Home Buying in Chicago>Question Details

Kdmcder, Renter in Chicago, IL

I am looking at a short sale that is listed at 89,000. My credit is 625 and I have saved up $5,000. Is this a realistic situation? What steps would I?

Asked by Kdmcder, Chicago, IL Thu Apr 12, 2012

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9
Hello, if your purchasing fha you'll need at least 3.5% down plus closing costs of roughly 2- 3% .

Assuming you can a 3% seller assist, otherwise that'll be an additional cost.
You'll also need a low DTI RATIO.
Also be sure to send you lender a complete file; application 1003, 2 years tax returns 2011 & 2010, last two pay periods check stubs, 6 months bank statements, authorization to run credit. Thats your basic application.
by the way obtain your 2011 & 2010 Irs transcripts your lender will love you for it. Send all forms in ay the same time.

John mason
crei.mason@gmail.com
0 votes Thank Flag Link Thu Apr 19, 2012
No Money - No Honey! Get yourself preapproved first and then go house hunting to your heart's content.
0 votes Thank Flag Link Thu Apr 19, 2012
Hi there!!! Your first step is to contact a lender who will guide you thru the credit and financing process!
0 votes Thank Flag Link Thu Apr 12, 2012
#1 Step. Talk to a lender. Nobody on this forum can tell you anything better than that.
0 votes Thank Flag Link Thu Apr 12, 2012
Hi It is realistic! First contact a lender, get pre-approved and if you are not working with anyone please feel free to give me a call. Much Success to YOU!
0 votes Thank Flag Link Thu Apr 12, 2012
Hello
This is indeed a realistic situation. You appear to be a good candidate for FHA financing. I highly recommend that you contact a lender for the actual pre approval.
I am happy to help if you are interested.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773-290-0455
0 votes Thank Flag Link Thu Apr 12, 2012
Hello,

Contact me for some good local lender referrals. Getting a pre-approval is the first step.

Best,

Ivan Sagel
312-515-7823
IvanSagel@DwellOneRealty.com
0 votes Thank Flag Link Thu Apr 12, 2012
You need to contact a good lender in your area. They will not charge you any upfront fee and they know all the available lending products. If you can get a loan, a lender will find a program for you. Good luck.
0 votes Thank Flag Link Thu Apr 12, 2012
The biggest flaw in your thinking is that the $89,000 is a number that you can hang your hat on:
Many of the newest Listings are setting the LISTING PRICE at a low number so that they can get multiple offers.
If play the game of Low-Balling, you will lose.
Being a Shortsale, you will need to employ a Realtor to represent you;
have them do a CMA to find out how realistic that List Price is.

Hypothetically;
If the Market Value of the house is $100,000, you can offer $105,000 with $5,000 back for Closing Costs and $5,000 down. Talk to your Reator and your Lender.

Good luck and may God bless
0 votes Thank Flag Link Thu Apr 12, 2012
what is a CMA?
Flag Thu Apr 12, 2012
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