Getting a Mortgage After Bankruptcy and Foreclosure

Is Now Good Time Home Purchase In Chicago And Suburbs

BySapna Sharma
Tweet
Share
Share
Pin
Share
0 Shares

This Article Is About Now Good Time Home Purchase In Chicago And Suburbs

Chicago is the second-largest city in the United States behind the city of New York and followed third by Los Angeles. Chicago home prices are not ridiculously high like home prices in New York City and California. However, home prices have been steadily escalating in Chicago and surrounding suburbs. This holds true despite the negative publicity of Chicago being the murder city of the nation. Downtown Chicago has the most beautiful landscape of any city in the world.

Chicago is surrounded by iconic landmarks:

  • The Sears Tower
  • John Hancock Building
  • Standard Oil Building
  • Water Tower Place
  • Navy Pier
  • Bordered by beautiful Lake Michigan

Property Tax Prorations And Sellers Concession Benefits For Chicago Home Buyers

Another great benefit of buying a home in Illinois than other states is property taxes in Illinois are paid in arrears. Since Illinois property taxes are paid in arrears, Illinois home buyers get property tax prorations credit from home sellers. Home Buyers can use property tax proration credits towards their down payment on a home purchase. With a combination of property tax prorations and seller concessions, there are instances where Illinois home buyers do not have to come up with any down payment.

Home Purchase In Chicago And Suburbs

When is the right time for a home purchase?  Is Now Good Time Home Purchase In Chicago?

Many renters wonder and ask whether now good time home purchase.

The Chicago real estate market is cyclical unlike warmer climate states like the following states:

  • Texas
  • Florida
  • California
  • Georgia
  • Arizona
  • Alabama
  • New Mexico

Illinois Housing Demand

Home Sales and Listings in Chicago and surrounding suburbs as well as the rest of the state of Illinois, sales are cyclical where home listings and purchases are slower in the winter months. Nobody can answer the question of whether now good time home purchase If the buyer is asking whether or not now is a good time to purchase a home so they can make a quick profit in the near future? If this is the question, then there is no answer. Nobody has a crystal ball on whether or not a home buyer will make a quick buck.

Today’s Economy And Home Sales

After President Donald Trump got elected on November 8th, 2016, the economy is skyrocketing. Dow Jones Industrial Average hit five historical highs. Home Prices, not just in Chicago and its suburbs, but nationwide have been appreciating with no signs of a correction. Home Builders are having record-breaking sales. Economic numbers are at spectacular levels. President Donald Trump and Congress pass historical tax cuts which will boost the economy. A strong U.S. economy means higher demand for housing. Higher demand in housing means higher home prices. FHFA has increased conforming loan limits to $548,250 starting January 2021 due to escalating home prices. Unfortunately, with great news for the economy and record housing demands comes higher mortgage interest rates. Many renters who had plans in buying a new home in the future are now re-thinking whether or not now a good time for a home purchase.

Common First Time Home Buyer Questions

Here are common questions they have. Will home prices keep escalating? How much higher will mortgage interest rates go up? A stronger economy means higher interest rates. A stronger economy means more demand for housing. More demand for housing means higher home values.

Investing On A Home Purchase

A home purchase is normally the most important investment for most hard-working Americans. Many potential home buyers are hesitant in purchasing a home due to the real estate and financial collapse of 2008. Many potential home buyers have witnessed home values skyrocket over the past two years. Many home buyers are afraid that there might be another real estate market correction. Statistics prove that springtime is the busiest time of the year for home purchase and home listings. Many homeowners are waiting to list their homes in the spring when the weather breaks. Regardless, potential home buyers need to decide when it is the right time is to purchase a home.

Things To Consider In Deciding Whether Now Good Time Home Purchase

There are several things potential buyers need to take into account right whether Is Now Good Time Home Purchase In Chicago. Does the home buyer have a stable job that is secure for the next three or more years?  Does the borrower have fair credit and qualify for a mortgage? Lenders will want to see that mortgage applicants are able to repay their mortgage without any stress. Has the borrower paid monthly bills timely for the past year without stress?  Have the buyers had prior foreclosure and/or bankruptcy If so, have done they meet the waiting period requirements after filing bankruptcy or having a prior foreclosure and have re-established credit for the past 12 months?  Minimum 3.5% down payment is required on FHA Loans. FHA allows gifted funds by family members for the down payment and closing costs. Are homes appreciating or depreciating in the area buyers are shopping for homes?  Has home prices skyrocketed in the past year or are home prices falling?  Nobody has a crystal ball. But home buyers might want to speak with a professional realtor. Make sure they are not purchasing a home in an area that keeps on depreciating or stagnant. The best area to purchase a home is an area where it is stable.

Contact A Mortgage Lender

Whether home buyers are interested in purchasing a home now or at a later date, contact a lender to see whether they qualify for a residential mortgage loan now and if you don’t, what they need to do to qualify. Even if home buyers qualify now, their credit scores can possibly have room for improvement. Credit Scores can improve quickly by doing some quick fixes like paying down some debts or lowering credit card balances to optimize credit scores. Borrowers will be surprised how much their credit scores will improve and boost up by just paying it down prior to applying for a mortgage loan. The mortgage loan originator should be able to help borrowers with that. It does not cost borrowers a cent to consult with loan officers. A good reputable mortgage loan originator will help borrowers improve their credit scores in order to get the best possible mortgage rates.

Home Purchase Versus Renting

Another thing you need to consider is how much renters are currently paying to rent. Sometimes a home purchase might be more advantageous because mortgage payments can be the same or close to their current rent payments. There are many advantages with a home purchase too such as being able to write off the interest expenses as well as a potential appreciation. Renters are also not wasting monthly rental payments as a homeowner. Homeowners are paying down their mortgage balance every month with every monthly mortgage payment. A disadvantage for a home purchase is if they are only planning on living in the area for a short term. For those who intend to move in a few years, it takes time to sell a home. These are considerations they need to think about if it is the right time for a home purchase. Home Buyers who need to get qualified for a mortgage in Illinois with a direct lender with no overlays, please contact us Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays. Gustan Cho Associates has no overlays on government and conventional loans.

Similar Posts