Stacie Colclasure, REALTOR, Bethalto, IL homes

FREE Child Safety Event in Wood River, IL

Jack Schmitt Chevrolet in Wood River, IL is sponsoring The DNA Life Print Child Safety Event on Saturday, October 17, 2009 starting at 9:30am. Parents, please bring your children to this important event. This program provides parents with vital tools recommended by the FBI and The Department of Justice.

There will be food and refreshments, games and activities for the kids, and more. Each child will receive

a Child Safety Journal which will contain all the necessary vital information about your child,

a Digital Photo, and

a FBI Certified Biometric 10 Digit Fingerprint Profile.

The event sponsor does not keep records on file; the only record of the visit is handed to you to take home.

This event is endorsed John Walsh on the TV program America's Most Wanted. He became a well-known anti-crime activist after his 6 yr old son was abducted and murdered in 1981. He also created the Missing Children Act of 1982 and the Missing Children's Assistance Act of 1984.

For more information call the program headquarters at 618-259-4900 ext 101.

"Forgivable" Home Loans for Alton, IL Home Buyers

Do you need cash to buy your own home? I know a lot of people who have no problem making the monthly payment on a home. But coming up with the downpayment and/or closing costs can be difficult. Don't give up hope.

The City of Alton's Department of Development & Housing has a program called the "HOMEOWNERSHIP PROGRAM". If you qualify, they will contribute up to 5% of the purchase price or $3,000 whichever is less. This program is primarily for low to moderate income households who are looking to buy a home in Alton.

For more information, call The Alton Department of Development & Housing (618) 463-3801

They could be your key to owning your own home.

Home Buying 101 in Bethalto, IL: Part 6 – How Much Do I Need to Buy a House?

Part 1: Know How Agency Affects You discussed the importance of finding a real estate agent to represent you.

Part 2: Will the Car Fit in the Garage? is about figuring out what is important now in finding your new home.

Part 3: What to Consider When Making an Offer talks about how to write an offer that is realistic and competitive.

Part 4: I Have a Contract, Now What? covers the inspections and appraisal process.

Part 5: Understanding Why Title is Important explains the options available in Illinois and the differences between them.

So you now have some very important information about buying a home. But one of the biggest questions on a buyer’s mind is, “how much money do I need hand over?”

I remember my experiences as a first-time home buyer. I worked with a couple of different agents and none of them told me up front what to expect, especially how much money out of pocket we would need to come up with. In the end, we wouldn’t have been able to get to closing if it hadn’t been for our parents.

When I became a realtor I made educating and informing the buyer regarding the whole process from start to finish one of my first priorities. This is one of the biggest investments in a person’s life and can also be one of the most stressful. If they know what to expect, they are more confident about buying their home.

Here is what you can expect:

Earnest money deposit – This is like a down payment that you give at the time you write an offer. Once the offer is accepted it will be deposited into a non-interest bearing escrow account. If the offer does not get accepted you will get it back. If for some reason the contract falls through, depending on the circumstances, you may be able to get it back. Otherwise, you will get a credit for it at closing. The amount you decide to put down is your decision. However, keep in mind the more you put down the more attractive your offer is to the seller.

Application fee for mortgage – As soon as you have an accepted contract you need to apply for a mortgage if you have not already done so. The fee is approximately $ and is paid to the lender.

Home Inspection – As soon as you have an accepted contract you need to schedule a home inspection. Home inspection fees in this area vary from $225 - $300. You pay the inspector prior to or the day of the inspection. Please note that a home inspection is not required but I strongly recommend it!!

Termite Inspection – Most lenders in this area will require a termite inspection. I usually advise my buyers to hold off on this inspection until after the home inspection is complete. My reasoning is that if something big comes up on the home inspection and the contract falls through then the buyer hasn’t spent any more money than they had to. Termite inspections in this area range from $50 - $70. Depending on the lender, you will either pay the inspector prior to or the day of the inspection or the lender may allow you to include it with your fees due at closing. The one exception to this is if the financing is VA. VA will not allow the buyer to pay for the termite inspection.

Appraisal – Again, I usually advise my buyers to wait until after the home inspection, but it will need to be done within the first two weeks after the contract is accepted. It will depend on the lender whether you will pay this fee at the time of the mortgage application or with your fees due at closing. Plan on paying $300 - $400 for an appraisal.

City Inspection – A lot of people assume this is the seller’s responsibility; however, there is no where in the contract where it states this. I always advise my buyers to include this in their original offer. However, if you didn’t negotiate this with the seller and you do get stuck with the bill, the fee varies according to the municipality the property is located in. Generally between $25 - $75 and you pay this to the city before the inspection. Also, depending on the city, there may be a fee for re-inspection if the property did not pass the initial inspection.

1 yr Homeowners Insurance Policy – The lender requires a prepaid policy for one year on your home prior to closing. Sometimes the lender will allow you to include this with your fees due at closing. You will need to check with your insurance agent for the amount.

Closing Costs – These include the lender fees, title charges and government fees. When you apply for your loan, your lender will give you an estimate of the closing costs. You will need to bring a cashiers check to the closing.

******These figures are ESTIMATES ONLY. This is just to give you an idea of the costs which are commonly associated with buying a home. There may be other optional expenses such as a mold inspection, radon test, septic inspection, attorney fees. Your agent should explain these options to you.

Congratulations! You are now a proud homeowner! In this series we talked about some important things to know about buying a home. There is a whole lot more I could tell you. If you’re looking for a home in the Madison County area, give me a call. I would appreciate the opportunity to help you!

Real advice. Real answers. It's Real Estate simplified. Helping buyers and sellers negotiate and manage their real estate transaction successfully.

For real estate help in the Bethalto, Wood River, Alton, Godfrey areas email Stacie at stacie@mybethaltohome.com

Home Buying 101 in Bethalto, IL: Part 5 – Understanding Why Title is Important

Part 1: Know How Agency Affects You discussed the importance of finding a real estate agent to represent you.

Part 2: Will the Car Fit in the Garage? is about figuring out what is important now in finding your new home.

Part 3: What to Consider When Making an Offer talks about how to write an offer that is realistic and competitive.

Part 4: I Have a Contract, Now What? covers the inspections and appraisal process.

You are almost there! The first couple of weeks after the contract goes into effect are really busy. Once the inspections and appraisal process are done, most buyers start to focus on packing and getting ready to move. There are still others working behind the scenes, however, making preparations for the closing to take place. Here are a few things about the title that you may not know:

• Title – (1) The right to or ownership of land. (2) The evidence of ownership of land. Title is not an actual printed document. The actual document is called the deed. In Illinois, a deed must meet the minimum requirements in order for it to be legal. There are several different types of deeds.
• Title Search is an examination of public records relating to real estate to determine the current state of ownership. This research will provide proof that the seller does in fact own the property and has the right to sell it. Also it will determine whether anyone else has rights to the property.
• Title Insurance is a policy that protects the insured in the event that any defects in the title should come up during the course of ownership. Unlike other insurance policies that insure against future losses, the title insurance policy provides protection from an event that occurred before the policy was issued. A title insurance company will only issue a policy after they have reviewed the public records and determined that the title is good and there are no apparent defects in the title.
• The are also different types of title (ownership). How title is created is very important as it will determine things such as who else has a right to the property, what happens to the property when an owner dies, and what rights a creditor may have to the property. The table below gives a brief description of the four most common types of title in Illinois.

This information is believed to be accurate at the time of this post. I am not responsible for any changes made in these laws. For a more thorough explanation, or if you have any questions regarding title or forms of ownership, I do recommend you speak with an attorney who specializes in matters of real estate. In Part 6 – How Much Do I Need to Buy a House? we’ll go over the financial aspects of buying a house from the beginning of the contract to closing day.

Real advice. Real answers. It's Real Estate simplified. Helping buyers and sellers negotiate and manage their real estate transaction successfully.

For real estate help in the Bethalto, Wood River, Alton, Godfrey areas email Stacie at stacie@mybethaltohome.com

Home Buying 101 in Bethalto, IL: Part 4 – I Have a Contract, Now What?

Part 1: Know How Agency Affects You discussed the importance of finding a real estate agent to represent you.

Part 2: Will the Car Fit in the Garage? is about figuring out what is important now in finding your new home.

Part 3: What to Consider When Making an Offer talks about how to write an offer that is realistic and competitive.

Congratulations on getting your offer accepted! As we discussed previously, you now have a legal contract and your earnest money deposit will be deposited. There’s a lot to be done in the next couple of weeks, and there are deadlines that must be met. You and your agent will be in close contact to make sure everything stays on track. Here are some things to remember:

• Loan application must be applied for immediately, if it has not already been done. Your lender will tell you about their requirements for the loan and give you a “Good Faith Estimate” within 3 days. This will give you a recap of your closing costs and pre-paid expenses.
• The home inspection is not mandatory but highly recommended. It will need to be scheduled as soon as possible. The inspection will take 2 – 3 hours and it is very important for you to be there to see things first hand. You will learn a lot about the home and how to maintain it. The home inspector will give you a written report that is several pages long. However, keep in mind the purpose of the home inspection is to discover if there are any serious problems with the home. A serious problem could be something that is detrimental to the structure or the health and safety of those living in the home. A serious problem is not something such as replacing worn, ugly carpet or a broken doorknob. Once the inspection is complete, you and your agent will go over the report and decide how to respond. You have the right to ask the seller to fix those things which are important to you. The seller may agree to your request, or they may write counter response or reject your request. Your agent will explain your options to you.

• The city inspection is mandatory in some communities and is not the same as a home inspection. Whereas a home inspector will spend 2-3 hours thoroughly inspecting your home, the city inspection is usually done in 30 minutes or less. The seller is not required to pay for the city inspection and / or mandated repairs, but you can negotiate this with the seller. The home must pass the city inspection before closing can take place.
• The termite inspection is usually required by the lender. It is customary for the buyer to pay for this except with VA financing. Again, the seller is not required to pay for treatment or repairs if infestation and/or damage is found. But you do have the option of declaring the contract void if an agreement cannot be reached between you and the seller.
• An appraisal will be ordered by your lender. An appraisal is not the same thing as a home inspection. The purpose of the appraisal is to prove to you and your lender that the property is worth what you have agreed to pay for it. The lender will not lend more than the appraised value. In the event the appraisal comes back with a value lower than the contract price, your agent will explain your options to you.

While you are busy working on your to-do list, there are several others who are working to put the rest of the puzzle together so that the closing can take place as agreed in the contract.

Your lender will be working on your loan commitment, the title company will be doing a title search on the property, and your agent will be managing the entire process. All agreements or changes to the contract must be in writing and signed by all parties of the contract. DO NOT add debt (credit card, new car, furniture, etc) or spend money you have set aside for closing. DO NOT change jobs or quit your job before closing as it could severely affect your loan. Talk to your lender before you make any changes.

You’re in the final stretch now! In Part 5 – Understanding Why Title is Important I’ll explain which options are available to you in Illinois and the differences between each.

Real advice. Real answers. It's Real Estate simplified. Helping buyers and sellers negotiate and manage their real estate transaction successfully.

For real estate help in the Bethalto, Wood River, Alton, Godfrey areas email Stacie at stacie@mybethaltohome.com