Pre-Qualified Vs. Pre-Approved - What's The Difference?

By Brian O'Connell on February 26, 2009   A A A

Filed Under: Home Purchase, Mortgage, Options

Ralph Waldo Emerson, American essayist and poet, once said that the future belongs to those who prepare for it. This is sage advice for home buyers who need to lay the necessary groundwork to buy the home of their dreams.

Without good preparation, many buyers get lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage this means that they have been pre-approved for a home loan. Unfortunately, there's a world of difference between these two terms. If you've ever been confused by the two, we'll bring you up to speed on how these terms differ - and why a misunderstanding can mean disaster for borrowers.

The Skinny on Pre-Qualified

Getting pre-qualified is the initial step in the mortgage process, and it's generally fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, a lender can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.

The initial pre-qualification step allows you to discuss any goals or needs you may have regarding your mortgage with your lender. At this point, a lender can explain your various mortgage options and recommend the type that might be best suited to your situation. (For more, see Mortgages: How Much Can You Afford.)

Because it's a quick procedure, and based only on the information you provide to the lender, your pre-qualified amount is not a sure thing; it's just the amount for which you might expect to be approved. For this reason, a pre-qualified buyer doesn't carry the same weight as a pre-approved buyer who has been more thoroughly investigated. (To read more, see Shopping For A Mortgage.)

The Skinny on Pre-Approved

Getting pre-approved is the next step, and it tends to be much more involved. You'll complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. (Typically at this stage, you will not have found a house yet, so any reference to "property" on the application will be left blank). From this, the lender can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate.

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With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you're one step closer to obtaining an actual mortgage.

The other advantage of completing both of these steps - pre-qualification and pre-approval - before you start to look for a home is that you'll know in advance how much you can afford. This way, you don't waste time with guessing or looking at properties that are beyond your means. Getting pre-approved for a mortgage also enables you to move quickly when you find the perfect place. When you make an offer, it won't be contingent on obtaining financing, which can save you valuable time. In a competitive market, this lets the seller know that your offer is serious - and could prevent you from losing out to another potential buyer who already has financing arranged.

Once you have found the right house for you, you'll fill in the appropriate details and your pre-approval will become a complete application.

Getting Committed

The final step in the process is what's called a "loan commitment", which is only issued by a bank when it has approved you, the borrower, and the house in question. This means the home should be appraised at or above the sales price. The bank may also require more information if the appraiser brings up anything he or she feels should be investigated (i.e. structural problems, accessibility issues, outstanding liens or litigation in progress). Your income and credit profile will be checked once again to ensure nothing has changed since the initial approval. (For more, see Understanding Your Mortgage.)

A loan commitment letter is issued only when the bank is certain it will lend, so the commitment date on your purchase contract should be closer to closing than to the date of your offer. (The seller can ask to see that letter as soon as the date has passed, so beware of anyone who tries to put an early commitment date into your contract).

One Last Word

Be warned. Pre-approved and pre-qualified are not the same thing, so don't assume that the bank will provide your loan until you have the former. The mistake could cost you your new home!

Tell Me Again: How Does Rent to Own Work?

What is the difference between renting and Rent to Own?

How much do you need to put down to move out of the Rental Rat Trap and toward Home Ownership with a Rent to Own property?

Find out here:

Typically, when you rent -- as you probably know -- before you can move in you pay first month's rent plus a security deposit equivalent to one to two month's rent, depending on the owner and/or the how the owner feels about your credit score. So on a rental in the $1,500 range, $3,000 would cover first month's rent and security deposit. If the owner wants two months security deposit, as many owners require, or one and a half month's security deposit, you'll need more than $3,000 to move into a $1,500 per month home.

With a typical Rent to Own, the tenant/buyer puts down an amount as "option" fee, usually beginning in the $5,000 range, plus first month's rent -- so around $6,500 to get into a Rent to Own on a $1,500 per month property. The option fee is what locks in the "first right of refusal to purchase" and locks in the agreed upon purchase price.

Because the owner is giving up first right of refusal and locking in a purchase price in a Rent to Own contract, the option fee is non-refundable. He wants to know that you're serious about buying, and that you will take the steps necessary to qualify for a mortgage -- improving your credit or increasing your income are the usual courses of action -- so that you will follow through with the purchase.

Do you have a tax return coming, or a family member who could help you get into that range do to Rent to Own?

Have you spoken with a mortgage broker to find out what you need to do to qualify for a mortgage, or how soon you could qualify, and for how much?

Lenders are finally starting to loosen up a little bit after the freeze they put on home lending for the past 6 years.

If you think you're close, now is the time to speak with a mortgage broker and take the steps needed to qualify. Home prices and mortgage rates are going up. It's turning into a seller's market again.

Delaying purchasing a home could end up costing a buyer 10s or hundreds of thousands of dollars in additional purchase price and interest payments over what you would pay right now....

How Can You Pay Zero Income Tax?

We all hear about how rich people don’t pay taxes. How do they do it?

In a word: Deductions.

They deduct expenses from their income – and this is allowed by the IRS – which eventually wipes out their entire tax bill, or pretty much all of it.

So did you owe taxes this year? Or, if you’re getting a refund, why did you let Uncle Sam hold on to your money if you didn’t need to?

Rich people don’t play that game, why should you?

So how can you get these deductions working for you? If you’re still renting and don’t own your residence, one big way you can eliminate taxes is to buy a home.

And did you know you can own a home for probably about the same as you’re paying in rent, except you can then deduct the mortgage interest payments directly from your earned income on your tax return? You can't deduct your rent from your taxes, can you.

And did you know that you can deduct most home improvement or repair costs as well?

For me, once I bought my first home, paying any income tax at all just went away. The allowable deductions took my taxes down to zero, and I no longer had to have taxes withheld from my paycheck. Chances are the same will happen for you.

So how do you get there?

If you have less than perfect credit, can’t qualify for a mortgage, and have little money to put down, how do you move toward home ownership?

Rent to Own is one creative solution. With a Rent to Own home you can get in with a smaller down payment – such as your tax return – and earn rent credit toward the purchase price every month while you do the things you need to do to eventually qualify for a mortgage.

If you’ve got a sizable tax refund coming to you, explore your options of moving toward home ownership through the Rent to Own solution. Call us and let us show you some Rent to Own homes in your neighborhood and price range, and let’s get you moving toward zero income tax!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Rent to Own When You're Not Ready to Buy

Just a few years ago, you hardly ever heard the term "rent to own" in a market where homeowners had multiple bids from which to choose. But now, with so many homes languishing on the market, it's a different ballgame. Homeowners are more willing to work out rent-to-own agreements, even with people who would be turned down for home loans.

A rent-to-own contract requires prospective buyers to pay monthly rent to the homeowner, with a portion of it going toward a home purchase at a later date. This contract usually lasts one to three years at which time both parties start the standard home purchase, says Rich Arzaga, a financial planner in Walnut Creek, Calif., who has taught commercial real estate investment at University of California, Santa Cruz.

"If you've had your house on the market for a while, this transaction could let you move while having someone in your house generating cash flow for your mortgage," says Ron Phipps, president-elect of the Washington D.C.-based National Association of Realtors.

For wishful homebuyers with checkered credit histories, it's a homebuying option worth considering, says Sam Tamkin, a real estate attorney in Chicago. "You may be unable to qualify for a loan right now, but there are sellers who may be willing to consider renting to you with an option to purchase later."

Pros and cons for both parties

Besides having time to build up a down payment and good credit record, renters have the advantage of "trying out" the house and neighborhood, says Arzaga. "You can also lock in the sales price and terms upfront, allowing you to purchase the house at a below-market price in a few years," he says.

Not all the money you pay in rent will go toward the down payment. "Mortgage lenders are the ones who decide how much of your rent payments are credited toward the down payment and closing costs," says Phipps. Some lenders will allow the entire option fee and earned rent credit to count toward the down payment, while others only allow a credit for an amount paid above the market rate for local rentals to be held for eventual homebuying costs. Find the right mortgage broker to get past this hurdle.

For example, the house could be rented by its owner for a standard rent of $1,750. But when negotiating the rent-to-own contract, you and the homeowner can agree that you will pay $2,000 a month, with $250 as your homebuying credit. At the end of a three-year lease, you'll have $9,000 set aside. That money is returned to you at the time of settlement and can be used for your earnest-money deposit, down payment or closing costs.

If you decide not to buy the house at the end of the lease, you probably won't get a refund. That money is usually only returned to you when you buy the property, says Phipps.

For sellers, the advantages are having an eager buyer and a long-term renter who will care for the house better than the standard tenant. However, there's a risk of the renter opting out of buying your house at lease's end, making you go through the listing process again, Tamkin says.

-- From Bankrate.com

If you want to buy a home, but can’t yet qualify for a bank loan for any reason, call us to find out about the Rent to Own solution.

We’ve got homes available for Rent to Own now, and it’s easy to qualify. We’ve also got some great mortgage brokers, some might even call them miracle workers, we can refer you to. Call us today!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

To Buy or Not to Buy...That is the Question.

Happy Home Solutions always looks for information to help families find their new home, whether they rent or buy. 

The decision whether to buy or rent is of interest to consumers, investors and other professionals in the real estate market. Most individuals at some point in their lives have or will encounter the decision of whether they should continue renting or instead buy a home. Historically, to make the buy versus rent decision, consumers and investors have been using the price-to-rent ratio. For a particular region, this has been calculated typically as the ratio of the median listing price (or closed sale price) of homes available for sale to the median annual rental price of available rentals in that area.

Zillow has introduced a new approach to make the buy versus rent decision and compute a metric called the “breakeven horizon.” The breakeven horizon is the number of years after which buying is more financially advantageous than renting (at the precise breakeven horizon one can be indifferent between buying and renting). When living in a home for a shorter period of time than the breakeven horizon, renting is more advantageous than buying.

This metric, for example shows that if you live in a home more than 2.8 years in the Chicago area, you save money by buying versus renting.

You can read the complete article which provides a great deal of technical financial information by clicking on the graphic below.

Whether renting or buying is more cost effective depends on your market, where you choose to live and whether you like to do home improvement and maintenance projects yourself.

There are, of course, other factors in making the choice to rent or buy.

Zillow has another discussion of these factors which you can read about by clicking the graphic below.

Is Your Withholding Too High?

While a tax refund is a sweet financial booster -- helping to pay bills and further financial or career goals -- experts debate whether the prevalence of big refunds may actually hurt some taxpayers, particularly low-income groups.

Damon Jones, an assistant professor at the Harris School of Public Policy at University of Chicago, has researched why refunds are deployed. He argues that one reason they have become so prevalent is simply that people don't take the time to adjust their income withholdings throughout the year.

"For people who live paycheck-to-paycheck, they could lower their withholdings and that additional income on each paycheck could be useful in making ends meet," he says. "Instead, that money is backloaded into a refund and affects the timing of income during the year."

As a financial planning expert, Carmen Wong Ulrich, author of the “The Real Cost of Living,” agrees. She advises people to look closely at how much income they are withholding. Overpaying is, in the simplest terms, giving the government an interest-free loan on your money.

"A refund means that you've been handing your money over to the IRS with every single paycheck -- too much money. And that money that should be in your pocket or your bank account," she says. "Work on your withholding numbers so you don't get a big check next year but instead get a bigger paycheck every month."

-- courtesy of DailyFinance.com

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

How Expensive of a Home Can I Afford -- Basic Factors

When you are wondering “how much can I afford to spend on a house,” the bottom line is what size of home loan you can qualify to borrow. There are several variables from your personal financial history that will factor into the answer, including:

• Your income
• Your credit rating
• Your existing debt
• Your down payment

To those existing factors, you can add some variables of the housing market, and your own choices as you plan to assume a mortgage:

• The mortgage term (fifteen years,thirty years, etc.)
• The current interest rate
• Private mortgage insurance (if your proposed down payment is an amount less than twenty percent of the price)
• The current real estate market where you live

You can plug the relevant numbers into an online “how much house can I afford” calculator, and the calculator should give you an approximate answer for the amount of loan you should be able to take out.

How Much House Can I Afford -- A Firm Answer

Another approach is to go to your bank and request pre-approval for a loan. The online calculator will give you a ballpark figure that should be a fairly accurate estimate of your range, but with a pre-approved loan in hand you will know exactly how high you can go in your home-shopping.

Your bank will take all the same factors into consideration, but instead of a guess you will have a firm number in hand when you begin to look at homes. You won’t be in for any unpleasant surprise when you come to the table with an offer and then discover that your bank can’t back you as far as you had expected.

Having a pre-approved loan also facilitates your ability to move quickly on a house when you do find the right one. Time can be of the essence—especially if you have competition for the purchase of the home you have your eye on. Very often, the buyer who first brings money to the table is the buyer who actually walks away with the title. With your loan pre-approved, you won’t have any hold ups in the process, because you won’t have to be waiting to hear back from the bank.

If you want to buy a home, but can’t yet qualify for a bank loan for any reason, call us to find out about the Rent to Own solution.

We’ve got homes available for Rent to Own now, and it’s easy to qualify. We’ve also got some great mortgage brokers, some might even call them miracle workers, we can refer you to. Call us today!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

When Will You Get Your Tax Refund?

It’s April 15th, and hopefully you’re done with your taxes.

So how did you do? Are you getting back a refund?

Of the five million plus Illinois taxpayers who qualify for a refund every year, the average refund is almost $3,000. Are you getting at least that much back?

And how long will it take?

The IRS says your tax refund should go out within about 21 days after you e-file your tax return, or slightly longer if you file a paper return.

So what are you going to do with all that money?

Don’t just blow it on stuff that will be worthless or meaningless to you a couple years down the road. It’s 2014, do something that will have a positive impact on you and your family for years to come.

Paying off debt is undoubtedly a good move. High interest credit cards, especially if you’re only making the minimum payments, should be high on your list of priorities.

Another priority you definitely want to consider is moving toward home ownership. And you can make the move toward home ownership with a modest tax refund and the Rent to Own solution.

If you’ve got a nice tax refund coming to you in the next few weeks, call us and let us show you some Rent to Own homes in your neighborhood and price range!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Top 5 Reasons Banks Won't Lend You Money

Big banks don’t lend money as freely as they once did. Despite the bailouts and financial boosts that financial institutions received, banking chiefs claim that they have no obligation to make new loans, according to Mara Der Hovanesian and Christopher Palmeri, writing in “Bloomberg Businessweek.” Unless you’re the perfect loan applicant, you could have a tough time finding the cash to fund your future endeavors.

5 You Have No History as a Borrower

If you’re young, have never had a loan, never possessed a credit card, don’t have a bank account or never paid a bill in your life, your lack of credit history may make a bank nervous. If there are no records about your creditworthiness, there’s no way for a bank to tell if you’re worth the financial risk. Building a positive credit history can help improve your chances of getting a loan from a bank.

4 The Bank Is Overly Cautious

Banks make money from providing loans, according to Paul Solman for PBS’s “NewsHour.” Some banks are nervous that federal regulations will cause them to lose money on some new loans because they might depreciate in value. If the bank’s capital doesn’t cover the losses in depreciation in new loans, the bank could find itself in trouble.

3 You Can't Realistically Repay

When you apply for a loan, a bank may want information about your assets, expenses and current employment situation. Yes, this is nosy, but it helps the bank determine if you can make the monthly loan payments. If you don’t have a job, enough money saved or earn enough income to cover your expenses, there’s a good chance that you can’t afford a loan.

2 You Have a Bad Reputation

If you’ve worked with the same bank for a while, a reputation as a bad borrower or customer can hurt you. Over-drafting your account, defaulting on bank credit card payments, constantly losing your debit card or a series of bad investments can make a bank run the other way when you apply for a loan. You might have to clean up your act before your bank thinks twice about lending you money.

1 Your Credit Score Sucks

Your credit score is like a record of your financial past. Items like missed utility bill payments, the amount borrowed on your credit cards, doing bankrupt or having a bill sent to collections hurt your score. When you apply for a loan, a bank looks at your credit score to determine your creditworthiness. If your score is low, a bank is less likely to approve your loan application because you pose too much of a financial risk. You’re statistically more likely to default on your loan payments. Make the effort to recover your credit rating to improve your lending approval odds.

-- from Top5.com

If you want to buy a home, but can’t yet qualify for a bank loan for any of the above reasons – or any other reason – call us to find out about the Rent to Own solution.

We’ve got homes available for Rent to Own now, and it’s easy to qualify. Call today!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

One in Three Waste Tax Refund on Everyday Expenses!

Surveys show that nearly one in three people use their tax refund – which averages nearly $3,000 in Illinois – on everyday expenses.

Really!??

So, like, you’re going to buy some new underwear or a box of cereal with your long-awaited tax refund? Or were you planning to pay your electric bill with your refund this year?

So first you give Uncle Sam an interest free loan for 12 months, and let those bungling politicians in Washington hold on to your $3,000 for nothing. And then you have to do a whole bunch of work that feels about as pleasurable as a couple of nights of Chinese water torture – or you have to pay some tax preparation company – just to get your money back?

And then after all that you’re just going to blow it on mere everyday stuff?

I mean, you could at least be like the 11 percent of people who plan to vacation with the money – at least it would be spent more memorably.

If you’re planning on following in the footsteps of 42 percent of Americans and put the money in savings, keep in mind that inflation averaged 2.1 percent over the past four years, while savings interest payments (the money the bank pays you to hold on to your money) average below 1 percent these days.

That means after you’ve locked your money up in savings for a few years, you’ll be able to buy less, not more, with the money you put in a savings account today.

Like your tax return.

Of course you could just keep the money in your mattress, or bury it in your backyard, but then you wouldn’t even earn the 1 percent.

Why not put the money to work for you today, moving yourself toward home ownership?

Even if you don’t think you’ll qualify to purchase a home today, and have resigned yourself to a few more years of renting – even if you’re doing the (ahem) “right thing” and keeping the money in savings until you build up enough to buy a house – you could actually get into the home you want to purchase now, and buy it later.

It’s called Rent to Own. Some people call it “Lease Purchase,” or “Lease Option,” meaning you are renting (leasing) a home with the option to buy it at a later date. The “option” part of the statement means that you are not obligated to buy the home, but you – and you alone – have the right to buy it within the time period and at the price in your Rent to Own contract. And the owner can’t sell it to anyone else during that time period either.

So what are you going to spend your 2014 Tax Refund on?

Why not look into the Rent to Own option and just find out – with no obligation – which homes are available in your desired neighborhood and price range.

Give us a call today and we’ll help you find a great Rent to Own home!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Paying Your Rent With Bitcoin or PayPal

So far, a listing site, landlord software provider and real estate brokerage have opened their doors to Bitcoin. Is accepting the electronic cash just a gimmick? Or could it actually offer a lasting competitive advantage?

Chris Toppino, co-founder of rental payment platform RentShare, takes the second view. At a reception for Real Estate Connect, he told Inman News, a leading real estate media outlet, that he has received requests to implement a Bitcoin payment option into RentShare, and that there are lot of well-heeled techies who want to make “their biggest payment of the month in Bitcoin.”

While we don’t know anyone in Chicago who is accepting Bitcoin to make rent payments, we can work with you to set up PayPal payments, credit card payments, or direct deposit. We have worked with some tenants to accept twice monthly payments instead of one monthly rent payment as well.

Call us to find out how we can make paying your rent easier!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

What is the Average Illinois Tax Refund?

How does your 2014 tax return measure up against the averages for Illinois? More than 6 million tax returns are filed in Illinois each year, and 5 out of every 6 end up netting a tax return.

Are you one of those five out of six?

The average tax refund for the 5 million Illinois residents who filed in fiscal year 2011 – the most recent year in which statistics are available at this time – is just a couple of family McDonald’s meals shy of $3,000. Are you getting back at least that $2,957.87 average tax refund, or more this year?

A better question might be, “What are you going to do with it?”

A new TV might be nice, but new TVs are obsolete in a couple of years. I just dragged a couple of huge, wall-sized TV’s out of an apartment the other day, left behind by the renters who bought those, but couldn’t pay their rent. Those monster TVs probably cost those tenants a mint, but you can’t even give them away today. Technology marches on very quickly, and the unnecessary stuff you spend your money on now is just about guaranteed to be worthless three to five years down the road.

Except for a home.

Yes, home prices dipped for a bit the past few years, but in many communities in the U.S., and in the Chicago area, home prices are now rising quickly, and in some cases already back to pre-recession levels, or close to it.

Homes are what is called an appreciating asset. TVs, clothing, cars, and all other “consumer goods” are what are called depreciating assets. Over time, houses go up in value while consumer goods go down in value, often until they are actually worthless.

So what are you going to do with your tax refund this year?

Why not buy a home?

You can use your tax refund to get into a nice Rent to Own home, earn rent credit every month while you rent it, then buy it later at a price you lock in today, before prices go up any further.

If you’re getting a big check from your tax return in 2014, make this the year you do something to make that money grow, instead of blowing it on stuff that will be worthless a few short years down the road.

Call today and let us find you a great Rent to Own home for your family!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

How Rent to Own Works

Watch the video to learn how Rent to Own works.




If the video won't play, go to How Rent to Own Works

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Uncle Sam Has Your Down Payment!

Everyone knows renting is a dead-end trip down the road to financial ruin, and that home ownership is the key to financial security.

Tens of millions of Americans have enjoyed that financial security, and the pride of home ownership as well. How about you?

Do you want to own your own home, but don't know how you'll ever be able to come up with the down payment on a home?

Perhaps Uncle Sam has your down payment.

Do you have a sizable tax return coming to you this year?

If you're getting back $4,000 or more in your tax return, you can put that money toward home ownership with a Rent to Own home!

Rent to Own gives you the chance to move into a home today and buy it later -- maybe a year or two from now -- and gets you off that dead-end road to ruin that long-term renting will surely keep you on.

If you're ready to make a change in your life, let Uncle Sam provide the down payment for you with this year's tax return!

Call us today to see which homes in your area are available as Rent to Own!

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Buy vs. rent: What you'll pay

Buy vs. rent: What you'll pay

Courtesy of Trulia, March 3, 2014

Despite rising home prices and climbing mortgage rates, it's still cheaper to buy a home than rent one in major cities across the country, according to real estate web site Trulia, which analyzed data in 100 metro areas.

But home prices are just one factor to consider. Deciding whether to buy or rent also depends on the location and how long you plan to stay there. In most of the Rust-Belt cities, like Toledo and Detroit, the math overwhelmingly favors buying. In more expensive coastal markets, like Los Angeles and New York, it's a closer call.

Nationwide, homebuyers who remain in their homes for seven years will save an average of 38% over renting, Trulia found. A year ago, buying was 44% cheaper.

That means all of the initial transaction costs of buying a home -- the broker's commission, title insurance, legal fees and other closing costs -- will be offset by benefits, like tax write-offs and price appreciation. And those costs will become cheaper than the total costs of renting, which include insurance and agent commissions.

Chicago area

% saved buying: 47%
Median home price : $170,000
Median rent: $1,700
The Windy City is undoubtedly a buyer's a market.

Home prices in Chicago went through a slump during the second half of 2013 that left median home prices at $170,000 in January, about $10,000 below the national median.

Meanwhile, rents are well above national levels, having climbed some 7% over the past 12 months.

For buyers, the savings is significant. According to Trulia, buyers who stay in their home for seven years, will save about 47% compared with the cost of renting a comparable property.

Housing Prices Rising Nationwide -- Get In Before It's Too Late!

The economy is definitely on the mend and home sales – and median home prices – are climbing rapidly nationwide. If you’re thinking about buying a home, either through a conventional sale, or a creative solution such as seller financing or Rent to Own, taking action now is essential.

The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases; that last occurred from July 2005 to May 2006. The January gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.

Distressed homes - foreclosures and short sales - accounted for 23 percent of January sales, down from 24 percent in December and 35 percent in January 2012. Fourteen percent of January sales were foreclosures and 9 percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in January, while short sales were discounted 12 percent.

If you’re ready to at least consider purchasing a home, we’ve got homes for sale, Rent to Own homes, and even a couple of seller financing possibilities.

Call today to find out about creative financing opportunities in your neighborhood and price range.

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

H&R Block Is Buying You a Home!

H&R Block and similar tax preparation services sure do make our lives easier. They not only handle the hassle and hours-long pain of filling in our income tax returns, they often get us back way more money from the IRS than we would have gotten doing the returns ourselves.

So what are you going to blow that tax return on this year? More stuff that will be obsolete, broken, or out of style before you blow out two more candles on your birthday cake?

Why not make an investment in your future, in the stability of your family, in your financial well-being with this year’s tax return?

Why not put your tax return toward the purchase of a home?

H&R Block will get you the money, you’ve just go to make the decision to do something good and right with it this time.

If you’re getting a sizable tax return in 2014, make this the year you get out of the rental rat-trap and move into home ownership. With as little as $4,000 on your tax return check, you can Rent to Own your next home, and take a giant step in the right direction, not just for you, but for your entire family.

There are Rent to Own homes available in all shapes and sizes, all price ranges, and probably in your community. Let us help you move in to a nice home you can rent today and buy tomorrow!

Put H&R Block to work collecting your down payment, then give us a call to see which homes in your area are available as Rent to Own! As soon as your tax return check comes in, we’ll get you moved into a nice new home you can own!

We have a lot of Rent to Own homes available now and get more every day. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Chicago Area Home Prices Increase Dramatically

In its entirety, 2013 proved to be a good year for housing. Home sales and prices were broadly higher across the nation, while foreclosure loads, the number of homes for sale and the number of days it took to sell a home were all much lower. Multiple-offer situations became commonplace again and prices in many areas rallied to multi-year highs. This, of course, varied by location and segment, but the proverbial glass appeared to be more than half full throughout the year.

New Listings in North, South and West Suburban Chicagoland decreased 6.1 percent to 3,238. Listings Under Contract were up 12.5 percent to 2,894. Inventory levels shrank 30.0 percent to 14,503 units.

Prices marched higher. The Median Sales Price increased 16.7 percent to $157,500. Market Times were down 22.3 percent to 112 days. Absorption rates improved as Months Supply of Inventory was down 43.2 percent to 3.5 months.

Housing is fortified by confident consumers and good jobs. The year 2013 was marked by a slowly improving labor market stunted by political gridlock, and the Federal Reserve's long-awaited taper announcement was not surprising. Interest rates remain low (but upwardly mobile), prices are still affordable, the employment picture looks decent and the stock market is up nearly 30.0 percent from this time last year. It's no wonder that buyers were active in 2013.

Here's to more of the same in 2014.

-- Main Street Organization of Realtors and Midwest Realty Data Inc.

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Use Your Tax Return to Buy a Home!

Let's face it: For a lot of people, saving up enough money for the down payment on a home is nearly impossible. Are you living paycheck to paycheck most of the time? How long would it take you to save up, say, $15,000 or $20,000 to use as the down payment on a home?

But every year you receive a tax return check for several thousand dollars, right?

And then you go out and blow that money on stuff you don't really need, stuff that depreciates in value, like obsolete television sets and fancy clothes that go out of style.

If you've been renting for a long time, thinking you'll never be able to purchase a home, and wondering how you'll ever survive on just social security money when you're old, you ought to think long and hard right now about putting your tax return to better use than just buying a bunch of junk that makes you feel good for a little while, but eventually becomes worthless.

Why not use your tax return to become a homeowner instead?

While your tax return may not be enough to qualify for a traditional bank loan and mortgage to make an immediate purchase, it may very well be enough to get you on the path toward home ownership with a Rent to Own home!

When you Rent to Own a home, you put some money down -- that's where your tax return comes in -- and then you earn rent credit toward the purchase of that home every month when you pay your rent. You also lock in a purchase price and the "right of first refusal," meaning the seller cannot sell the home while you have a Rent to Own contract on it.

Also, typically, once you purchase a home, you'll then be able to take deductions on your tax return that will quickly eliminate the need for you to pay weekly withholding tax out of your paycheck altogether! How much more money would you have in your hand every month if you could cut the withholding tax out of your paycheck?

Rent to Own homes come in all shapes and sizes, in all neighborhoods, and in all price ranges. If you'd like to get out of the rental rat trap and downward spiral of financial failure that long-term renting represents, and you have a sizable tax return coming this year, contact us to get started on the path to home ownership in a Rent to Own home.

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

Why Your Credit Score Is So Important

How Rent-to-own Homes Work

Risks and Benefits to Buyers


For many people, a home will be the biggest purchase they ever make. Both buyers and sellers should carefully weigh their options before agreeing to any binding contract.

Let's look at some advantages and disadvantages for buyers:

• Buyers have time to build income and repair their credit history as they rent the house.

• Depending on the agreement, renters can walk away if they find something seriously wrong with the house. Although the renter will lose the option fee and all their rent credit money, that amount will be much less than if the renter had bought the house outright and tried to leave it later.

• Buyers still have to pay the upfront option fee. It's usually a percentage of the agreed-upon selling price of the home and is often only slightly more than the typical rental security deposit on the same home, but gives you the option to purchase the home.

• If the buyer is late on a month's rent payment, most agreements void the rent credit for that month. The buyer in the rent-to-own agreement must pay on time, every time. Pay your rent on time, or early, and you'll earn the benefit of rent credit toward the purchase price of the home. It's like putting hundreds of dollars in a savings account every month simply by paying your rent on time.

• At the end of the rental period, the buyer still may not be able to buy the home for the same reasons they couldn't buy at the start of the lease: bad credit, insufficient down payment, not enough income. The seller can't fix these issues for you, you have to decide to make changes to improve your life, then follow through with them. The rent to own contract gives you time to address these issues, and a powerful motivation to improve your situation.

• Major repairs -- like replacing a furnace or roof -- are usually the responsibility of the seller during the rent to own option period. But the minor repairs that used to be somebody else's problem in a rented apartment often become the responsibility of the new buyer, even during the rent to own option period. Home ownership has it's rewards, but it also has it's responsibilities. When you rent to own, you often take on homeowner like responsibilities, such as minor repairs up to $150.

-- by Sarah Siddons and Chris Opfer

We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info. Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Zillow Forecasts 3 Percent Gain In Home Prices in 2014

Real estate giant Zillow combined data on unemployment rates, population growth and its proprietary Home Value Forecast to determine which direction the real estate market is headed, along with critical key factors associated with it. The results might surprise you.

First, home values will increase. While the increase isn’t much – 3 percent – it is good news for areas that have continued to sink lower and lower from a real estate perspective. The hottest housing market in 2014 will be the capital of Utah, according to Zillow.

For buyers, even though mortgage rates will near 5 percent by the end of the year, Zillow said getting a mortgage loan will be easier.

Erin Lantz, director of mortgages at Zillow, said that fewer homeowners will be refinancing due to higher interest rates. That loss of business will force lenders to compete for more new home loans to offset their losses from the refinance side of the business. The end result, she said, is that lending standards should loosen up.

While higher rates will make homes more expensive to finance – the monthly payment on a $200,000 loan will rise by approximately $160 – mortgage rates in the 5 percent range are still very low.

“Because affordability is still high in most areas relative to historical norms, rising rates won't derail the housing recovery,” Lantz said.

Still, she cautions, affordability is starting to become a concern for some booming markets, such as in parts of California. Many metros saw appreciation well above historic norms, sometimes 4 or 5 times their historic appreciation levels. As mortgage rates increase, home prices rise, and a larger housing supply is created by fewer underwater homeowners and more new construction, home values in those areas will see slower improvements.

Despite an easing of lending standards, don’t expect to see the lax lending that led to 7 in 10 people obtaining mortgages in the late 1990s and early 2000s. The homeownership rate will fall below 65 percent for the first time since 1995, according to Zillow, which is a more normal level.

-- By S.E. Slack

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We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!

The Benefits of Rent-to-Own

A rent-to-own transaction affords opportunities for both buyers and sellers. The buyer and seller enter into an agreement that enables the buyer to rent the home with the intention of buying it. Typically, a contract is executed including an agreed-upon sale price, although sometimes the sale price will be left to a future independent appraisal of the property.

Rent-to-own contracts usually include a date by which the home will be purchased outright by the renter. Buyers and sellers can benefit from rent-to-own transactions. Depending on the conditions of the contract, either the seller or the buyer may be responsible for routine maintenance, major repairs, insurance and taxes.

Down Payment

One of the benefits of a rent-to-own opportunity for a buyer is that there is a much lower down payment required than in a conventional home purchase. Usually, rent-to-own contracts state that part or all of rent payments go toward a cumulative down payment for the renter, who will use the down payment to obtain a mortgage to buy the home at a later date. This allows the renter to build up a down payment over time using the money they’re already paying as rent, instead of having to scrimp and save extra cash from already stressed budgets.

Taxes and Insurance

Depending on the agreement, the renter may not have to pay taxes or homeowner’s insurance on the home. This must be negotiated when entering into a sale contract. If no taxes are paid, only renter’s insurance is needed to cover the contents of the home, and is less expensive than homeowner’s insurance.

Neighborhoods and Schools

Prior to obtaining a loan for the home, those who rent to own can find out if they are comfortable with the neighborhood and with the schools where their children will attend. If they are not, there are ways to opt out of the contract.

Condition of Property

By living in the home, buyers who rent to own have the advantage of gaining information about the home. In a relatively short amount of time, the renter discovers what condition the house is in and whether expensive repairs to major components of the house including the HVAC, roof and foundation, might be needed.

Fixed Purchase Price

Before signing the rent-to-own contract, a renter works with the seller/landlord to determine a fixed sale price of the home, or if the sale price will be determined at a later date by an independent appraiser. If a fixed sale price is determined, then the price remains the same throughout the time frame of the contract. Contractually, it cannot be increased, and neither can the payments.

Resident Buyer

For sellers, a rent-to-own candidate presents a significant convenience. The seller does not have to advertise for a buyer, enlist the assistance of a real estate professional or wait for someone to make an offer on the property. Instead, the seller has a captive audience -- a resident buyer.

Savings

Contracting with a renter to buy the home without using a real estate agent saves the seller a commission that otherwise would have cost several percentage points. Based on a 5-percent commission, the seller saves $10,000 on a $200,000 home.

Home Values

Regardless of whether home values decline, rent-to-own buyers are obligated to pay sellers the amount agreed to in the rent-to-own contract if they want to purchase the home. This benefits the seller, since declining home values don’t reduce the amount the seller receives in monthly rents. Of course, if the home declines in value, the renter does not have to purchase. They have the option to purchase – which is why rent to own contracts are often called “lease option” – but are not obligated to buy the home.

by Sherry Davis Zander, Demand Media

We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info. Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Michael Jordan's house on market for $16 million after failed auction

Michael Jordan has lowered the price on his art deco mansion to $16 million, nearly two years after first trying to sell it for nearly twice that amount.

The house is on seven-plus acres in Highland Park, Ill., about 25 miles north of Chicago.

The former NBA star first put it on the market in March 2012 for $29 million. The price was cut to $21 million nearly a year ago and then failed to sell at auction last month, when nobody made even the $13 million minimum bid.

The house was built in 1995 and has nine bedrooms, 15 baths, a cigar room, and a garage big enough to hold 14 cars. There's a huge home gym.
Katherine Malkin, the listing agent, said the most awesome home feature is the regulation sized basketball court.

"There's nobody -- man, woman or child -- who walks on the court who is not stunned by it," she said. "The lighting, the floor, everything is so beautiful."
With the court and finished lower level of the house included, the compound totals about 56,000 square feet.

Outdoors is a chipping range and putting green, tennis courts, a lily pond and a huge flagstone patio. The front entrance gate sports a giant number 23 -- not for the address but, of course, for Jordan's former number.

Malkin has had the listing for about a year and said there has been lots of interest in it, but few prospects qualify as serious buyers. Would-be purchasers must have enough liquidity to pay cash for the house in full before they can put in offers.

Last year, Jordan bought a house in his native North Carolina, one close to the home court of the Charlotte Bobcats, the NBA team of which he is now the majority owner.

The Illinois property is about three times larger than the new house and stands out in the neighborhood for its size and price.

"He was a very successful and sought-after personality and he built a compound to fit his lifestyle," said Malkin.

She said he has redone parts of the property over the years and it's in "perfect" condition. "Nobody kept a house better than he did," she said.

-- CNNMoney
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You probably can't buy Michael Jordan's home through Rent to Own, but I'll contact the listing agent and ask, if you can verify your ability to puchase the home first. ;)

We have a lot of Rent to Own homes available now. Call or text 630-697-4500 or email Adam @ MyHappyHomeSolutions.com for more info, or visit our website at MyHappyHomeSolutions.com to watch video tours and get more info.

Please note that not all available rent to own homes are shown on our site. Sometimes they are rented before we even have a chance to post them, so get on our mailing list to stay informed about all new properties!

Our primary focus is on homes in the Chicago suburbs, but we have associates who have Rent to Own homes available NATIONWIDE! Whether you're looking for a Rent to Own home in Chicago or Chattanooga, Illinois or Alaska, we can help you find that home! Contact us and let's get you into a nice new home!