Failure to comply with these standards could mean steep fines of anywhere from $200 to $500—per offense. So now you’re probably wondering, “How do I know if I’m committing an ‘offense’?”

Well, here’s one example: if you buy a property from an owner that applied for a building permit way back in 1962, added a bedroom to the property, but never received final clearance on the work that was completed, you—the buyer—are now on the hook for ensuring the additional room meets today’s building standards. This means that unless you and the seller have made previous arrangement in which he or she will shoulder the burden of potential repairs, you are responsible for completing any upgrades needed to bring the property up to today’s standards.

If a home you’re interested in has had an addition, verify that the structure has been cleared by the city. Additions requiring permits include:
• Rooms, expansions or new floors
• Attic renovations
• Garages
• Gut rehabs
• Hot water heater replacement
• Porches
• Security alarms
• Fences

Beyond home additions, you should also know that there are special zoning requirements for those who plan to use their home as a place of business. Actually, the Chicago Zoning Ordinance has lots of rules you need to be aware of. For the purposes of your business, you may not:
• Alter the inside or outside of your home, either temporarily or permanently
• Display products on shelving for direct sale to customers
• Use more than 10% of the home’s floor space to conduct your business
• Allow your business to emit smoke, noise or any other element that would disturb other residents in the area

Whatever you do, don’t play the guessing game—if you’re unsure about the city’s guidelines on any addition or modification to a home you’re thinking of purchasing, your best bet is to dig deeper into the city’s ordinances. Start by talking to your Chicago real estate agent, and from there you can visit CityofChicago.com or contact a city representative.

By Dream Town

The post Navigating Chicago’s Zoning Ordinances for Home Buyers appeared first on Dream Town.

Of the country’s countless real estate markets, Chicago is one of seven that has been chosen to receive a special down payment assistance program. As part of the CityLIFT program, Wells Fargo is providing Chicago homebuyers with $8.2 million, to be issued as individual $15,000 down payment grants to qualified borrowers. This amount will allow more than 500 local buyers to receive assistance.

Illinois Attorney General Lisa Madigan points to this as a rare opportunity and urges prospective homebuyers to find out whether they’re qualified for the assistance.

To qualify for the CityLIFT grant, a homebuyer’s combined annual income must be equal to or less than 120 percent of the area’s average median income. In Chicago, for a family of two, that equals an annual gross of $72,800 or less; for a family of four, it’s an annual gross of $90,950 or less.

For those who receive assistance, they can purchase a home in any Chicago neighborhood they choose, or in select suburbs, including Bedford Park, Blue Island, Calumet City, Chicago Heights, Clearing, Country Club Hills, Dolton, Glenwood, Harvey, Hazel Crest, Homewood, Lansing, Markham, Matteson, Oak Lawn, Park Forest, Richton Park, Riverdale, South Holland, Clearing, Forest View, Stickney, Ford Heights, Lynwood, South Chicago Heights and Sauk Village

A two-day special event will be held at McCormick Place on October 26 and 27, during which time prospective buyers who meet all criteria will be given a commitment letter for their down payment grant. Buyers then have 60 days to sign a purchase contract on a qualified home, or they will lose their funding. This event will also provide virtual tours of eligible Chicago homes for sale.

“This recovery has been uneven. To the extent that [CityLIFT] can be a tool in the recovery of some neighborhoods, it’s a good thing,” said Ed Jacob, the executive director of Neighborhood Housing Services of Chicago, INC. Prior to the event at McCormick, Jacob will be responsible for screening potential buyers and then providing financial counseling to the recipients.

Buyers who believe they may qualify for the CityLIFT down payment grants are encouraged to register early for this month’s event. To learn more about buyer qualifications and to register, visit wellsfargo.com/citylift or contact a Wells Fargo representative at 1-866-802-0456.

By Yuval Degani

The post Chicago Homebuyers Receive $8.2 Million for Down Payments appeared first on Dream Town.

But we want you to remember: just because you’re foregoing the house hunt doesn’t mean you forego the housing transition. For this project (arguably the greatest you’ll ever undertake), it’s crucially important to choose the right Chicago home builder—it could mean the difference between constructing a dream and giving rise to a nightmare.

Following is a list of questions you should review with any potential builder.

1. How many years have you been building?
2. On average, how many homes do you build every year?
3. What projects are you currently working on?
4. May I contact your references?
5. Are you licensed?
6. Are you insured?
7. How does your business philosophy set you apart from other Chicago builders?
8. What achievements has your company made?
9. Has your company ever operated under a different name?
10. If we start work from a pre-existing plan, can I make modifications to it?
11. Can you create a custom build design/blueprint?
12. How can we best communicate, and how often will I hear from you
during the construction process?
13. Do I have access to the jobsite during construction?
14. Which contractors will be assigned to work on my home and who will oversee them?
15. Will you provide me a schedule for when certain selections must be made?
16. How will you keep me updated about expenses throughout the project?
17. After closing, how do we get a hold of you for warranty matters?
18. How do construction loans work and who manages that process?
19. What is the average timeline for a project like mine?

Also, make sure you request a portfolio, or even a drive-by of select construction projects, to ensure the builder can deliver exactly what you want. Maybe even check their status with the Better Business Bureau. Beyond that, just ask them to walk you through the process and detail what role you’ll play, and then decide whether you’re comfortable with everything. And finally, get a quote. Then the decision is yours. Good luck!

By Dream Town

The post Know What to Ask Your Chicago Home Builder appeared first on Dream Town.

1. At some point, you have to stop seeking the better deal. You’ve watched the market bounce up and down for a while, but remember that you can’t predict the future and there is no guarantee that prices will continue to fall or that mortgage rates will continue to improve. Don’t deceive yourself into believing that there will always be something better around the next bend.

2. Still your romantic mind–in real estate, there is no love at first sight. “The process” is something that cannot be overvalued when buying a home. Doing your due diligence here ensures that key conditions are not dismissed, you don’t overpay in your rush to seal the deal and you won’t be left with buyer’s remorse (of the worst kind). Take your time, look at all your options and choose deliberately and wisely.

3. The perfect property (which may not actually exist) is still worth a fair price, so don’t extend an inflated offer when you find “the one.” When you feel emotionally attached to an idyllic property, ask yourself how it will serve you in all respects: current needs, potential future needs, resale potential, etc. Consider your full investment and take care to not overextend yourself financially.

4. Don’t be deceived by foreclosures or short sales–they may not be the deal you think they are. Too many buyers like to operate independently, but like it or not, no one knows the land like a Chicago real estate agent. They’ll help you determine whether a foreclosure or short sale is worth your investment by investigating things like price history, feature set and current market trends in Chicago neighborhoods.

5. Negotiate your purchase, but don’t insult the seller by naively lowballing their property. Keep your expectations realistic and your offer fair. This way, you avoid losing the property by having your offer rejected or unnecessarily lengthening the process and annoying the seller. And cash buyers–don’t think you can lowball just because you’re buying outright.

At the end of the day, just stay practical and play smart. Ask questions, explore the market, don’t rush your purchase and make no assumptions about a property or a seller. Your dream home is out there, you may just have to see it differently at first.

By Dream Town

The post How to Avoid the Emotional Homebuyer’s Top 5 Mistakes appeared first on Dream Town.

Consider a few of the options available around the $475,000 mark.

For this, a home buyer could land a four-bedroom, three-bath condo in the 15-story building known simply as “Barry.” Located in Chicago’s Lakeview East, just four miles north of downtown, this 1930s mid-rise is only steps away from upscale eateries, artisanal shops and Whole Foods Market. The unit itself features hardwood floors, a living-room fireplace, a fully-renovated kitchen, formal dining room and a private study.

What of the buyer whose hopes are set on a single-family home with room to run and amenities galore? There’s always the Colonial home nestled on almost two acres of private land in Chicago’s St. Charles suburb. Owners of this home will feel like royalty with a two-story foyer, octagon study with French doors, vaulted family room with fireplace and a master suite with luxury whirlpool bath.

Finally, there’s the home hunter who’s most interested in Chicago’s endless variety of rental units. For them, there’s an extra-wide penthouse in the city’s posh Lincoln Park neighborhood. The unit’s open and sunny layout features three large bedrooms, a hallway office nook, a huge kitchen that opens into a sprawling living area and an all-marble master bath with a double vanity. Not to mention, there are decks in the front, in the back and on the roof, all offering a relaxing city view.

Chicago knows that home is an extension of self. And its ever-evolving real estate market has grown to accommodate a diverse community of residents who have demanded variety and, in turn, created their own unique havens. Yours is waiting – no matter your price point, regardless your style of choice.

So let the hunt begin. Economists and market analysts continue to predict 2012 as the year for home buyers and it’s proving true in the Windy City. Set the parameters, select the perfect style, and begin an exciting homeward journey at DreamTown.com.

By Dream Town

The post One Price Point Leads to Endless Chicago Homes appeared first on Dream Town.

The bill was introduced on Thursday by two senators trying to find a solution to America’s housing woes. If enacted, the bill would encourage people from all over the world to buy real estate in the States by creating a special new homeowners visa. Under the proposed plan, an overseas buyer would have to purchase a primary residence that costs at least $250,000 and would need to spend a total of half a million dollars on residential real estate to be eligible for the visa. Additional properties that are not used as the buyer’s private residence could be rented out.

An influx of foreign purchasers could jumpstart the local housing market, which has been stunted by a depressed economy, strict lending standards and lack of jobs. The sales volume of foreigner/immigrant-bought real estate in the U.S. is already higher this year than last—indicating a mounting interest in American homes, especially from Chinese, Canadians and other newly wealthy nationals. Realtors in states like California and New York (which currently have large numbers of foreign investors) say the new legislation wound spur a huge increase in demand for homes.

Besides helping to reduce the massive inventory of property listings, foreign homeowners would help boost the U.S. economy with consumer spending and paying taxes. The new legislation also gives outside investors another incentive to bring their business to the States. According to reports on details of the proposed bill, the new homeowner visa would be renewable every three years and would permit buyers to bring spouses and children under the age of 18 into the country to live. A separate work visa would be required for the buyer to get a job and they would not be entitled to Social Security, Medicare or Medicaid benefits.

The purchase would have to be an all-cash transaction, so there wouldn’t be an additional strain on the mortgage industry to finance the new sales. It is also required that the buyer live in the home for a minimum of 180 days per year and pay income tax on any overseas earnings.

By Dream Town

The post New Foreign Homeowner Visa Could Jumpstart U.S. Home Sales appeared first on Dream Town.

News of the condo buyer’s special was released early this morning and has created a buzz throughout the national real estate market. It provides qualifying condo buyers with a maximum of $1,500 to put toward their standard condominium association dues, which typically help with the upkeep, running and repairs of a condo building, grounds, common areas and other communal expenses.

The new program, dubbed “Condo Cash,” is only available to buyers who purchase condos from HomeSteps, the property sales branch of Freddie Mac. Through its Good Neighbor Practices, Homesteps ensures its foreclosure/bank-owned homes are properly secured, cleaned and maintained. This includes trash removal, lawn care and periodic property inspections.

A search engine on the HomeSteps website allows home buyers to find condos that are part of the HomeSteps initiative. Those that qualify for “Condo Cash” must have a minimum market time of 120 days and they cannot be purchased through bulk sales, auctions or sealed bids. Another requirement of the deal says the condo must be occupied by the owner (i.e. it cannot be rented out).

In order to get the “Condo Cash” money, an offer needs to be submitted on a qualifying HomeSteps condo unit between now and November 15th of this year. The deal must close on or before December 30, 2011. HomeSteps also sponsors a two-year warranty on some of its properties. The warranty covers heating and AC, plumbing and electrical, appliances and other mechanical systems. These homes receive 30% discounts for new appliance purchases as well.

The “Condo Cash” incentive is only around for the next 92 days. So interested condo buyers should contact a Chicago real estate agent immediately if they want to find a property and submit an offer before the mid-November deadline. Remember, you’ll have another month and a half to actually close on the condo.

By Yuval Degani

The post Get $1500 "Condo Cash" for Limited Time appeared first on Dream Town.

What’s the state of the condo association?
This is an important question to ask because a number of banks won’t approve mortgages for condos in a building where more than 15% of the owners are behind in paying their assessments. Usually, you can request for this information from the association. In some cases, the sellers may provide it for you along with the property details. The more stable a condo association is, the more attractive it is to buyers (who will be governed by the association and partly responsible for its success) and to lenders (who will be financing the home loan).

What’s the state of the assessments for the condo unit?
You will want to know if there are any back assessments owed on the condo unit because in Illinois the buyer can be held liable for up to 6 months of unpaid association dues on a foreclosed property. Legally, this information should be included on the property’s listing sheet, so take note! Buyers can sometimes negotiate with the bank to waive back assessments owed on the foreclosed condo they want to purchase.

Is the condo building considered “financeable” by your lender?
Mortgage brokers may have a list of Chicago condo buildings that they have deemed “unfinanceable” for various reasons. It is a good idea to find out upfront from your chosen lender which buildings these are so you don’t waste time looking at foreclosure condos in those properties.

What’s the owner/renter ratio?
You may have trouble getting financing on a foreclosure in a condo building with a high percentage of units being rented out. Owner occupation is considered lower risk and is more desirable to lenders than buildings with lots of renters. Again, this information should be available to you from the selling bank or the building’s condo association.

What’s the condition of the condo?
Foreclosure condos are sold in “as is” condition so you want to make sure you know what you’re buying before putting in an offer. Unlike traditional sales, the bank will not give concessions or provide credits to make repairs or fix up the unit. For that reason you should have a home inspector and/or contractor check out the condo and estimate how much extra you can expect to spend to get the place in good shape. Remember, foreclosures and short sales are oftentimes not in the best condition and may need a lot of work (read: time and money) to be livable again.

By Dream Town

The post Advice for Buying Foreclosed Condos in Chicago appeared first on Dream Town.

This can be discouraging to the other two-thirds of us who need a little help from the bank to buy a home. It is not uncommon for a seller to take a cash buyer’s offer over one that requires mortgage approval, even if it is for less money, just because the deal usually can get done faster with an all-cash transaction.

So what can we do to fast track the process and get that home loan approved quicker? As a borrower, it is your job to present your case as to how you will be able to pay your mortgage on time every month and how yours will be a risk-free home loan. Get involved and don’t be afraid to start a conversation with your bank or lender about your personal situation.

For example, you may have to prove that you can manage more than the average maximum debt-to-income ratio (which is the sum of the monthly mortgage payments, homeowners insurance, property tax and other debt, divided by income). This is generally capped at 40% or so, but underwriters have made exceptions in the past for those who can show they can afford to spend more on house payments than the typical American.

Consider enlisting the help of your loved ones. This is often the case with younger home buyers who haven’t had time to save up a nest egg of their own yet. Instead, their parents put up the funds for a larger down payment or act as a co-signer, a non-occupant co-borrower, or participating investor who is financially responsible for mortgage debt if the borrower defaults.

Just keep in mind, most private mortgage lenders try to adhere to the guidelines set forth by Fannie Mae and Freddie Mac so that they can later re-sell the loan to government-backed entities. It may help to be familiar with the approval restrictions of federal mortgage securities so that you are aware of the constraints your lending institution is working under.

Of course, getting your credit score up will also improve your chances of quick mortgage approval. While it may vary from one lender to another, 720 is generally considered a good score. There are many ways to increase your number (and many ways to decrease your number, which you might also want to be aware of). With a little research you can find best practice ideas that you can start as soon as possible.

Finally, remember that not all lenders are the same. Shop around. See what each can offer you and the time frame they can deliver it in. And always ask for the reasoning behind their terms, interest rates and process. It can also help to have a professional realtor on your side. Their expertise and understanding of the industry is a great asset and excellent resource.

By Dream Town

The post One Third of Real Estate Deals Have Cash Buyers appeared first on Dream Town.

So what are some of the things you should look out for when it comes to buying a unit in a Chicago condo building? According to recent reports, some banks and mortgage companies have become wary of condo buildings with a large percentage of renters, insufficient association reserves, homeowners who are delinquent in paying their monthly assessments and pending litigation issues. Any or all of these situations could make it more difficult for ready and willing buyers to purchase in certain Chicago condo buildings.

One of the main reasons lenders are apprehensive about giving out loans to people trying to buy in these buildings is how it affects their ability to sell the loan to government-sponsored agencies such as Fannie Mae and Freddie Mac. Condo buildings with unstable financial footing or lawsuits underway may not live up to federal agencies’ standards for loan backing. This is a concern for lenders and can be a frustration for buyers.

Likewise though, buyers may not want to purchase real estate in a building that has these types of problems because it can lead to hardship down the road. Low reserves could mean a large special assessment when a major repair springs up unexpectedly; association fees could increase to cover the deficit caused by delinquent assessments; and renters may not care for and take pride in properties as their homeowner counterparts do, which can result in conflicts among neighbors.

Along with finding Chicago properties that suit your needs and wants, you may want to focus on condo building that are in good standing as well. It will save you time and money now, and possibly help you avoid some headaches in the future.

By Dream Town

The post Building Condition Critical to Buying Potential appeared first on Dream Town.