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Attention First Time Home Buyers!
Your home purchase may be the biggest investment you will ever make, with long-term financial ramifications.
The home-buying process is complicated and confusing; headaches are common and mistakes are costly! You
need a professional REALTOR® to personally guide you step-by-step, provide expert advice, help you make
informed decisions and protect your interests. He or she will help you find your ideal home, arrange
financing, attend inspections, fuss over details and handle all the paperwork.
You can count on your Chicago Condo Group REALTOR® to take away the headaches and save you a lot of time and money! Call at 312.501.2001.
If you answer no to these questions, you could be headed for trouble.
You will benefit greatly from the comprehensive services Chicago Condo Group provides to our buyers.
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How much you can actually afford?
Your Chicago Condo Group REALTOR® will help you realistically analyze your budget,
suggest additional ways to accrue your down payment and explain alternative financing methods.
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Can you realistically evaluate your housing requirements?
We will help you work out a practical
idea of the home that best suits your needs, considering such things as size, location, special needs, architectural
preferences, proximity of schools and churches, transportation, shopping and public facilities.
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Do you know how to access available listings?
Are you able to research your housing needs through a Multiple Listing Service, even
if you are relocating to another city?
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Do you know how to evaluate a listing?
Your Chicago Condo Group REALTOR® can quickly evaluate a listing in terms of your needs,
affordability and location, and not waste your time viewing unsuitable homes.
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Do you know the Chicago neighborhoods?
Our team of REALTORS® know the neighborhoods intimately and will supply you
with important facts on property values, taxes, utility costs, municipal services
and facilities, crime rates, local history, special neighborhood features, proposed
zoning changes and other critical information that could affect your decision to buy.
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Can you be objective when shopping for a home?
Can you set aside your emotions
about a home and realistically weigh a property’s advantages, disadvantages, problems,
remodeling needs, pricing, location, and etcetera?
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Are you familiar with the local mortgage market?
Your Chicago Condo Group REALTOR® is well-versed on home financing practices and will
help you find a home loan at the best rate and arrange to get you pre-approved.
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Do you understand the closing process?
Do you understand the functions
of appraisers, home inspectors, mortgage lenders, contractors and insurance agents?
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Are you familiar with Il linois Real Estate laws?
There are a number
of requirements such as attorney procedures at closing. Do you know which attorneys
specialize in real estate and will provide you with the best representation?
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Do you understand the risk you take by using the seller’s realtor?
Your
Chicago Condo Group REALTOR® is there to represent your interests in the transaction,
not the seller’s; and, negotiate the most favorable price and terms for you.
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Credit scores: What the numbers mean
How high or low is your credit score? You could be paying a price for not knowing. Your credit score is a measure of your past ability to make payments on time and manage your
credit. It’s designed to help lenders determine how likely you are to pay back your loan. the average score in the U.S. is about 675.
720 and above ~
You have excellent credit and will likely be eligible to receive a lender’s most favorable rates.
In fact, you’re in a position to borrow more than 80 percent of the value of your home, and may not
require private mortgage insurance.
You will likely be able to get a home equity loan or line of
credit with an interest rate equal to the prime rate, or even below it.
674-619 ~
Once your credit score dips below 720, you may no longer be approved for the lender’s best rate, but you should
have little difficulty finding a good loan.
On a 30-year fixed-rate mortgage, expect to
pay up to half a percentage point more than
someone in the top category.
your principal is $150,000, the difference between
6.5 and 7 percent works out to about $18,000
over the life of the loan.
620-674 ~
With a below-average credit score, your options will be reduced, and you’ll pay a premium on your loan --
perhaps as much as 2 percent more than borrowers with excellent credit.
You may need to provide more documentation than those with higher scores,
including a formal appraisal of your home’s value.
But if you make your payments regularly and work to improve your credit score, you should be
able to refinance at a better rate, which can save you money over the life of the loan.
Below 620 ~
A credit score under 620
puts you in the category of a “sub-prime” borrower. The good news, however, is that there are now more
lenders offering sub-prime loans than ever before, with rates adjusted to reflect the added risk.
If you are
approved for a mortgage with a credit score this low, you’ll likely pay about 3 percent more than someone with
excellent credit.
If you’re looking for a home equity
loan or line of credit, expect to pay double-digit interest rates.
Of course, once again, if you make regular payments on the loan and get control of other areas of your financial
life, you should gradually be able to improve your score and qualify for a lower rate.
For a free credit report, please contact Annie Alexander at 312.501.2001.
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