Home Buying in 60010>Question Details

cross, Home Buyer in Chicago, IL

I have credit of around 620. Good career income 120K , min debt, plan to sell condo to purchase a home. What are odds at getting a loan?

Asked by cross, Chicago, IL Wed Jul 11, 2012

Expect to break even on condo, want to purchase home for around 300k with another 50K needed for reno, have a cash bonus coming early next year that would allow 20-35% down.

Help the community by answering this question:


I have a program where with as little as 5% down(can be gift funds) will qualify you for a loan.

Mike Decman
Cherry Creek Mortgage Company
6440 Main Street, Suite 320
Woodridge, IL 60517
Loan Officer NMLS # 847074
Office 630-427-4668
Cell 239-633-6323
e-Fax 800-863-5473
Email mdecman@ccmclending.com
0 votes Thank Flag Link Wed Nov 12, 2014
I would correct Pat in as far as you credit being good, I would say marginally OK, borderline bad and only a lender could tell you if that 25% down makes up for that. Strict lender underwriting looks at credit score, debt to income, cash reserves and a stable job history and income. The bonus might be considered a one off and excluded from calculating what you qualify for. Plus what if you need to bring money to closing your condo and that comes out of your down payment. If you did a short sale on condo dont plan on buying a place right after.

If you like my answer, thumbs up me and best answer. Thanks!

best of luck!
0 votes Thank Flag Link Sun Jan 20, 2013
Your credit is good, not super but I suggest you get three appraisals on your condo before doing anything. I have several buyers with condos that just won't sell so no matter what your score is or how much you make, you really can't buy until the condo question is handled. You can study the buying market, get an agent to help you check things out but sit still until you figure out if you can really sell your condo even to break even or you might have to consider renting your home for a year or so. Selling or renting your condo will let you know how much of a home you can buy, One step at a time for you.
0 votes Thank Flag Link Sat Jan 19, 2013
The Fico score is now 640. Plan to start looking in spring.
0 votes Thank Flag Link Sat Jan 19, 2013
whatever came of your situation?
0 votes Thank Flag Link Sat Jan 19, 2013
You sound like a good buyer, I suggest you get three appraisals by agents for your Condo from your area and see what they suggest, you may decide to rent the condo out for a couple of years if you will be taking a loss on it. Making 120K a year, you are probably right about how much to spend on a new home, 1/4 of your income should be O.K. but watch those taxes, they are killers in some areas, not knowing what other bills you may have, a car, boat, summer home, time share or
what ever, lay it all out on paper like some sort of budget, don't become house poor, it only leads to
problems with a mate if you have one. You can never budget for you getting sick, kids getting sick so if its at all possible, have a couple of house payments hidden in a spot where you won't take that money out except for an emergency. You sould like you are a responsible person. Good Luck
0 votes Thank Flag Link Wed Dec 19, 2012
Sounds like you're headed in the right direction. I can help you with every facet of your situation. Getting you an evaluation of your condo's value, getting you to a great lender that will give you good advice, and lastly getting your condo sold then off to buy a house in the Barrington area.

I once had a client in your exact situation; we sold his Downtown Chicago condo and bought a house in Vernon Hills. I can and will accomplish this for you- for the most amount of money, in the least amount of time, with the fewest headaches. Hope to hear from you soon.

773 988-1710
0 votes Thank Flag Link Sat Dec 15, 2012
Hi Cross,

We have a lender that goes all the way down to a 620 credit score for an FHA loan which is the way you want to go. Even with that 20% down, conventional is not the way you want to go. With that amount of money down, you would be looking at a rate in the 3's. Feel free to contact us if you would like a no obligation prequal. We are closing our loans in 30 days or less (avg.) Good luck!

0 votes Thank Flag Link Sat Dec 15, 2012
Hi Cross,
Are you still looking to buy and sell? Believe it or not, now is a great time for both.
You will not have as much competition for either in the winter. Less homes on the market, less people looking. Prices and interest rates are still good. I trust you have been working on increasing your credit scores.If you have any questions, feel free to contact me.
Lela Theriault
Baird & Warner
0 votes Thank Flag Link Wed Dec 5, 2012
You are taking a wise step with putting your questions out there for professionals to lead you in the right direction on your pending home purchase! You seem to have a solid situation, and with your upcoming bonus, you should be ready to rock & roll in early 2013. Try to pay off debts to solidify your credit score and start making improvements to your condo- There are many condos on the market these days, so the key is to make yours stand out. Declutter, clean, and make any minor repairs within your ability now! When you are ready to list, I recommend finding an agent who will hire a professional photographer to bring out the very best features in your unit. Your on-line photos and presentation will be what draws potential buyers to you! Also begin to research lenders and don't be afraid to SHOP around! Different lenders can do different things to help you make your money work for you, so take your time and learn what each can offer. If you have any questions or need a list of lenders in your area, don't hesitate to reach out to me at 773-988-1710/ stewartramirez66@gmail.com. Good luck to you, Cross!
0 votes Thank Flag Link Wed Dec 5, 2012
Just like the boy scouts say.."Be prepared!" We believe will all important decisions you should seek expert advice. We have several lenders that will be able to help you make a plan that would be the most beneficial to you and future. Judy & Tara
0 votes Thank Flag Link Mon Aug 13, 2012

I work with a great lender that can get you approved. Please contact me to help you through the process.

Maria Ascencio
RE/MAX Platinum
0 votes Thank Flag Link Wed Jul 11, 2012
Get a good realtor, talk about your situation, and have her/him hook you up with a good lender.
Start the process rolling. What areas are you looking in?
0 votes Thank Flag Link Wed Jul 11, 2012
You have time to build up your credit score, and thus lower your interest rate. You can probably get a mortgage, but you will be paying a higher rate than normal. Pay your bills a few days early. Pay more than the minimum due on credit cards, if you can't pay them in full. Don't take out any more credit cards, and don't close any. Both will ding your credit. Refrain from major purchases (car, furniture, appliances, etc.)
I know several honest mortgage people who will help you build your credit up before they give you a mortgage. Can also tell you about the 203K renovation loan.
Have you had a Realtor do a market analysis on your home to be sure of its value.
I will be glad to help you, if you like.
Lela Theriault
Baird and Warner
0 votes Thank Flag Link Wed Jul 11, 2012
Please call me to discuss your situation in details. You may be eligible.

Peter Schifrin
VP of Mortgage Lending
Guaranteed Rate, Inc.
ph. 224 330 6924
0 votes Thank Flag Link Wed Jul 11, 2012
As long as your credit stays at 620 or above, I don't forsee any problem getting a loan if you sell your condo. I'm just wondering how realistic you are when you say you're going to break even on your condo. Condos are a tough sell these days, because so few of them qualify for FHA mortgages (which make up about 80% of the mortgage market).
I'm here to answers questions directly if you need me.
Helen Mazur
Hometown Real Estate Group LLC
0 votes Thank Flag Link Wed Jul 11, 2012
Talk to a lender or a couple of lenders 620 is the lowest many will go, but some will do that with other compensating factors, like your income, assets, debts, etc.

http://www.olsonmortgage.com is loan office Todd Olson at Wells Fargo. I know he will do a 620 in most cases.
0 votes Thank Flag Link Wed Jul 11, 2012
I do not really see any problem for you to get approved for a loan. You are not in foreclosure or have filed bankruptcy in the recent past correct? If that is the case I have lenders that should be able to get the loan approved.

Feel free to contact me by phone, text or email.

Dennis Melton
Keller Williams Success Realty
0 votes Thank Flag Link Wed Jul 11, 2012
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