A Guide To Buying a House in Illinois

Buying a house in Illinois can be exciting due to the many positive benefits the state has to offer. Chicago is one of the most diverse cities in the world. Dale Elenteny, a lifelong Illinoisans and veteran loan officer at GCA FORUMS Mortgage Group made the following statement about buying a house in Illinois.

Illinois has award-winning high schools and mansions in expensive suburbs such as Winnetka, Glencoe, Barrington, and Wilmette where median homes are prices over $1.5 million. Other suburbs such as Mount Prospect, DesPlaines, Cicero, Lyons, Prospect Heights, Oak Brook, Hindsdale, Aurora, and Claredon Hills have modestly prices homes in the mid $200,000.

There are hundreds of different nationalities in Chicago and its surrounding suburbs. Downtown Chicago has one of the most beautiful if not the most beautiful landscapes in the world. Chicago has dozens of top colleges and universities. There are countless top school districts throughout the state of Illinois. Illinois has many beautifully designed award-winning homes.  Lake Michigan borders Chicago’s eastern section and the northern suburbs up to the Wisconsin state line.  In the following paragraphs, we will cover buying a house in Illinois and getting qualified for a mortgage.

Buying a House in Illinois: Political Corruption 

Buying a home in Illinois has a negative factor for homebuyers. Illinois’s political corruption has affected the cost of living in the state.  For years, Chicago is the number one most corrupt city in the United States. Illinois led the Nation as the third most corrupt state. Four of the last 7 Illinois governors got arrested, convicted, and served time in jail. Former Illinois Governor George Ryan has served more than five years in prison for corruption. Ryan was convicted after he left office and sentenced to six and a half years in federal prison.

Former Governor Rod Blagojevich who served as governor from 2002 to 2009 became the first governor in Illinois history to be impeached. Blagojevich was convicted of many corruption charged and is currently serving a 14-year prison sentence. Dan Walker who served as governor from 1973 until 1977 pled guilty to bank fraud and other charges related to his personal business after leaving office. In 1987, Walker was sent to prison. He served 18 months before being released.

The current Illinois Governor J.B. Pritzker who just took office this year is under federal investigation for property tax fraud. Pritzker’s federal criminal investigation is currently ongoing. Public corruption is a major problem in Illinois. The cash-strapped state is bleeding financially due to incompetent and corrupt politicians. The first step in getting Illinois back on its feet would be Fixing Illinois Corruption. In this article, we will cover and discuss Fixing Illinois Corruption Would Greatly Benefit the Budget Deficit In the State.  Click Here to buying A House In Illinois

Fixing Illinois Corruption Would Be The Start In Getting The State Great Again

The Chicago Field Office of the FBI has been busy cracking down on corrupt politicians for decades. However, there is no end. More state, county, and city politicians are getting investigated, arrested, charged, and convicted. Corruption in Illinois seems to be escalating. The FBI has expanded its investigations of potential corruption at the city, county, and state levels throughout Illinois. They have been focusing on top Democratic officeholders as well as those associated with them, special interest organizations, friends, and family members. Wiretapping and raids are more common today than ever before. Many arrested and/or under investigation are turning state evidence and flipping. Only a fraction of those being targeted resulted in indictments. The aggressive investigation by the Feds is welcomed by Illinois taxpayers who are fed up with rising taxes, budget deficits, and corruption.

History is Repeating Itself in Illinois

Corruption has been a way of life in Illinois, especially in the City of Chicago. Public corruption costs countless money to taxpayers. Illinois and most municipalities in Illinois are facing major budget deficits. Corrupt politicians are adding fuel to the fire hurting Illinoisans. Many of us remember Operation Greylord. Operation Greylord is the massive federal investigation in Cook County back in the 1980s that resulted in the arrests, indictments, and convictions of judges and politicians in Chicago and Cook County. Operation Safe Road was the reason why former Illinois Governor George Ryan went to jail for. Ryan, then-Secretary of State, allowed bribery and corruption in his office. Drivers, especially CDL applicants, paid the Secretary of State Office to get their licenses without being properly qualified. Ryan was sentenced to 6.5 years in federal prison for illegal patronage, contract rigging, and racketeering within his office. Lives were lost due to this corruption.

Illinois Politicians Under Investigation Facing Potential Indictments

Former Illinois Governor Rod Blagojevich got a lengthy prison sentence of 14 years in the Operation Board Games federal investigation. He was convicted of several felony charges including leveraging a U.S. Senate seat to enrich himself

The current public corruption, yet to be named, is the investigation of Chicago Alderman Edward Burke. Burke is accused of steering using influence on his role as an alderman to steer business to his law practice. Alderman Burke’s Aide Peter Andrews and Chicago developer Charles Cui are also under investigation and are facing indictments.

Many Illinoisans are suspicious of Illinois House Speaker Michael Madigan. Madigan is the most powerful lawmaker in Illinois. He has served in the Illinois Senate for over 30 years. Michael Madigan, like Alderman Edward Burke, owns a law firm that specialized in property tax appeals. Madigan has not been charged with any crimes as of today.

Officials Related To Illinois House Speaker Michael Madigan Under Scrutiny

Mike Madigan may be under federal investigation. This news is not public yet and the FBI is keeping mum about Mike Madigan. Madigan denies any wrongdoing and told the media that he is not any target of any federal investigation. However, many of Mike Madigan’s associates have been under scrutiny by the Feds. Many of them had their homes and/or offices raided by FBI agents. This includes ComEd lobbyist Mike McClain, ex-aide Kevin Quinn, and former Chicago Alderman Michael Zalewski. ComEd and its parent company Exelon have been subpoenaed to turn over documents that are related and/or associated with lobbying activities. Fixing Illinois Corruption is going to be a long haul project. You are who you hang out with. Many experts believe in term limits for elected politicians.

Buying a House in Illinois With High Taxes

There are many Illinois politicians seek elected office to further themselves and/or their businesses and help their friends and family. Close scrutiny is being focused on Mike Madigan. The Illinois House Speaker is by far the most powerful politician in Illinois. He has thousands of who he has a lot of influence on. The FBI is focusing hard on Madigan’s inner circle. Worth Township Supervisor John O’Sullivan has been subpoenaed for his role in the red-light camera investigation. Public Officials in McCook, Summit, and Lyons had their offices and homes raided by FBI agents a few months ago. Crestwood, Illinois Mayor Lou Presta is being investigated for irregularities on the village’s taxpayer-funded expense reports. Illinois State Senator Martin Sandoval, a close ally of Mike Madigan and a close connection to ComEd, the game industry, and red-light camera company, had his office and home raided. Another Madigan ally, State Representative Luis Arroyo was arrested and charged with bribery and other federal offenses. He stepped down from the state legislature. Click Here to buying A House In Illinois With High Taxes

Buying a House in Illinois With Bad Credit

Homebuyers can be buying a house in Illinois with bad credit and have many mortgage loan options. GCA FORUMS Mortgage Group are mortgage brokers licensed in 48 states and headquartered in Oakbrook Terrace, Illinois.

Over 80% of our clients at GCA FORUMS Mortgage Group are folks who could not qualify at other lenders. Buying a house in Illinois with bad credit and credit scores down to 500 FICO is what the team at GCA FORUMS Mortgage Group are experts in.

Buying a house in Illinois with bad credit has never been easier. GCA FORUMS Mortgage Group can help homebuyers buying a house in Illinois with bad credit. Mortgage borrowers get qualified and approved for a mortgage loan with credit scores down to 500 FICO. We have no lender overlays on government and conventional loans. GCA FORUMS Mortgage Group has a lending network of 250 wholesale mortgage lenders including dozens of non-QM wholesale mortgage lenders.

FAQs Buying a House in Illinois

The following is the FAQ-ABLE guide on house buying in Illinois:

What Are The Common Steps for Buying a House in Illinois?

1. Pre-Approval: A review of your information to prepare a budget by approving you for a mortgage.
2. Find a Real Estate Agent: Consult a local realtor who knows the housing sector of Illinois.
3. Search for a Home: Begin the search for appropriate houses in the desired area and within your price range.
4. Make an Offer: When you have located a house, make an offer based on its value.
5. Inspection: Get a thorough evaluation of the property to ensure any issues are sorted out before the purchase.
6. Appraisal: One of the lender’s many roles is to appraise the property to be lent so that they can determine its worth.
7. Closing: Once the relevant agreements have been signed and the purchased goods have been settled, the sale proceeds may be claimed.

What is The Standard Down Payment When Buying a House in Illinois?

An Illinois home buyer is generally required to make a down payment that averages between ten and twenty percent of the purchase price. Some programs, like FHA loans, for example, only require a fifteen percent down payment, while some VA and USDA loans do not require any down payment at all for qualifying citizens.

What Are Some of the Mortgage Loans That Are Available For Buying a House in Illinois?

• Conventional Loans: This is part of the loan that all normal mortgages involve, which is made as little as 3% down.
• FHA Loans: They have a low down payment of 3.5 percent and do not restrict people with low credit scores.
• VA Loans: These are offered to veterans, and there is no down payment.
• USDA Loans: Designed for the countryside and rural lands with 0 percent down.
• Non-QM Loans: Aim at persons who are not traditional borrowers, such as self-employed individuals.

What is The Cost of Closing Buying a House in Illinois?

Closing costs in Illinois are within the range of 2% to 5% of the house’s purchase price. It includes these costs such as:

• Loan origination costs.
• Costs associated with an appraisal
• Insurance against title defect
• Real estate taxes
• Fees for a lawyer (which is mandatory in the state of Illinois when purchasing real estate property)

What is Illinois Tax on Property?

Illinois property tax assesses homes at approximately 2.16% of the total assessed value of the home, one of the highest rates in the USA. However, property tax assessment differs from one county to another, making it very unlikely to assume that such figures should apply to all home buyers.

Is a Home Inspection Necessary While Buying a House in Illinois?

According to Illinois laws, a home inspection is not mandatory. However, such an action is positively instructed. During the inspection, buyers can find out if there are existing problems within the site, such as structural defects, faulty plumbing, bad electrical wiring, and many others, affecting a buyer’s final decision or how much repair work one would like to take.

Will I Need an Attorney to Buying a house in Illinois?

Yes, an attorney in Illinois must participate in the closing process. The attorney reviews the purchase contract, ensures that all legal obligations are fulfilled, and helps overcome challenges that may arise during the transaction.

Where Do I Find First-Time Homebuyer Programs in Illinois?

Illinois Housing Development Authority (IHDA) provides programs, including IHDAccess Forgivable, which provides a maximum of 4% of the purchase price towards the down payment without requiring repayment. IHDA Access Deferred offers assistance of 5%, which will be deferred for the loan’s lifetime. IHDAccess Repayable offers 10% down payment assistance, emphasizing repayment within ten years.

In Illinois, Can I Still Buy a House Without Good Credit?

It is still possible to purchase a home with bad credit. Programs like FHA loans permit as little as a 3.5% down payment for clients with a credit score of 580 and above. First-time homebuyers with bad credit can also find lenders who provide non-QM loans or rent-to-own options.

How Long Does it Take to Make a Home Purchase in Illinois?

On average, purchasing a home in Illinois takes 30-45 days, counting from the acceptance of your offered price to the point of closure. However, individual cases may differ because of certain conditions, such as the kind of mortgage turned for, examination results, and even slow appraisals.

What Are the Most Popular Cities in Illinois in Which to Buy Houses?

The suburbs of Chicago, especially Naperville, Oak Park, and Schaumburg, are valued mostly for their high-quality schools and suitable family environments. Lower-priced housing may be found in suburbs like Aurora or Rockford. At the same time, Peoria and Champaign are appreciated for their affordable prices for residents.

Is it Possible to Buying a House in Illinois Without Making Any Down Payment at Closing?

Suppose you meet the criteria. For example, if you have a VA loan (for veterans) or a USDA loan (for rural homes), you do not need to put any money down to get the house.

What are the Usual Contingencies Present in Sample Home Purchase Contracts in Illinois?

Common contingencies include:

1. Financing contingency: Protects the buyer if they cannot get financing.
2. Inspection contingency: This leaves an escape route for the buyer in case the home inspection uncovers ‘deal-breaking’ issues.
3. Appraisal Contingency: This guarantees that the property is worth the sale price or more in the home debt and valuation processes.

Am I Allowed to Withdraw From Purchasing a Home After Signing the Contract of Sale in Illinois?

Yes, you may back out. However, there could be some penalties. Suppose you abandon the contract for no good cause (like not fulfilling a contingency). In that case, you stand to forfeit the earnest cash deposit.

What is Earnest Money, and How Much is Required in Illinois?

Earnest money is the amount placed to show the seller that one is serious about buying one’s home. In Illinois, earnest money is usually about 1%-3% of the total purchase price of the house. That amount is credited against your home’s down payment or closing costs. Still, it would be lost when you abandon the purchase agreement due to no genuine cause.

These FAQs address several issues related to buying a house in Illinois. However, the steps may differ depending on individual circumstances. Contacting a local realtor or lawyer for a better experience is advisable.  Click here to buying a house in Illinois