First Time Home Buying |
HUD |
| HUD Answers Questions For First Time Home Buyers |
Consumer Credit Counseling Service of McHenry County, Inc. |
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HUD-Approved Housing Counseling
Serving McHenry & Lake Counties
(A not-for-profit community agency) "TOO MUCH MONTH AT THE END OF YOUR MONEY?" - Housing Counseling & Mortgage Foreclosure Prevention
- Bankruptcy Pre-Filing Counseling
- Pre-Discharge Education
- Debt Management Program
Take the Test - Has your income recently been reduced?
- Are you saving to buy a home?
- Do you need to establish good credit?
- Have you inurred large, unexpected expenses?
- Are you "robbing Peter to pay Paul"
- Have you experienced divorce or other personal changes which have affected your budget?
- Are you in the market for a major purchase in the near future?
- Are you being overwhelmed by credit card debt?
- Have medical bills eaten up your savings?
- Are you behind on your mortgage or auto payments?
- Were you unable to save for holiday or upcoming education expenses?
- Are you considering filing for bankruptcy?
If the answer to any of these questions is "YES" call for an appointment.
(815) 338-5757 or (800) 815-2227
For more information
http://illinoiscccs.org
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What's First? |
| Sure, it's exciting to look at all the new listings and imagine yourself living there, we all do that! Lets make sure that you are looking and placing yourself in the home of your dreams that you will be able to AFFORD! Who wants to be house poor!?! There's enough of that going around already! First things first...Get your financing in place... - Ask your friends and family who they used as a lender
- Maybe see a financial counselor--they are great to help get you on a budget. Sometimes its nice to have someone to keep us on track.
- Call some of the lenders and see who you feel comfortable enough with to talk about your finances. Ask them if they have any special programs or discounts (if you are in public service--Police Officer, Fireman, Teacher or Healthcare profession you might be able to get a discount!) and some of the different loan products. Don't have them run your credit in the beginning...you should have a good estimate of your FICO score. If not go to http://www.ftc.gov/freereports . Only the lender you choose should pull your credit report.
- When you choose your lender, they are going to need a few things...time to start going through your files (if you haven't already)
- W-2 Forms for the past 2 years
- 2 months of bank statements
- Gross monthly salary--one month of current pay stubs
- If self employed--2 years of completed federal tax returns
- Drivers license and Social Security Numbers
- Monthly expenses (Rent/Mortgage, credit card payments, child support, utility bills (if you already saw a credit counselor---you already have this ready to go)
- Your lender will pull your credit and go over the findings in the report...you shouldn't be too suprised by the report if you already pulled your credit yourself and went over it for errors. If something does show up that has already been payed off-just get a copy of the letter to your lender and the underwriting department will make sure it doesn't count against you.
- Your lender will give you a pre-approval letter.
It's time to go shopping!!! At this time...you will know exactly how much of a house you can buy for your money. I will start the search for the house that becomes your home! I can't wait! Let me know when you're ready to start! I'm just a call or email away--don't forget, I always have my phone with me and your emails come to it as well. |
House of Urban Development
Buying a home read more...
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Purchasing Decisions When an individual chooses that they would like to purchase their own home, they need to consider many factors. One, would be the area he or she would like to live in, depending on the needs of their job. Another is their financial situation, whether or not they can afford not only the home, but also the maintenance required to live in the home, such as the utilities. There is the gas, water, electric, garbage, even the sewer and food to put in the house! There is also the expense to keep the house, looking like a house. The grass will need to be cut, and maybe you'd like to put curtains in the windows. Make the home pleasant to look at from the outside-in! Plus, there will always be freak accidents, so prepare for the worst. The windows can break, pipes can burst, holes can be put in the walls, just to name a few. There are also interest rates and property taxes, and those can always go up in price. Loans There are many people who do not qualify for certain loans, but there are ways to help those individuals along. There’s the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). They help to adjust the rates on the loan, and can lower the monthly payments. Some may also lower the closing costs to first time home buyers or to those moving into certain neighborhoods. PITI Mortgage payment= (Principal and Interest) + Taxes + Insurance This should NOT exceed 28% of gross monthly income. Payments for house and long term debt should NOT be over 36%. They vary on the type of loan program So Expect the best and prepare for the worst! |