Home Buying in Chicago Lawn>Question Details

Vee+2, Home Buyer in Chicago Lawn, Chicago,...

My husband and i would like to buy our first home how much would we have to put down or what are the steps to

Asked by Vee+2, Chicago Lawn, Chicago, IL Fri Jun 26, 2009

take in doing so.

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Vee have you considered working with Neighborhood Housing Services of Chicago. They have been around since 1975 and specialize in working with first time buyers. They are HUD certified and have a lending division that does conventional loans with only 3% down and can include any rehab money if the property needs work or you want to remodel. Their rates are market rates and are not based on credit scores. They have offices all over the South Side and have on in Chicago Lawn/Gage Park at 2609 W. 63rd Street.
check out their website http://www.nhschicago.org for more info.
EC
0 votes Thank Flag Link Tue Jun 30, 2009
Vee+2.

I think a good resource and place to start when trying to understand the process and the many options available would be here.... http://www.hud.gov/buying/index.cfm

This site will go over the 9 steps they break home buying into and also provides tools/resources for you to use to get a better understanding of the things you need to consider.
Figure out how much you can afford
Know your rights
Shop for a loan
Learn about homebuying programs
Shop for a home
Make an offer
Get a home inspection
Shop for homeowners insurance
Sign papers
They also have Free Counseling available to answer questions or assist you in the process. It's information for all First Time homebuyers.

The FHA site also has a ton of information on the same topic plus resources for loan info. You should really give it a look... http://portal.hud.gov/portal/page?_pageid=73,1827624&_da…

This site is the Gov site for all Loan programs currently available and allows you to answer a few questions to determine which ones you may be eligible for.
http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p…

Keep informed about Mortgage rates, these sites may help you with that plus they have tons of other information you may wish to look at.... http://mortgage-x.com/general/rate_trend.asp
http://www.fhfa.gov/ ... http://ml-implode.com/

Choosing an agent or lender to work with you you is a MAJOR Decision as it involves finding someone who can assist you in a Major Financial Commitment. Inform yourself as much as possible, ask as many questions as you feel necessary and have a good idea of the Type of agent or lender you wish to work with and what your goals are.... Commissions are Negotiable.

Good hunting, Dunes
0 votes Thank Flag Link Mon Jun 29, 2009
Vee+2:

Unless you are a veteran you would need a minimum of 3.5% of the purchase price as a down payment ($100,000 purchase price = $3,500). The easiest thing to do is to contact a lender - whether it be me or someone else that has taken the time to respond to your question - and give them 5 minutes of your time over the phone. They can gather the necessary information from you to determine your ability to become a homeowner.

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091

kclements@gsf-mortgage.com
http://www.gsfgovernmentloans.com
0 votes Thank Flag Link Mon Jun 29, 2009
first, you need to go to your bank or any mortgage company for your pre-qualification. This will determine what range of property you can buy based on other variables including your debt- to-income ratio. Good luck. For referrals to properties in New York City, Pls. check my website at http://WWW.DANNYBROWNY.COM
0 votes Thank Flag Link Sat Jun 27, 2009
Hi Nicole,

If you don't mind, I would like to poast a copy of an answer just gave to another First Time Homebuyer with a few edits. I hope it helps. It is really detailed and I feel it will assist you greatly.
Please do not hesitate to call, email, fax or walk into my office to see me. I would love to walk this path with you. You can look me up at http://www.marvelmortgage.com.


I only originate loans in Illinois and my advice to you will be generic enough, but very detailed.
You should really first educate yourself as to the pros and cons of home ownership. For a First time homebuyer, I think you are doing the right thing by trying to find out as much as you can before you buy.
You should get a copy of your credit report http://(www.annualcreditreport.com), go over it and try to fix any problems you spot. Remember that too many inquiries, high credit card balances and too many open accounts can affect your credit scores too. Check that there are no unusual names, social security numbers or addresses showing up on your credit. This is becoming a guideline issue for many Lenders now, because of recent laws on credit. If you spot any problems, call email or write the bureaus and dispute them immediately. Keep checking with the credit bureaus until everything is cleared up (i.e don't take it for granted that they have fixed the problem the first time you dispute).
Secondly, please save up as much as you can. The FHA loan requires 3.5% downpayment and additional funds to close the loan. There are different Lender programs, but almost every one of them also wants to see that you have some "fall back funds" called reserves in your bank, after you close. Most companies look for a minimum of 3 times of your full monthly payment.
Of course, you need to have a job that pays enough income to qualify you for the loan. Also note that usually, you want to have no more than 43% (the Freddie Mac requirement) of your income going towards all the bills on your credit, plus your total mortgage payment - principal, interest, real estate taxes, home insurance, and condo association fees if you buy a condo.
When you get ready to apply for the loan, make sure to find one that offers a variety of the programs you are eligible for. Don't be discouraged by any Lender who tries to put you down. Usually it is because they don't have the programs you want in their portfolio, or never took the time to educate themselves enough to be able to assist you with a variety of options. Keep calling until you find someone who is knowledgeable about the mortgage options, can intelligently explain them to you, and treats you with the courtesy you deserve. They will prequalify you for the best purchase price, loan amount, interest rate and downpayment available to you.
Then find a Realtor using the same guidelines I gave you in the paragraph above. They will help you pick out a property and write your contract.
Once your contract is approved, get a Real Estate attorney immediately. They should review your contract and protect your interests legally throughout the process. A lot of people make the error of thinking the Attorney only comes to the closing with you, but this is not the case. The sooner you retain the Attorney the better.
Then you simply provide whatever documents you are asked to, and you should be able to close on a property without too much stress.
Remember, educate yourself well, find professionals who will work hard for you and treat you with respect and go for it.
Good luck to you the homebuying process.

Sincerely,

Nike
0 votes Thank Flag Link Sat Jun 27, 2009
Many first time home buyers get a FHA loan which requires 3-1/2% down. If the home qualifies for the HomePath finnacing then a 3% down payment is required. You can ask in your purchase offer for the seller to pay up to 3% towards closing costs and prepaids.
You should really contact your bank and then one or two other loan companies. Be sure to ask about your total cost of getting a loan. ie: points and any other charges they may have.
You should also work with a good real estate agent that understands your needs and will not try and up sell you.
He/she should be able to run off a cost sheet with approx total costs. You will find this very valuable. Your loan officer will do the same. That way there are no surprises.
With the lower interest rates and the $8000 tax credit this is a great time to be buying a new home.
Good luck.
Rich
520-834-4663
http://rlecinski.longrealty.com
0 votes Thank Flag Link Sat Jun 27, 2009
Vee,

Everyone has great answers to this. There are several options depending on how much you would like to put down, credit and income. I will be able to help you navigate the waters. As mortgage broker and a portfolio of 20 lenders I will find the program that suits you best.

If you would like assistance or just a consultation over the phone please do not hesitate to call me. I am available from 8am to 9pm during the week and weekends.

Sincerely,

David P Cruickshank
Ardain Mortgage Corp
847-354-5455
davidc@ardain.com
0 votes Thank Flag Link Sat Jun 27, 2009
HELLO,

MY NAME IS NICHOLE LATHUS AND I WORK FOR MCCOLLY REAL ESTATE IN TINLEY PARK. I AM A BUYERS AGENT AND I WORK WITH A LOT OF FIRST TIME HOMEBUYERS. THERE ARE NECESSARY STEPS THAT NEED TO BE TAKEN WHEN BUYING YOUR FIRST HOME. I WOULD FIRST HAVE A LICENSED REALTOR WHO IS EXPERIENCED WITH WORKING WITH FIRST TIME HOMEBUYERS COME AND TALK WITH YOU AND YOUR HUSBAND ABOUT ALL THE DETAILS IN BUYING YOUR FIRST HOME.

STEP 1 WOULD BE FINDING A MORTGAGE LENDER TO SEE WHAT YOU WOULD BE APPROVED FOR. JUST BECAUSE YOU MAY BE PRE APROVED FOR A CERTAIN AMOUNT DOES NOT NECESSARLY MEAN YOU CAN AFFORD THAT AMOUNT. YOU WOULD NEED TO ESTABLISH A PAYMENT AMOUNT THAT YOU WOULD BE HAPPY WITH AND CAN AFFORD. IF YOU ARE GOING FHA THEN YOU WOULD NEED 3.5% OF THE PURCHASE PRICE AS A DOWN PAYMENT.
STEP 2 WOULD BE FINDING A PROPERTY THAT WOULD SUIT YOUR NEEDS. YOU AND YOUR HUSBAND SHOULD REALLY PUT ALL THE THINGS YOU WANT OUT OF A HOUSE ON PAPER SO YOU KNOW WHAT YOU ARE LOOKING FOR. FOR INSTANCE HOW MANY BEDROOMS? BATHS? BASEMENT? GARAGE? ETC.

THERE ARE A LOT OF OTHER TOPICS THAT WOULD NEED TO BE DISCUSSED. IF YOU ARE NOT WORKING WITH AN AGENT AND YOU NEED HELP THROUGH THIS PROCESS, I WOULD BE HAPPY TO MEET WITH YOU AT A DAY AND TIME THAT MAY BE CONVENIENT FOR YOU.

HOPE I WAS OF HELP AND HAVE A WONDERFUL EVENING,
NICHOLE LATHUS
MCCOLLY REAL ESTATE
708-646-6533
nlathus@yahoo.com
0 votes Thank Flag Link Fri Jun 26, 2009
Hi Vee,

Debbie is right on with her answer, there are just too many variables to give you an answer. Anyone's first step in buying a home is to get with a loan officer to see where you stand. After that give me a call. I spent the first 30 years of my life in that area (73rd and Rockwell) and still know it well. If you need some referrals for loan officers let me know.

Have a Great Evening!

Tim
tfitzgerald@c21proteam.com
815-353-1901
0 votes Thank Flag Link Fri Jun 26, 2009
Hi Vee
First of all, you really need to sit down with a mortgage lender to determine how much you will be approved for in a loan. There are many variables including your credit scores and income.

There are FHA loans that require only 3.5% as a down payment. You may also qualify for the first time home buyers tax credit, which caps at $8000 ( 10% of the purchase price of the home). It must be your primary home, and you have to close on the home by Dec 1,2009.

There is a lot to go over - I advise you to find a Realtor - he or she can help you put the parts of the home buying puzzle together, and help get you into your first home.
Good luck to you!
Debbie
0 votes Thank Flag Link Fri Jun 26, 2009
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