So about 6 - 7 weeks ago the man-friend and I were cooking dinner and he started talking about these houses in Albany Park that were selling for $150,000. In short, we determined that we should investigate. When again were we going to get the legitimate opportunity to buy a single family home in Chicago at a price we can afford on the brown line?
For the last month and a half we have learned a whole lot about buying a home.
The first weekend we drove around just looking at the outsides of buildings and the areas they were in. Were these places we would be happy with? As it turns out, they were. So then we looked on the insides (luckily we have a friend - Jeremy Segal with @ Properties to show us the ropes). There was one really terrible place and a few others that we could actually see ourselves living in, with enough work.
So then it became about financing, which is when I learned the two biggest take aways I have found thus far.
1. Your credit score is not as bad as you think it is. Ok, that may not be true for some. But for me, I was totally scared that the random times I got caught up with work and forgot to pay my utility bills had ruined my credit score. Not true at all. There are other factors involved, such as assets to debt. I have always maintained low balances on my credit cards and consistently paid them off, this certainly helped. There are things you can do to improve your score, now is the time to do that. Especially with credit cards increasing interest rates and tightening their lending.
2. The myth of "pre-approval." Jeremy hooked us up with a few brokers and we filled out a form. What we then got back from that is a Good Faith Estimate. That means that a broker thinks they can secure you financing at that interest rate. After you decide to make an offer, your broker can provide you with a pre-approval letter.
I guess there could be a third, your offer is just a starting point especially with bank owned properties.
At this point we have made an offer on one property and were asked for our best and final offer due to their being multiple offers. Now we play the waiting game. Either way I'm having a panic attack when we hear.
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please disregard heather's over-concern about credit scores. yes, they are important, but anyone with a bad one can tell you that something like not paying the gas bill on time is not going to affect your credit score in the least. it's cute that she was ever worried that she would have anything but a good-as-hell credit score.
ReplyDeleteplus, she's exceptionally cute, so her credit score doesn't matter anyway.
Using your credit scores is actually a nice way were you practically secure your credit for buying Bank Owned Property. But be sure that you will not be ruined or betray by your employer. Otherwise, you will be one of those who wasted thier money instead of saving for the their mere fuhture.
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