When I rented my first apartment in Astoria, I did not want to be a Tenant my whole life and pay my Landlord’s mortgage. I longed to become a Homeowner.
That’s why I found my way into the mortgage business in 1989 and soon afterward became a Homeowner. Here are the fundamentals any Tenant should know to prepare to become a Homeowner in the future, no matter when that might be.
• Credit: Establish 3 credit accounts, no more than 5. Pay your bills on time. Keep your balances to no more than 50% of your credit limit. Don’t pay off the accounts in full. Keep balances active for 12-24 months. All of the above will provide both a good credit score and adequate credit history to qualify for a mortgage loan.
• Assets: A basic savings budget isn’t hard to do. Pay your rent first in your budget; then set aside 10% of your income before taxes . Make it a budget priority and you’ll still have money left over for entertainment and restaurants and clothing.
How much money do you need to buy a home? Many buyers spend no more than $25,000 to buy their first homes. There are loan programs with low down payment requirements and many real estate agents negotiate for their Buyers a “Seller’s concession” to include the Buyer’s closing costs (which are HIGH here in New York!) in the price of the home.
• Income: Two years consistent income is the basic requirement for either a salaried individual or a self-employed person. Income from Bonus, Commission, and Overtime is treated differently and is best discussed with your Mortgage Banker.
• Market Survey: it doesn’t hurt to go out and get to know neighborhoods where you might like to buy a home. Visit open houses on Saturdays and Sundays. It’s okay that you’re not yet buying; tell the Realtor at the Open House you’re just beginning your “survey.” You’ll also get to know market prices for different kinds of homes. It’s okay to “window shop” homes on the weekend at Open Houses!
I hope these fundamentals will help you better understand the path to homeownership is a process that, with preparation and dedication, you can move through easily. And if you’re interested in getting Prequalified today to create an Action Plan for your future of Homeownership, call me anytime!
NMLS #40140 http://www.tcurranmortgage.com
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Why are you renting and trying to sell at the same time?
I have done many deals where the home owner needs to sell their home and buy another and there's alot of details that go in to a deal like that.
I feel like I need more information to give you a clear and concise answer. My number is 646-725-5941.
I think it best to wait until after you have your property in contract.
Typically you have 6 to 10 weeks your property's sale to close.
Brian's contact information:
Best of luck.
I have an exclusive sales listing in Crown Heights right now. It's a great area, trendy and convenient, and I think a solid investment. So I think your house should sell.
However, it always takes longer to sell any property than it takes to rent one!!
My suggestion would be to put the 2-family on the market as a first step. The crucial thing is to price it right, by evaluating recent sales data and current asking prices. You won't really know the demand for a house like yours until you put it on the market.
Then, once you're in contract with a qualified buyer--and ideally you have a back up offer--you can start getting serious about rental properties.
My advice however is not to sign a lease until your sale on the house has closed. The only possible exception would be an all-cash deal, and even then I'm not sure the risk is worth it....especially if you're flexible about where you would be willing to rent.
It's actually a lot easier to schedule a move into a rental than to sell one home and buy another with the proceeds, and try to schedule a move that minimizes time spent sleeping on your friends' sofas! ;)
Karla Harby, VP, Lic. Real Estate Salesperson
Charles Rutenberg Realty, New York City
The first question would really be - can you afford the mortgage on your current home while at the same time renting something in Chicago? If so, I would be pleased to recommend an agent to assist you there. Also, if you have not hired or decided on an agent to sell your property here, I would like to speak with you about my services. Good luck!
Century 21 Princeton Properties