Hello- First time homebuyers (single)... What are the qualifications? Financial status, credit score/history, employment etc.

Asked by Kandice, Chicago, IL Thu Jan 5, 2012

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Diana Williams’ answer
Diana Willia…, Agent, Chicago, IL
Thu Jan 5, 2012
640 credit score 2 years of verifiable employment 3.5% downpayment 2 months worth of purposed mortgage payments including insurance and taxes and HOA fees if you are purchasing a condo or townhouse. You will also need enough money to buy a insurance policy for the property you are interested in ($400-$1500)Many times you will be able to have the seller help pay your closing cost.
1 vote
Jeff Nobleza, Agent, Chicago, IL
Thu Jan 5, 2012
Every lender has slightly different standards but I can offer some general advice.

Good credit 620 or better - bankruptcy if any should be discharged and preferably a few years old. No recent delinquencies on payments. Foreclosures if any will kill you.

A salaried job with job history is preferred. A lender will ask for tax returns from you.

Hopefully, you aren't carrying too much debt.

Having some money in the bank and a downpayment is preferred.

Contact me if you'd like to talk in depth.

Jeff Nobleza
Baird & Warner - Evanston
2926 Central Street
Evanston, IL 60201
773-677-5340 cell
773-681-7239 efax
1 vote
, ,
Thu Jan 5, 2012
Hello Kandice
I highly recommend that you talk to a Loan officer to complete a pre approval - But to answer your question in a very general nature I would say:
You will need a minimum credit score of 620
You should have a 2 year history of employment in the same line of work (however this is flexible)
Plan to have at least 3.5% of your purchase price for a down payment

I would be happy to look at your scenario - Please feel free to contact me at anytime

Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
1 vote
Tammy Hayes, Agent, Port Charlotte, FL
Sat Jan 7, 2012
1. The first step before you do anything is to find out how much money you can borrow from a bank/mortgage company. Check with different lenders to see who can get you the best deal. Once you know what you can afford, then you can begin to plan.

2. Determine what you need in a home, not necessarily what you want in a home. Make a list of those needs to give to your Realtor. When you are searching for homes you will find that it is very rare to find a home that has absolutely everything you are looking for. If you stick to what you actually need, you will have better success in your search.

3. Research areas/communities that are of interest to you. Determine what things are important such as schools, proximity to shopping, restaurants, and local activities. Drive through the communities to get a feel for what they are like.

4. Learn as much as you can about the process of buying a home. Some local Realtors or lenders will offer first time home buying seminars. If you can find one in your local area it would be helpful to attend. If you cannot attend a seminar, look on the Internet for a home buyers guide such as the one at Bankrate.com - http://www.bankrate.com/brm/news/real-estate/BuyerGuide2004/…

5. Select a local Realtor to help you begin your search for a home. You can search Internet sites such as Realtor.com or Homes.com, but a Realtor has access to all of the homes in the local MLS. They can provide you with information on the home, the area and answer any questions you may have. A Realtor can show you properties of interest.

6. Learn about the contract and what is involved. Your Realtor can take you through step by step the process of a contract. After it is signed by buyer and seller, it is called an executed contract. Then you would want to get a home inspection. If everything is fine with the inspection, then you can go forward towards closing.

7. Know what happens at closing. Again, a Realtor can walk you through what to expect at closing. You will need to have money for closing costs such as title search, processing fees, taxes, and insurance.

Buying your first home is an exciting and overwhelming experience. So make sure you are prepared.

Tammy Hayes, Realtor, Green Lion Realty, Port Charlotte, FL tammyhayesre@gmail.com
0 votes
Bill J Delig…, Agent, Naperville, IL
Sat Jan 7, 2012
Talk to a qualified Loan Officer and he/she can walk you through the process. It is not impossible to obtain a loan, but it is a very thorough process that will investigate every nook and cranny of your financial history. Be prepared to provide, 2 yrs tax returns, paystubs, bank statements, credit history, rental history, etc.
Web Reference:  http://www.BJDLOANS.com
0 votes
, ,
Sat Jan 7, 2012
The best route for most first time homebuyers will be to buy with an FHA mortgage. FHA allows a low 3.5% down payment (which can come from a gift or grant), and the credit standards are more lenient than other loans. You need to talk with a good loan officer who will go over your full situation, and make sure that you fit all the requirements. You may also get different answers from different lenders, as some lenders underwrite more conservatively than others, and there may be overlays, or additional requirements, with some banks. For example, the minimum credit score on an FHA loan can be as low as 580, or as high as 660, depending on the requirements of the end lender.
0 votes
Deborah Smith, Agent, Oak Forest, IL
Thu Jan 5, 2012
In order to obtain a mortgage you need at least a 640 credit score,2 years of proof employment ,for FHA 3 1/2
per cent down. The very first step is to be pre-approved with a mortgage broker. In doing this you are assured on how much of a home you can buy,your mortgage payments in order to budget correctly and programs that are offered at this time. If you need some mortgage brokers recommendations, I work with
several on a daily bases. Debbie Bergthold-Smith Classic Real Estate 708-267-5552
0 votes
Kandice, Renter, Chicago, IL
Thu Jan 5, 2012
Thank you all for your responses!
0 votes
Evelyn S. Fr…, Agent, Chicago, IL
Thu Jan 5, 2012
Hi Kandice,

Wise of you to consider purchasing at this time. It is a buyers market!

Contact Matt Bukovy 773-416-7107 to get you started with a loan application, it's at no charge to you. He will run your credit and then guide you through the process. If there are any issues he will assist you in resolving them so that you can move forward.

Good luck!
0 votes
Anthony Cast…, , Chicago, IL
Thu Jan 5, 2012
Hi Kandice, very important and necessary questions you are asking, except that we cannot provide you those answers here. Please call me so I can take some prelimanry information from you and then set you up with my lender and then and only then will you know what you can afford. Once that is done I will immediately email you a list of properties according to your specifications, which we will them make appointments to go and see so you can make an offer. This is the process summarized. Please call me at 708-310-9031 or email me at tardis79@hotmail.com. Thanks. Tony
0 votes
Joe Schiller, Agent, Chicago, IL
Thu Jan 5, 2012
your making a 100,000 investment..maybe more.. you need to come inot my office and sit down and understand this opportunity..its not a website thing
Web Reference:  http://www.joeschiller.net
0 votes
, ,
Thu Jan 5, 2012
Hello Kandice,

Happy New Year!

You are wise to look into qualifying for a mortgage to purchase property based on the affordability of owning a home these days. The best first step is go through the pre-qualification process which entails reviewing your credit, income, assets as well as the property type you're interested in purchasing. It is also important to sit down and do a budget of your monthly expenses and plan out what you would be comfortable with allocating to a monthly mortgage payment.

Please feel free to reach out to me to discuss further. I'd be happy to help educate and guide you through the first-time-home-buyer loan approval process.

0 votes
Matt Laricy, Agent, Chicago, IL
Thu Jan 5, 2012
There is a lot of different requirements, which is why you should talk with a lender. If you need one, I would be happy to recommend one to you!
0 votes
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