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Glossary

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  • Buyer's Agent | PadScouts

    REALTOR (R) Buyer's Agent A REALTOR (R) is real estate professional that is both a licensed real estate agent or broker AND a member of the National Realtor's Association. They are experts in the residential real estate process and help represent Sellers and Buyers during their real estate transaction. ​ On this page, we will discuss the role, duties, and responsibilities of the Buyer's Agent: ​ Role Showings: Buyer's Agents will contact seller properties to schedule time and access for property showings. Negotiations: Buyer's Agents will assist the Buyer in the Offer Negotiation process when a Buyer decides to purchase a property. Management: Buyer's Agents will assist the Buyer in managing the entire buying process by organizing all of the requisite documents and ensuring all parties involved in the transaction are active in ensuring the buying process is being executed. ​ Benefits - You do not need a real estate agent to buy a home; in fact, some home buyers leave the Buyer's Agent out of the equation. However, you might benefit from hiring one. ​ To save time. Agents can often help you find homes in your price range, and they may have access to more properties than what you’ll see online. To get information and help with negotiations. Good agents should have wealth of information to help you make a decision. And, they’ll handle a lot of complex paperwork on your behalf. Offer Contract Contingency Negotiations Home Inspection Reports Appraisal Reports Earnest Money Escrow Extension Requests Another plus is that your agent will handle a ton of paperwork on your behalf. Unless you love filling out forms – and have experience in real estate transactions – this is a chore best left to the professionals, who should ensure that everything is done by the book. You could easily make a mistake with these documents. Mistakes can cause deals to fall apart or (worse) make you liable for an inadvertent breach of contract. (Licensed agent will have errors and omissions insurance to limit this risk.) An experienced agent will make sure that everything that needs to take place — counter-offers, extensions, appraisal, inspection, walk-through, loan approval — happens when it’s supposed to and how it’s supposed to.​ Market expertise: Conducting a home search by yourself can be a full-time job. Though the Internet makes it easy to find homes in your price range, a good agent usually has access to more properties. That includes For Sale By Owner (FSBO) properties and homes that aren’t yet listed. In addition, some sellers of desirable homes do not wish to “go public.” Only agents (and their colleagues) working with those sellers even know about those so-called “pocket listings.” The exception: There is ONE instance in which you must use an agent to purchase property. That applies if you bid on FHA foreclosure properties. The Department of Housing and Urban Development (HUD) requires all bidders to use licensed agents. ​ ​​

  • Earnest Money | PadScouts

    Earnest Money ​ Earnest money is an amount paid in to escrow early in the home purchase process to essentially put a “hold” on the property for the buyer. The money is deposited once an offer has been accepted . It’s a way of showing serious intent that the buyer is going to stay true to their offer, and protects sellers from having to deal with buyers putting out multiple offers or going into negotiations on multiple properties. At closing, the earnest money payment is generally taken out of escrow and put toward the buyer’s down payment. ​ A REALTOR®, title company, or an attorney can usually hold this deposit. The amount varies from community to community, and it becomes part of your down payment. ​

  • How To Find A Lender | PadScouts

    How to choose a lender? Comparing quotes from several mortgage lenders is a critical part of the homebuying process. According to Freddie Mac data, getting three quotes can save you about $1,500, while five quotes can save you an average of $5,000. ​ So, how do you do this? First, apply with at least three lenders. ​ Head to their websites, fill out their online application forms, and give them a little information about your homebuying plans. You can usually get a quote within a few hours to a day or two. ​ Once you have the quotes in hand (they’ll come in the form of what’s called a “loan estimate”), you should look at the following points to compare your options: ​ Interest Rates Interest rates vary greatly between lenders. So, see how your quotes measure against other lenders. ​ Example of how interest rates can drastically change your monthly payment: Purchase Price: $300,000​ 10% down payment Loan Amount: $270,000 At 4.25% , your monthly interest and principal payment is $1,328.24​ At 4.75% , your monthly interest and principal payment is $1,408.45 APR ​This is your total annual cost to borrow the money, plus any fees or other charges required. Origination, underwriting, and application fees: Do the lenders charge fees for any of their services? If they do, compare the cost of those and see what comes out on top.​ Prepayment penalties Some lenders charge a penalty if you pay off your loan early. Make sure you know which of your options does and doesn’t​. Estimated closing costs and cash-to-close This is what you’re expected to owe for the loan’s closing and on closing day. These can vary greatly as well.​ Private Mortgage Insurance (PMI) Private mortgage insurance (PMI) is a ​ type of insurance policy that protects mortgage lenders in case borrowers default on their loans. This insurance cost will vary depending on the lender and the type of loan that you are seeking (i.e. Conventional, FHA, USDA, VA, etc.) ​ ​ How To Find A Lender? ​ You can find mortgage lenders online, through your real estate agent, or by using a mortgage broker. You can also look to your personal bank or local credit union for a mortgage loan. If you’re in Illinois, here are a few of our trusted partners: ​ Juan Fleitas - Compass Mortgage Direct Line: 630.687.6023 Cell Phone: 708.214.2222 Email Address: juanfleitas@compmort.com State License: NMLS# 219823 ​ Erica Garcia - Compass Mortgage Direct Line: 773.644.2932 Cell Phone: 773.710.1665 Email Address: ericagarcia@compmort.com State License: NMLS #1714772 ​ Amiel Steurman - Cypress Mortgage Direct Line: 312.829.1010 Email Address: amiel@cypressmc.com State License: NMLS #234812 ​ Wendy Aquino - SunWest Mortgage Company Direct Line: 773.946.3650 Email Address: wendy.aquino@swmc.com State License: NMLS #921729 ​ ​

  • Packages | PadScouts

    Packages I'm a paragraph. Click here to add your own text and edit me. I’m a great place for you to tell a story and let your users know a little more about you. Best Value Free Consultation $ 0 0$ 1 Month, 2 Lessons per week Free Plan Select I'm a benefit I'm a benefit I'm a benefit I'm a benefit

  • Closing Costs | PadScouts

    Closing Costs After saving for a down payment, house hunting and applying for a mortgage, closing costs can come as an unpleasant surprise. ​ What are Closing Costs? Closing costs include the myriad fees for the services and expenses required to finalize a mortgage. You’ll have to pay closing costs whether you buy a home or refinance. Most of the closing costs fall on the buyer, but the seller typically has to pay a few, too, such as the real estate agent’s commission. (Buying a home for the first time? See our tips for first-time home buyers.) ​ How much are closing costs? Average closing costs for the buyer run between about 2% and 5% of the loan amount. That means, on a $300,000 home purchase, you would pay from $6,000 to $15,000 in closing costs. The most cost-effective way to cover your closing costs is to pay them out-of-pocket as a one-time expense. You may be able to finance them by folding them into the loan, if the lender allows, but then you’ll pay interest on those costs through the life of the mortgage. When buying a home, you can comparison shop and negotiate some of the fees to lower your closing costs. And some states, counties and cities offer low-interest loan programs or grants to help first-time home buyers with closing costs. Check with your local government to see what’s available. Your lender is required to outline your closing costs in the Loan Estimate you receive when you first apply for the loan and in the Closing Disclosure document you receive in the days before the settlement. Review them closely and ask questions about anything you don’t understand. ​ List of Closing Costs (may not be comprehensive depending on the situation)​ Property-related fees Appraisal fee: It’s important to a lender to know if the property is worth as much as the amount you want to borrow. This is for two reasons: The lender needs to verify the amount you need for a loan is justified and make sure it can recoup the value of the home if you default on your loan. The average cost of a home appraisal by a certified professional appraiser ranges between $300 and $400. Home inspection: Most lenders require a home inspection, especially if you’re getting a government-backed mortgage, such as an FHA loan insured by the Federal Housing Administration. Before lending you hundreds of thousands of dollars, a bank needs to make sure the home is structurally sound and in good enough shape to live in. If the inspection turns up troubling results, you may be able to negotiate a lower sale price. But depending on how severe the problems are, you have the option to back out of your contract if you and the seller can’t come to an agreement on how to fix the issues. Home inspection fees, on average, range from $300 to $500. Loan-related fees Application fee: This covers the cost of processing your request for a new loan and includes costs such as credit checks and administrative expenses. The application fee varies depending on the lender and the amount of work it takes to process your loan application. Assumption fee: If the seller has an assumable mortgage and you take over the remaining balance of the loan, you may be charged a variable fee based on the balance. Attorney’s fees: Some states require an attorney to be present at the closing of a real estate purchase. The fee will vary depending on the number of hours the attorney works for you. Prepaid interest: Most lenders require buyers to pay the interest that accrues on the mortgage between the date of settlement and the first monthly payment due date, so be prepared to pay that amount at closing; it will depend on your loan size. Loan origination fee: This is a big one. It’s also known as an underwriting fee, administrative fee or processing fee. The loan origination fee is a charge by the lender for evaluating and preparing your mortgage loan. This can cover document preparation, notary fees and the lender’s attorney fees. Expect to pay about 0.5% of the amount you’re borrowing. A $300,000 loan, for example, would result in a loan origination fee of $1,500. Discount points: By paying discount points, you reduce the interest rate you pay over the life of your loan, which results in more competitive mortgage rates. The cost of one point equals 1% of the loan amount. So for a loan of $250,000, a 1-point payment would be $2,500. Generally, paying points is worthwhile only if you plan to stay in the home for a long time. Otherwise, the upfront cost isn’t worth it. Mortgage broker fee: If you work with a mortgage broker to find a loan, the broker will usually charge a commission as a percentage of the loan amount. The commission averages from 0.5% to 2.75% of the home’s purchase price Mortgage Insurance Fees Mortgage insurance application fee: If you make a down payment of less than 20%, you may have to get private mortgage insurance. (PMI insures the lender in case you default; it doesn't insure the home.) The application fee varies by lender. Upfront mortgage insurance: Some lenders require borrowers to pay the first year’s mortgage insurance premium upfront, while others ask for a lump-sum payment that covers the life of the loan. Expect to pay from 0.55% to 2.25% of the purchase price for mortgage insurance, according to Genworth, Ginnie Mae and the Urban Institute. FHA, VA and USDA fees: If your loan is insured by the Federal Housing Administration, you’ll have to pay FHA mortgage insurance premiums; if it’s guaranteed by the Department of Veterans Affairs or the U.S. Department of Agriculture, you’ll pay guarantee fees. In addition to monthly premiums, the FHA requires an upfront premium payment of 1.75% of the loan amount. The USDA loan upfront guarantee fee is 1%. VA loan guarantee fees range from 1.25% to 3.3% of the loan amount, depending on the size of your down payment. Property taxes, annual fees and insurance Property taxes: Buyers typically pay two months’ worth of city and county property taxes at closing. Annual assessments: If your condo or homeowners association requires an annual fee, you might have to pay it upfront in one lump sum. Homeowners insurance premium: Usually, your lender requires that you purchase homeowner’s insurance before settlement, which covers the property in case of vandalism, damage and so on. Some condo associations include insurance in the monthly condo fee. The amount varies depending on where you live and your home’s value. Title Fees Title search fee: A title search is conducted to ensure that the person selling the house actually owns it and that there are no outstanding claims or liens against the property. This can be fairly labor-intensive, especially if the real estate records aren’t computerized. Title search fees are about $200, but can vary among title companies by region. The search fee may be included in the cost of title insurance. Lender’s title insurance: Most lenders require what’s called a loan policy; it protects them in case there’s an error in the title search and someone makes a claim of ownership on the property after it’s sold. Coverage lasts until the loan is paid off. Owner’s title insurance: You should also consider purchasing title insurance to protect yourself in case title problems or claims are made on your home after closing. The owner's coverage lasts as long as you or your heirs own the property. The cost of the owner’s policy is about 0.5% to 1% of the purchase price, according to the American Land Title Association. Whether the buyer or seller pays for title insurance varies by region. A discount is sometimes offered when both the lender’s and owner’s policies are purchased at the same time. Mortgage Closing Documents With so many closing costs to consider, it’s obvious you’ll face a lot of paperwork just prior to and during the loan signing. Two of the most important closing documents are the Loan Estimate and the Closing Disclosure. You’ll receive the Loan Estimate three days after applying with a lender. It will officially detail all fees, the interest rate and the other costs to close your loan. It’s legally binding, so you’ll want to read it carefully. Then, three days from loan settlement and prior to making the big commitment, you’ll receive the Closing Disclosure from your lender. It confirms — or makes minor adjustments to — what you saw on the Loan Estimate. Again, it’s worth a big cup of coffee and a thorough review. ​ Mortgage closing costs: summary Appraisal fee ($300-$400) Home inspection ($300-$500) Application fee (varies) Assumption fee (varies) Attorney’s fee (hourly or flat fee) Prepaid interest (based on loan amount) Origination fee (about 0.5% of loan amount) Discount points (1 point costs 1% of the loan amount) Mortgage broker fee (0.50% to 2.75%) Mortgage insurance application fee (varies) Upfront mortgage insurance (0.55% to 2.25%) FHA, VA and USDA fees (1% to 3.3%) Property taxes (two months’ worth) Upfront HOA fee (varies) Homeowners insurance (depends on home value and location) Title search fee (about $200) Lender’s title insurance (varies) Owner’s title insurance (0.5% to 1% of purchase price)

  • 1718 S Halsted | PadScouts

    1718 S Halsted St, Chicago, IL 60608 Commercial & Residential Units Available Units: 12 Residential | 1 Retail Floors: 4 units on each floor (2nd, 3rd, 4th) Pricing: 1st Floor Commercial Space: $34 / sq ft 2nd Floor Units: TBD 3rd Floor Units: TBD 4th Floor Units: TBD Coming soon to the vibrant heart of Pilsen Neighborhood! Located steps from the bustling 18th Street corridor Commercial Space zoned B3-2 will be available June 2024, currently under construction. Excellent Pilsen location, close to shopping on Halsted, Metra station, easy access to expressway, University Dog Park, University of Illinois Chicago and easy access to downtown. Great opportunity and holds a ton of potential for future businesses such retail, showroom, medical office, professional / business office, restaurant and more.). 2505sq space located within a building with 12 upscale residential units. restaurant, retail store, office and much more. High foot traffic and excellent visibility. Features enormous street facing windows and 14 ft. ceilings, "vanilla box" open space ready to be customized, black-iron ready with complete line, and private 2-car garage parking with option to use as additional storage. Easy to Show contact for more information. Be the first one to see it! DESCRIPTION Request More Information on 1718 S Halsted St Units First Name Last Name Email Phone Write a message Submit Thanks for submitting!

  • Home Inspector | PadScouts

    Home Inspector Home inspectors are certified and licensed by each State to provide home inspections for real estate transactions. Home inspectors have a lot of ground to cover. Every reasonable, visible inch of a home is evaluated from top to bottom, and the inspector records the findings in a report for the Buyer, a real estate agent, or another client.

  • Mortgage Professionals | PadScouts

    Mortgage Professionals There are four main types of mortgage companies where you can apply and receive a mortgage loan, and the one that works best for you will depend on your situation: ​ Banks and Mortgage Bankers - This is a great option if you prefer to have all of your financial accounts in one place; however, it may take longer to close your loan. Additionally, they may not offer government-backed loans (for example, FHA, VA, or USDA home loans). Perhaps the most common of all financial institutions are banks. Banks get their money from investors and its own customers. In addition to offering checking and savings and investment options, banks will often offer different types of mortgage loans for qualified borrowers. For many people, their local bank is the first and possibly only financial institution they will ever do business with. ​ Credit Unions - Credit unions usually offer loans only to their members. They may have lower costs and interest rates, but like banks, they may take longer to close. Like banks, they may not offer government-backed loans. Credit unions are very similar to banks, except that they are owned by their account holders, known as members. These institutions usually require membership and get funds from their members. Similar to their bank counterparts, credit unions offer a range of services to their members such as depository accounts for checking, savings, and retirement. As with banks, credit union members will often utilize their institution as a one-stop shop, obtaining their mortgage loan, as well as all their other banking needs at the same place. ​ Mortgage Lenders - Unlike banks and credit unions, which offer a variety of financial services, mortgage lenders exist for the sole purpose of real estate loans. Unlike banks and credit unions, most mortgage lenders can take care of the entire process “in-house.” This can shorten the time frame involved with obtaining a mortgage. A mortgage lender is a financial institution, similar to a bank, that originates and funds loans in their own name. Unlike banks and credit unions, mortgage lenders exist for the sole purpose of making loans against real estate. Most mortgage lenders do not service, or “keep”, their loans. Instead, lenders sell their loans to banks or servicing companies. These servicers then take on the job of collecting payments on a monthly basis. Mortgage lenders get their money from banks, also known as investors. Unlike banks and credit unions, most lenders do all their own loan processing, underwriting and closing functions “in-house.” They can take care of the entire process with internal staff. In-house operations shorten the time frame involved with obtaining a mortgage loan. ​ Mortgage Brokers - Mortgage brokers do not lend money directly; rather they have access to many different lenders and loan programs. This can give you access to more options. But they do not have as much control over the speed of a loan approval as a bank or mortgage lender. A mortgage broker is essentially a “middleman” between the homeowner and bank. Mortgage brokers do not lend money directly. Brokers have access to many lenders, as well as many different loan programs. In some cases, especially when your credit isn’t perfect, a mortgage broker can shop around to find a home loan that isn’t offered by a bank, credit union, or even a lender. Home buyers with special income types, lower credit, or are looking at a unique property might inquire at a broker first. Or, if your home bank or credit union can’t approve you, your next step is to talk to mortgage companies and brokers.

  • Offer | PadScouts

    Offer An offer is a purchase agreement that is sent to the Seller with a proposal to purchase the Seller’s property under specific conditions and price. ​ In Illinois, this is the standard document used to submit an offer. See It Here ​ What is generally included in an offer: ​ Your purchase offer, if accepted as it stands, will become a binding sales contract —also known as a purchase agreement, an earnest money agreement or a deposit receipt. It's important, therefore, the offer contain every element needed to serve as a blueprint for the final sale. These purchase offers should include the following: Address and sometimes a legal description of the property Sale price Terms—for example, this is an all-cash transaction, or the deal is subject to you obtaining a mortgage for a given amount. Seller's promise to provide clear title (ownership) Target date for closing (the actual sale) Amount of earnest money deposit accompanying the offer—whether it's a check, cash or a promissory note—and how the earnest money will be returned to you if the offer is rejected (or kept as damages if you back out of the deal for no good reason) Method by which real estate taxes, rents, fuel, water bills and utilities are to be adjusted (prorated) between buyer and seller Provisions about who will pay for title insurance , survey, termite inspections and the like Type of deed that will be granted Other requirements specific to your state, which might include a chance for attorney review of the contract, disclosure of specific environmental hazards or other state-specific clauses A provision the buyer may make a final walk-through inspection of the property just before the closing A time limit (preferably short) after which the offer will expire Contingencies ​ Can you take back/withdraw an offer? In most cases the answer is yes, right up until the moment it is accepted—and in some cases even if you haven't yet been notified of acceptance. If you want to revoke your offer, be sure to do so only after consulting a lawyer who is experienced in real estate matters. You don't want to lose your earnest money deposit or get sued for damages the seller may have suffered by relying on your actions. ​ Learn more about the offer process: Counter Offer​ Accepted Offer Offer Rejection Highest and Best Offer ​ ​​

  • 1606 S Ashland | PadScouts

    1606 S Ashland Ave, Chicago, IL 60608 Residential Units Available Units: 24 Floors: 8 units on each floor (2nd, 3rd, 4th) Pricing: 2nd Floor Units: $3,000/mo 3rd Floor Units: $3,200/mo 4th Floor Units: $3,400/mo Stunning Pilsen condo-quality new construction, available September 1st! 1622sq of modern, spacious, and bright 3BD/2BA with 1 garage spot included. Unit features 11' ceilings, 9' doors, oversized floor to ceiling windows, central air and heat, custom lighting, vinyl luxury plank floors throughout, wide open kitchen/ living/ dining space, modern kitchen cabinets, quartz countertop, GE ss appliances, contemporary bathroom tiles and fixtures, vast number of closets and private balcony. 2nd bedroom with large full bath presenting free standing tub, shower, and double vanities. In unit full size site by site washer & dryer. Application fee is $50 per adult applicant. Non-refundable move-in fee is $350 per adult tenant. Non-refundable pet fee is $350. 1 pet per unit under 35lbs allowed. Tenant pays heat/ cooking gas and electric. No security deposit. Minimum credit score requirement - 750. 1 year lease minimum. The building is within walking distance of Pink Line, great restaurants, convenience stores, art galleries, boutique shops, park and many more. Quick access to expressway, Medical District and UIC. DESCRIPTION Request More Information on 1606 S Ashland Ave Units First Name Last Name Email Phone Write a message Submit Thanks for submitting!

  • Calculating Your Proceeds | PadScouts

    Calculate Your Proceeds When an offer comes in, a seller can accept it exactly as it stands, refuse it (seldom a useful response), or make a counteroffer with the changes they want. ​ In evaluating a purchase offer, sellers estimate the amount of cash they'll walk away with when the transaction is complete. For example, when they're presented with two offers at once, they may discover they are better off accepting the one with the lower sale price if the other asks them to pay points to the buyer's lending institution. ​ Once a seller has a specific proposal, calculating net proceeds becomes simple. From the proposed purchase price, they subtract the following: Payoff amount on present mortgage Any other liens (equity loan, judgments) Broker's commission Legal costs of selling (attorney, escrow agent) Transfer taxes Unpaid property taxes and water bills If required by the contract: cost of survey, termite inspection, buyer's closing costs, repairs, etc. ​ The seller's mortgage lender may maintain an escrow account into which they deposit money to pay property tax bills and homeowner's insurance premiums. In that case, remember sellers will receive a refund of money left in that account, which will add to their proceeds.

  • Title Companies | PadScouts

    Title Companies A title company makes sure that the title to a piece of real estate is legitimate by conducting a title search and then issues title insurance for that property. Title insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title. Title companies also often maintain escrow accounts — these contain the funds needed to close on the home — to ensure that this money is used only for settlement and closing costs , and may conduct the formal closing on the home. At the closing, a settlement agent from the title company will bring all the necessary documentation, explain it to the parties, collect closing costs and distribute monies. Finally, the title company will ensure that the new titles, deeds and other documents are filed with the appropriate entities. How much does a title company's services cost? The cost of title insurance depends on the size of the loan and varies greatly depending on the state. The good news is that the premium is a one-time fee you pay at closing, not an ongoing expense. According to the Federal Reserve, “a lender’s policy on a $100,000 loan can range from $175 in one state to $900 in another.” You’ll typically pay an additional amount — usually a few hundred dollars or more, depending on the size of the loan and your state of residence — for a buyer’s policy. Note that you may be able to get a discounted rate on your title insurance if the property was sold within the previous five years; just call and ask.

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