How Will New TRID Changes Affect Your Chicago Home Purchase?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

Today I have Rick Pantoga with me, my local mortgage lending expert here in Chicago. He's going to be explaining some important changes that the real estate market will be experiencing this year. He's been in the business for 29 years, so he's seen both the good and the bad.

On October 3rd of this year, the real estate market saw some big changes. What exactly happened?

It's because of the recent changes that came to the TILA-RESPA Integrated Disclosure (TRID), and this will affect everyone involved in real estate, from consumers to Realtors to lenders. The Consumer Financial Protection Bureau (CFPB) issued a final rule amending regulations the Truth in Lending Act as well as the Real Estate Settlement Procedures Act.

So, what does this mean for you? The TILA-RESPA rule consolidates four disclosures for closed and credit transactions secured by real property into two different forms.

One of these forms is a loan estimate that must be delivered or placed in the mail no later than the 3rd business day after receiving the consumer's application. A closing disclosure must be provided to the consumer at least three business days prior to consummation.

These new disclosures must be provided by a creditor or mortgage banker that receives an application from a consumer for a closed end credit transaction.

The TILA-RESPA rule includes some new restrictions on certain activity prior to consumers receiving the loan estimate. These restrictions include imposing fees on a consumer before the consumer has received the loan estimate, or requiring submission of documents verifying information related to the consumer's application before providing the loan estimate.

Please don't hesitate to contact us with any questions about this issue. We understand that it may seem a little confusing or overwhelming. We would be happy to clear up any misconceptions that you may have!

What's the Secret to Selling Homes in Chicago?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

Today I want to talk about the importance of staging your home when you sell it in Chicago. It's a very easy way to maximize your sale price in Chicago.

I had a 3 bedroom duplex property in Humboldt Park, and the owner paid $1,500 to have it staged. This included consultation and the design elements such as the furniture. This particular client was even staying there while it was staged, and he said that the stagers were very courteous and stayed out of the way as much as possible.

As you can see, the staging really makes the unit pop, and the buyers commented on the design elements. This leads me to believe that it played a significant role in their decision to purchase the property.

So, what was the return on the investment?

Well, a similar duplex nearby sold for $335,000, but my client's apartment managed to sell for $362,500. That's a difference of nearly $28,000. My property sold for 94% of the list price.

My client spent $1,500 and got $28,000 back. I'd say that's an investment worth making!

If you want to get the listing or staging process started, please don't hesitate to contact me! I know a wonderful stager and would be happy to put you in contact.

I look forward to speaking with you!

How we helped Larry by finding him the home he wanted quickly

"The results were that we got a new home! He did a number of things online in lining up various properties until we made up our mind.  Anant came down and spent most of the day going through the properties with us and we told him exactly what we were looking for.  He led us to this property and helped take care of everything from there!"

-Larry Davis, home buyer

The Benefits of Owning Over Renting

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

Today, we'll discuss buying versus renting. There are three main points that I want to make about buying and renting in Chicago's current market.

The first thing to consider is rental affordability. A recent Zillow survey published in Crain's magazine revealed that in Chicago, renters typically pay 31% of their total income, while homeowners pay 14% of total income. Rental demand is skyrocketing, but percentage-wise, the monthly payments are considerably higher than mortgage payments.

Next, think of real estate as a financially leveraged instrument. That means that for a relatively small down payment, you acquire a very large asset when you buy a home. You do not need to put 20% down on a home; we will work with you to come up with a manageable down payment, such as 5% or 10%.

Finally, whether you're renting or buying, you are paying a mortgage anyway. Renters pay the mortgage by paying a landlord. If you're going to pay a mortgage, it might as well be your own. That way, you can build wealth and reap the tax benefits.

As you can see, there is an advantage to owning a home here in Chicago. If you have any questions on today's video, give me a call or send me an email. I would be happy to help you!

Three Things to Know about Real Estate in Chicago

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

I have a couple of different things to speak about, because there is a lot going on with the real estate market in Chicago right now.

First of all, inventory is very low, and this is causing multiple offer situations to occur more frequently. This is subsequently raising home prices, so if you're looking to sell, now is a great time to do so.

As far as median home prices go, we're currently sitting at $305,000 for the Chicago area (through June 2015). This is good news because prices have been increasing very nicely in the last few years. If you'd like a more detailed price report for your neighborhood, please don't hesitate to contact me. I can provide one for you.

Finally, closed sales in Chicago have risen dramatically since 2013. This is simply because supply is low and demand is high. Part of this may be the fact that interest rates are still very low, which is causing buyers to purchase now when affordability is high.


If you have any further questions about this report, or if you'd like to buy or sell in the Chicago area, please don't hesitate to contact me!