in March with shelter in place orders. Something most of us never saw coming or even fathomed. Yet, clients and brokers still had to make decisions. Some bought and sold, some sat out. Here's how some of the sales numbers have panned out.  

The National Association of Realtors reports sales numbers have been resilient despite the pandemic and civil unrest. NAR's Chief Economist suggests "homes sales will be down only 2% - 4% at years end". Some year over year stats:

-National home sales are currently up about 10% year to year 

-Inventory is down about 20%

-Current mortgage applications are up 27% year to year suggesting we may be stable the rest of the year.

June and July were very active for our personal business. Chicago prices held strong through the worst pandemic months and July sales matched 2019.

Meanwhile in the Chicago metro area unit "sales in the nine-county metropolitan area were up 12 percent in July from the same month a year ago" according to Crain's Chicago Business analysis of sales numbers by The Illinois Association of Realtors.

In Chicago, "2,725 homes sold in July, up 0.6 percent from July 2019, or essentially flat. The previous three months’ sales declines were sharper than in the metro area: 20.8 percent in April, 42.6 percent in May and 27.6 percent in June." Ouch.  However, Chicago sales median price is up about 7.5% over July 2019.

It appears the Chicago suburbs did see a spike of activity from those seeking more space for their new "work-at-home, school-at-home" life. 

Slow snowy start to Lincoln Square area spring market

My block in Lincoln Square on this snowy morning. Homes in the sub-neighborhoods of Bowmanville and Winnemac Park have been been slow to come on. Many listed homes either need renovations or have been priced over $1 million.

I have clients looking to get into a Lincoln Square house. It's been a slow start for good houses in the $850,000 to one million range. Many houses in the $900s to just over one million are re-treads from the fall and/or sitting on the market. The market does not see them as priced well. We're seeing homes bought over the last five years in Lincoln Square, Edgewater and North Center now listed just over a million dollars that will have to re-sell for less. That reality can slow things up!

While new re-sale listings have dripped on the market I've noticed a healthy dose full gut renovations and new construction homes in the works around Lincoln Square.

Mortgage interest rates are low.  However low inventory and high initial asking prices combined with another whopper national election may bode for a slow year in unit sales. Currently twenty-four houses are for sale in all of Lincoln Square with an eye opening median asking price of $925,000.  Yet the median price for a sold Lincoln Square single family home is about $715,000.   Current listed homes are priced from about $400K to $3.2M. 

Home buying tips: Loans for self employed may get easier

The home market is always changing... and so are mortgage requirements.

Small business owners, real estate brokers, "gig" economy workers... the self employed have faced extra hoops to qualify for home loans.  Those regulations may be changing soon to keep up with the new economy. Here's an easy read on the changes a coming.   


Make sure you are working with a great loan officer that can help prepare yo to get a loan when that awesome property hits the market.  Be ready with my guy Steve Dunnett, Blueleaf Lending.

Ask Steve!

Vote for Steve Dunnett, Loan Officer of the Year!

Vote for Steve Dunnett, Blueleaf Lending

Many of our clients have worked with Steve Dunnett on their home loans and refinance opportunities.  Steve has been my personal lender for over ten years and my main "go-to" guy for mortgage lending education.  

Click the link to vote for Steve Dunnett for the Agent's Choice Award, Loan Officer of the Year!!

VOTE HERE

Contact Steve at SDunnett@blueleaflending.com

Mortgage rates jump up .25% on 2016 election results

It was fairly quiet around Lincoln Park today.  Not the case in financial markets (Photo Eric Rojas, Broker, Kale Realty)

Our preferred mortgage lender Steve Dunnett of Blueleaf Lending sent me this article immediately after last night's 2016 Presidential Election results. Here's his note:

"The election results caused mortgage rates to jump .125%-.25% today. Jumps like this are rare so I wanted to share a good summary of what happened from a service that I subscribe to".

Contact Steve for mortgage rates, questions, planning and lending needs! 

Steve Dunnett
Senior Mortgage Consultant
312-725-2068 (DIRECT)
312-379-8844 (E-FAX)
SDUNNETT@BLUELEAFLENDING.COM

NMLS#755940

Thank you Steve Dunnett and Blue Leaf Lending!

Thanks Steve for your sponsorship and golfing with my team once again!!

A big thanks to Steve Dunnett of Blueleaf Lending for his hole sponsorship on behalf of the Northeastern Illinois University Alumni Association and the 44th Annual Chuck Kane Scholarship Golf Event.  Steve has been my long time lender and a generous backer of many charity and fund raising events in our communities.

Contact Steve for your mortgage lending and refinance needs.  He has worked many friends, associates, clients and our family!

Steve Dunnett
Senior Mortgage Consultant
312-725-2068 (DIRECT)
312-379-8844 (E-FAX)
SDUNNETT@BLUELEAFLENDING.COM

NMLS#755940

Hey Steve! What will FED rate increase mean for mortgage rates?

I asked "Mortgage lender to the Stars" Steve Dunnett, Blueleaf Lending what the recent Federal Reserve rate hike means for the average home loan.

Here's his quick response to me:

As expected the Federal Reserve raised the federal funds rate by 25 basis points, or .25%. I have already received many emails asking about how this will impact mortgage rates. Honestly I wish I knew but my crystal ball is a bit cloudy. Consumer loans (auto, helocs, student loans) will go up but the initial reaction for mortgage rates today was very minor. In fact, many of our lenders ended the day with better rates than where they were prior to the announcement. Mortgage rates will rise when inflation starts to rise because the investors that buy mortgages will require higher rates of return as inflation rises. In my opinion if you want to know what rates will do we need to keep an eye on inflation.  

Contact Steve anytime! Great knowledge, service and explains everything clearly until you "get it".

Steve Dunnett
Senior Mortgage Consultant
312-725-2068 (DIRECT)
708-289-3408 (CELL)
312-379-8844 (E-FAX)
SDUNNETT@BLUELEAFLENDING.COM

NMLS#755940

Mortgage pre-approval or "pretend approval"?

Loan Officer Steve Dunnett lays down the law on mortgage pre-approvals...there's a new sheriff in town!

In the past few weeks I’ve spoken to several customers who told me that their loan guy had pre-approved them for a mortgage without running their credit or obtaining any documents. These people were surprised by the amount of documentation that I had requested in order to issue a pre-approval for them. I was more than surprised that other professionals had provided a pre-approval letter to anyone without documentation.

The amount of documentation that needs to be obtained for a loan these days has increased.  If a loan officer you’ve spoken to is providing you with a pre-approval without first obtaining and reviewing your documents than that person is doing you no favors. In fact, it’s more like they are putting you on a rickety plane with an inexperienced pilot, no seat belt, and no flotation device. You could end up swimming in an ocean with the sharks. 

Seriously, receiving an unqualified pre-approval and then not being able to obtain financing could be devastating to you.  Before issuing a pre-approval your loan officer should at least be reviewing: 

       Credit reports

-      2 years worth of tax returns

       Pay stubs

       Bank statements

Without these items you and your lender will not have an accurate picture of your ability to obtain financing.  If you received a "pretend approval" OR have any questions about getting a mortgage pre-approval please give me a call. I would be happy to be a resource for you.  

Steve Dunnett

708-289-3408

Steve.dunnett@gmail.com

Mold Stops FHA Mortgage! (and Man Bites Dog!)*

A "younger" Steve Dunnett

Steve Dunnett, Mortgage Loan Professional weighs in: 

 We recently had a client who was purchasing a home with an FHA mortgage. He ran into trouble right before the closing due to mold!  Why?

,

Real photo, unfortunately, by Eric Rojas

FHA mortgages are insured by the US Government; therefore, the property requirements are more stringent than loans obtained without government approval requirements. If you’ve ever bought a home before you may be wondering how it’s possible to make the process more stringent or convoluted... but alas, our government has found a way.  Of course, the government does this with intentions of protecting the people buying homes, and ya know, protecting their own assets. 

If you are obtaining an FHA loan... the government’s assets are also your assets. The one item that is most important to the government in these transactions is whether or not mold is present in the home. If mold is there, the government insists that it is removed before they will agree to insure the loan on the property.  This means two things to you:

(1) If you are ever obtaining an FHA mortgage, you need to make sure that any mold is removed before an appraiser is sent into the property. Otherwise, the appraiser will require a professional to come in to remove it...increasing costs and delaying a closing.

(2) Make sure that the home inspector is looking at these items AND that the inspector is working with your best interests. In the case of our client at the closing table, we had an appraisal completed with a report that stated that there was a questionable substance that could be mold. The home inspector provided a report stating that the substance was not mold... so we scheduled a final FHA inspection on the property to confirm this. 

Unfortunately, the final appraiser confirmed that the substance was definitely mold - it turned out that the original home inspector was found through the seller's attorney and he didn’t provide the correct information (NOTE: hire your own property inspector). In the end we closed the loan - BUT - only after the buyer and seller split a bill of $2500.00 to remove the mold.

If anyone has any questions about FHA mortgages, requirements, or processes; please give me a call. I’d be happy to help anyone out there utilize the FHA program that helps home ownership with low down payments.

Steve Dunnett

708-289-3408

Steve.dunnett@gmail.com

*No dogs were bitten

Hello! Mortgage rates are LOW, research your options now

The positive news about home sales and mortgage rates has been everywhere lately...the Tribune, CNN...even my Kiplinger's issue this month had a few features on what buyers are getting in this current market.  You should take a serious look at your options for purchasing, selling or re-financing now.

Interest rates are low and demand is back up... even new condo conversions are back around the North Side

What's interesting in Chicago (and the close by burbs) is the ability to achieve many goals depending on your situation: 

1) Buying your family home for a much cheaper cost to own these days than over the past 10 years 2) buying a condo and having roommates in a nicer home for less than renting (and building equity and getting a write-off on mortgage interest your roommate helps pay); 3) buying a very livable fixer-upper or outdated home and living well under rent prices for your area; 4) buy and live in a two-flat building and receive rental income and tax write-offs for maintenance; 5) Buying and renovating single family homes for profit; 6) and pros are even buying and flipping condo units again.

Single family homes have become more affordable relative to incomes around Chicago.  Inventory once again seems low in popular neighborhoods on the North Side.

For the average buyer purchasing their primary residence its been a very active home selling and buying market.  People have begun to feel comfortable about home prices in comparison to renting. The low interest rates have combined with lower home prices to spark some consumer confidence.  It will pay to understand your options now for selling, making a purchase or re-financing.


You can contact Steve Dunnett, Loan Officer at sdunnett@wintrustmortgage.com or 1-708-289-3408 to discuss mortgage needs. 

You need house? We find house.  Call or email us.

Mortgage: Introducing HARP 2.0! (Home Affordable Refinance Program)

How do you take advantage of today's low interest rates if your property has fallen in value? Steve Dunnett introduces the new HARP program.
 

You may have heard about the different programs available to help with refinancing and thought that it was not for you. Up until now, you were probably right. The newest version of the HARP (Home Affordable Refinance Program) may change that. The first version of HARP allowed borrowers to refinance if their loan to value ratio was at 125%... at least on paper. But many factors led to super high interest rates or lenders not even participating in the program...it was ineffective.

The new version of HARP keeps the risk of the loan with the original loan, so new lenders are more enticed to participate. Also, we may not even have to do an appraisal at all because the limit for loan to value is no longer an issue for the refinance. The idea is that no matter what someone owes, if they have been paying their loan on time they will be less likely to walk away from their house if the payment is even lower. Less homes going into foreclosure is better for the real estate market and lenders.

The updated HARP goes into affect March 17th. Things will be very busy after that because of the backlog of people that could not refinance under the previous program.. I’ve been preparing to work with many people who will qualify for the new HARP. If you think you might be able to benefit from the new HARP, please give me a call or shoot me an email. I’d be happy to go over the program with you and answer any questions you might have. Of course, if you’d like to check out the program as it is now, you can access information about it on the governments HARP program website here: http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/harp.aspx
Let me know if there’s anything more you’d like to know!

Steve


Contact:
Stephen Dunnett, Loan Officer
NMLS ID: 755940
PH: 1-708-289-3408

Illinois Veterans and active duty: New mortgage program can help

Long time associate and mortgage expert Steve Dunnett sent us news of the following mortgage program in Illinois.  Before buying or re-financing, we always check with Steve!


Illinois has a great new program for Veterans, Active Military personnel, Reservists and Illinois National Guard members. Qualified buyers receive a $10,000 grant which is forgivable over a two year period and a mortgage rate that is typically below the market average. This can be combined with VA, FHA or Conventional financing.  

The $10,000 can be used for closing costs and down payment. Although the program is designed for first time buyers Veterans are exempt and do not need to be first time buyers! There are income and purchase price limitations but they are very generous and change from county to county so call me so we can find out if you qualify.

Contact:
Stephen Dunnett, Loan Officer
NMLS ID: 755940
PH: 1-708-289-3408

Buyer client locks 3.85% mortgage on Wrigleyville condo purchase

One of our buyer clients just locked a 3.85% APR on their home loan.  They are buying a large three bedrooms, two baths Wrigleyville condo with parking and outdoor spaces for under $350,000.  With 20% down, their mortgage, assessment and taxes will be less than they could rent this home.

Know the score on mortgage rates and home prices!

Please contact us for current home options and lender referrals. Get pre-approved for a mortgage and start planning for your home purchase now!  The most knowledgeable and prepared home buyers get the best values.

Funny Money: 5/1 ARM mortgage rates under 2.5 percent

Our associate lenders are sending us the latest mortgage rate sheets prior to this weekend.  5/1 ARM rates can be under 2.5% for qualified applicants.  This may be a good bet for a condo purchase. Low rates on 30 yr fixed and low jumbo loan rates make pricier houses and multi-unit purchases in great locations very attractive.  One of our buyer clients locked a 30 yr fixed this week at 4% on a house.

I might even consider buying a house or two-flat with the 5/1 ARM, use the savings for renovations, and refinance when the time is right.  There are a lot of options right now.



To ask questions and pre-approve for a mortgage contact:

 

Steve Dunnett, Loan Officer

NMLS ID: 755940

312-462-7709

www.dunnettmortgage.com

Wall Street Journal says Mortgage rates hit record low (but does it matter to you?)

 We all know (or you should know) that mortgage rates have hit record lows. Most folks with decent credit scores can get near 4% rates on 30 year fixed conventional loans and even less on FHA loans.  5/1 arms are low 3s... which can make a lot of sense on a good condo or townhouse buy that will be cheaper than renting with some money down. Most people re-sell condos in about 5 years.


But, does it matter to you?  Many still think they can't afford a decent place. Normally, I'm not too "pushy" with my friends about rates and property deals.  However, a light switched on when a friend assumed you needed 20% down to buy a house. This not the case and I realized I assumed many of my friends understood what they could afford and the true costs of owning. We ask friends and clients to ask themselves the following: Can I buy, do I want to buy and does it make sense?


It turns out many friends are paying high rents for long periods of time when they could afford a great property that meets their needs. They just never really looked at the numbers with a professional.  Several friends could afford to rent their current homes out and move up to a much needed (or wanted) larger space. Becoming a landlord is a little more of a leap but I feel everyone should accurately know all their financial options...including renting out their home.


Please feel free to contact one of our associate lenders Steve Dunnett, Loan Officer to understand your mortgage options.

Steve Dunnett, Loan Officer

NMLS ID: 755940

PH: 312-462-7709

www.dunnettmortgage.com

Call us to check out your property and neighborhood options  773-687-4646

All photos Eric Rojas and Robert DePalma Real Estate Brokers unless otherwise noted.

Making ends meet: Will refinancing save housing and families?

New mortgage refinancing plan could be unveiled by Obama administration.  I'd rather see people allowed to short sale faster and move-on to new locations and jobs better for them without harsh penalty...but whatever.

FHA is lowering loan limits: What does it mean for Chicago?

Our money man Steve Dunnett talks FHA loan limits

The loan limit for an FHA single family residence in the Chicago-land area will be lowered on October 1st, 2011 of this year.  The limit is currently $410,000 on a single family home. Many in the real estate and lending community have fought the lower limits but I think the potential repercussions are being overblown (at least for the Chicago market). 

First we need to understand mortgage insurance (MI) and dependence on FHA mortgages. MI is an insurance policy that protects the lender in the case of the borrower’s default. An FHA loan has mortgage insurance that is backed by HUD (government) and a conventional loan (sold to Fannie Mae or Freddie Mac) has mortgage insurance that is provided by for profit companies. When the financial meltdown happened in 2008 many of the private mortgage insurance companies pulled back and restricted loans they would insure. One example is that, almost overnight, most lenders could only lend up to 90% of the sales price on a conventional loan. FHA continued to allow up to 96.5% loans so FHA went from being a small piece of the mortgage market to a major chunk. Thus dependency on FHA loans and higher limits.

Luckily today’s market is not nearly as dependent on FHA and their ability to insure mortgages.. We now have private mortgage insurance options for 97% loan to value mortgages (3% down) for buyers with credit scores over 680 and 95% mortgages (5%) for clients with 620 credit scores. The private money and investors that left the market back in 2008 are now coming back and trying to steal the business back from FHA. This is a good sign for the market, as it shows that the mortgage insurance companies do not expect today’s loans to default, and they don’t want FHA to continue getting all the business.

FHA will continue to be an important part of the mortgage market, and any changes will be felt but I am glad that we are not as dependant on it as much as we were in 2008.

Stephen Dunnett, Loan Officer
NMLS ID: 755940

Wintrust Mortgage

Home buying tips: Mortgage rates, low down payments and investment properties

Our mortgage expert Steve Dunnett points out current mortgage and down payment options make investment sense... and we agree.

Eric, Bob and I often discuss our clients' options for two-flat, three-flat and four-flat buildings. Low mortgage rates and lower asking prices make investment multi-unit properties in vogue.

I have read a few articles about how we may turn into a nation of renters. Maybe this is a little extreme, but vast statistics and our personal experience show a great demand for rental property is real. How can you capitalize on that?

Simple, become a landlord of a small multi-unit building. Did you know that you can buy a 4 flat with as little as 3.5% down through FHA? FHA also allows you to use the rental income from the building to qualify for the mortgage. They also allow for non-occupant co-signers... so rather than have your kids as paying rent to an evil landlord, an owner operator situation may be a better investment for the family with help from mom and dad.

For financing needs contact the guest author:
Steve Dunnett, Loan Officer
NMLS ID: 755940
312-462-7709
www.dunnettmortgage.com

To purchase or sell multi-unit properties for owner occupier or investment purposes, contact Eric and Bob at 773-687-4646

Home buying tips: Be ready for low mortgage rates

We asked our Chicago mortgage expert Steve Dunnett to give examples of how he's been helping clients with today's low mortgage rates.

Every cloud has a silver lining.

Mortgage rates have fallen to historic lows. I am not allowed to quote rates online but I can say that rates are about as good as they have been in 50 years.

What does this mean to buyers?

Lower interest rates mean real estate just went on sale. In the stock market you want to buy when the market is low and real estate is no different. Right now home prices have fallen, rents are rising and mortgage rates are at historic lows. That is what you call a buyer’s market. None of this matters if you have not prepared to take advantage of lower cost of ownership.

Be Prepared for a great deal to come along.

You would not know it by reading the papers but good deals are already going very quickly. Eric, Bob and I recently closed a purchase for a buyer client where the property appraised $66,000 above the sales price. There were multiple offers but our client secured the deal because they were fully pre-approved and well educated on the market. The selling agent actually called me to discuss their financing before they accepted the contract.

Even in slow markets great deals are out there but they move quickly. If you want a great deal you need to put yourself in a position to get a great deal. Step one is to get pre-approved for a mortgage. Not pre-qualified, pre-approved. Sellers are looking for strong buyers and they know the difference between the two. Step two is to let Eric know exactly where you are looking and what you are looking for... and be ready act when it comes on the market. Great deals will have multiple offers so the seller is not going to wait around for you, be ready.

*Contact Steve Dunnett with mortgage financing questions and pre-approvals at
Steve Dunnett, Loan Officer
NMLS ID: 755940
312-462-7709
www.dunnettmortgage.com

Call or email Bob and me from the contact information to the right of the screen to find your home!