what kind of loan should i apply for, were should i go? Looking to buy a home for the first time.

Asked by Michael, Joliet, IL Fri Apr 17, 2009

As stated in my last question, im looking to buy a house or townhome for around 220,000. My credit score is a low 647, raises about 10 points a month, "TRYING TO REBUILD IT!!" I currently make around 90k a year with a 15k per year raise in december. I have less than 7k in current total debt' 6k of which is my car loan. I only have 8k saved for a down payment. Would it be worth my time trying to get approved now with my current credit ststus, income and down payment? If so, how much would i qualify for? around what rate should i expect? -OR- Should i wate and renew my lease for 6 months on my appartment at 1,200 a month, and see how much my slowly raised credit score, along with my raise and an added 8-10k in savings will help my intrest rate if any? What type of loan officer or bank should i go to? any in the joliet area that could help?

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Kurt Clements, Agent, Schaumburg, IL
Sat Apr 18, 2009

I have no problem trying to assist you in your mortgage needs. I am located in Aurora, just up Rte 59 from Joliet. Most likely homes will be cheaper now than in the fall, as the real estate industry and economy seem to have hit bottom and are starting the long climb back. Another reason to buy now is the $8,000 credit for first time home buyers expires 12/1/2009. Even if you buy before that time this year, you can adjust your 2008 taxes and get the credit this year. Not a bad deal at all. Please contact me at your earliest convenience.

Kurt Clements
3933 75th St
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091

1 vote
Christopher…, Agent, Chicago, IL
Thu May 7, 2009
Dear Michael,

I'd suggest talking with a mortgage broker to get a more specific idea of what you might qualify for and/or what is required of you based on your loan program choice.

I'd contact any of the following mortgage professionals. All are good.

Daniel “Dan” Larkin, Senior Mortgage Consultant
Wintrust Mortgage
600 Hart Rd. #115
Barrington, IL 60010
312-952-8068 (C)
847-277-1781 (off)
847-620-2591 (f)

Jae McPherson
Chicago Bancorp
1555 Naperville-Wheaton Rd.
Naperville, IL 60563
630-388-1300 x 253 (off)
312-212-5473 (f)
312-617-1723 (C)

Jesse Oliveros
American Bank & Trust
17W580 Butterfield Rd. Ste. A
Oak Brook Terrace, IL 60181
773-793-7111 (cell)
630-444-2905 (fax)

Christopher Thomas
Broker Associate, Sudler Sotheby’s International Realty
3934 N. Lincoln Ave. Chicago, IL 60613
773-418-0640 (mobile) 312-577-0985 (fax) 773-293-1200 (off)
0 votes
, ,
Sat Apr 18, 2009

Congratulations on your decision to initiate the process of buying a home and improve your credit scores! The improvement in your scores will benefit you monetarily in many ways during your future, not only during the purchase of your home.

For first-time buyers, there has been no better time in history to purchase a home. There are many advantageous tools available to you right now that will aid you in your quest to buy. To answer your specific question regarding renting vs. buying, I would advise that you buy now or very soon as to take advantage of the $8,000 tax credit available to first-time buyers through the new stimulus package. This new tax credit disappears in November of this year and by renting an additional 6 months you might lose out on utilizing its benefits. How else can you save $8,000 so easily?

The low interest rates presently available, paired with the tax credit, add up to great monetary savings to you over the life of your loan. With your FICO credit scores, downpayment ability, and purchase price range, you are a perfect candidate for a FHA loan with interest rates in the low 5 percents. By going FHA, only a 3.5% down payment is required. The $8,000 savings you have already acquired is adequate for the price range of home you are interested in purchasing. I'd suggest you negotiate for seller paid closing costs within any real estate contract presented and that you try to take advantage of the great home buyer's market being found now.

I am a 30 year veteran of the mortgage industry with an office located in Shorewood at the corner of Route 59 and Black Road. I am a life-long resident of the Will County area. To become comfortable and more familiar with my qualifications and expertise, I suggest that you view my website at http://www.genemundt.com. Within that site, you will also find additional information regarding the First-time Homebuyer's Tax Credit. Please feel free to view and print that information for your use and benefit. If you are in need of a qualified real estate salesperson to work with during your purchase, or other real estate-related professionals, please let me know. I have worked with our area's best and most highly qualified professionals and would be happy to refer them to you for your upcoming purchase.

I hope that I have answered your preliminary questions for you. I'd be happy to answer any further questions you have at your convenience. I can be reached through Trulia, my website, email (gene@chicagobancorp.com), or by phone at any time.

I look forward to hearing from you soon, Michael.

Gene Mundt, Professional Mortgage Banker http://www.genemundt.com
Chicago Bancorp
Web Reference:  http://www.genemundt.com
0 votes
Carmen M. Ke…, Agent, Palos Park, IL
Sat Apr 18, 2009

Call me, 708-533-0515!!! I have lenders that will approve you NOW!!! you will only need 3.5% down to go FHA and if you have a 401K, you can withdraw from it with no penalty to buy your first home. Also, as a first time home buyer, you will qualify for the $8000 FREE tax credit if you buy a home $80,000 or higher. Do NOT renew your lease. I can help you. I WILL help you! You sound like a great buyer who will have no problem qualifiying to buy a home. The lenders I work with will let you know which loan is best for you. As far as closing costs, I am very good at negotiating the seller to pay the closing costs with creative financing. First time home buyers are my specialty too!! Feel free to email me, info@CarmensHomes.com or just call me. I work with Niki Igel from 1st Mortgage in Joliet. Her cell is 630-854-7434. You can call her and tell her Carmen from ReMax referred you. She will approve you over the phone for FREE also! I have an awesome email program I can put you on too! You can register on my Remax website too, just search on remax.com and then check for an agent in Palos Park, as that is where my office is located. Log onto my site, and you can get a lot of info there. Also, check out my website, http://www.CarmensHomes.com. I look forward to hearing from you and finding you a GREAT home at a GREAT deal! You won't be sorry! Call me!
Web Reference:  http://www.CarmensHomes.com
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