There are many benefits to buying a home through the Rent to Own process, especially if you can't currently qualify for a mortgage, but don't want to just throw away money making the landlord rich, while you end up with nothing.
Here is what Zillow has to say about the Benefits of Buying a home through Rent to Own:
• Opportunity to Own Your Dream Home. Many people find their dream home but need time to make their purchase. The Rent To Own purchase not only allows you to have that time, but also allows you to live in your home before you decide on exercising the option to purchase.
• Make Your Rent an Investment. Both a portion of your monthly rent and your entire down payment at closing will be credited to your purchase price at the time of sale.
• Potential to Own With Any Credit. Whether you’ve had late payments, a bankruptcy or simply haven’t had enough time to build up your credit, a Rent To Own home may enable you to build equity and repair credit while renting to own your home.
• Maintain Your Flexibility. Rent To Own enables you to build your equity in a home, but also gives you the flexibility to walk away from the property at the end of your lease term, should you decide you don’t want to make the purchase.
• Profits from Appreciation. The purchase price is fixed in the beginning and is not negotiable after an agreement is signed by both the buyer and seller. Fast growth markets may enable extra equity gains for the buyer.
• Upfront Timing. The timing for moving into a Rent to Own home can be much shorter than purchasing a home, as much of the paperwork takes place at the end of your lease, should you exercise your option to purchase and be approved for a mortgage.
• Credit Improvement Specialists Available. There are credit experts that can help you build your credit to the point of making a purchase at the end of your lease.
• Preparation for Home Ownership. The Rent To Own process affords you, as the buyer, the opportunity to prepare for what is necessary when owning your own home. Typically, you will be responsible for the daily maintenance and upkeep of the home and yard depending on the terms of the Rent To Own agreement.
• Privacy. The renter is not the owner on the deed in public county records.
We have Rent to Own homes available now, and always have more coming in, week by week. Take a look at our website to see what we have available now, and if you're not already on our mailing list, join so you can find out about newer Rent to Own homes -- sometimes even before we post them on our site or begin marketing them on the Internet.
Go here to find out more: MyHappyHomeSolutions.com
Monday, July 29, 2013
Friday, July 19, 2013
June Home Sales: Woodridge Experiences Slight Increase in Prices, Sales
Posted in the Woodridge Patch by Mary Ann Lopez (Editor), July 16, 2013
Year-over-year, sales and prices increased slightly in Woodridge, while sales in DuPage County are up about 17 percent, according to the Mainstreet Organization of Realtors.
The 28 single, detached homes sold in Woodridge during June 2013 represented a 7.7 percent increase over June 2012, when 26 homes were sold, according to the Mainstreet Organization of Realtors (MORe). There were 30 homes sold in Woodridge during May.
As the number of homes sold increased slightly in Woodridge, the median home price also experienced some growth. The median price increased 4.3 percent to $242,500 from $232,500 in June 2012, according to the statistics.
Sales of single-family, detached homes in suburban Chicago increased 17.1 percent in June 2013 compared with the same period a year ago, MORe reported. Sales in the 200 communities MORe gathers information on in DuPage, Lake and suburban Cook counties – experienced notable sales gains last month.
Sales momentum is expected to continue in those communities, as the number of detached homes under contract in June grew by 36.5 percent in those same communities, according to MORe. The median sale price for detached homes also increased 9.5 percent from the previous June, and according to MORe this marks the fourth month in a row of year-over-year price growth.
In DuPage County, Clarendon Hills experienced the most significant increase in sales over the same period last year. Several Patch communities in DuPage County experienced a decline in the median sales price during June, but Downers Grove saw the largest decrease in price. Sales prices dropped -13.7 percent with sales prices declining from $355,000 in June 2012 to $306,500 in June 2013, according to the statistics.
Darien experienced the most significant decline in the number of homes sold, dropping -18.2 percent from June 2012.
Buyers should look to act soon if they are interested in buying so they lock in today’s low interest rates, said Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park.
“A slow and steady growth in home prices, combined with more properties coming on the market, is creating ideal conditions for both buyers and sellers,” she said.
Year-over-year, sales and prices increased slightly in Woodridge, while sales in DuPage County are up about 17 percent, according to the Mainstreet Organization of Realtors.
The 28 single, detached homes sold in Woodridge during June 2013 represented a 7.7 percent increase over June 2012, when 26 homes were sold, according to the Mainstreet Organization of Realtors (MORe). There were 30 homes sold in Woodridge during May.
As the number of homes sold increased slightly in Woodridge, the median home price also experienced some growth. The median price increased 4.3 percent to $242,500 from $232,500 in June 2012, according to the statistics.
Sales of single-family, detached homes in suburban Chicago increased 17.1 percent in June 2013 compared with the same period a year ago, MORe reported. Sales in the 200 communities MORe gathers information on in DuPage, Lake and suburban Cook counties – experienced notable sales gains last month.
Sales momentum is expected to continue in those communities, as the number of detached homes under contract in June grew by 36.5 percent in those same communities, according to MORe. The median sale price for detached homes also increased 9.5 percent from the previous June, and according to MORe this marks the fourth month in a row of year-over-year price growth.
In DuPage County, Clarendon Hills experienced the most significant increase in sales over the same period last year. Several Patch communities in DuPage County experienced a decline in the median sales price during June, but Downers Grove saw the largest decrease in price. Sales prices dropped -13.7 percent with sales prices declining from $355,000 in June 2012 to $306,500 in June 2013, according to the statistics.
Darien experienced the most significant decline in the number of homes sold, dropping -18.2 percent from June 2012.
Buyers should look to act soon if they are interested in buying so they lock in today’s low interest rates, said Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park.
“A slow and steady growth in home prices, combined with more properties coming on the market, is creating ideal conditions for both buyers and sellers,” she said.
Tuesday, June 18, 2013
May Home Sales: Woodridge Experiences Major Sales Growth, Prices Rise Steadily
from the Woodridge Patch - June 18, 2013
Woodridge experienced significant growth in home sales during May, while prices showed steady increases, according to the Mainstreet Organization of Realtors.
The 30 single, detached homes sold in Woodridge during May 2013 represented a 87.5 percent increase over May 2012, when 16 homes were sold, according to the Mainstreet Organization of Realtors (MORe).
There were 32 homes sold in Woodridge during April.
While the number of homes sold increasing significantly in Woodridge, the median home price also showed steady gains in May. The median price increased 13.4 percent to $241,000 from $212,500 in May 2012.
Sales of single-family, detached homes in suburban Chicago increased 29.1 percent in May 2013 compared with the same period a year ago, MORe reported. Sales in the 200 communities MORe gathers information on in DuPage, Lake and suburban Cook counties – experienced notable sales gains last month.
Sales momentum is expected to continue in those communities, as the number of detached homes under contract in May grew by 45 percent in those same communities, according to MORe.
In DuPage County, Burr Ridge experienced a significant increase in sales over the same period last year. In May, 17 homes sold compared with 6 in 2012.
The only Patch community in DuPage County to experience a slight decrease in sales during May was Hinsdale, which had -33.3 percent sales declining from 33 homes sold in May 2012 to 22 homes sold in May 2013, according to the statistics.
Competition in the housing market is going to continue as the market works through a backlog of distressed properties, said Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park.
“Buyers need to come in aggressively with their first price, especially on moderately priced homes in good condition,” Corder said “We are seeing multiple offers and people writing contracts on properties the day they come onto the market. ... There is a buzz going on in real estate right now. People want to take advantage of this market.”
Woodridge experienced significant growth in home sales during May, while prices showed steady increases, according to the Mainstreet Organization of Realtors.
The 30 single, detached homes sold in Woodridge during May 2013 represented a 87.5 percent increase over May 2012, when 16 homes were sold, according to the Mainstreet Organization of Realtors (MORe).
There were 32 homes sold in Woodridge during April.
While the number of homes sold increasing significantly in Woodridge, the median home price also showed steady gains in May. The median price increased 13.4 percent to $241,000 from $212,500 in May 2012.
Sales of single-family, detached homes in suburban Chicago increased 29.1 percent in May 2013 compared with the same period a year ago, MORe reported. Sales in the 200 communities MORe gathers information on in DuPage, Lake and suburban Cook counties – experienced notable sales gains last month.
Sales momentum is expected to continue in those communities, as the number of detached homes under contract in May grew by 45 percent in those same communities, according to MORe.
In DuPage County, Burr Ridge experienced a significant increase in sales over the same period last year. In May, 17 homes sold compared with 6 in 2012.
The only Patch community in DuPage County to experience a slight decrease in sales during May was Hinsdale, which had -33.3 percent sales declining from 33 homes sold in May 2012 to 22 homes sold in May 2013, according to the statistics.
Competition in the housing market is going to continue as the market works through a backlog of distressed properties, said Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park.
“Buyers need to come in aggressively with their first price, especially on moderately priced homes in good condition,” Corder said “We are seeing multiple offers and people writing contracts on properties the day they come onto the market. ... There is a buzz going on in real estate right now. People want to take advantage of this market.”
Thursday, May 9, 2013
Homebuyers clueless about mortgages
By Les Christie @CNNMoney May 9, 2013: 12:24 AM ET
The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives. When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.
Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.
Related: Tips for buying a home
"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."
One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.
Related: 5 best markets to buy a home
But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.
Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.
Related: How much house can you afford?
And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins."If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.
For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.
Related: Was my home a good investment?
Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.
Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.
Related: Boomerang buyers return to market after foreclosure
Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again. In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.
The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.
The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives. When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.
Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.
Related: Tips for buying a home
"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."
One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.
Related: 5 best markets to buy a home
But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.
Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.
Related: How much house can you afford?
And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins."If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.
For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.
Related: Was my home a good investment?
Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.
Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.
Related: Boomerang buyers return to market after foreclosure
Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again. In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.
The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.
Wednesday, April 24, 2013
March Home Sales: Woodridge Market Shows Decline; Median Price Makes Gains
Republished from an article in the Woodridge Patch by Mary Ann Lopez on April 23, 2013
Woodridge saw a moderate decrease in the number of homes sold during the month of March. The median home price rose more than 25 percent, according to the Mainstreet Organization of Realtors.
The 9 homes sold in Woodridge during March 2013 represented a -18.2 percent decrease over March 2012, when 11 homes were sold, according to the Mainstreet Organization of Realtors (MORe). While the number of homes sold decreased, the median price of homes sold in March increased moderately in Woodridge. The median price increased 27.7 percent to $212,000 from $166,000 in March 2012.
The market for detached, single-family homes in suburbs throughout DuPage County experienced notable sales gains in March, MORe reported. MORe gets its statistics from Midwest Real Estate Data.
Hinsdale had the biggest percentage drop in the number of homes sold, with -37.9 percent fewer homes sold year over year. That adds up to 18 homes sold during March 2013 compared with 29 sold in March 2012.
Elmhurst had the biggest percentage increase, with 64.3 percent more homes sold year over year. That adds up to 46 homes sold during March 2013 compared with 28 sold in March 2012.
Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park, cautioned sellers that the market still needs to shed more distressed properties before home prices make a complete recovery.
“The spring market hasn’t been this busy since 2007,” Corder said. “For homes that are priced right, multiple offers are coming in.”
Woodridge saw a moderate decrease in the number of homes sold during the month of March. The median home price rose more than 25 percent, according to the Mainstreet Organization of Realtors.
The 9 homes sold in Woodridge during March 2013 represented a -18.2 percent decrease over March 2012, when 11 homes were sold, according to the Mainstreet Organization of Realtors (MORe). While the number of homes sold decreased, the median price of homes sold in March increased moderately in Woodridge. The median price increased 27.7 percent to $212,000 from $166,000 in March 2012.
The market for detached, single-family homes in suburbs throughout DuPage County experienced notable sales gains in March, MORe reported. MORe gets its statistics from Midwest Real Estate Data.
Hinsdale had the biggest percentage drop in the number of homes sold, with -37.9 percent fewer homes sold year over year. That adds up to 18 homes sold during March 2013 compared with 29 sold in March 2012.
Elmhurst had the biggest percentage increase, with 64.3 percent more homes sold year over year. That adds up to 46 homes sold during March 2013 compared with 28 sold in March 2012.
Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park, cautioned sellers that the market still needs to shed more distressed properties before home prices make a complete recovery.
“The spring market hasn’t been this busy since 2007,” Corder said. “For homes that are priced right, multiple offers are coming in.”
#
of homes sold
|
Median
sale price
|
|||||
Town
|
2013
|
2012
|
%
change
|
2013
|
2012
|
%
change
|
Burr
Ridge
|
15
|
19
|
-21.1%
|
655,000
|
658,000
|
-0.5%
|
Darien
|
7
|
10
|
-30%
|
246,000
|
239,500
|
2.7%
|
Downers
Grove
|
39
|
25
|
56%
|
274,000
|
267,000
|
2.6%
|
Elmhurst
|
46
|
28
|
64.3%
|
375,500
|
351,500
|
6.8%
|
Glen
Ellyn
|
32
|
32
|
0%
|
338,500
|
255,625
|
32.4%
|
Hinsdale
|
18
|
29
|
-37.9%
|
775,000
|
780,000
|
-0.6%
|
Lemont
|
16
|
13
|
23%
|
326,250
|
192,000
|
69.9%
|
Lisle
|
8
|
12
|
-33.3%
|
272,050
|
261,000
|
4.2%
|
Naperville
|
102
|
85
|
20%
|
379,950
|
335,000
|
13.4%
|
Wheaton
|
44
|
35
|
25.7%
|
324,000
|
285,500
|
13.5%
|
Woodridge
|
9
|
11
|
-18.2%
|
212,000
|
166,000
|
27.7%
|
Saturday, March 23, 2013
Rent To Own - Frequently Asked Questions
Here are some answers to the most common questions we receive about rent to own.
How many year contract do I have to sign to rent?
Rent to own contracts usually range from 1 - 3 years, but occasionally they are shorter or longer depending on the tenant's situation.
When will the buying process begin?
While you are renting to own, you should meet with a mortgage broker to find out what you would need to do to qualify for a loan. (For instance, improve your credit score, save more for down payment, pay off debt, stay at your job longer, get a salary increase, finish school, sign up for credit repair or credit counseling, etc.) Once the mortgage broker says you are pre-approved, then you start the formal process to get a loan to buy the home.
How much down payment do I need?
Rent to own contracts usually require the tenant-buyer to pay 3-5% of the purchase price before moving in. For a $100,000 home, you would need about $4000. For a $200,000 home, you would need about $8000.
Are there any closing cost?
You would only pay closing costs if your loan is approved and you purchase the house and become the homeowner with the title in your name. The bank providing a loan would work with you to determine those closing costs.
How much monthly payment do I have pay?
Rent to own homes generally range from about $1200 to $2500 per month depending on the size and condition of the home, but occasionally we have homes available for less or for more than those amounts.
Who is responsible if something goes wrong?
During the rent to own process, tenant-buyers usually handle the costs of minor repairs and maintenance as they work to become the owner of the home, and the landlord-seller will continue to handle larger capitol improvement costs -- such as a new furnace or new roof.
What if I don't want to buy by the end of my rental agreement?
Rent to own is also called Lease-Option because you have the option to purchase but you do not have to buy the home! If you decide to move out at the end of the rental agreement, you are free to do so. You will not receive any refund of any monies paid, and you will be responsible for any outstanding charges for rent, late fees, damages, etc. Sometimes people choose rent-to-own to "try out" a neighborhood, and then decide to buy somewhere else when the lease ends.
How many year contract do I have to sign to rent?
Rent to own contracts usually range from 1 - 3 years, but occasionally they are shorter or longer depending on the tenant's situation.
When will the buying process begin?
While you are renting to own, you should meet with a mortgage broker to find out what you would need to do to qualify for a loan. (For instance, improve your credit score, save more for down payment, pay off debt, stay at your job longer, get a salary increase, finish school, sign up for credit repair or credit counseling, etc.) Once the mortgage broker says you are pre-approved, then you start the formal process to get a loan to buy the home.
How much down payment do I need?
Rent to own contracts usually require the tenant-buyer to pay 3-5% of the purchase price before moving in. For a $100,000 home, you would need about $4000. For a $200,000 home, you would need about $8000.
Are there any closing cost?
You would only pay closing costs if your loan is approved and you purchase the house and become the homeowner with the title in your name. The bank providing a loan would work with you to determine those closing costs.
How much monthly payment do I have pay?
Rent to own homes generally range from about $1200 to $2500 per month depending on the size and condition of the home, but occasionally we have homes available for less or for more than those amounts.
Who is responsible if something goes wrong?
During the rent to own process, tenant-buyers usually handle the costs of minor repairs and maintenance as they work to become the owner of the home, and the landlord-seller will continue to handle larger capitol improvement costs -- such as a new furnace or new roof.
What if I don't want to buy by the end of my rental agreement?
Rent to own is also called Lease-Option because you have the option to purchase but you do not have to buy the home! If you decide to move out at the end of the rental agreement, you are free to do so. You will not receive any refund of any monies paid, and you will be responsible for any outstanding charges for rent, late fees, damages, etc. Sometimes people choose rent-to-own to "try out" a neighborhood, and then decide to buy somewhere else when the lease ends.
Thursday, February 28, 2013
Illinois Supreme Court Rolls Out New Foreclosure Rules
On Feb. 22, the Illinois Supreme Court announced new rules establishing a uniform protocol when it comes to the foreclosure process. Among the rules outlined in the court's news release:
- Lenders must provide homeowners with information about the process and consequences of foreclosure.
- Lenders must seek modifications with eligible homeowners before completing a foreclosure.
- Improved legal notices to owners are required throughout the process and before a foreclosure sale.
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