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Posted on November 4, 2009 by Nick Messe | Posted under Finance
Real Opportunities for Chicago First Time Home Buyers
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This all changed when the economy hit the skids last year. Between October 2007 and October 2008 the median price for Chicago area homes dropped more than 20%. Prices continued to decline a further 10% in 2009. Everybody expects this to change. In fact in some areas of Chicago prices have already started to edge upwards. What this means is that there has not been this kind of opportunity for Chicago first time home buyers for many years. Prices are just about as low as they are going to go, mortgage money is cheap, and government incentive programs are still in place - at least for the time being - that make it the best time for buying a home that a Chicago first time home buyer is likely ever going to see. The one big problem is that mortgage money for first time home buyers in Chicago can be hard to find. That makes it all the more important to do your homework when looking for a mortgage. First, it is important to understand a bit about mortgages in general. As has been the case for at least a generation, the majority of houses being purchased today are financed through mortgage loans. They work by making money available to the person who wants to purchase the property. However the mortgage broker retains a hold on the property. These types of loans are differentiated broadly into two groups, the conventional loan, and government backed loans. There are also what are commonly known as first and second mortgages. A first mortgage is the primary financing agreement for buying a property, such as a house. A second mortgage normally provides a home owner the chance to borrow money based on the amount of equity the owner has built up. It is also assessed on the market price of the property minus the loan amount remaining on the primary mortgage. A second mortgage may also be used as a mortgage refinancing agreement to benefit the homeowner in the event of a large drop in interest. Both first and second mortgages can be set at fixed rates of interest that are applicable during the entire tenure of the agreement, or based on variable rates that are influenced by rise and fall of the prime lending rate. In the recent financial crisis that was brought about, in good part by problems with housing loans, there are other types of mortgages that exist under the conventional category. For example, there are confirming loan with terms and conditions based on the guidelines set up by Fannie Mae and Freddie Mac. They require the filing of credit and income statements, a background check, and a suitable down payment on only appropriate properties. Many of the rules and condition for obtaining a mortgage - especially for first time home buyers - are in a state of flux. As new government incentives are introduced to deal with the dramatic problems in the housing market, these provide new opportunities for home buyers to get into home ownership. In the current situation we are seeing opportunities for first time home buyers that may not present themselves for another generation or more. Private lenders are also providing innovative programs for qualified buyers to take advantage of the new realities of home ownership. That makes it very important to shop for the very best mortgage deal you can find. About The Author: If you are a Chicago 1st time home buyer you need mortgage advice you can count on. Call 773-305-LOAN for a free quotation without obligation on a Chicago 1st time home buyer mortgage or mortgage refinance - http://www.aandnmortgage.com |
Tags: CHICAGO FIRST TIME HOME BUYER, CHICAGO 1ST TIME HOME BUYER
