Don’t Let a Big Down Payment Stop You From Owning Your Dream Home

Do you want to buy a house, but aren’t sure you can cover the down payment? Let’s talk about
some down-payment assistance programs that may be able to help.

Down payment assistance can be the difference between saying “yes”
or “no” to a first home. If you are interested in buying a home but don’t
have cash on hand for a down payment, or if you have a son, daughter
or any other friend or family member who would like to purchase a home
but doesn’t have cash for a down payment in the state of Illinois, there
are several government programs that can assist you in securing a
down payment for your new dream home.

The First Home Illinois Program This program offers a forgivable
loan of $7,500 to buyers who will live in their new home for at least 5
years. This program will discontinue in December 2018, so to take
advantage of this down-payment assistance opportunity, your home
loan must be originated by December 15, 2018.

Even though this program will be discontinued for much of Illinois past 
2018, there are other down-payment assistance programs that will be 
available moving forward into 2019 and beyond:

- A forgivable loan of up to $6,000, with the amount based on the total
price of the home, forgivable after 5 years. 

- A $7,500 deferred program. This loan is repaid through a second
mortgage the buyer doesn’t make payments on, but is reimbursed when 
you sell your home.

- A $10,000 no-interest loan repaid through a monthly payment of
$83 for 120 months.

If you’d like to find out more about these programs, check out this flier!

If you have anything other questions regarding down-payment 
assistance in the purchase of your new home, please feel free to
give me a call or send me an email today. I’d love to hear from you.

What’s Your Home’s Value in Summer 2018?

This summer might be the last opportunity for you to take advantage of rising
home prices and high demand. Here’s why.

Summer is here, which means the high season for real estate. If you've been
thinking of selling your home, you might be in for a golden moment.

However, it might not last long. Let me explain why, with a few details of the
current real estate market.

Right now, homes are selling in record time. This May, it took just 34 days
on average for a home to go under contract, which broke last year's record of
36 days.

Home prices also continue to rise. In fact, they've been rising for six straight
years. For the past two years, this growth has been accelerating. As a
consequence, 27.6% of the homes sold in May sold above their list price.

All of this is due to a woefully short supply of homes on the market. In fact,
the total supply of homes is 5.4% lower this year than it was at the same time
last year.

However, the real estate market might be on the cusp of change.
Mortgage rates have been rising, and now stand near their highest
levels in seven years. As a result, pending home sales were down as of April.
A recent Redfin survey also found a drop in customers touring homes for
the first time in 27 months.

What's going on? The home price surge might be nearing its end. Overall,
home affordability is dropping: Over the past 6 years, there has been a
48% increase in average home prices, while wages increased only 14%.

While some sellers are still managing to sell at higher prices than listed, nearly
a quarter of sellers actually had to lower their prices this April.

If you do decide to sell right now, you would have an easy time of it,
and you could get top dollar for your home. That's because demand and prices
are both still high.

If you decide to wait, things might go south quickly. That’s because the market
may be reaching the limits of price growth and may be stalled by higher
mortgage rates.

If you want to take advantage of current conditions by buying or selling a
home any time in the near future, don’t hesitate to reach out and give me a call
or send me an email today. I look forward to hearing from you soon.

What Does Reduced Home Affordability Mean for You?

Home affordability is shrinking fast. Here’s what you should do to get ahead of the curve.

Home affordability is shrinking rapidly, according to research by Arch Mortgage Insurance. In the first quarter, affordability (defined as the size of the monthly mortgage payment needed to buy a home) dropped by 5%. This was mainly due to the increase in mortgage rates. As a consequence, more people are now stretched and taking on greater debt relative to their income. Other buyers are being pushed out of the market altogether. 

That's not all. Affordability is expected to drop an additional 15% to 20% by the end of the year. That's because home prices continue to rise, and the Federal Reserve is expected to ratchet up its reference interest rate, which often leads mortgage rates, three more times this year.

What does this mean for you?

If you're looking to sell, you won't have a hard time finding a buyer. Even with decreasing affordability, demand for homes still far outstrips supply. That means that this spring and summer might see an additional rush on the real estate market. It also means that right now might be a very good time to list your home if you've been thinking about selling for a while.

There’s no need to panic if you’re a homebuyer.

On the other hand, if you are thinking of buying a home, you might think that this news spells doom for you. However, there's no need to panic. While affordability is dropping, it is still well above historic averages (just like current mortgage rates). In fact, Arch Mortgage Insurance estimates that homes are now 15% to 20% more affordable than they have been in the period from 1987 to 2004. When rates go up, it will affect what your monthly payments will be on a new home. From this perspective, it makes sense to move now in case you've been looking to buy before rates rise further. 

So what's the next step? If you’re thinking about buying or selling a home, give us a call. We’d be happy to answer any questions you may have. We look forward to hearing from you soon.

3 Questions to Ask an Agent Before Hiring Them

Before hiring a real estate agent, you need to do some vetting. Here are the questions that we recommend you ask.

Buying or selling a home is a major project. Having a trustworthy agent to guide you through that project can be an invaluable asset. But how can you vet potential real estate agents to see who would be a good fit for you? Here are three important questions you should ask to get started: 1. "How many homes have you sold in the last 12 months?" Many real estate agents will tell you the number of years they have in the business. That's useful, but their recent activity can be more relevant than their total experience. Asking this question can tell you how well they know the market, as well as how successful you can expect them to be in your case.

Bonus Question: You will probably want to ask whether the agent works primarily with buyers or sellers, because many agents specialize to some extent in one or the other. 

2. "Can I have the contact info for your last three deals?" Anybody can say they are a marvelously effective real estate agent. But talking to actual past clients can help you decide whether this is true or a bunch of hot air. When you do talk to a real estate agent's previous clients, you don't need to get too fancy to get useful information. Simply ask them to share their experience. 

You want to get a sense that this agent is somebody you can trust.

3. "What is your strategy for my specific needs?" As a buyer, you will want the agent to explain how they will search for your new home, how many homes you can expect to see, and how the agent handles multiple offers. As a seller, you will want to know how and where the agent will advertise your home. So what kinds of answers should you look for to these questions? Ideally, you will want to get a sense that this agent is somebody you can trust and that you feel comfortable working with. At the same time, you will want them to be experienced and diligent, as evidenced by recent successful deals and a concrete plan of action for your situation. If you ever want to know how I measure up on these questions, you can always give me a call at (847) 362-1335. I'd love to hear what your specific situation is and whether I would be a good match to help you in the current Libertyville real estate market.

Thank You for Your Support in 2018

Happy New Year! We hope 2018 is your best year yet.

Happy New Year! We want to take a minute to thank our wonderful friends, clients, and family members who worked with us or helped us this past year.

Thank you so much for your trust in us here at Diamond Residential Mortgage- Libertyville. Jan has been serving mortgage clients for over 20 years now, and we are just very thankful for all of your support.

We hope you have a wonderful and fabulous 2018. Make it your best year yet!

Make 2018 your best year yet!

If you have any real estate or mortgage questions, remember, you can always give us a call. We would be happy to help you!

Woman of the House: Liz Cannon

Are you curious why so many people choose us to help them buy and sell homes? Let Liz Cannon tell you. 

Here at Liberty Mortgage, we value our clients’ well-being above all else. As a testament to our dedication and the quality of service we provide, today we’ve brought in a former client of ours, Liz Cannon, to share her experience of working with us. 

“I could not be happier with Jan and her team and their services, hard work, and dedication,” Liz says. “They seriously were a lifesaver during the home buying process and I highly recommend if you are a first-time home buyer or looking to refinance your home that she’s the first person you call.”

I highly recommend her and I’d never buy a house without her.

Liz met Jan during a guest lecture she gave about mortgages at the College of Lake County in 2014. She left such a favorable impression that Liz was the first person she contacted when she and her husband decided to buy a house last year. Jan remembered Liz from their encounter and immediately invited her and her husband into her office for a thorough consultation. 

“She really does go the extra mile for her clients. She’s very charismatic. She used to be a teacher, so she’s great at explaining things in a way that isn’t confusing, and she doesn’t make you feel stupid for asking any sorts of questions. I highly recommend her and I’d never buy a house without her.”

It was our pleasure to be able to help Liz and her husband buy their first house. If you are thinking about buying a home, please don’t hesitate to contact us. It would be our pleasure to help you too. 

What Documents Do You Need to Get a Mortgage?

If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!

Today, I want to discuss documenting your mortgage. If you don't, you may get in trouble with the mortgage police!

Tightening regulations are making the mortgage process more complicated than ever. Deadlines for signing your loan documents, ordering the appraisal, and getting the file into underwriting are now actually contained in the sales contract.

Guidelines now dictate that YOU are responsible for how smoothly the process will go. This makes it critical that you provide all required documentation to your lending team with plenty of time to spare. The fact of the matter is, the mortgage process is intrusive, as all of your financial information is needed in order to get approved for a loan.

Since the mortgage process isn't known as a fun one, it's crucial that you do all you can to make it go as smooth as possible. When we request every document that you've signed in the last 24 months, provide it with a smile! W-2s, tax returns, bank statements, and identification are only a handful of the documents we'll ask for!

The faster we can provide you, your agent, and your attorney with the coveted document we call a Clear to Close, the better! Give us a call if you have any questions about this process, we're always available to help!

Why Should You Be Excited if You Have an FHA Mortgage?

Libertyville Real Estate Agent Jan Leasure talks about how the FHA has reduced the monthly mortgage insurance rate to .85%, allowing you to refinance and save thousands of dollars each year on your mortgage payments.

 If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!

Hey there everyone, welcome back to Jan's Mortgage Minute for 2015. Today I have some amazing news for you if you have an FHA mortgage.

If you have an FHA mortgage that was originated between 2010 and 2014, I will be calling you to go over how much you can save by refinancing on your home this spring.
 
Mortgage insurance is the fee you pay on your mortgage payment if you purchased your home through FHA with 3.5% down. Mortgage insurance allows homeowners to refinance with just 3% equity in their home. The best thing about mortgage insurance is that the FHA has recently reduced the monthly insurance calculation from 1.35% to .85% on 30-year fixed loans.

What does this mean for you? Well, for every $100,000 you borrowed before the decrease, you were paying $122/month of your mortgage payment in mortgage insurance. Now, if you refinance, that mortgage insurance will be reduced to just $71 a month. This will save you money on every payment, and thousands of dollars throughout the year.

If you have any questions, be sure to give me a call or send me an email. I always look forward to hearing from you!

Save Money on Taxes with these Tips

Libertyville Real Estate Agent Jan Leasure discusses four different mortgage-related tax breaks that homeowners can receive when they file in 2015.

 If you'd like my free e-book of the Top 10 Credit Do's and Don'ts, you can contact me!

Have you done your taxes for 2015 yet? If so, are you aware of all the tax breaks that homeowners are eligible for? Whether your mortgage is paid off or not, your home is a tax shelter. There are four major mortgage-related tax deductions. These four deductions are mortgage interest, discount points, real estate taxes, and home improvements. 

1. Mortgage Interest: This is your #1 tax deduction. You'll receive a 1098 Form from your lender, but remember that if your mortgage is over $1 million you then lose the ability to deduct interest from your mortgage. If you want to lower your mortgage to reap these benefits, then be sure to contact me. 
2. Discount Points: If you paid discount points on your mortgage or refinanced in 2014 to lower the rate of your mortgage, then you ought to know that discount points are 100% tax deductible.  
3. Real Estate Taxes: These are sky-high in every state and out of control. Do not forget to deduct your real estate taxes. If you don't receive a document in the mail about your real estate taxes, then be sure to look it up online. 
4. Home Improvements: Repairs to your home can be counted towards tax deductions. For example, if you had to make improvements to your home to accommodate someone who was ill or disabled, then the cost of those repairs could be tax-deductible. The same goes for repairs that increase the environmental friendliness of your home.

If you have any further questions about preparing your mortgage taxes, please do not hesitate to contact me. I'm always willing to assist you!