If you are a first time homebuyer there are some programs that are available for down payment/closing cost assistance thru Illinois Housing Development Authority (IHDA). Please contact me at the below phone number or email for more information.
Nick Nelson (NMLS#384413)
1st Step Mortgage Group
6876 Spring Creek Road, Suite 124
Rockford, IL. 61114
815-289-0880 - Phone
firstname.lastname@example.org - Email
If you are really determined to purchase a home then consider a lower down payment option. We offer conventional financing with as little as 3%down. It's not a huge difference but it may be enough to give you the cushion your looking for. If you would like to talk about your options please feel free to contact me at your convenience.
Senior VP of mortgage Lending
Best of Luck,
The financially sensible answer, and litigiously correct one, is to keep part of your savings.
But let's say you are healthy and 'young'. You have no debt. You earn what most would call a "good living". You have been looking at places for a year, and due the unique space/location you desire, this has been the only place to come on the market. You have the ability to replenish your savings in a year or two. This could be a very strong reason for making the purchase now.
A condo shouldn't have the surprise costs that a home might. It has a lot of mental costs that you may not want to deal with after several months but that's another story (5 part novel).
Consider down payment assistance programs like IHDA, if you qualify.
Good luck. You'll be fine. Just don't get fired.
Also are you working with a Realtor your own Buyers agent? If not you should so that you will not pay more for the property, that it will appraise out etc. etc. be careful there are so many steps and details to watch out for... read on it may help you:
WORK WITH A REALTOR, YOUR PERSONAL BUYERS AGENT
I am wondering why you ask this question here at Trulia, if you are an interested and determined
buyer, you definitely should connect with a local Realtor, a buyers Agent, ie a Realtor who will be on
your side, protecting your interests, finding the right property, arrange showings, answer all your
questions, help you right a good offer, get you also pre-approved for a loan, and negotiate on your behalf the very best sale price and terms and if you commit to one trusted Realtor, he or she will commit 100 % to you and his or her services if you make an offer on a property listed by a Realtor/Brokerage in the multiple listing service will be FREE to you, as Buyers Agents are usually
paid by the seller's side, out of the sellers proceeds at the closing table...
Why would you want to do this on your own, when there are so many details to be taken care of the
right way and so many details need to be paid attention to, inspection appraisals, loan commitment, walk thru etc. etc. in order to bring an offer to a fully executed contract and that to successful closing and home purchase.
Give it a second thought and hopefully you will decide to work with a trusted Realtor, who is experienced in your areas of interest. Please commit to only ONE Realtor!! If you need recommendations get back to me I gladly forward you names..
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com Check out my website at htttp://www.tinyurl.com/MeetEdithHere
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
I would highly not recommend borrowing on your 401k as you will borrow with pretax money as that is how it went into the 401k and then you will pay back with after tax money your debt making your downpayment even higher than your savings if you were to buy now.
I would continue to save and buy within your means when the timing is right. Not only do I have experience in Real Estate I have a financial background and it is so important to look at your entire financial picture when buying a home.
Because of all the shadow inventory available ( short sales and foreclosures) that are coming into the market in the next few years there will be plenty of buying opportunities.
There are also homes out there with less than 5% down to checkout.
Talk to an agent you can trust and a lender who will guide you every step of the way.
I understand wanting to get on the property ladder, but you will do yourself well to buy low instead of stretching yourself thin.
Buy something that is well within your means, and sleep easy knowing you have a cushion in the bank, with extra money to spend and save each month.
During the 'bubble' years buyers frequently withdrew money from their 401K and other places just to buy something because lenders would lend to anyone as long as they had a pulse. Those days are over.
I will be there for at least 5 years, if not much longer. My monthly income is good, and the monthly repayments would be about 30% of it. I can definitely make adjustments to my lifestyle to live more frugally and am willing to eat ramen noodles for a long time if it means i can get what would be my dream first home. I guess I'm just looking for reassurance that I'm doing the right thing as it's scary decision to make.
It reallyh depends on your situation. If you can recapture savings with the diference between rental and mortgage within a reasonable time and you can work on rebuilding an emergency fund as well then it would be worth it for me. Solely based on the fact of my mortgage being lower than my rent. Making adjustments is part of life in order to acheive certain goals. Make a plan and stick to it.
Call me if you have any further questions 773-750-4311