House Hunting Requires Some Planning

Springtime is the traditional time to begin looking for a home. In today's fast-paced market you must be prepared! Your home search should be an enjoyable experience so make sure you plan accordingly to get the most out of it. Consult your mortgage lender and get pre-approved for a mortgage . You'll know up-front how much home you can afford. Crown's pre-approval is in writing. This gives you negotiating power, you'll be considered a "cash buyer".

Make two lists: one of what you like about your current home or apartment; one with the improvements you would like.Taking into consideration how much you can afford, narrow your search to a few specific areas that meet your requirements.Hire a buyer's agent to work for you and begin showing you homes in your targeted area

Choose a Buyer's Agent

Purchasing a home is the largest financial transaction you'll ever make. One way to relieve some of the confusion is by hiring a buyer's agent. It used to be that all real estate agents represented the seller. In January of 1995 a state law was passed to mandate that all real estate agents represent the buyer unless the agent was listing a particular home. The only person working for and representing the seller is the listing agent. This change provides protection for both sides. Buyers are safer now, they have someone acting on their behalf.

Ruling on buyer's brokers laws may vary in each state. In Indiana, for example, a written agreement is required to establish that the real estate agent works for the buyer. Otherwise it is assumed the agent works for the seller. A buyer's agent will be objective throughout your home search.

You may fall in love with a home and not notice imperfections. Your buyer's agent will pay close attention to all details and point them out for you. Taking this into consideration, the buyer's agent also negotiates the best price and terms for you. The commission that your buyer's agent earns comes from a percentage of the sales price of the home you purchase. In most cases there is no fee for the buyer to pay. The fee is buried in the price of the home.

Hiring a buyer's agent makes sense. In the long run you'll save money and hassle. Crown Mortgage Company works with a selected group of real estate professionals that will work on your behalf as a buyer's agent.

For more information phone our Oak Lawn Production office at (708) 857-1897.

Enjoy Tax Benefits with Home Ownership

Besides security, one of the greatest benefits of home ownership comes this time of year when homeowners can realize the value of tax breaks from the Internal Revenue Service.

New homeowners may deduct any loan fees paid to obtain a mortgage loan, closing costs do not qualify. Points paid on a loan are deductible and since each point equals 1% of the amount borrowed, this can be a significant amount. A one point loan fee on a $100,000 mortgage is $1,000, that is tax deductible as itemized interest for the year in which it was paid. At the closing of your home, any taxes paid are deductible.

The amount of interest paid on purchase loans is deductible the year in which it is paid. Interest on second mortgages is tax deductible but limited to a loan amount of $100,000.

The actual amount of property taxes paid to the tax collector is deductible.

Homeownership continues to be your best investment! Additional tax benefits may be available, everyone's circumstance is different.

Direct Payment Program

We are all looking for ways to save more time and money. Crown Mortgage can help by offering our Direct Payment Program to homeowners who are currently in our loan portfolio. Save time preparing mortgage payment checks, save money on postage and check fees, improve your budgeting and eliminate the chance of late payments due to mail delays.

Let your bank, savings and loan, or credit union automatically make your payment on the first of every month. If you wish, you can make extra principal payments each month and if the first of the month falls on a weekend or a holiday, your account will be charged on the next business day without any late fees.

For more information or to request a form to sign up for Crown's Direct Payment Program, call our Loan Servicing Department in our Oak Lawn Corporate Office, (708) 8571897.

Save on Monthly Mortgage Payments

If you financed your home using a Conventional loan with a down payment less than 20%, you are paying Private Mortgage Insurance (PMI). Conventional loans are neither insured by FHA nor guaranteed by VA, so PMI is used to reduce lenders' risk due to loss from foreclosure. Mortgage insurance has also enabled more consumers to buy homes with smaller down payments.

PMI does not need to last the life of the loan; it can be eliminated to help in reducing your mortgage payments!

For loans obtained prior to July 29, 1999, Crown's Guidelines to Eliminate PMI:

The request must be in writing.

Loan payment history must show no payments posted over 30 days late during the preceding 12 month period (min. of 12 payments must be made).

Loan-to-Value (appraised value/current balance) must be at or below 80%. This may be based on either the original or current appraised value.

The value of the property cannot depreciate below the original value of the property. Crown Mortgage reserves the right to require an appraisal if deemed necessary.

To cancel PMI based on the property's current value, a new appraisal may be ordered by the customer from Crown's Appraisal Department for $300.

For loans closed on or after July 29, 1999, automatic cancellation will occur when loan-to-value reaches 78%.

The process to cancel your PMI may take up to 30 days. Customers must continue to make their mortgage payment on a timely basis during this period. Written notification of the final decision will be provided.

To start taking advantage of the savings, send your request for PMI Drop to the Servicing Department at our Corporate Office.

Preventing Foreclosure

Over the past 25 years in business, Crown Mortgage has found the #1 reason for default is divorce. At Crown Mortgage Company we will work with our mortgagor to cure their default. Divorce is painful enough; you shouldn't deplete your largest financial asset by late and legal fees.

If either mortgagor moves out, the other can't or, under advice by their attorney, doesn't make the mortgage payments. Allowing your home to go into default is bad advice. This decision does not benefit either party's financial situation or their future. Crown Mortgage Company can help you sell your home and will consider deferring late and legal fees.

We will also work with both individuals so they are able to move ahead and purchase a new home on their own. Phone (708) 346-8760 or (708) 636-1900 for more information.

6141 West 95th Street

Oak Lawn, IL 60453

Toll Free:

(800)721-4334

Phone:

(708)857-1897

Fax:

(708)424-2111

crownmco@earthlink.net