When I rented my first apartment in Astoria, I did not want to be a Tenant my whole life and pay my Landlordâ€™s mortgage. I longed to become a Homeowner.
Thatâ€™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.
â€¢ 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. Donâ€™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.
â€¢ Assets: A basic savings budget isnâ€™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 youâ€™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 â€œSellerâ€™s concessionâ€ to include the Buyerâ€™s closing costs (which are HIGH here in New York!) in the price of the home.
â€¢ 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.
â€¢ Market Survey: it doesnâ€™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. Itâ€™s okay that youâ€™re not yet buying; tell the Realtor at the Open House youâ€™re just beginning your â€œsurvey.â€ Youâ€™ll also get to know market prices for different kinds of homes. Itâ€™s okay to â€œwindow shopâ€ 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 youâ€™re interested in getting Prequalified today to create an Action Plan for your future of Homeownership, call me anytime!
*If you thought my answer was helpful, please give me a â€œThumbs Upâ€ or â€œBest Answer.â€ Thanks!
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