Q: What the first step of the home buying process?

Getting pre-approved for a mortgage is the first step of the home buying process. Getting a pre-approval letter from a lender get the ball rolling in the right direction. Here’s why: First, you need to know how much you can borrow. Knowing how much home you can afford narrows down online home searching to suitable properties, thus no time is wasted considering homes that are not within your budget. (Pre-approvals also help prevent disappointment caused by falling in love unaffordable homes.) Second, the loan estimate from your lender will show how much money is required for the down payment and closing costs. You may need more time to save up money, liquidate other assets or seek mortgage gift funds from family. In any case, you will have a clear picture of what is financially required. Finally, being pre-approved for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the person selling their home. Most real estate agents will require a pre-approval before showing homes - this is especially true at the higher end of the real estate market; sellers of luxury homes will only allow pre-screened (and verified) buyers to view their homes. This is meant to keep out Looky Lous and protect the seller’s privacy. What’s more, by limiting who enters their home, sellers are given extra security from potential thieves trying to case the home (like identifying security systems, locating expensive artwork or other high-value personal property).

Q: How long does it take to buy a home?

From start (searching online) to finish (closing escrow), buying a home takes about 10 to 12 weeks. Once a home is selected an the offer is accepted, the average time to complete the escrow period on a home is 30 to 45 days (under normal market conditions). Though, well-prepared home buyers who pay cash have been known to purchase properties faster than that. Market conditions are a major factor in how fast homes are sold. In hot markets with a lot of sales activity, buying a home may take a little longer than normal. That’s because several parties involved in the transaction get behind when business suddenly picks up. For example, a spike in home sales increases the demand for property appraisals and home inspections, yet there will be no increase in the number of appraisers and inspectors available to do the work. Lender turn-around times for loan underwriting can also slow down. If each party involved in a deal takes a day or two longer to get their work done, the entire process gets extended.

Q: What is a seller’s market?

In sellers’ markets, increasing demand for homes drives up prices. Here are some of the drivers of demand: Economic factors – the local labor market heats up, bringing an inflow of new residents and pushing up home prices before more inventory can be built. Interest rates trending downward – improves home affordability, creating more buyer interest, particularly for first time home buyers who can afford bigger homes as the cost of money goes lower. A short-term spike in interest rates - may compel “on the fence” buyers to make a purchase if they believe the upward trend will continue. Buyers want to make a move before their purchasing power (the amount they can borrow) gets eroded. Low inventory - fewer homes on the market because of a lack of new construction. Prices for existing homes may go up because there are fewer units available.

Q: What is a buyer’s market?

A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term and short-term buyer demand, like: Economic disruption - a big employer shuts down operations, laying off their workforce. Interest rates trending higher – the amount of money the people can borrow to buy a home is reduced because the cost of money is higher, thus reducing the total number of potential buyers in the market. Home prices drop to meet the level of demand and buyers find better deals. Short-term drop in interest rates – can give borrowers a temporary edge with more purchasing power before home prices can react to the recent interest rate changes. High inventory – a new subdivision and can create downward pressure on prices of older homes nearby, particularly if they lack highly desirable features (modern appliances, etc.) Natural disasters - a recent earthquake or flooding can tank property values in the neighborhood where those disruptions occurred.

Q: What is a stratified market?

A stratified market happens where supply and demand characteristics differ by price point, in the same area (typically by city). For example, home sales for properties above $1.5M may be brisk (seller’s market) while homes under $750k may be sluggish (buyer’s market). This scenario comes along every so often in West Coast cities where international investors - looking to park their money in the United States - buy expensive real estate. At the same time, home sales activity in mid-priced homes could be entirely different.

Q: How much do I have to pay an agent to help me buy a house?

Home shoppers pay little or no fees to an agent to buy a home. Here’s why: For most home sales, there are two real estate agents involved in the deal: one that represents the seller and another who represents the buyer. Listing brokers represent sellers and charge a fee to represent them and market the property. Marketing may include advertising expenses such as radio spots, print ads, television and internet ads. The property will also be placed in the local multiple listing service (MLS), where other agents in the area (and nationally) will be able to search and find the home for sale. Agents who represent buyers (a.k.a. buyer’s agent) are compensated by the listing broker for bringing home buyers to the table. When the home is sold, the listing broker splits the listing fee with the buyer’s agent. Thus, buyers don’t pay their agents.

Q: What kind of credit score do I need to buy a home?

Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower the down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.

Q: How much do I need for a down payment?

The national average for down payments is 11%. But that figure includes first time and repeat buyers. Let’s take a closer look. While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. What’s more, some programs allow down payment contributions from family members in the form of a gift. Some programs require even less. VA loans and USDA loans can be made with zero down. However, these programs are more restrictive. VA loans are only made to former or current military servicemembers. USDA loans are only available to low to-middle income buyers in USDA-eligible rural areas. For many years, conventional loans required a 20% down payment. These types of loans were typically taken out by repeat buyers who could use equity from their existing home as a source of down payment funds. However, some newer conventional loan programs are available with 3% down if the borrower carries private mortgage insurance (PMI).

Q: Should I sell my current home before buying a new one?

If the built-up equity in your current home will be applied to the down payment on the new home, naturally the former will need to be sold first. Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether making a loan on a new home is feasible while retaining title to the old home. Buyers often have a short time frame to sell their current home when relocating to a new city because of a job transfer. If you are moving but taking a position with the same employer, check to see if they offer relocation assistance to help offset some of the costs.

Q: How many homes should I view before buying one?

That’s up to you! For sure, home shopping today is easier today than ever before. The ability to search for homes online and see pictures, even before setting a foot outside the comfort of your living room, has completely changed the home buying game. Convenience is at an all-time high. But, nothing beats visiting a home to see how it looks and ‘feels’ in person.

Welcome to Hawthorn Preserve Townhomes

Located in the wonderful Lockport IL area, these townhomes offer a lifestyle of simplicity balanced with the comfort of home ownership. As a professional Realtor, it is my pleasure to offer the highest quality of real estate services for both buyers and sellers of these properties. Check out the various floor plan options below and contact me with any questions!

3D Tour

THE BAILEY

Prices Starting at: $285,000

Two Bedroom with Loft/3 B.R

Full Basement

1900 Sq. Ft. (Approximately)

Two Car Garage

9 Ft. Ceilings First Floor & Basement only

Second Floor 8 Ft. Ceilings

3D Tour

THE CIARA

Prices Starting at: $280,000

Three Bedroom with Loft

Full Basement

1950 Sq. Ft. (Approximately)

Two Car Garage

9 Ft. Ceilings First Floor & Basement only

Second Floor 8 Ft. Ceilings

3D Tour

THE ERIN II

Prices Starting at: $299,000

Three Bedroom

Full Basement

2400 Sq. Ft. (Approximately)

Two Car Garage

9 Ft. Ceilings First Floor & Basement only

Second Floor 8 Ft. Ceilings

3D Tour

THE CAITLIN

Prices Starting at: $275,000

Three Bedroom

Full Basement

2100 Sq. Ft. (Approximately)

Two Car Garage

9 Ft. Ceilings First Floor & Basement only

Second Floor 8 Ft. Ceilings

THE ERIN

Prices Starting at: $280,000

Two Bedroom

Full Basement

1600 Sq. Ft. (Approximately)

Two Car Garage

9 Ft. Ceilings First Floor & Basement only

TOWN HOME FEATURES

Fully Landscaped

Subdivision Park

9/0 First floor ceilings

9/0 deep basement

Rough in bathroom in basement (Optional)

2- Car finished garage, insulated & dry walled

Overhead garage door opener with 2 remote

Fireplace in the family Room with gas logs (Optional)

Air Conditioning & Furnaces sized to units per 2015 Energy Code

Kohler & Moen bathroom fixtures throughout the home

Staircase with Oak Mission style newel posts & iron balusters

White 2-panel solid masonite interior doors

White Painted interior doors & trim; 5” baseboard & 3” Casing

Recessed can lights throughout the hallways

Granite Counter tops in the kitchen & all bathrooms

Stainless steel, under-mounted, double basin kitchen sink

Design ceiling in the Master Bedroom

3” Oak flooring throughout the 1st floor

Birch Kitchen Cabinets from Spring Orchard Cabinet Company

Stainless Steel Appliances in the Kitchen

Crown molding & wainscot in the Foyer

CONSTRUCTION FEATURES

Professionally Landscaped lot with in common areas

Fire sprinklers in all units

Maintenance free, casement windows with Low-E Glazing

Brick on all four sides of building

LP Siding on 2nd floor exterior

Asphalt driveway

Concrete walkway from front door to driveway & public walk

15 x 15 concrete patio

Architectural 30 year roof shingles

Snow & ice shield on perimeter of roof

Aluminum fascia, soffit, & gutters with color match flashing

Decorative address stone

Fiberglass damp proofing on foundation

Fiberglass Insulated R-40 flat ceiling

Fiberglass Insulated R-28 cathedral ceiling

Fiberglass Insulated R-20 walls

Tyvek house wrap on all exterior walls

¾” tongue & groove plywood floors installed with construction glue & screws

Sill Sealer under all exterior wall plates

Drain tile around perimeter of basement

1 storm sump pump & 1 ejector sump pump

2 – Exterior GFI electrical outlets

2 – Exterior frost proof hose connections

One 50 gallon high efficiency, quick recovery, hot water tank

One air conditioner & one furnace

Smoke & carbon dioxide detectors

Water line for ice maker in kitchen