…if you are looking to buy a house/condo sometime in the near future.

We have learned a valuable lesson. We’ve recently been told we may have to put down 10% instead of 5% for the down payment thanks to our lenders errors. (!!!) Nuts.

Lenders and banks are making it very difficult to buy property. Because of their idiotic ways of the past by giving loans to everyone who had a pulse and then realizing they won’t get paid back, they now look at new buyers under a microscope and have some ridiculous new rules.

Here’ what you need to do before you buy:

1.) Get your credit score. Pay whatever debts you can that are on the report to improve your score. 700 is now the magic number. As I write this blog, (and i believe this is across the board for any lender/bank) if you’re credit score is less than 700, you have to put down 10% of the cost of the home/condo.
Unless the home/condo is FHA approved. Then you can put down 3.5%. (I won’t go into that here, but those properties are out there.)

Good news if your credit score is 700 or higher . You can put down just 5% (or 3.5% if it’s FHA approved) if it’s a single family home. BUT, if it’s a condo I have been told you have to put down 10% no matter what your score is. And according to our realtors, apparently it’s only going to get more difficult to buy a condo. From what I’ve been reading in the newspaper, the condo market (to buy or sell) in Chicago is just awful right now.

2.) figure an additional 5k in closing costs.

3.) Only go with a realtor you totally trust and feel comfortable with. We did luck out in that department.

Use these guys if you are in Chicago.

Ask to work with Bob and Becca. They are a husband/wife team and are honest and great to work with regarding properties.

More maybe later.

Anyway I hope this helps some of my friends looking to buy a home. It’s an emotional process.