Home Buying in Chicago>Question Details

T. Ross, Home Buyer in Chicago, IL

Should I hold tight here at Mom's house or take a chance as a first time buyer?

Asked by T. Ross, Chicago, IL Wed Oct 29, 2008

I am 27 yrs old and I'm in the process of separating from the military (honorably). I recently relocated back here to Chicago. I do not have a job lined up just yet, but I am looking. My question is, should I buy a home now while I have the funds saved and the military pay (for another month), or should I wait until I find a job (probably making a whole lot less). Please advise!

Help the community by answering this question:

Answers

17
Hi T. Ross - First, thanks for serving in the Military. There are some terrific programs for you. I have worked with several different ones that are amazing.

To answer your question - Go with your gut. What do you feel comfortable doing? I would recommend you wait until you get a job first, before you buy anything. One - You need that for the mortgage. Two - You can sleep better at night.

I am recently out of college myself and personally can attest to the fact that I would not want to be living back "at home." However, it all depends on your personal comfort level. If you'd ever like to see anything or even just want to rent a place, feel free to contact me.

Paul Blackburn
Crown Heights Realty
773.771.7502 - Direct
312.440.700 - Office
Paul@ChrChicago.com
0 votes Thank Flag Link Tue Dec 16, 2008
I disagree with a lot of the postings here. There are programs for military people like yourself. We need to get you to call a mortgage advisor for your options. Call me at 847-922-4241 to discuss.
Web Reference: http://www.Dinomicheli.com
0 votes Thank Flag Link Wed Nov 19, 2008
Find a Realtor that you trust to work with and have then keep you up to date with properties in your area of interest, DO NOT BUY NOW! when you see inventories start to decrease for 2 consecutive months then jump in. Time is on your said.
0 votes Thank Flag Link Tue Nov 18, 2008
Check with a loan officer and a Real Estate professional. Get their educated opinions on what your next step should be. A consultation shouldn't take very long and may turn into a great working relationship for the future. They may also have some ideas you hadn't considered.
0 votes Thank Flag Link Tue Nov 18, 2008
Dear Home Buyer, Thanks for your service to out country. If you continue to do the right thing, you will continue to be rewarded and a job will not be a problem for you.

Have you considered investing in a duplex? Do you guys have duplexes in Chicago? Duplexes allow you to be a homeowner and a landlord at the same time. As a landlord, you can rent out the second unit, and with that money pay your mortgage. You will essentially be living mortgage free or almost mortgage free depending on your taxes and insurance rates. The bottom line is, you will be paying much less for a mortgage as long as the other unit is rented.

At the same time, you will be making a great investment because property values are already pretty low, and you will definitely see a growth in equity after just a few years.

Find a good trustworthy Realtor because they can help you find and keep your property rented. Especially if your focus is more on a job hunt, college, or a career.

If you have any questions about financing, or need any counceling, just let me know because I am also an expert at Real Estate finance, and can assist you accordingly.

Should you decide to come to Florida give me a call and I will show you around, and assist you on your transition.

Take good care!
0 votes Thank Flag Link Tue Nov 18, 2008
I think you start buying now and look for a job at the same time. Prices are low, interest rates are low and great deal sare out there now. Give me a call at 847-922-4241 to discuss.

Sincerely,

Dino Micheli
Web Reference: http://www.dinomicheli.com
0 votes Thank Flag Link Tue Nov 18, 2008
As others have said, you will need to have a job before buying. Seperating out means your military income is in the past and we will look at your future income. The good thing is that once you have a job and you are ready to buy, the VA benefit is a real advantage. You will be able to buy with a fixed rate mortgage at a good rate with no money for a down payment and no mortgage insurance.

Thank you for your service and I wish you the best as you start your new civilian life.
0 votes Thank Flag Link Mon Nov 10, 2008
The most important thing to decide when purchasing a home for the first time is: Do I have the cash flow that is sufficent enough to pay this mortgage, taxes, utlities and any thing else that is associated with my day to day life. Cash flow in this current market has to be the top priority. If you find out later that your job is going to paying less, you can find your self in a difficult situation and maybe struggle or eventually find yourself in foreclosure. Do the right thing. You may have the money now, but you want to know if you will have the money later as well. Capital, capital, capital is what is saving people now from losing thier homes. Good Luck!
Web Reference: http://cashbuyernetwork.com
0 votes Thank Flag Link Sun Nov 9, 2008
Hi T. Ross,
Being a first-time home buyer is stressful enough, doing is while looking for a job would be more stress than necessary. My professional advise is to concentrate on gainful employment. Staying with your parents is a smart move, if you can make it work for you in the future. Put away money each month. Act as if you're paying a mortgage but pay yourself. Put the money in a Roth IRA or high-yield 7-month CD. That way, you get accustomed to making payments and you're saving for your future. Kudos on your military service. Hopefully, we can bring all of our troops home soon. A VA loan is one of the best products out there and one of the best military benefits, use it! This is a great market for buyers -- low interest rates, high inventory, motivated sellers but I say take some time to get settled and the market will be there when you're ready.
0 votes Thank Flag Link Thu Nov 6, 2008
Dear T. Ross,
In this market your home will be there for some time. get a stable job first the rest will come easy.
sincerely yours ,
Don Yosef marcus GRI,ABR,CCREC
CENTURY 21 MB
CHICAGO & NORTHBROOK
DonYo770@aol.com
847-361-7770
0 votes Thank Flag Link Thu Nov 6, 2008
If you haven't already, you should go to school and get an education. It is a good investment in yourself. Good Luck
0 votes Thank Flag Link Wed Oct 29, 2008
I would definitely recommend having a stable source of income prior to purchasing. That said, FHA loans have become more popular over the past year. VA financing is a type of FHA loan, with some added perks. Once you've located a new job, you should speak with a good lender to get more info on purchasing. If you can buy, it's a great time to get a great deal.
0 votes Thank Flag Link Wed Oct 29, 2008
T Ross,

This is a perfect time to be a buyer. But in order to participate in this market you need gainful employment typically for a period of at least two years. It is possible that your military service will translate into the field you choose to pursue, but a lending officer will be better able to answer this question. With respect to the current market, it is likely that home buying interest rates will go down slightly and maintain in a down position for the next two quarters and then rates will start to go up. Nothing is certain, especially in this economy, but I feel this prognostication is accurate. With respect to your home-buying activity in Chicago, I have no doubt that you will be best served by a real estate professional knowledgeable of the Chicago market. That means that any other response you get here with a 606 zip prefix is more important to you than somebody from elsewhere. Why? Every market is localized.

Thomas McCarey
The Real Estate Lounge Chicago with @ properties
Certified Luxury Home Marketing Specialist
Accredited Buyers Representative
0 votes Thank Flag Link Wed Oct 29, 2008
You may want to get some consultation from a Mortgage Loan Officer.

I'm "guessing" that if you find a job that matches what you trained for in the military, you may be able to get a loan. This is what happens when you get out of college and you get a job. As long as the job matches what your college degree is, you can get a loan. Finding the job may be a different story.

I would talk to a loan officer and possible wait until you get settled into your job. These lower prices will be around for awhile and you're still young.

Take you time and do it right.

Good Luck!
0 votes Thank Flag Link Wed Oct 29, 2008
You need to get your job and be settled in for 3 months. Than start looking for a home you can afford. Buying a home takes alot your attention. Knowing you have a job will take the stress out of the process. Don't be in a hurry. Alot of homes on the market and good loan programs to help you when its time. Good luck and thank you for your service in the air force. I hope you find a great job that you will love.
Renee Eubanks
Remax Champions
rsellhomes@yahoo.com
360-202-5695
Living in the beautiful Pacific Northwest
0 votes Thank Flag Link Wed Oct 29, 2008
Make sure you have secured a job first, you will need an income history before you get the loan. It's the first thing lenders will look at.
Web Reference: http://www.MoxleyTeam.com
0 votes Thank Flag Link Wed Oct 29, 2008
You won't be able to secure a loan based on military pay if you are being discharged, the lenders will catch that.
You will have to use new pay but you may still qualify you just need to speak with a lender,

Hope that helps!
Web Reference: http://www.1sthomegroup.com
0 votes Thank Flag Link Wed Oct 29, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer