BUYING A HOME IN CHICAGO JUST GOT MORE EXPENSIVE

Supposedly we are on the verge of a recession, homes are taking longer to sell, and everyone is…well…nervous.

So what does the Chicago City Counsil do? Increase the tax stamp, to the buyer, for buying a home!

What used to be $7.50 per $1,000 just increased to $10.50 per $1,000.

So a home that costs $300,000 currently carries a tax of $2,250, will have a cost of $3,150.  And this becomes effective for purchases, in the city of Chicago, after April 1.

Besides knowing about the additional costs, borrowers should pay attention to a few things:

1. Does the Good Faith Estimate disclose the costs?
2. When a loan officer meets with a borrower and analyzes the borrower’s qualifications for a loan, does the loan officer take into consideration the new costs?
3. Think about asking the seller to help pay for the costs.

Whether we like it or not, the increase is here.

7 February 2008 | First Time Homebuyers, Closing Costs, Pre-Approval, Good Faith Estimate, Chicago Stuff | Comments

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